Businesses sceptical over success of govt move
Monday, 23 November 2009
M Azizur Rahman
Businesses are sceptical over success of the government initiative to launch weekly holiday staggering in gas guzzling industries saying the industries already in strain due to energy supply crunch would bear the brunt of the new move.
They said the proposed measure would thwart the industrial output and the country's earnings from export might slide in turn.
It might embrace similar fate of the weekly holiday staggering introduced to save electricity in 2007, which the business leaders said, 'failed' due to insignificant output.
"I think the proposed holiday staggering will not bring any encouraging results for the government as the businesses are already running with short supplies of energy," President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Annisul Huq told the FE.
The holiday staggering introduced with a similar objective to streamline electricity supplies failed to yield positive results in the opening days and, as the consequences, most of the industries came out of it, said the top brass of the country's apex trade body.
Echoing a similar view, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Fazlul Haq said the country's energy crisis would not be resolved with the holiday staggering formula.
"Basic energy shortage cannot be resolved by rationing in consumption," he said.
Besides it would be tough to monitor whether the industries are obeying the staggering in line with the government formula, said the BKMEA leader.
"I don't see it as a pragmatic measure from the government," said first Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Nasir Uddin Chowdhury.
The industry owners are already struggling to maintain production with low gas pressure and inadequate supplies, he said.
The new measure would be disastrous for the export-oriented industries as it might deteriorate the overall gas supply system leading to missing of shipment deadlines, Mr Nasir feared.
"A slew of industries in Chittagong remained shut for the last two years after investing over Tk 2.50 billion (250 crore) only due to gas shortage," said the leader of the country's highest export earning sector.
Petrobangla Chairman Dr Hussain Monsur, however, believes the holiday staggering would save around 30-40 million cubic feet (mmcf) of gas daily.
He said the new system would ensure gas supplies with sufficient pressure to the consumers.
The state-owned Petrobangla has already proposed the holiday staggering plan to the businesses to, what it said, streamline consumption of the country's fast-depleting energy source - natural gas - without affecting industrial output.
It has already instructed its subsidiary gas marketing and distribution companies to introduce the staggering plan following consultation with the gas-guzzling industry owners.
Under Titas's jurisdiction areas Saturday would be closed for industries located at Tongi and Manikganj including some parts of the capital, Sunday for Savar and Konabari areas, Monday for Gazipur and Tuesday for industries of Mymensingh and Gauripur.
Industries at Narsingdi, Ghorashal, Monohardi, B' Baria, Bhairav, Bhaluka, Zinzira and some parts of the capital would be closed on Wednesday, said a senior official of the state-owned gas marketing and distribution company - Titas Gas Transmission and Distribution Company Ltd (TGTDCL).
Businesses are sceptical over success of the government initiative to launch weekly holiday staggering in gas guzzling industries saying the industries already in strain due to energy supply crunch would bear the brunt of the new move.
They said the proposed measure would thwart the industrial output and the country's earnings from export might slide in turn.
It might embrace similar fate of the weekly holiday staggering introduced to save electricity in 2007, which the business leaders said, 'failed' due to insignificant output.
"I think the proposed holiday staggering will not bring any encouraging results for the government as the businesses are already running with short supplies of energy," President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Annisul Huq told the FE.
The holiday staggering introduced with a similar objective to streamline electricity supplies failed to yield positive results in the opening days and, as the consequences, most of the industries came out of it, said the top brass of the country's apex trade body.
Echoing a similar view, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Fazlul Haq said the country's energy crisis would not be resolved with the holiday staggering formula.
"Basic energy shortage cannot be resolved by rationing in consumption," he said.
Besides it would be tough to monitor whether the industries are obeying the staggering in line with the government formula, said the BKMEA leader.
"I don't see it as a pragmatic measure from the government," said first Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Nasir Uddin Chowdhury.
The industry owners are already struggling to maintain production with low gas pressure and inadequate supplies, he said.
The new measure would be disastrous for the export-oriented industries as it might deteriorate the overall gas supply system leading to missing of shipment deadlines, Mr Nasir feared.
"A slew of industries in Chittagong remained shut for the last two years after investing over Tk 2.50 billion (250 crore) only due to gas shortage," said the leader of the country's highest export earning sector.
Petrobangla Chairman Dr Hussain Monsur, however, believes the holiday staggering would save around 30-40 million cubic feet (mmcf) of gas daily.
He said the new system would ensure gas supplies with sufficient pressure to the consumers.
The state-owned Petrobangla has already proposed the holiday staggering plan to the businesses to, what it said, streamline consumption of the country's fast-depleting energy source - natural gas - without affecting industrial output.
It has already instructed its subsidiary gas marketing and distribution companies to introduce the staggering plan following consultation with the gas-guzzling industry owners.
Under Titas's jurisdiction areas Saturday would be closed for industries located at Tongi and Manikganj including some parts of the capital, Sunday for Savar and Konabari areas, Monday for Gazipur and Tuesday for industries of Mymensingh and Gauripur.
Industries at Narsingdi, Ghorashal, Monohardi, B' Baria, Bhairav, Bhaluka, Zinzira and some parts of the capital would be closed on Wednesday, said a senior official of the state-owned gas marketing and distribution company - Titas Gas Transmission and Distribution Company Ltd (TGTDCL).