Small industries protest order, vent their woes
Wednesday, 13 January 2010
Mashiur Rahaman
The owners of small industries have protested the order on mandatory installation of costly Power Factor Improvement (PFI) equipment and demanded extension of the deadline that ended in October, 2009.
"Installation of an average-quality PFI equipment costs about Tk 75,000 to Tk 1,25,000, which is too expensive for small entrepreneurs like us," Yusuf Ashraf, owner of Wonder Plastic Industries, told the FE.
Mr Ashraf, the former president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), employs 22 workers in his small plastic factory, located in the older part of Dhaka.
He urged the government to acknowledge their ongoing sufferings and consider extending the deadline for PFI device installation.
"We want to cooperate with the power distribution authorities by following the order. But the sudden imposition of the order has made the matter complicated and hard for us to comply," Mr Ashraf said.
As per Bangladesh Energy Regulatory Commission's (BERC) recommendation, Dhaka Power Distribution Company (DPDC) Limited on August 16, 2009 issued a letter to all small and medium enterprises who consume 50kw power per month, with order to install PFIs before October 1, 2009.
It was explained that the installation would ensure proper utilisation of supplied electricity, keeping the power factor within 0.95-1.00 range. It was also mentioned in the letter that if any user fails to install PFI equipment in due time, Power Factor Correction (PFC) charge will be slapped along with the consumers' bills.
"Average electricity bill in my plastic industry is Tk 50,000, while I am overburdened with an additional Tk 12,000 PFC charge per month," Mr Ashraf said adding that bearing the extra payment was literally impossible for his small industry.
Expressing solidarity with the small industry owners, Shahedul Islam, president of Bangladesh Chamber of Industries (BCI), said small industries in the country contribute significantly to the growth of the economy and provide employment to millions.
The owners of small industries have protested the order on mandatory installation of costly Power Factor Improvement (PFI) equipment and demanded extension of the deadline that ended in October, 2009.
"Installation of an average-quality PFI equipment costs about Tk 75,000 to Tk 1,25,000, which is too expensive for small entrepreneurs like us," Yusuf Ashraf, owner of Wonder Plastic Industries, told the FE.
Mr Ashraf, the former president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), employs 22 workers in his small plastic factory, located in the older part of Dhaka.
He urged the government to acknowledge their ongoing sufferings and consider extending the deadline for PFI device installation.
"We want to cooperate with the power distribution authorities by following the order. But the sudden imposition of the order has made the matter complicated and hard for us to comply," Mr Ashraf said.
As per Bangladesh Energy Regulatory Commission's (BERC) recommendation, Dhaka Power Distribution Company (DPDC) Limited on August 16, 2009 issued a letter to all small and medium enterprises who consume 50kw power per month, with order to install PFIs before October 1, 2009.
It was explained that the installation would ensure proper utilisation of supplied electricity, keeping the power factor within 0.95-1.00 range. It was also mentioned in the letter that if any user fails to install PFI equipment in due time, Power Factor Correction (PFC) charge will be slapped along with the consumers' bills.
"Average electricity bill in my plastic industry is Tk 50,000, while I am overburdened with an additional Tk 12,000 PFC charge per month," Mr Ashraf said adding that bearing the extra payment was literally impossible for his small industry.
Expressing solidarity with the small industry owners, Shahedul Islam, president of Bangladesh Chamber of Industries (BCI), said small industries in the country contribute significantly to the growth of the economy and provide employment to millions.