DHAKA: The government has finalized the much-talked-about Coal Policy that is deemed to be in favour of the multinationals vying for a stake in the huge reserves of fossil fuel in the countryÔÇÖs northern mines.

A copy of the finalized Policy, which is highly likely to be approved, has been availed by banglanews24.com.bd.

It did not specify controversial issue of how the coal will be extractedÔÇöeither using open-cast or underground method of mining.

But the policy recommends extracting coal by using acceptable method considering the geological setup, morphology and topography of the discovered coalfields.  

ÔÇ£Mine will be developed using underground mining method/open-pit mining or a combination of open-pit and underground mining method,ÔÇØ the policy statement says.

There have been debates over the mining methods, as local stakeholders stood to open-cast mining with violent protests that led to loss of lives.         

The finalized draft will be sent for Prime Minister Sheikh HasinaÔÇÖs approval any day this month.

The five-page draft coal policy is apparently a brief version of the 33-page policy that was drafted in June 2007.

At present there are five coalmines in the country, four of them having 1168 million tonnes of recoverable coal in Barapukuria, Khalaspir, Fulbari and Dighipar sites. The fifth one is in Jamalganj where the reserve could not be measured for the depth.


The new coal policy has its stress on the setting up of coal-fired power plants, as the country goes sweating for huge electricity shortages. It also recommends strengthening the Geological Survey Department and the Bureau of Mineral Resources.

It also proposed a new coal-management organization.

The new Policy will welcome government and private, direct foreign and domestic joint-venture investment for ensuring energy security.          

Asked for his comment on different aspects of the finalized Policy, Energy Secretary Mohammad Mezbahuddin declined to make any remark. But he said it is confidential.

ÔÇ£I will not make any comment about it as the drafting still continues. You will know everything once it is published,ÔÇØ he said.

Implementation Strategy:

The policy favours engaging strategic partners or joint investors for discovery and development of coalfields. It also gives highest priority to coal-fired power plants, and establishing ÔÇÿCoal ZoneÔÇÖ in the area where coal is more available.

It asks for a coal-sector master plan and the setting up of a coal-research organization for wider research into the area.

Environmental Aspects:

The policy made it mandatory to follow environment-related law and rules of Bangladesh for coal exploration, extraction, coal stockpile management and uses.

The licensee or lessee will be responsible for conservation of environment in any project area, including migration measures. They will bear the costs and restore the environment for any damage done during mine development.  

The lessee has to ensure that living standards of the affected people for mine development will get improved.

They will have to consult the locals for any damage and compensate.


The government will fix the royalty of extracted coal by gazette notification.

The policy proposed a separate coal fund by government grants for developing the coal sector and institutional capacity building.

ÔÇ£For any damage in the coalmine, compensation will be guided by the Rule-18 of the Mines and Minerals Rules-1968,ÔÇØ says the policy.

BDST: 2010 HRS, JULY 6, 2010