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Tuesday, February 21, 2006

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Businesses decry power shortage
Govinda Shil
2/21/2006
 

          Chamber leaders have warned of serious economic consequences, especially in the export-oriented industries, due to significant and incessant power failure.
They have urged the government to import hydropower from Nepal and Bhutan to meet ever-increasing power demand.
"The miserable power situation must improve to help sustain our economic growth," said Mir Nasir Hossain, president of the Federation of Bangladesh Chamber of commerce and Industry (FBCCI).
Although circumstances improved slightly, the country is now facing 700 MW to 900 MW power shortages everyday, disrupting seriously industrial production.
Some US$ 2.5 worth of apparel exports to USA and EU destinations are facing uncertainty, exporters said.
Nasir said captive generators could not operate for longer period and that fluctuation in voltages sometime force industrialists to keep running their generators.
In countryside, lack of power would keep farmers in some areas of the country away from planting Boro rice this year.
"I am uncertain about shipping our products on time," said Fazlul Haque, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Some 600 small apparel factories have been shut down due to power cut. These units do not have their own generators, BKMEA and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) sources said.
"We are facing serious troubles in exporting our products as per schedule," Haque said. He suggested that the government ensure smooth power supply even if they need to import hydropower from Nepal and Bhutan.
However, Secretary of Power ministry, ANH Akhter Hossain said the government "is trying to strike a balance" between different sectors through load management. Citing an example, he said, his ministry is now emphasising on agricultural sector where 60 per cent of the country's labour force is employed.
"We soon would concentrate on industrial units as soon as Boro season ceases," the Power Secretary declared.
He said the government might pursue neighbouring countries having surplus power to sell some electricity to Bangladesh as per SAARC general grid proposal. Akhter said Nepal and Bhutan do not have surplus power, at this moment, to export to Bangladesh and such trade requires New Delhi to grant transit facility to Dhaka. Those two countries sell hydropower to India that invested sizable amount in hydropower plants.
As Dhaka and Narayanganj -- where clusters of industries are located -- do not get proper electricity, peripheral cities, like Bogra, and Khulna, are facing a deplorable situation.
"We will be wiped out if power is not restored soon," said Amjad Hossain Tajma, a ceramic manufacturer of Bogra.
Tajma, also a former president of Bogra Chamber of Commerce and Industry, said cast iron industry of his city is confronting acute production disruption.
"Cast iron industry of Bogra produces spare parts for shallow tube wells which are being exported to India," Tajma said.
"The government must have a consistent industrial and power policy so that we can take long time investment decision," Tajma added.
Export based shrimp processing plants feared that such power shortage would degrade the quality of the seafood.
"We need to maintain minus 40 degree Fahrenheit during processing shrimp," said a top official of a plant in Khulna, the coastal city that exports 90 per cent of the country's frozen shrimp and fish. The country fetches some US$ 400 million by exporting frozen seafood a year.
"Ice is like life to our plants and frequent power disruption badly damage our activities," he said, requesting anonymity.
Akhter said the garment industrialists have been asked not to use power during 6.0 to 10 in the evening when domestic consumption goes up. He claimed that local shedding during the day time has improved and it occurred once or twice a day.

 

 
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