Saturday, March 05, 2011

Tk 40b investment remains stuck up


Around 151 new readymade garments (RMG) and textile factories involving a total investment of Taka 40.00 billion are unable to go into production due to lack of new gas connection. The government has stopped giving such connections since March 2009.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) former president Fazlul Haque told the FE, about 150 textile and garment factories can't start their production only due to absence of gas connection."
"The small and big factories have invested worth around Tk 40.00 billion and set up industries at Dhaka, Savar, Gazipur, Sreepur, Narayanganj and Narsingdi with the permission of the government."
An entrepreneur said on condition of anonymity, "I have invested Tk 1.0 billion to set up a factory. But unfortunately, I can't start work even after more than last one and a half years due to lack of gas connection. I have paid the amount of money required under the demand note and other purposes for gas connection but I have not got it yet."
"I have set up this factory with the permission of government, but now I am suffering miserably. The bank interest is increasing day by day and I am becoming a loan defaulter as I am failing to pay back installments to the bank."
"The machines are installed one year ago in the factory, but I can't start a single machine and the validity of the warranty period of these machinery is expiring."
The anguished entrepreneurs have talked to the authorities for several times for gas connection for their factories, but they have found a lack of co-ordination and a dilly-dallying tendency among the authorities concerned.
The entrepreneurs said that the authorities have assured them of giving gas connections soon. But there is no reflection of it in reality.
A five-member high-powered committee has been formed to scrutinise the application of the factories awaiting gas connections. The committee comprises Adviser to the Prime Minister Tawfiq-e-Elahi Chowdhury, Titas Gas Transmission and Distribution Company Ltd managing director Md. Abdul Aziz Khan, energy and mineral resources secretary Mohammad Mesbah Uddin, power secretary Abul Kalam Azad and Petrobangla chairman Md Hussain Monsur.
Hussain Monsur said, "We have taken decision to give some gas connections on priority basis (to those who were issued demand note and have gas line and other facilities) within six months. But we are waiting for the go-ahead of the high-powered committee as some of its members are abroad now. After completing the signing phase, we will go for the implementation as early as possible."
He said the number of gas connections in Dhaka and the adjacent areas was in the range of 30,000 to 40,000 yearly before 2006. But the number has reached 200,000 since 2006-08, which is unusual.
He added the use of gas has increased a lot. For example, the number of CNG stations was only one in 2001, now it is 585.
Bangladesh has a probable and proven stock of around 12.0 trillion to 15.0 trillion cubic feet gas, which is feared to be exhausted by 2012 if its use continues at its present pace. The country has shortage of 300 million to 500 million cubic feet gas per day, according to Petrobangla data.
Titas Gas Transmission and Distribution Company Ltd provided around 1.56 million gas connections to Dhaka and the adjacent areas. Among these, 10,893 are for commercial use. The company has started providing gas connections since April 28, 1968.
The company gave its first gas connection to Siddhirganj Thermal Power Plant for commercial use, and the residence of Bangladeshi novelist and short story writer Shawkat Osman in Dhaka got the connection first among the domestic users, Titas Gas sources said.
The Financial Express, Sat 05/03/2011



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1 comments:

Anonymous said...

what I think is gas line for individual users should be stopped, For individual users, cylinder gas process should be started. as line gas is very cheap, at least 50% users misuses the gas. so if for individual users, cylinder gas process starts, misuse of gas can be reduced and more gas connection can be provided to new garments/textile factories.

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