The government will take tough actions against employees of state-owned Titas Gas Transmission and Distribution Company if they indulge in corruption and irregularities, Prime Minister's energy adviser Tawfiq-e-Elahi Chowdhury said on Monday.
"We will take tough action against Titas corruption ...full crackdown for sure, either institutionally or personally," he said, adding that the government might open a separate marketing company that will sell gas and provide fees if it uses Titas distribution network.
Cautioning the corrupt officials, he said the government would certainly launch the marketing company if the Titas employees continue to torture or harass their clients.
His remarks came at a view-exchange meeting on gas, electricity and energy with the members of Bangladesh Textile Mills Association (BTMA) at its office in the city.
During the meeting presided over by BTMA president Tapan Chowdhury, its members made allegations of irregularities and corruption against the officials of Titas Gas Transmission and Distribution Company Ltd.
On possible gas price hike, the energy adviser asked the businesses not to worry saying, "Gas price will remain at a tolerable rate and will be hiked phase by phase."
He also said the government will provide incentives to the textile millers who generate captive power with efficient use of gas.
He suggested that the millers should be cautious about energy efficiency.
Matin Chowdhury, former president of BTMA said, "We have to pay millions of taka for getting one single gas connection. Titas employees are so united that nothing can be done against them."
Md Khorshed Alam, a BTMA director, alleged that he became sick because of harassment by Titas.
"I was supposed to get 15 PSI (pound per square inch) pressure but got only 2.0 PSI and receive bill for 15 PSI," he alleged, adding that he has to pay additional bill worth Tk 1.5 million to Tk 2.0 million.
As instructed by the High Court, his company installed electronic volume corrector (EVC) meter, but the problem has not yet been resolved, he said. "As a result, my company incurred a loss of Tk 21.6 million last year."
The BTMA president said gas price would be Tk 15 from existing Tk 7.76 if proposed price hike at the rate of 93 per cent is implemented for industries using gas in boilers. The enhanced rate would be Tk 16 from Tk 9.62 for captive power generation, he added.
"In last two years, the government increased gas price by 222 per cent. But the textile millers could not raise the prices of their products in line with the gas price hike as global apparel prices have not increased accordingly," he said.
"We believe that it is necessary to fix an acceptable tariff rate for gas and electricity along with giving connection to new industries," he said.
He proposed that the government form a committee comprising representatives from related sectors and experts and not to rely only on mass hearing for fixing fair gas and electricity prices.
He also requested the government to specify how long the enhanced rate would be applicable, saying that in absence of such policy, the usual growth of industry is hampered.
There are many entrepreneurs who get discouraged in making investments mainly because of uncertainty over availability of gas and electricity, he said.
AK Azad, former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), opined that not a single textile mill would survive as they would lose competitiveness in the global market if the proposed gas price hike is implemented.
Bangladesh is lagging behind India, Vietnam and Pakistan in the global competition as it depends on imported raw materials including cotton and fabric especially for woven, he said, adding that further gas price hike would erode its competitiveness.
Many mills will face closure as the production cost of spinning mills would increase by 10-12 per cent from the existing 8.0-9.0 per cent if the gas price goes up according to the proposal, said Shahed Alam, director of BTMA.
He also urged Petrobangla not to make profits for the greater interest of the industry and the country.
Abul Mansur Md Faizullah, chairman of Bangladesh Oil, Gas and Mineral Corporation, widely known as Petrobangla, said Petrobangla is incurring a daily loss worth Tk 93 million which has been possible because of local gas sources.
"But now LNG has to be imported. But price will remain between Tk 14 and Tk 15 as VAT is going to be reduced to 15 per cent from 122 per cent," he said, echoing the energy adviser that price would not be raised in one go and be increased in phases.
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