Bangladesh’s electricity and gas crises have put its nearly $100 billion economy at risk of contraction, and may cut the country's much needed export earnings, said officials from different industries.
The situation has further been aggravated by the government's mismanagement, they added.
Industrial production including that of apparel, ceramics, fabrics, steel and particles is being affected.
“I count around Tk 46 extra per board for frequent outages and a poor gas supply," said Minhaz Ahmad, assistant general manager ofAkij Particle Board Mills.
He said manufacturing overhead cost hasgoneupby26 percent.
The mill is running with less than 40 percent of its capacity despite using diesel generators, said Ahmad of the factory located in Manikganj.
“Our steel production cost has increased by 10-15 percent because of the energy situation,” said Aameir Alihussain, director of BSRM, the country's largest steel manufacturer located in Chittagong.
Alihussain said a new BSRM plant is not getting gas connection. “Then why did the authorities take demand note against connection?"
Many factories near Dhaka-Manikganj and Dhaka-Mymensingh roads and Narayanganj and Narsingdi belts are running on less than half of their capacity; small industries are on the verge of closure, as they cannot afford diesel generators.
According to government statistics, most of the industrial output comes from these industrial belts.
Currently, Bangladesh faces the daily shortages of up to 300 million cubic feet (mmcft) of gas and 1,500 megawatts of electricity. The government shut down five fertiliser factories last week to save around 250 mmcft a day in the face of acute power crisis. Gas is the main source
for power generation in Bangladesh.
The factories beside Dhaka-Manikganj road are facing both the electricity and gas crises. Gas pipelines in the zone are very narrow — only 6 inches compared to 16 inches on Dhaka-Mymensingh road.
“I have to pay at least Tk 33 lakh a month for gas bill, no matter the factory gets gas or not,” said a senior official of a ceramics factory located near the Dhaka-Manikganj road.
He said his factory does not get gas even for four hours a day.
The factory of Monno Fabrics on the Dhaka-Manikganj road has been shut down for the past several months due to gas crisis.
Ahmad of Akij Particle said: “The authorities should tell us specifically when and how the factories will get power. It can help us manage working hours, productivity and machines as well.”
Fazlul Hoque, president of Bangladesh Knitwear Manufacturer and Exporters Association, said production and quality in the sector fall around 10 percent for power crisis.
“It has become tough for us to survive in highly competitive market," said Hoque.
Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association, said 20 percent RMG units that do not have generators for power supply are on the verge of collapse.
Machines are losing longevity due to frequent power cuts, he said.
The extent of damage will depend on the duration of the crisis and the government's management measures, said economists.
Dr Zaid Bakht, a research director at Bangladesh Institute of Development Studies, said investment and export will bear the brunt of the energy crisis. Employment generation and poverty reduction initiatives will be hampered, he added.
sajjad@thedailystar.net