RMG, textile leaders urge gas policy reforms to raise return

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RMG, textile leaders urge gas policy reforms to raise return

BM Desk : The government has been urged by leaders of Bangladesh’s top ready-made garment (RMG) and textile industry associations to exempt industrial and captive gas-run facilities from requesting reapproval from Titas Gas Transmission and Distribution Company Ltd. during internal reorganizations, as long as their hourly load, monthly load, and outlet pressure hold steady.
“Removing the need for prior clearances will encourage the industry to use high-performance, energy-efficient machinery. They continued, “We think this will greatly increase energy efficiency, improve output, and contribute to substantial foreign exchange revenues.”
The leaders recently issued this appeal in a joint letter addressed to Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources.

The industry leaders cautioned that delays in procedures and limitations in the existing gas connection approval process are negatively impacting production and depriving the country of essential export revenues.

This appeal, supported by Hossain Mehmood, President of the Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA), Fazlee Shamim Ehsan, Executive President of the Bangladesh Knitwear Manufacturers & Exporters Association (BGMEA), Anwar-ul-Alam Chowdhury (Parvez), President of the Bangladesh Chamber of Industries (BCI), Taskeen Ahmed, President of the Dhaka Chamber of Commerce & Industry (DCCI), Mahmud Hasan Khan, President of the Bangladesh Garments Manufacturers & Exporters Association (BGMEA), and Showkat Aziz Russell, President of the Bangladesh Textile Mills Association (BTMA), emphasizes that ready-made garment (RMG) and textile mills are unable to function at their full potential due to insufficient gas supply, leading to production levels that are as much as 40 percent lower than capacity.

They pointed out that the majority of factories have been established with the approval of BIDA and have made substantial investments in infrastructure, imported machinery, and utilities, often supported by bank loans. Yet, despite these investments, companies are unable to fully leverage their facilities and achieve their export goals.

Industry leaders contended that regular restructuring or replacement of machinery is necessary to enhance efficiency or adapt to evolving buyer requirements. However, the current mandate to obtain prior approval from gas distribution companies for any modifications—even those occurring within factory premises—results in unnecessary delays.

They suggested that gas distributors should refrain from interfering with the internal arrangements of customer premises beyond the RMS (Regulating and Metering Station) room, as long as the approved load and pressure remain constant. Furthermore, they asked for the retraction of a prior directive that mandated clearance from electricity distribution companies (such as Palli Bidyut) for new captive power connections exceeding 10 MW, citing the unreliable supply from the national grid.

Other significant requests include allowing the transfer of unused gas load from one industrial unit to another under the same ownership and premises without needing to reclassify it as a new connection.

They also advocated for permitting load transfers between different premises owned by the same company and for the introduction of a digital application system for gas connections and meter installations, with a guaranteed processing timeframe of 3-5 working days.

“Empowering regional gas offices to authorize load rearrangements would prevent delays at higher levels. Creating an approved list of gas meter brands and models would also streamline procurement and shorten installation times,” the letter stated.

Additionally, they requested automatic approval for low-pressure regulators in regions experiencing chronic pressure shortages.

Industry leaders contended that these reforms would improve energy efficiency, facilitate the use of modern machinery, and ensure uninterrupted production, thereby significantly contributing to export growth and foreign exchange earnings.

The letter was also sent to the Adviser to the Ministry of Commerce for their information and necessary action.

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