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Gas crisis in industries

Friday, 14 August 2015


Gas crisis looms heavy on the newly set-up industries as well as those awaiting relocation, especially in the textile and apparel sector. Although a persisting problem, this time it might wreck havoc as hundreds of industrial units involving several billions of takas in investment are sitting idle for want of gas. More than 300 textile and garment factories, according to a report published in this daily this week, are not in a position either to go into production or for expansion of their capacities mainly due to non-availability of gas.
The situation is really grave and absence of any noticeable move for relief in the near future makes it too upsetting for the entrepreneurs. The leaders of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) and Bangladesh Textile Mills Association (BTMA) say that more than two hundred readymade garment factories and around 100 textile mills cannot be run due to lack of gas connections. Industry insiders claim that if the factories would have been operational, more than eight hundred thousand people could have been employed and the country could also have gained additional export earnings worth $1.5 billion. Beside the need for newly set-up plants, the demand for gas has risen sharply because a large number of garment units, mostly located in shared buildings (declared non-compliant during inspections), are not able to relocate their units to newer destinations due to lack of gas connections. As a result, they are unable to improve their workplace conditions and other safety requirements. Their plants are shut sine die, affecting the livelihood of thousands of workers. The BGMEA sources say, presently there is an immediate need for 50.92 cft gas for relocation, expansion of the already existing garment factories and operation of new ones. Approximate investment in these plants is reportedly to the tune of Tk 25.0 billion.
In view of the prevailing situation, one has reasons to ask how the government justifies its promotional campaigns for increasing investment in the country. The entrepreneurs of newly set-up mills, especially spinning mills, are the worst victims who could not anticipate the lingering scarcity and are still in a fix if they would at all be able to go into production in the foreseeable future. Getting on with increasing loan burden is a clear premonition of bankruptcy for many. Besides, the machinery and equipment that are kept idle for long periods of time may also cause costly glitches adding to their already sorry state.    
In its two successive regimes, the government, despite odds and amid controversies, has brought some noticeable improvements in the power sector. But steps in the gas sector are, so far, indifferent, affecting both household as well as industrial users. The government is pretty much aware of the adverse fallout, particularly in the industrial arena and the bad signal it sends to potential investors, both local and foreign. But it has to find a way out. Making the industrial sector hostage to gas scarcity must not be a lingering phenomenon. The government should plan actions on how to address the problem within the shortest possible time.