Gas distribution policy soon to ensure supply

The government is formulating a gas distribution policy to ensure adequate supply of the fuel to all industrial units, high officials concerned revealed on Sunday.
"This upcoming policy would go a long way to address the ongoing concern over gas shortages among the investors," said Dr Tawfiq-e-Elahi Chowdhury, energy adviser to the prime minister.
"The policy would be as such that it supports investment, industrialisation and regional development," he disclosed during an event in Dhaka.
Mr Chowdhury was addressing the subscription ceremony of Tk 5.0 billion non-convertible bond of Ashuganj Power Station Company Limited (APSCL).
The fully redeemable, coupon-bearing bond will be used for financing 400-megawatt Ashuganj combined cycle power plant and Kolapara 1320MW coal-based power plant.
Only public treasury bonds are currently allowed under the statutory liquidity ratio (SLR), the adviser observed.
"However, if we also allow such power-sector bonds under the SLR, that would be beneficial to the growth of bond market in the country," he said.
Speaking on the occasion, state minister for power, energy and mineral resources Nasrul Hamid called for increasing transparency and credibility of the local power-supply entities.
"We have a plan to offload shares in the overseas market in the near future. We would also like to be equity partner," he said.
"However, moving forward, our companies need to be more transparent and more credible in light of that," Mr Hamid said.
Finance minister AMA Muhith, who attended the event as the chief guest, said power and electricity is the source of all productivity.
"Expansion of power and electricity is a continuous process," he added.
Later, a formal subscription agreement was signed by the entities who will be participating in the APSCL bond scheme.
Up until now, the entities have committed to providing a total of Tk 3.85 billion.
Of them, Bangladesh Infrastructure Finance Fund Ltd and Agrani Bank will provide Tk 1.0 billion each, and Rupali Bank will channel Tk 750 million and Sonali Bank Tk 500 million.
Meanwhile, Uttara Bank, Sadharan Bima Corporation and ICB Asset Management Company Ltd will provide Tk 200 million each.
Officials are hoping to raise an additional Tk 1.15 billion of the bond by next March.
A total of 1.0 million bonds will be issued as part of this scheme. The face value of each bond is Tk 5,000.
The tenor of the bond will be seven years while the coupon rate will be measured through the summation of reference rate and margin.
Principal coordinator for SDG affairs Md Abul Kalam Azad and power secretary Dr Ahmed Kaikaus, among others, also spoke on the occasion.

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