Shah Alam Nur :
Manufacturing industry has been facing shortage of energy, which is taking toll on production.
Many manufacturing units have remained inactive due to gas shortage and some units are using diesel-run generator. As a result, cost of production has gone up.
Insiders said, production in many manufacturing units is well below the target, as most of the industries cannot utilize 100 per cent capacity for short supply of energy.
They said when most of the industries have been hit by shortage of gas and power, the government increased the price of energy, affecting their competitiveness in the world market.
The country’s industrial sector, which contributes nearly 20 per cent to the Gross Domestic Product (GDP), experienced a slowdown in production in recent times due to the power and gas shortage
According to the Bangladesh Bureau of Statistics (BBS) data shows there are over 0.24 million (2.4 lakh) manufacturing units across the country.
The Petrobangla (Bangladesh Oil, Gas & Mineral Corporation), produces around 2,313 million cubic feet (CF) of gas per day against the demand for around 3,000 million cubic feet.
On the other hand, the data available with the Power Cell under the Ministry of Power, Energy and Mineral Resources shows that presently the country’s power generation capacity is around 7,000 megawatts (MW) per day, 40 per cent of which is supplied to the manufacturing sector.
However, the Power Cell does not have specific data on the actual demand for electricity in the country’s industrial sector.
The manufacturing industry, including glass and glass product, carpet and rugs, petroleum refinery, industrial chemicals, leather products, transport equipments, tobacco, pharmaceuticals, wood products, ceramic, cement and electronic goods showed slow growth.
The small scale manufacturing industries like rice mills, dairy products, knitwear, leather products, footwear, embroidery, wooden furniture and non-metallic mineral products showed downward growth in the first six months of the current fiscal year. Mizanur Rahman Babul, Vice-Chairman of Bangladesh Re-rolling Mills Association, said “The country’s steel re-rolling mills are unable to utilise their full capacity due to the low pressure of gas.”
He said that the country’s steel re-rolling mills had been utilising at best 60 per cent of their capacity for the last one year. Babul, who is also Managing Director of Rahman Steel Re-rolling Mills (Pvt) Ltd as well located at Narayanganj, said that the political situation in the first three months of the current calendar year had not been business-friendly in the absence of required energy supply.
He said, the steel re-rolling mills are the bulk gas users as production in such units depends on smooth gas supply.
Mahbub Alam, President of the Chittagong Chamber of Commerce and Industry (CCCI) said “Though most of the major industries are located in Chittagong, the supply of gas and power in the area is not satisfactory.”
He said that the daily gas supply in Chittagong was fluctuating between 200 and 250 million cubic feet against the actual demand for 420 million cubic feet per day.
Atiqul Islam, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that due to the power shortage the manufacturing costs of readymade garment (RMG) factories increased by about 20 per cent in the recent times. He said, the RMG sector has been facing power shortage of around 30 per cent, as about 406mw electricity is being supplied by the government against the demand for 620 megawatts. An additional amount of Tk 20 billion had been spent by the RMG unit owners last year because of the gas and electricity shortage, he added.
Jahangir Alamin, former president of Bangladesh Textile Mills Association (BTMA), said, “We will lose our competitiveness further in the world market due to price hike of natural gas.”
He said, the textile millers are the highest gas consumers in the country as they run spinning, weaving, dyeing and finishing units with a huge pressure of gas.
“The price of finished goods will increase because of the hike in gas tariff. But we will not get additional price from the buyers.”
Manufacturing industry has been facing shortage of energy, which is taking toll on production.
Many manufacturing units have remained inactive due to gas shortage and some units are using diesel-run generator. As a result, cost of production has gone up.
Insiders said, production in many manufacturing units is well below the target, as most of the industries cannot utilize 100 per cent capacity for short supply of energy.
They said when most of the industries have been hit by shortage of gas and power, the government increased the price of energy, affecting their competitiveness in the world market.
The country’s industrial sector, which contributes nearly 20 per cent to the Gross Domestic Product (GDP), experienced a slowdown in production in recent times due to the power and gas shortage
According to the Bangladesh Bureau of Statistics (BBS) data shows there are over 0.24 million (2.4 lakh) manufacturing units across the country.
The Petrobangla (Bangladesh Oil, Gas & Mineral Corporation), produces around 2,313 million cubic feet (CF) of gas per day against the demand for around 3,000 million cubic feet.
On the other hand, the data available with the Power Cell under the Ministry of Power, Energy and Mineral Resources shows that presently the country’s power generation capacity is around 7,000 megawatts (MW) per day, 40 per cent of which is supplied to the manufacturing sector.
However, the Power Cell does not have specific data on the actual demand for electricity in the country’s industrial sector.
The manufacturing industry, including glass and glass product, carpet and rugs, petroleum refinery, industrial chemicals, leather products, transport equipments, tobacco, pharmaceuticals, wood products, ceramic, cement and electronic goods showed slow growth.
The small scale manufacturing industries like rice mills, dairy products, knitwear, leather products, footwear, embroidery, wooden furniture and non-metallic mineral products showed downward growth in the first six months of the current fiscal year. Mizanur Rahman Babul, Vice-Chairman of Bangladesh Re-rolling Mills Association, said “The country’s steel re-rolling mills are unable to utilise their full capacity due to the low pressure of gas.”
He said that the country’s steel re-rolling mills had been utilising at best 60 per cent of their capacity for the last one year. Babul, who is also Managing Director of Rahman Steel Re-rolling Mills (Pvt) Ltd as well located at Narayanganj, said that the political situation in the first three months of the current calendar year had not been business-friendly in the absence of required energy supply.
He said, the steel re-rolling mills are the bulk gas users as production in such units depends on smooth gas supply.
Mahbub Alam, President of the Chittagong Chamber of Commerce and Industry (CCCI) said “Though most of the major industries are located in Chittagong, the supply of gas and power in the area is not satisfactory.”
He said that the daily gas supply in Chittagong was fluctuating between 200 and 250 million cubic feet against the actual demand for 420 million cubic feet per day.
Atiqul Islam, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that due to the power shortage the manufacturing costs of readymade garment (RMG) factories increased by about 20 per cent in the recent times. He said, the RMG sector has been facing power shortage of around 30 per cent, as about 406mw electricity is being supplied by the government against the demand for 620 megawatts. An additional amount of Tk 20 billion had been spent by the RMG unit owners last year because of the gas and electricity shortage, he added.
Jahangir Alamin, former president of Bangladesh Textile Mills Association (BTMA), said, “We will lose our competitiveness further in the world market due to price hike of natural gas.”
He said, the textile millers are the highest gas consumers in the country as they run spinning, weaving, dyeing and finishing units with a huge pressure of gas.
“The price of finished goods will increase because of the hike in gas tariff. But we will not get additional price from the buyers.”