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MCCI survey on 175 industrial units

Tk 72.60 er man-hour lost in ’92 for power failure
Energy is the most serious challenge threatening development. From this point of view, the situation prevailing in our energy sector is of serious concern, according to Metropolitan Chamber of Commerce and Industry (MCCI) monthly review. August, 1992.
The MCCI recently carried out a survey on loss of production on account of electricity failures during January-June, 1992. The survey, covered 175 units of important industries in different sectors and shows that 16.76 million man-hours worth Taka 72.60 crore were lost during this period, which is higher than the loss, due to Kwer failures, during July-ccmbcr, 1991.
The quantum of production loss will be higher if the impact of power disruptions of all the units in the surveyed sector is taken into account. According to rough estimates, the total loss in the surveyed Industries will be well over Taka 120 crore. Such staggering losses of production arc most alarming for our country which Is opening itself to global competition, survey said.
While the developed countries tackled the unprecedented energy crisis, which
arose from the first oil shock in 1973 In six years time (1973-1979), we arc yet to find a way as to how the problems should be tackled. The only strategy has been forced conservation through punitive tariff and half-hearted encouragement to self-generation. Forced conservation through punitive tariff rates has been self-defeating, according to the survey.
Self-generation has been gradually accepted as a fait-accompli by those consumers who can afford, but instead of giving them the policy support they have been subjected to discriminations. The cost of gas used by industries for power-generation Is more than 100 per cent higher than that used by the Power Development Hoard for that. There 1s thus a positive disincentive to use stand-by generating facilities. As a result, the relief, which w,-fs due to accrue to the national system, is yet to come fortji due to ill-conceived controversy over private and public sectors, MCCI says.
This, as well as many other genuine long outstanding problems of the trade and industry, remains undelibcrated in the absence of any standing forum. The National Consultative Committee on power,
'which used to be the forum, has not been revived for reasons not known to us, according to the review.
We can ill-afford the uncertainties in the energy front. Quality and efficient electricity system is closely correlated with growth and productivity In any economy. Energy planning must, therefore, occupy a crucial position In our national priorities. We understand that, though belated, an exercise is being made to draft an Energy Policy. If it is so, it must not be done In Isolation without adequate consultation with the trade and industry, which not only happen to be the major consumers but contribute to other aspects of the energy sector through the concept of cross-subsidisation, MCCI suggested.
In fact, trade and industry can be a possible partner in development activities. India, and Pakistan have already been able to attract huge Private Sector investments in the energy sector. Foreign investments of worth US seven billion dollar and 4.3 billion dollar respectively have been finned up In these two countries. Further hesitations and bureaucratic delays in our country will cost the economy dearly, MCCI concluded.