Power supply and industries
Shaqeel Quasem | Tuesday, 15 July 2008
POWER or electricity is counted as the life-blood of a modern economy. Economic activities, ranging from the production processes to distribution and even marketing, are dependent on steady and reliable power supply. Many factors are responsible for the current underinvestment and underproductivity in the Bangladesh economy, the main one being the persisting power crisis.
The worst sufferers remain the industries, without exception, needing uninterrupted power supply. They need steady supply to keep the wheels of production running to meet schedules. But the schedules are frequently disrupted by chronic power outages for indefinite periods. It takes a heavy toll by way of extra production time and costs. Remaining competitive or producing at costs, at least at par with rivals, if not lower, should be the 'mantra' of all enterprises. But this key aspiration is frustrated in Bangladesh due to poor power supply . No wonder local and foreign investments alike continue to trail behind the optimistic projections because the potential investors in industries are discouraged by frequent power failures and the consequent burden on their contemplated industrial units.
A recent study by a bilateral donor agency, shows that on account of chronic power failures Bangladesh economy annually loses $780 million, or 1.72 per cent of the national gross domestic product (GDP), or 11.54 per cent of the industrial sector GDP. The staggering losses underline the imperative of treating the power sector on the highest priority. Bangladesh needs to cut down the power-related losses. Improved power generation and its efficient supply are pressing needs for the entrepreneurs to remain competitive and to motivate new investors to go for investment.
A scheme, started nearly two years ago, to improve transmission of power in the Dhaka region, is still dragging. No end is in sight, though the plan was to implement the project quickly to give relief to the consumers, especially the industrial users. Even after the completion of these projects, the situation was unlikely to improve to the desired level because of unscrupulous personnel in the service and maintenance departments, who deliberately harass the industrial and commercial customers, to gratify their rent seeking instincts.
Reportedly, power supply is shut off deliberately during peak production time in some industrial areas to arm-twist industrial operators into paying money to these maintenance people. Obviously, ending corruption is as essential as developing greater capacity for generation and supply.
The worst sufferers remain the industries, without exception, needing uninterrupted power supply. They need steady supply to keep the wheels of production running to meet schedules. But the schedules are frequently disrupted by chronic power outages for indefinite periods. It takes a heavy toll by way of extra production time and costs. Remaining competitive or producing at costs, at least at par with rivals, if not lower, should be the 'mantra' of all enterprises. But this key aspiration is frustrated in Bangladesh due to poor power supply . No wonder local and foreign investments alike continue to trail behind the optimistic projections because the potential investors in industries are discouraged by frequent power failures and the consequent burden on their contemplated industrial units.
A recent study by a bilateral donor agency, shows that on account of chronic power failures Bangladesh economy annually loses $780 million, or 1.72 per cent of the national gross domestic product (GDP), or 11.54 per cent of the industrial sector GDP. The staggering losses underline the imperative of treating the power sector on the highest priority. Bangladesh needs to cut down the power-related losses. Improved power generation and its efficient supply are pressing needs for the entrepreneurs to remain competitive and to motivate new investors to go for investment.
A scheme, started nearly two years ago, to improve transmission of power in the Dhaka region, is still dragging. No end is in sight, though the plan was to implement the project quickly to give relief to the consumers, especially the industrial users. Even after the completion of these projects, the situation was unlikely to improve to the desired level because of unscrupulous personnel in the service and maintenance departments, who deliberately harass the industrial and commercial customers, to gratify their rent seeking instincts.
Reportedly, power supply is shut off deliberately during peak production time in some industrial areas to arm-twist industrial operators into paying money to these maintenance people. Obviously, ending corruption is as essential as developing greater capacity for generation and supply.