FBCCI places proposals to tide over power, gas crises

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Wednesday demanded immediate steps for supply of power and gas to the industries that have already secured demand notes of availing the utilities.
Leaders of the country's apex trade-body made the demand at a press briefing at Federation Bhaban.
They said many industries have been idle for months for not having power and gas supply although demand notes were issued for supplying those.
While briefing the reporters, FBCCI President Abdul Matlub Ahmad said a number of industrial units were built over the years in the country amid a stable economy, as recognised by different global rating agencies.
He said a good number of the units could not go into production for long due to power and gas shortage. It has forced the industrialists to count substantial financial loss in the form of paying high bank interest rates. They made large volume of investment to set up those units.
"If the situation prolongs further, it will put the bank financing to those industrial units at risk. It will also have a negative impact on both local and foreign investment in the coming days, which none in the country wants," he said.


At the briefing, the FBCCI president placed three proposals on behalf of the organisation to the government to consider for overcoming the utility crises that have been holding back the growth of the industrial sector as well as the economy.
The proposals include supplying gas to the industries, which have received demand note from various gas transmission and distribution companies including Titas, by August 15 as part of short-term initiatives.
According to FBCCI, many apparel factories need to shift their units as part of the ongoing transition period against the backdrop of post-Rana Plaza and Tazreen tragedies, following suggestion of local and international experts to convince global retailers. But the factories now need to submit fresh applications for electricity and gas connections.
"So, we propose to ensure resumption of gas and power supply to the shifted factories according to their previous approval," another proposal said.
The industrial units, driven by gas-based generators, should also be given top priority in supply of gas, it added.
After making the proposals, the FBCCI president said the government can take measures to resume operation of the old and suspended power plants, inviting the private sector through PPP (public-private partnership) to further minimise the supply-demand gap.
"We're very much interested to invest at the new dollar rate of diesel prices, if the government finds itself in difficulties to resume the closed-down power plants," he added.
Speaking at the briefing titled 'Prospects of Current Industrialisation Scenario and the Role to Play', former FBCCI president AK Azad said a high-powered committee, led by Prime Minister's Power and Energy Adviser Dr Tawfiq-e-Elahi Chowdhury, was earlier formed to deal with the issue.
He said some 75 demand notes were issued over the years in favour of various industries. But only 10 to 12 industries got the utility supply and the rest have not got it yet.  
He said the government projected eight per cent growth rate over the next few years from existing six-plus growth. But it cannot be achieved leaving industries without power and gas.
Hailing various government moves, including fiscal measures, for trade and business in the country, former FBCCI president Kazi Akramuddin Ahmed said the government needs to focus more for overcoming key barriers, like - infrastructural shortcomings, high bank interest rate and inadequate industrial plots, for attracting the expected level of investment here.  
The country's eminent industrialist and president of International Chamber of Commerce, Bangladesh (ICC-B) Mahbubur Rahman was present at the briefing, among others.  
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