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Saturday, March 11, 2006

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HEADLINE
 
Economists for 'pro-people' coal policy
FE Report
3/11/2006
 

          A pro-people policy on coal, as a part of comprehensive energy policy, should immediately be formulated immediately, experts said at dialogue Friday.
The national dialogue on 'proposed coal policy: an analysis' was organised by citizens' commission on gas-oil-coal and the Bangladesh Economic Association (BEA) in the city.
The BEA president Kholiquzzaman Ahmad was in the chair at the dialogue session.
It was addressed by former Power Development Board Chairman Nuruddin Mahmood Kamal, Professor Badrul Imam of Dhaka University, BEA General Secretary Professor Abul Barakat, Institute of Development Studies Chairman Dr. Mustafizur Rahman, former Planning Commission Member Rafidul Islam, Social Worker Shuv Kibria, Golam Murtaza of Weekly 2000 and Shamima of Economic Relations Division and Professor M.M. Akash of Dhaka University.
"The proposed coal policy is farcical and exported-based as it provides for 6.0 per cent royalty only which must be at least 15 per cent. It also states that the lessee shall see the environmental justice issue and will share information with public which will never happen in reality because the lessee will always try to maximise its benefit," said Kamal.
"We have only 570 million tonnes of recoverable coal equitable to 37 trillion cubic feet gas. Following open pit mining we may export coal which will push the country toward importing energy from abroad after a certain time and lead to serious environmental degradation coupled with destruction of ecological system," added Kamal.
He criticised the proposed coal policy saying that it has no demand-supply forecast.
According to the policy, Asia Energy will withdraw 7.0 per cent of the reserved coal when India and China with several times more reserves are withdrawing less than 0.5 per cent, considering the future energy crisis, he warned.
"The country has a total of 2000 million tonnes coal of which 1000 tonnes of Jamalgang can not be withdrawn where India has 300 billion tonnes. A total of 92 per cent energy supply to produce electricity comes from gas which will be exhausted soon and the people should be made conscious about the proper utilisation of coal," said Professor Badrul Imam.
Before going for open pit mining or tunnel-mining, the government must think about the ecological balance and the rehabilitation of about 50,000 people -- where they will go and the subsequent pressure on the infrastructure of the new place including roads, schools and hospitals, said Mr. Imam.
A thick level of water is on the coal in Bangladesh and it must be dried before going for withdrawing coal and this drying will cause serious problems for the country.
"Asia Energy has no previous experience of open pit mining like Niko, so the government should not take any suicidal decision. Even it must not go for export aggressively," said Shamima.
Professor Barakat suggested for maximisation of domestic value addition and this should be the corner stone of the coal policy and that would help the country to utilise its natural resources effectively.

 

 
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