Lawmakers upset about dearth of gas, power
Friday, 2 April 2010
FE Report
Lawmakers have expressed their grave concern over the disruption of utilities, such as gas and power supplies, as it is hindering the growth prospects of the country and jeopardising regular life of the people in general.
They said the people would accept hike in tariff, but they also want uninterrupted supply of gas, power and water.
They also proposed imposing tax on capital gain in the share market.
The views came against the backdrop of sharp production fall in the industries and load-shedding stretching 8 to 10 hours that is crippling normal life in urban areas of the country.
About 4,000 megawatt (mw) of electricity is produced against the demand of about 6,000mw and people in different parts of the country, including capital Dhaka, have started expressing their resentment at the inadequate supply of gas and electricity.
The members of parliament (JS) discussed the problems with finance minister AMA Muhith at a pre-budget discussion Thursday.
Mr Muhith said the government could initiate steps on power and gas generation but it is difficult to give any guarantee when the generation would reach the expected level.
"The government is set to take immediate decision to solve the energy crisis in the long-run," he said.
If LNG (liquefied natural gas) import decision is taken right now, it would take one and half years to import the fuel, he said adding, "It will take four to five years to extract coal from the country's mines if the decision is taken today."
"The government cannot increase the utility supply overnight as the project implementation period is lengthy," Mr Muhith said.
He advised the lawmakers to raise the issues in parliament.
Lawmaker Golam Dastagir Gazi, also an industrialist, said the current budget is investment-friendly but due to lack of gas and power shortages, investors are shying away from investment.
The big factories have their own power supply facilities through gas generators, but the government cannot supply it to the industries in general, he said.
"The government should immediately give a clear signal on whether we should switch over to diesel- or heavy furnace oil-based generators," the lawmaker added.
Mohiuddin Khan Alamgir MP said banks have excess liquidity, but investors are reluctant to invest.
He criticised Bangladesh Bank for undertaking a poverty alleviation project under which Tk 5 billion will be distributed to share-croppers without any collateral.
Mr Alamgir said stock market development strategies should be reflected in the budget.
ABM Golam Mostafa MP said the government should take all-out efforts to increase power generation.
"New gas wells should be drilled and coal should be extracted to meet the energy demand," he said.
Mr Mostafa said the government should impose tax on capital gain in the overheated stock market.
"Investors all over the world pay tax on capital gain but here people are making profit, yet they do not pay tax," he said.
Investors should submit the tax identification number (TIN) while opening beneficiary owners' account as it will help in tracking down the 'black money' being poured into the market, he added.
The lawmaker said the market lacks good scrip and the government should offload shares of different profitable state-owned companies under direct listing method.
About the decision on keeping air-conditioners off at peak hours, he said it would "distort the image of the government".
Subscribing to the same view, Oli Ahmed MP said, "It is not tolerable that ACs at the ministers' offices will run and the general people will suffer."
Development process is being hindered due to power shortage and the government should explore the potential of hydro-electricity in the country.
"We are importing coal whereas we have a reserve of 3,200 billion tonnes of it in the northern part of the country," he said.
The government should encourage coal-based power plants in the country to reap the benefit of the huge natural resource reserve, he added.
Mohammad Saidul Haque MP said the biggest problem in the country is power and fuel.
"We have a proven reserve of 12 trillion cubic feet of gas, but extraction is very poor," he said.
The lawmaker said the government should formulate a policy to bring parity to power use in the eastern and western parts of the country.
"Over 3,000 megawatt of electricity is consumed by the eastern part of the country and the rest is consumed by the western part," he pointed out.
The government should also encourage public-private partnership power projects to increase generation, he added.
Dr Mohammad Serajul Akbar said the government should take immediate decision on coal extraction.
He said excess liquidity in the banking system can be passed to stock market to make it more vibrant.
Lawmakers have expressed their grave concern over the disruption of utilities, such as gas and power supplies, as it is hindering the growth prospects of the country and jeopardising regular life of the people in general.
They said the people would accept hike in tariff, but they also want uninterrupted supply of gas, power and water.
They also proposed imposing tax on capital gain in the share market.
The views came against the backdrop of sharp production fall in the industries and load-shedding stretching 8 to 10 hours that is crippling normal life in urban areas of the country.
About 4,000 megawatt (mw) of electricity is produced against the demand of about 6,000mw and people in different parts of the country, including capital Dhaka, have started expressing their resentment at the inadequate supply of gas and electricity.
The members of parliament (JS) discussed the problems with finance minister AMA Muhith at a pre-budget discussion Thursday.
Mr Muhith said the government could initiate steps on power and gas generation but it is difficult to give any guarantee when the generation would reach the expected level.
"The government is set to take immediate decision to solve the energy crisis in the long-run," he said.
If LNG (liquefied natural gas) import decision is taken right now, it would take one and half years to import the fuel, he said adding, "It will take four to five years to extract coal from the country's mines if the decision is taken today."
"The government cannot increase the utility supply overnight as the project implementation period is lengthy," Mr Muhith said.
He advised the lawmakers to raise the issues in parliament.
Lawmaker Golam Dastagir Gazi, also an industrialist, said the current budget is investment-friendly but due to lack of gas and power shortages, investors are shying away from investment.
The big factories have their own power supply facilities through gas generators, but the government cannot supply it to the industries in general, he said.
"The government should immediately give a clear signal on whether we should switch over to diesel- or heavy furnace oil-based generators," the lawmaker added.
Mohiuddin Khan Alamgir MP said banks have excess liquidity, but investors are reluctant to invest.
He criticised Bangladesh Bank for undertaking a poverty alleviation project under which Tk 5 billion will be distributed to share-croppers without any collateral.
Mr Alamgir said stock market development strategies should be reflected in the budget.
ABM Golam Mostafa MP said the government should take all-out efforts to increase power generation.
"New gas wells should be drilled and coal should be extracted to meet the energy demand," he said.
Mr Mostafa said the government should impose tax on capital gain in the overheated stock market.
"Investors all over the world pay tax on capital gain but here people are making profit, yet they do not pay tax," he said.
Investors should submit the tax identification number (TIN) while opening beneficiary owners' account as it will help in tracking down the 'black money' being poured into the market, he added.
The lawmaker said the market lacks good scrip and the government should offload shares of different profitable state-owned companies under direct listing method.
About the decision on keeping air-conditioners off at peak hours, he said it would "distort the image of the government".
Subscribing to the same view, Oli Ahmed MP said, "It is not tolerable that ACs at the ministers' offices will run and the general people will suffer."
Development process is being hindered due to power shortage and the government should explore the potential of hydro-electricity in the country.
"We are importing coal whereas we have a reserve of 3,200 billion tonnes of it in the northern part of the country," he said.
The government should encourage coal-based power plants in the country to reap the benefit of the huge natural resource reserve, he added.
Mohammad Saidul Haque MP said the biggest problem in the country is power and fuel.
"We have a proven reserve of 12 trillion cubic feet of gas, but extraction is very poor," he said.
The lawmaker said the government should formulate a policy to bring parity to power use in the eastern and western parts of the country.
"Over 3,000 megawatt of electricity is consumed by the eastern part of the country and the rest is consumed by the western part," he pointed out.
The government should also encourage public-private partnership power projects to increase generation, he added.
Dr Mohammad Serajul Akbar said the government should take immediate decision on coal extraction.
He said excess liquidity in the banking system can be passed to stock market to make it more vibrant.