Govt revives plan to divide Titas into three separate companies

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M Azizur RahmanbrThe government has revived plan to dismantle the state-run Titas into three separate companies to increase efficiency and dynamism in the country's gas marketing and distribution system, officials said Saturday.brThe dismantling plan of Titas is now awaiting approval from the energy ministry, managing director of the Titas Gas Transmission and Distribution Company Ltd (TGTDCL) Md Abdullah told the FE.brHe said financial analysts were working to split the newly listed company into three, mainly based on their locations. brThe company's shareholding, assets and liabilities would also be divided into three, he added. brThe move follows an original plan by the previous Bangladesh Nationalist Party (BNP)-led government. The BNP plan was however shelved in the face of tough resistance from Titas's union leaders. brTitas with its extensive pipelines in the eastern, central and northern parts of the country accounts for more than 70 per cent of Bangladesh's total daily gas supply. brLast year, the company's revenue soared over US$550 million dollars due to soaring use of gas in factories and households. brBut the company is often criticized for inefficient distribution system, which results in low gas pressure, inadequate supply and system loss worth millions of dollars. brMultilateral donor agencies such as the World Bank and the Asian Development Bank have long pressed the government to dismantle the company, based on their locations, to improve distribution and increase profitability.brThey tagged increased assistance in the country's future gas distribution system to the dismantling of the company, one of the largest owned by the government. brIn 2005, the then BNP-led coalition government announced a move to dismantle the company, but it was forced to back down. Officials said union leaders had successfully bought several BNP stalwarts to scuttle the move. brTop Titas executives said they expect no troubles this time from the company's more than 3000 officials, as most of the union leaders have been fighting corruption charges while emergency rules have banned union activities. brThe caretaker has already announced plan to create a new gas distribution company exclusively for Chittagong, the Karnafuli Gas Company Ltd (KGCL), by splitting the Comilla-based Bakhrabad Gas Systems Limited (BGSL) into two.brAs per the BNP plan, Titas would be divided into -Brahmaputra Gas Distribution Company Ltd (BGDCL) to look after gas distribution in greater Mymensingh region, Titas Gas Distribution Company Ltd (TGDCL) for greater Dhaka and Shitalakkhya Gas Distribution Company Ltd (SGDCL) for Narayanganj.