No alternative to coal import: PM aide

Dhaka, July 11 The government will prefer importing coal for generation of power as it will be easier and cheaper than its extraction from local mines, Prime Minister's Energy Adviser Dr Tawfiq-e-Elahi Chowdhury has said.

"Many criticise the idea of import of coal. But there's no alternative to import if we want to generate power from coal in the next 3-5 years as extraction of coal from local mines may take up to 10 years," he said addressing a seminar at the CIRDAP auditorium in the city on Wednesday.

Tawfiq said the coal from the local mines would be used in power generation in future.

State-run Power Development Board (PDB) on June 27 signed a number of deals with local business conglomerate Orion Group to set up three coal-fired independent power producers (IPPs).

The government will import coal to run these power plants.

The government on Jan 29 this year also signed another agreement with the National Thermal Power Corporation (NTPC) of India to build a 1,320 megawatt coal-fired power plant at Rampal in Bagerhat district.

There is a government-run coal-based power plant producing 250 MW power in Barapukuria coal mine area.

Despite a 3-billion tonne reserve of coal, its use in power generation is very little. It currently contributes just two percent to the country's total power generation while 78 percent electricity is generated from gas and 17 percent from furnace oil.

The government is yet to finalise the national coal policy.