Government is set to impose a new surcharge on the sale of oil, gas, coal, and stone for collecting capital to introduce a new "Social Development Fund (SDF) Policy-2025" run by Petrobangla, the Energy and Mineral Resources Division, or boards of relevant mining companies.
Officials expect the fund to generate substantial annual revenue, a small surcharge of Tk 0.03 per cubic meter could yield around Tk 92 crore annually for research and development initiatives in energy sector.
In 2009, Bangladesh Energy Regulatory Commission (BERC) directed the concerned authority to form Gas Development Fund (GDF) to finance exploration and development of Bangladesh's gas sector, especially the gas exploration activity, unfortunately, it did not happen, it were diverted for other uses, including LNG imports, although people are paying Tk 0.46 surcharge per cubic meter of gas for the development of its own gas.
"GDF was created for supporting domestic companies such as BAPEX, Sylhet Gas Field Company, and Bangladesh Gas Fields Company in expanding production," official said.
However, SDF will be financed from a share of the unit sale price of gas, oil, and minerals as determined periodically by the Energy and Mineral Resources Division and BERC. The fund will also earn interest on accumulated capital, the official said quoting the draft of the policy.
"The policy will be finalised soon," Energy and Mineral Resources Division secretary Mohammed Saiful Islam said.
The draft also proposes two supervisory bodies (a) A Fund Management Committee and (b) a Financial Management Committee.
It will be managed by Petrobangla, the Energy and Mineral Resources Division, or boards of relevant mining companies, the draft said.
Positioned as part of Petrobangla's corporate social responsibility, the SDF will finance socio-economic development in underprivileged areas around gas fields, coal mines and stone quarries.
"Allocations will be divided equally across five sectors, 20 per cent each, including education, infrastructure, socio-economic programmes, healthcare, and special initiatives (research)," official added.
Education will include scholarships, books, lab and vocational training equipment, libraries, computers, furniture, science fairs, and sports competitions. Infrastructure initiatives will cover support for religious institutions, preservation of historic sites, construction of bridges and culverts, social awareness programmes, aid to disadvantaged war veterans, reforestation, and assistance to vulnerable groups such as the elderly, widows, disabled, and poor.
Socio-economic programmes will focus on community development and social awareness programmes. Healthcare support will include treatment for critical diseases, aid to patients and hospitals, and medical camps. Special initiatives will provide financial aid and essential supplies for disaster victims, including floods, cyclones, earthquakes, droughts, and tsunamis.
Unlike the GDF, which carried a conditional 4 per cent interest on loans, the SDF will operate interest-free to avoid adding financial burdens on the public.
