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No more new gas connections for Ctg industries

Businesses fear setback in industrialisation

Staff Correspondent
The government will follow a 'cautious' policy in giving new industrial gas connections in and around Dhaka and has decided not to provide any new connection in Chittagong region.
Chief Adviser's (CA) Special Assistant for the Ministry of Power, Energy and Mineral Resources Dr M Tamim said this at a seminar in Dhaka yesterday.
Business leaders however fear that the government decision will lead to a major setback in setting up new industrial units and hold
back investment flows.
"Time has come to prioritise the usage of gas. Irrigation should be the first priority, and industrialisation and CNG-run vehicles should come next,” Tamim told the seminar on 'Current Power Sector Scenario and Strategy for Development Initiatives.’
He, however, gave assurance that the gas connections already planned and under process, will be provided.
In an immediate reaction, FBCCI President Annisul Huq said, It s a shocking news for us that the government will not give new industrial gas connections.”
"We are talking about a S20 billion export, industrialisation and attracting more foreign investment. How will we achieve the target if the new industrialisation process is discouraged by the government?” he said.
The FBCCI on behalf of the country's businesses will form a committee immediately regarding the decision of not giving new gas connections and submit a report to the government, Annisul Haq said.
At the seminar, Tamim also said that domestic use of gas should be limited and no new areas should come under the gas network.
Referring to the popular thought -- 'Bangladesh is floating on gas,' Tamim said that it is not correct. “But it does not mean the country has no gas. We have to find
and explore gas,” he said.
The special assistant to the CA said that Tk 2000 crore has been given to Bapex so that it can become an independent body within the next seven years. “The ownership will remain with the government and the Bapex will maintain the management," he said.
Tamim said the government has also decided to buy gas from Begumganj gas field at a price of Tk 110 per unit. "Although the Bapex proposed to sell gas at Tk 210 per unit, we fixed it at Tk 110,” he said, adding that the government also proposed the National Board of Revenue (NBR) to waive the Bapex from giving supplementary duty, value added tax and other taxes.
Commenting on the draft energy policy, he said there is a fundamental mistake in the policy as it is not clear whether the
domestic energy will be used for household work leading to economic development or for revenue income and thus to economic development.
“My personal opinion is that the domestic energy should be used for domestic requirements and thus do the economic development," he
Talking about the power sector, Tamim said some 150MW to 200MW power would be added to the national grid by the early week of next month, as the current irrigation period will be ended within next week
The government has decided to open the power distribution system to the private sector that is so far being controlled by the staterun companies, he said.
Presently, the private sector is involved with power generation only, while the government does
the distribution and transmission.
Replying to queries on immediate steps for mitigating the erratic gas and power supply raised by the businessmen, Tamim said conservation and efficiency enhancement are the only measures to deal with the problem.
“In long-term basis, we have to focus on coal use. We also have to focus on nuclear power plant, as the fossil fuel will disappear. It is a good news that we have already started works on setting up a 600MW to 700MW nuclear power plant," he added.
At the seminar organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Rezwan Khan of United International University presented a keynote paper, while Power Secretary Fouzul Kabir Khan also spoke.