A high-powered body formed by the government has started sorting out the pending applications for new gas connections to industrial units which can be completed by March, officials said.
They said the committee will give priority on the entrepreneurs who had applied for gas connections first and whose factories were ready to go into production.
"Demand for new gas connections is enormous, but the authority cannot give connections to all applicants. Some of them will get new gas connections as the committee is making some criteria for giving new gas lines," Istiaque Ahmad, chairman of Petrobangla (Bangladesh Oil, Gas & Mineral Corporation), told the Financial Express (FE).
Mr Istiaque, also member of the committee, said the panel has recently held several meetings and reached "final decision" to provide gas connections to the industrial sector.
"Now we have been reviewing the demand and production situation and drawing up a final list to provide the gas links," he added.
He said the recent additional gas output from Bibiyana gas-field will help provide new gas lines to industrial units.
According to Petrobangla, more than 750 new industrial plants, which are bulk gas users, including more than 300 textile and readymade garments (RMG) and ceramic units, are in trouble for not getting gas connection.
The entrepreneurs are mostly from Dhaka, Savar, Gazipur, Sreepur, Narayanganj and Chittagong industrial hubs. Their ventures are now becoming costly following delays in commencing operation. On average, the built factories remained idle for the last five years.
According to Titas Gas Transmission and Distribution Company Ltd, in 2009, the government imposed restrictions on new gas connection to industries, including manufacturing industries and CNG stations.
A committee led by Energy Adviser to Prime Minister Dr Tawfiq-e-Elahi Chowdhury was also formed in this regard, he said.
Visiting the Titas Gas Transmission and Distribution Company Ltd head office Sunday, the FE correspondent found a number of representatives of several industrial sectors trying to meet top officials to get gas connections.
A high official of Titas said after nearly five years of suspension, the government is going to start providing new gas connection to the industrial sector from March.
"The decision to give new gas connections to industries now is in final stage and the authorities can give their consent anytime."
He said the authorised committee for new gas connections has reached a consensus to give gas lines to industrial units to boost production in manufacturing industries.
Businesses praised the decision, saying that it would help raise productivity of the struggling industrial units, resulting in production pick-up.
Kazi Akram Uddin Ahmed, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), appreciated the government decision.
"Giving connections to all industries might not be possible but the beginning of such initiative would boost the manufacturing sector which is struggling hard for lack of gas," he said.
The chief of the apex trade body listed more than 1500 large, medium- and small-scale industries, construction of which is almost completed, and want to go into production, but could not move forward for lack of gas connection.
He noted that average investment in each industrial unit is no less than Tk 250 million, totalling an investment of Tk 375 billion in the new plants waiting for new gas connection.
Mr Faruq Hasan, Managing Director of Giant Group, said, "It is a good news to us as with a Tk 1.50 billion textile industry setup we cannot start production due to gas crisis."
He said the group's textile mill, completed almost four years ago, still could not take off. The group is counting Tk 150 million every month in bank interest.
Mohammad Tamim, professor and Head of the Department of Petroleum and Mineral Resources Engineering of Bangladesh University of Engineering and Technology (BUET), says the country is going through gas crisis but due to "political pressure" the government wants to start providing gas line to industries.
He said 300 million cubic feet (mmcf) of gas has been added to the national grid from Bibiyana gas-field which will be provided to industries.
Petrobangla data show the country produces around 2,448mmcf gas per day against the demand for around 3,000mmcf, leaving a daily shortfall of around 500mmcf.
According to Titas official count, the company has so far given gas connections to around 9,73,419 customers -- 17 power stations, 4 fertilizer factories, 2953 industrial units, 7832 commercial units, 152 seasonal units, 55 CNG and 968016 domestic customers.
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Industrial units to get gas connections by March
Shah Alam Nur | Published: January 20, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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