Industries outside economic zones won't be given new gas connections after March

The government will not provide new piped natural gas connections to industries to be located outside the country's designated economic zones, or EZs, after March 2021.

The Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources, or MoPEMR, has decided to provide new gas connections only to industries inside the economic zones after four months to discourage unplanned industrialization across the country.

The designated EZs include all which have been approved by Bangladesh Economic Zones Authority, or BEZA, and Bangladesh Small and Cottage Industries Corporation, or BSCIC.

The MoPEMR has already issued directives to all state-run gas distribution companies to carry out the energy ministry's directives on new gas connections to industries.

"We have decided not to entertain new gas connections to industries outside the economic zones after March next year in line with the instructions from Prime Minister Sheikh Hasina," EMRD secretary Md Anisur Rahman told the FE on Thursday.

The industries that will receive approval for getting gas outside the economic zones until next March will, however, get gas access, he said.

The decision has been taken to streamline the country's growth of industrialisation in a planned way, he added.

Unplanned industrialisation eats up agricultural land posing a threat to the country's food security, said Mr Rahman.

Haphazard gas connections increase costs of both the government and entrepreneurs to lay down the pipelines and build other necessary infrastructures, he noted.

It will help supply natural gas with satisfactory pressure to industries, the EMRD secretary added.

"BEZA is developing the EZs with smooth utility facilities to woo investments across the globe," BEZA executive chairman Paban Chowdhury told the FE.

He said the BEZA has started works to establish 'one-stop service desk' in the economic zones to provide quality services to investors.

"We have already approved investment proposals worth around US$26 billion from different big business conglomerates across the globe, which are keen to invest in the country's EZs."

Supporting the government decision, he said industrialization in planned economic zones will ensure better management, ease time for utility connections and help the sustainable economic growth of the country.

Leader of the country's apex trade body - the Federation of Bangladesh Chambers of Commerce and Industry, or FBCCI, -- however, termed the government decision too early.

"I think the country is now not ready to take such a decision as the economic zones are not getting readied across the country," said FBCCI vice president Md Siddiqur Rahman.

Halting natural gas connections to industries outside the economic zones from next March will pose an obstacle to industrial growth in the country, he said.

Besides, localities around the economic zones have not yet developed to support residential facilities for the employees of new industries to be located there, said the FBCCI leader.

Currently, new piped gas connections to CNG, or compressed natural gas, filling stations, households and commercial consumers are stopped.

The commercial consumers include restaurants, residential hotels and guest houses, private hospitals, clinics, laboratories, educational institutions, community centres, community clubs, convention centres, snack and bakery item makers.

Traditional glass, chocolate, 'chanachur', vermicelli, biscuit, soap, ceramic, medicine, colour, 'agor-ator' distilled water, tannery, ice and ice-cream, and salt makers, who use hand-operated tools to manufacture their products, also belong to the commercial consumer group.

New gas connections to hospitals, educational institutions and jails, however, continued.

New gas connections to captive power plants are discouraged, considering the increase of the country's overall electricity generation.

Country's overall natural gas scarcity prompted Petrobangla to ration new connections to industries, fertiliser factories and power plants since June 2009.

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