Energy Bangla

The government is going to revise the Renewable Energy Policy. Giving lifetime waiver of income taxes to foreign companies investing in renewable energy sector to entertain foreign investment in the sector.
If the policy is revised, foreign investors will get more benefit compare to local investors in the country’s renewable energy businesses as the locals will get the tax waiver for 15 years.
The draft revised policy also suggested the local private companies to form a joint venture with the foreign ones to enjoy the lifetime waiver of income tax, said officials concerned.
The government on November 06, 2008 formulated the Renewable Energy Policy suggesting financial incentives and logistic support to private companies from the government, a power division official said.
The Power Division will hold a roundtable on the draft revised policy today before finalising it, he said.
According to the draft, a foreign investor in renewable energy sector will also enjoy waiver of taxes on the earnings from the sales of shares, royalty, technical know-how, technical assistance and the tax on the interest on foreign loans.
The foreign companies will be able to transfer the investment, income and profit to other countries, the draft said.
The draft also suggested waiver of income taxes of the foreign employees in the renewable energy producers for three years and allowing them to take home 50 per cent of their income and entire savings and the money they receive during retirement when they would leave their jobs.
Both the local and foreign investors in the sector will have the same facilities in receiving bank loans.
The draft said that the entrepreneurs would be waived from taking licences from the Bangladesh Energy Regulatory Commission for installation and operation of a renewable power plant with less than 5MW capacity.
The draft set the price of renewable energy quoted in the open tenders as the benchmark for the energy commission in fixing the price.
According to the draft policy, the state-run Power Development Board or the power distribution agencies will buy electricity from the renewable power plants for 20 years.
A renewable energy producer will, however, decide whether it will sell the electricity to the Power Development Board or the power distribution companies or a consumer, the draft said.
The producer will have to pay the wheeling charge, to be set by the energy commission, to the power transmission or distribution agencies if it uses their grid lines, it said.