Bangladesh
2 days ago

RMG, textile leaders urge gas policy reforms to boost output

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Leaders from Bangladesh's leading ready-made garment (RMG) and textile industry associations have urged the government to exempt industrial and captive gas-run facilities from seeking re-approval from Titas Gas Transmission and Distribution Company Ltd during internal rearrangements-provided their hourly load, monthly load, and outlet pressure remain unchanged.

"Removing the requirement for prior approvals will help the industry adopt more energy-efficient and high-performance machinery. We believe this will significantly boost energy efficiency, enhance production, and contribute to valuable foreign exchange earnings," they added.

The leaders recently made this appeal in a joint letter to Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources.

The industry leaders warned that procedural delays and restrictions in the current gas connection approval process are hurting production and costing the country valuable export earnings.

The appeal-endorsed by Hossain Mehmood, President, Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA), Fazlee Shamim Ehsan, Executive President, Bangladesh Knitwear Manufacturers & Exporters Association (BGMEA), Anwar-ul-Alam Chowdhury (Parvez), President, Bangladesh Chamber of Industries (BCI), Taskeen Ahmed, President, Dhaka Chamber of Commerce & Industry (DCCI), Mahmud Hasan Khan, President, Bangladesh Garments Manufacturers & Exporters Association (BGMEA) and Showkat Aziz Russell, President, Bangladesh Textile Mills Association (BTMA)-highlights that RMG and textile mills are unable to operate at full capacity due to inadequate gas supply, resulting in up to 40 per cent lower production.

They stated that most factories are established with BIDA's approval and built with significant investment in infrastructure, imported machinery, and utilities, often backed by bank financing. But despite this, companies are unable to fully utilise their installations and meet export targets.

Industry leaders argued that frequent restructuring or machinery replacements are required to improve efficiency or respond to changing buyer demands. However, the current requirement to seek prior approval from gas distribution companies for any rearrangement-even within factory premises-causes unnecessary delays.

They proposed that gas distributors should not interfere in the internal setup of customer premises beyond the RMS (Regulating and Metering Station) room, provided that the approved load and pressure remain unchanged. Additionally, they requested the withdrawal of a previous directive requiring clearance from electricity distribution companies (e.g., Palli Bidyut) for new captive power connections above 10 MW, citing the national grid's unreliable supply.

Other key demands include allowing unused gas load from one industrial unit to be transferred to another under the same ownership and premises without reclassifying it as a new connection.

They also called for permitting load transfers across different premises owned by the same company and introducing a digital application system for gas connections and meter installations, with a fixed processing timeframe of 3-5 working days.

"Authorising regional gas offices to approve load rearrangements would avoid higher-level delays. Establishing an approved list of gas meter brands and models would also simplify procurement and reduce installation times," the letter read.

They further sought automatic approval of low-pressure regulators in areas with chronic pressure shortfalls.

The industry leaders argued that these reforms would enhance energy efficiency, enable the adoption of modern machinery, and allow uninterrupted production-contributing significantly to export growth and foreign exchange earnings.

The letter was also copied to the Adviser to the Ministry of Commerce for information and necessary action.

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