Staff Reporter :
Leaders of Bangladesh Textile Mills Association (BTMA) have urged the government to ensure efficient and uninterrupted energy supply to the textile and clothing factories in a bid to enhance capacity of the country’s largest export sector.
They came up with the demand at a seminar titled “Energy Efficiency and Textile: Lifeline of the Economy” held in city hotel on Monday.
Stakeholder of textile and clothing (T&C) sector, energy experts and prominent entrepreneurs of the sector joined the seminar while former Energy Adviser of the caretaker government M. Tamim presented key
note on the topic. “The sector has set an export target of US$50 billion by 2021. But the task to meet the target would be very taught if the government fails to provide uninterrupted gas and electricity to it”, said former FBCCI President AK Azad.
Azad, one of the country’s leading T&C entrepreneurs, said that the country’s textile and garments industries are now facing problem to utilize their full capacity due to lack of energy efficiency and uninterrupted energy supply to them. “It is also raising their cost of production making them uncompetitive in the global market,” he noted.
He further said that the entrepreneurs have already made huge investment in the sector following the government assurance that it would provide adequate gas and electricity to it. But in reality, the sector was not being provided with adequate gas and electricity supply putting the huge investment at risk.
Referring to several studies, AK Azad said, the sector may not get gas supply after 2017 in the wake of depleting gas reserve of the country. If it happens, the sector will face a disaster.
“As risk is brewing on the sector, the government must take a contingency plan immediately,” he suggested.
Energy Adviser to the Prime Minister Dr. Tawfiq-E- Elahi Chowdhury was present the seminar as chief guest, while Chairman of Bangladesh Energy Regulatory Commission (BERC) AR Khan was special guest. “We have already invest in the infrastructure, manpower, land etc with captive power generation in absence of grid limited availability and reliability for textile and clothing industries, but any shortage gas supply may be fallen the business in international competitions.” said BTMA President Tapan Chowdhury.
Highlighting importance of T&C sector, he said, it is contributing 13 per cent of GDP and Bangladesh secured second position after China in apparel export in the world. “The country has the potential to grab even a big share in the global textile and apparel export taking advantage of energy efficiency and competitive labour force,” he added.
The BTMA leaders expressed concern over the rising energy and production cost of the sector saying that such a development it eroding competitiveness of it. “We have already witnessed 100 per cent tariff rise of gas supplied to the captive power plant that are mostly being used in the sector,” said Tapan Chodhury, adding that such an abrupt increase in gas poses a big challenge. The industry is now not a position to bear the burden of additional cost. At present BTMA member Mills are generating 1200mw to 1300 mw electricity by captive power plants.
Tawfiq Elahi said, the government is trying heart and sold to increase gas supply in the country’s industrial sector as they can invest here without any tense.
“The gas supply in the country will be increased by next two years through import LNG or exploring gas from domestic gas field”, he said responding the demand of businesses.
Former BGMEA President Atiqul Islam, former BKMEA President Jahangir Alam and Vice-President Mohammad Hatem, among others, spoke on the discussion.
Leaders of Bangladesh Textile Mills Association (BTMA) have urged the government to ensure efficient and uninterrupted energy supply to the textile and clothing factories in a bid to enhance capacity of the country’s largest export sector.
They came up with the demand at a seminar titled “Energy Efficiency and Textile: Lifeline of the Economy” held in city hotel on Monday.
Stakeholder of textile and clothing (T&C) sector, energy experts and prominent entrepreneurs of the sector joined the seminar while former Energy Adviser of the caretaker government M. Tamim presented key
note on the topic. “The sector has set an export target of US$50 billion by 2021. But the task to meet the target would be very taught if the government fails to provide uninterrupted gas and electricity to it”, said former FBCCI President AK Azad.
Azad, one of the country’s leading T&C entrepreneurs, said that the country’s textile and garments industries are now facing problem to utilize their full capacity due to lack of energy efficiency and uninterrupted energy supply to them. “It is also raising their cost of production making them uncompetitive in the global market,” he noted.
He further said that the entrepreneurs have already made huge investment in the sector following the government assurance that it would provide adequate gas and electricity to it. But in reality, the sector was not being provided with adequate gas and electricity supply putting the huge investment at risk.
Referring to several studies, AK Azad said, the sector may not get gas supply after 2017 in the wake of depleting gas reserve of the country. If it happens, the sector will face a disaster.
“As risk is brewing on the sector, the government must take a contingency plan immediately,” he suggested.
Energy Adviser to the Prime Minister Dr. Tawfiq-E- Elahi Chowdhury was present the seminar as chief guest, while Chairman of Bangladesh Energy Regulatory Commission (BERC) AR Khan was special guest. “We have already invest in the infrastructure, manpower, land etc with captive power generation in absence of grid limited availability and reliability for textile and clothing industries, but any shortage gas supply may be fallen the business in international competitions.” said BTMA President Tapan Chowdhury.
Highlighting importance of T&C sector, he said, it is contributing 13 per cent of GDP and Bangladesh secured second position after China in apparel export in the world. “The country has the potential to grab even a big share in the global textile and apparel export taking advantage of energy efficiency and competitive labour force,” he added.
The BTMA leaders expressed concern over the rising energy and production cost of the sector saying that such a development it eroding competitiveness of it. “We have already witnessed 100 per cent tariff rise of gas supplied to the captive power plant that are mostly being used in the sector,” said Tapan Chodhury, adding that such an abrupt increase in gas poses a big challenge. The industry is now not a position to bear the burden of additional cost. At present BTMA member Mills are generating 1200mw to 1300 mw electricity by captive power plants.
Tawfiq Elahi said, the government is trying heart and sold to increase gas supply in the country’s industrial sector as they can invest here without any tense.
“The gas supply in the country will be increased by next two years through import LNG or exploring gas from domestic gas field”, he said responding the demand of businesses.
Former BGMEA President Atiqul Islam, former BKMEA President Jahangir Alam and Vice-President Mohammad Hatem, among others, spoke on the discussion.
