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NETRAKONA BSCIC ESTATE

Entrepreneurs fret over lack of gas connection
The Bangladesh Small and Cottage Industry Corporation estate in Netrakona is yet to become a hub for industrial activities despite being set up more than 12 years ago, owing largely to non-availability of gas connections. The photo was taken recently.
MD AMINUL ISLAM, Mymensingh
Azizul Haque Talukder, the proprietor of Mahi Taj Iron Industries, began running his factory at the Bangladesh Small and Cottage Industry Corporation (BSCIC) estate in Netrakona in 2009 in the hopes that he would get a gas connection soon.
He started off with a coal-based iron factory but he was forced to shut it down in 2014 as he still would have to make do without gas while coal prices surged.
Until then, he had been running the factory incurring a huge loss. But at one moment, he was unable to continue it.
Azizul later set up a factory to produce aluminium utensils at the same place and it is operating using electricity.
“I have been waiting for more than 12 years to get the gas connection,” he said.
Established on 15 acres of land in Netrakona’s Rajendrapur area, the BSCIC is the lone state-run industrial area in the district. Some 103 plots were allocated to 70 industrial units in 2008.
Subsequently, entrepreneurs have set up factories to produce food items, iron and aluminium, plastic cans, fodders, chemicals, pharmaceuticals, recycled plastic, alternative energy, footwear items, mosquito coils, spices, miner and battery water, jute, and textiles.
Many industrial units, mostly heavy ones, could not start their operations due to a lack of gas connection. After waiting for gas connection for years, many factories have either become losing concerns or stopped their activities, said a number of entrepreneurs.
Currently, 30 units are up and running.
Many of the operational units are also in serious dilemma about whether they would continue their business as there is no green light from the authorities whether the estate would receive the vital energy connection in the near future.
White Star Industries Limited, which produces biomass briquettes, a biofuel substitute to coal and charcoal, has been running the operation for the last five years, but it has not been able to reach its desired stage of production because of an absence of gas connection as well as load-shedding.
“I have counted a loss of Tk 50 lakh so far. I am continuing the operation with a high hope that a gas connection in the future would help me cut the losses. But getting gas connection is uncertain,” said Fakhrul Alam, managing director of the company.
Now 100 people work at the factory but Alam says it could be several times higher if he can go for production in full swing using gas.
Because of the reduced supply of electricity currently, the factory’s output has gone down by around 30 per cent, said the entrepreneur.
Alam took a bank loan of Tk 60 lakh but he can’t run it at full capacity using his own energy.
“It is beyond imagination that there is no gas connection at the estate that started its journey 14 years ago,” he said.
Throughout the coronavirus pandemic, industries faced a serious blow as demand slumped. The situation is even harder now as the cost of electricity and wooden fuel has gone up.
Almost all the units struggle hard when there is a power outage, another challenge for the factories.
Rokon Mia, the supervisor of a jeans-making factory, says the production has gone down by 25 per cent due to the electricity shortage.
The factory has been running since 2016 and has employed 80 workers.
The factory can’t carry out total finishing due to the gas crisis. So, products are sent to Dhaka, around 160 kilometres away from Netrakona, resulting in an increase in production cost, said Rokon.
Priya Food Products uses wood as fuel due to a lack of gas connection. It burns around 20 maunds of wood every day.
The price of firewood has sharply increased. Now, the company has to spend Tk 2,500 to Tk 3,000 daily as fuel costs, according to Jahangir Alam, manager of Priya Food Products.
“The fuel cost eats up the lion’s share of profit. If there is a gas connection, the cost of production would be reasonably less,” he said.
Some food processors say using generators during power outages is very costly.
Since November 2021, the government has hiked the diesel price twice, sending it to Tk 109 per litre from Tk 65 to minimise the subsidy on petroleum products.
The price of all ingredients needed to produce food items has rocketed in recent months, making it difficult for food makers to keep their factories operational since they can’t adjust the price of their products accordingly as consumers are already struggling to make ends meet for a higher cost of living.
“The situation is not favourable and many have lost their hopes to run the business at the estate after incurring losses year after year,” said one food processor.
The entrepreneurs demand immediate gas connection, saying the present crisis could be overcome if they get the supply of energy, which will also give them the chance to operate factories in full swing and create job opportunities for around 10,000 people, mainly hailing from the haor areas in Netrakona.