The government is going to cancel licences of a number of companies engaged in liquefied petroleum gas (LPG) business for their failure to install bottling plants within the stipulated timeframe.
The new licence holders of LPG bottling plants could not complete their work to install the plants within the period fixed due to fund crisis or other reasons, energy ministry officials said.
The government awarded licences to 36 private entrepreneurs in 2011 to set up the LPG bottling plants to meet the country's growing demand but none of the private firms were able to complete their work.
Bangladesh Petroleum Corporation (BPC) officials told the FE, "The government provided 36 new licenses over two years ago to set up LPG bottling plants to meet the country's growing demand but none were able to install those."
He said, "Many of companies who received licenses of LPG bottling plants do not have sufficient funds to set up the plants. So they could not go to production."
The government is going to take steps to cancel their licences if they had not already sought more time.
Another BPC official told the FE, "According to Liquefied Petroleum Gas (LPG) policy, a private firm will have 18 months in total to set up the plant after receiving government permission."
He said the new LPG licence holders will have to submit progress reports on plant installation within first three months after getting permission.
If the companies fail to fulfill the criteria then the authorities would cancel their licences, he added.
The new entrants include Amin Mohammed Energy Limited (Amin Group), Navana CNG Limited, Decan LPG Limited, Sanwara LPG (Sanwara Group), BNB Energy Limited, F and F System, Progga Petroleum Corporation, Acron Infrastructure Service Limited, Promila Oil and Gas, ZNZ Energy Limited, Crystal Energy Limited, Euro Petro Product, Orion Group, East Cost Group (Mobil), Intraco Group, NGGL Group and Bangladesh Petro-chemical Company Limited, according to BPC.
Sanowara Group Managing Director Nurul Islam BSc told the FE, "We received the LPG bottling plant licence in 2011 but still could not to go into production due to shortage of land on the seaside".
About land on the seaside, he said, "It's an important demand for the industry."
"We could neither install the plant within the stipulated timeframe nor did we pray for time extension to go into production," he added.
Decan LPG Ltd Managing Director Ali Akbar told the FE, "We have sought extension of time from the government to go to production".
He said they are now importing the capital machinery and within 2015 their company will be able to install the plant and start production.
According to the BPC the country currently consumes around 100,000 tonnes of LPG every year but the demand is around 300,000 tonnes per year.
Only existing five players including Bashundhara LP Gas Ltd, Totalgaz, Clean Heat, Jamuna and Linde Bangladesh Ltd - are meeting the demand of LPG.
Govt to cancel some LPG companies\\\' licences
Shah Alam Nur | Published: February 23, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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