MoC to request power division to give electricity connections to new RMG units

FE Team | Published: March 24, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

FHM Humayan Kabir
The Ministry of Commerce (MoC) will request the power division to give electricity connections to the newly set up garment factories waiting for many months for getting power supply to start operation, officials said Wednesday. Commerce ministry officials said some entrepreneurs have set up apparel manufacturing units but are yet to get electricity connections, resulting in impediment to the further export growth of the country's largest foreign exchange earning sector. "Due to repeated appeals by the RMG makers, our minister has taken up the issue. Now we will request the power division to give electricity connections to the newly constructed garment units," a senior official of the commerce ministry told the FE. Country's ready-made garment (RMG) makers said scores of newly set-up industries cannot start operation due to absence of power connection from the state-owned power distributors. President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) AKM Selim Osman said at least 150 newly set up factories are passing idle time as they have no electricity connections. The commerce ministry official said, "we have already been requested by the garment makers to resolve the power supply problem." "The garment makers have sent us lists of some newly set-up factories which are passing idle days due to absence of power supply and facing massive losses in business," he told the FE. "We will request the power division to give connections and supply electricity so that the RMG export earnings continue," he said. Bangladesh RMG sector earned US$14.08 billion and grew by 40.28 per cent in July-February period of the current fiscal year (2010-11) compared to the corresponding period of last fiscal. President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Abdus Salam Murshedy said some 100 newly set-up garment units have not been able to start production due to absence of electricity connections. "We have requested the commerce ministry to resolve the issue. The factories which have already set up machinery and establishments for production of apparel should get priority for power connections," he told the FE. The newly set-up factories have already faced massive losses due to absence of power supply, as they have taken bank loans for building their factories, the outgoing BGMEA chief said. Country's operating garment factories have been getting less power supply due to frequent outages resulting in production losses everyday. Nearly 60 per cent of local factories have already installed gas or oil-based generators for overcoming the losses as the state-owned power distributors have failed to ensure uninterrupted supply of electricity. "If we get uninterrupted power supply from the government our competitiveness in the global market will become stronger," Mr. Murshedy said. He said the RMG owners are spending additional Tk10.97 billion for buying gas and diesel per year to generate 1200-megawatt of electricity for their factories. "If we get uninterrupted supply of gas and electricity, then we have to spend only Tk4.05 billion for gas and diesel," Murshedy said. He said the country's apparel sector has been incurring nearly Tk 7.0 billion loss annually due to the frequent power outages. RMG is a major job-creation sector in the country where nearly 3.5 million people are directly employed. The country's 80 per cent export earnings come from RMG sector.