Govt mulls giving duty-free diesel to RMG units
Friday, 21 August 2009
FE Report
The government mulls providing duty-free diesel to industries especially the ready-made garment (RMG) units to ease mounting dependency on fast-depleting natural gas, energy adviser said Thursday.
"We are considering supplying duty-free diesel to boost industrial production against the backdrop of gas supply crunch," Dr Towfiq-e-Elahi Chowdhury told newsmen after a meeting with leaders of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) in the secretariat.
He suggested the businesses to submit a detailed paper on requirement of diesel for consumption in their industrial units.
Dr Elahi, who is Prime Minister's adviser on energy issues, also urged the leaders of apparel sector to use furnace oil as fuel for industry boilers instead of natural gas.
"The government has withdrawn duty on import of furnace oil to encourage its use in industries," he said.
Bangladesh Energy Regulatory Commission (BERC) also reduced the furnace oil price in March this year to Tk 26 a litre from previous Tk 30.
The adviser said the power ministry is now focusing on installation of furnace oil-fired power plant for short term as natural gas reserves is drying up fast.
"We will float international tender to install furnace-oil fired power plants having the generation capacity of 500 megawatts (MW) of electricity by next week," said Dr Elahi.
Tenders for setting up power plants to generate another 800 MW of electricity would be floated by June next year, said the adviser.
The government has planned to install rental power plants with a combined capacity of 500mw by June 2010 and peaking power plants with a capacity of 800mw in two years.
All the power plants would be installed outside the capital and the state-owned Bangladesh Power Development Board (BPDB) has already selected 20 separate locations for installing these power plants.
The sites include Khulna, Kushtia, Veramara, Madanganj, Mymensingh, Baghabari Santahar, Katakhali, Thakurgaon, Saidpur, Ghorashal, Gopalganj, Barisal and Chapainabab-ganj.
The BKMEA President Fazlul Hoque informed journalists that power and gas crisis is hampering 20-30 per cent of their production.
He demanded withdrawal of the annual license fee worth Tk 500,000 on captive power generators.
The BKMEA leader demanded that the furnace oil prices should be proportionate with the natural gas.
He also protested the recent hike in natural gas tariff when the government is struggling to ensure adequate supplies.
The BKMEA leader informed journalists that they would submit a detailed assessment report on gas consumption by apparel sector and the demand for diesel consumption.
The government mulls providing duty-free diesel to industries especially the ready-made garment (RMG) units to ease mounting dependency on fast-depleting natural gas, energy adviser said Thursday.
"We are considering supplying duty-free diesel to boost industrial production against the backdrop of gas supply crunch," Dr Towfiq-e-Elahi Chowdhury told newsmen after a meeting with leaders of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) in the secretariat.
He suggested the businesses to submit a detailed paper on requirement of diesel for consumption in their industrial units.
Dr Elahi, who is Prime Minister's adviser on energy issues, also urged the leaders of apparel sector to use furnace oil as fuel for industry boilers instead of natural gas.
"The government has withdrawn duty on import of furnace oil to encourage its use in industries," he said.
Bangladesh Energy Regulatory Commission (BERC) also reduced the furnace oil price in March this year to Tk 26 a litre from previous Tk 30.
The adviser said the power ministry is now focusing on installation of furnace oil-fired power plant for short term as natural gas reserves is drying up fast.
"We will float international tender to install furnace-oil fired power plants having the generation capacity of 500 megawatts (MW) of electricity by next week," said Dr Elahi.
Tenders for setting up power plants to generate another 800 MW of electricity would be floated by June next year, said the adviser.
The government has planned to install rental power plants with a combined capacity of 500mw by June 2010 and peaking power plants with a capacity of 800mw in two years.
All the power plants would be installed outside the capital and the state-owned Bangladesh Power Development Board (BPDB) has already selected 20 separate locations for installing these power plants.
The sites include Khulna, Kushtia, Veramara, Madanganj, Mymensingh, Baghabari Santahar, Katakhali, Thakurgaon, Saidpur, Ghorashal, Gopalganj, Barisal and Chapainabab-ganj.
The BKMEA President Fazlul Hoque informed journalists that power and gas crisis is hampering 20-30 per cent of their production.
He demanded withdrawal of the annual license fee worth Tk 500,000 on captive power generators.
The BKMEA leader demanded that the furnace oil prices should be proportionate with the natural gas.
He also protested the recent hike in natural gas tariff when the government is struggling to ensure adequate supplies.
The BKMEA leader informed journalists that they would submit a detailed assessment report on gas consumption by apparel sector and the demand for diesel consumption.