Businesses hail decision to open up power sector for private investment

FE ReportbrThe leading business leaders hailed the government decision to open up the country's power sector for private investments to expedite development of this ailing sector. brThey said extensive private sector involvement in electricity generation would ensure uninterrupted power supply to their industries, reduce production costs and time and thus augment industrial output substantially.brPower ministry sources said the government has decided to allow setting up of merchant power plants by private entrepreuners where the power producers would have the liberty to select their clients and sell electricity at their choices.brA merchant power plant policy would be adopted soon to encourage private investments in the power sector under a regulated framework.brWelcoming the government move president of the country's apex trade body Annisul Huq said It is certainly a good initiative of the government to woo private sector investments in the power sector.brThe government must have to adopt a transparent policy to attract substantial investments from the private sector, said the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).brA good number of investors would come up to invest in the power sector if it is viable, the FBCCI president said.brPresident of Bangladesh Garment Manufacturers' and Exporters' Association (BGMEA) Anwar-ul-Alam Chowdhury Parvez said At present the government has no other option but to invite the private sector to participate.brHe said the industrialists want uninterrupted electricity supply to their enterprises to ensure optimum production and timely shipment.brPrivate sector involvement would help in stopping frequent electricity disruptions in the industrial units, Parvez hoped.brCurrently the industrialists spent a lot of money to install generators in their factories as back-up support during load shedding that costs over billions of takas.brTotal expenditure of the country's garment factories increased by Tk 500 million a month only for purchase of diesel at higher rates to Tk 55 a liter from its previous price of Tk 40 a litre, a top leader of the business body of the country's highest export earning garment sector said.brA medium sized garment factory having the working force between 1,000-1,200 has to spend over Tk 1.0 million a month to arrange back-up power support of industries, he said.brThe industrialists would likely consume electricity from the merchant power plants even if it becomes costlier than the government-supplied electricity to get quality services, said Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Fazul Huq said.brHe said the move should be implemented as quickly as possible to relieve the businessmen from the curse of frequent electricity disruptions.brWe have long been demanding to open up the power sector for private investments, said vice president of Chittagong Chamber of Commerce and Industries (CCCI) Mahbubul Alam.brIndustrial units of the worst affected Chittagong region would have heave a sigh of relief from frequent power disruptions that costs six to seven hours production loss daily, the CCCI leader said.br