DHAKA, Jan. 16 (Xinhua) -- The Bangladeshi government has decided to withdraw all duties from solar energy equipments to encourage mass use of the renewable energy to face the power shortage in the country, The Daily Star reported on Friday.

    Earlier there was a provision for 3.0 percent duty on import of renewable energy equipments and an additional value-added-tax (VAT) of 15 percent, the leading English newspaper said.

    Prime Minister Sheikh Hasina, who also holds the energy portfolio, announced the decision after a meeting with officials of the energy ministry on Thursday.

    This decision was made in line with the country's first Renewable Energy Policy, which was approved last month and aimed at providing power to all by 2020 in phases.

    The policy targets developing renewable energy resources to meet 5 percent of the total power demand by 2015 and 10 percent by2020.

    At present, over 300,000 households are using solar energy equivalent to 15 megawatt, contributing less than 1.0 percent of the country's total electricity generation of around 3,500 MW against the estimated demand for over 5,000 MW.