July 19, 2025
Industry

RMG, Textile Leaders Seek Gas Policy Reforms To Boost Production And Exports

Leaders of Bangladesh’s top ready-made garment (RMG) and textile associations have urged the government to reform gas supply policies to enhance industrial efficiency and boost export performance. In a joint letter to Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources, they requested exemption from the requirement to seek reapproval from Titas Gas Transmission and Distribution Company Ltd. for internal factory reorganizations, as long as the hourly load, monthly load, and outlet pressure remain unchanged.

They argued that the current gas connection approval process, marked by delays and unnecessary formalities, is significantly hindering production, with many factories operating up to 40% below capacity. Despite substantial investments in infrastructure and energy-efficient machinery often funded through bank loans, many factories cannot utilize their full potential due to gas supply constraints and procedural inefficiencies.

The appeal, backed by leaders from BTMA, BGMEA, BKMEA, BTTLMEA, BCI, and DCCI, emphasized that routine internal adjustments should not require prior clearance, especially when technical parameters remain constant. They also proposed that gas distributors avoid interfering beyond the Regulating and Metering Station (RMS) room and called for the withdrawal of a directive mandating clearance from electricity distribution companies for captive power units exceeding 10 MW, citing unreliable national grid supply.

Additional recommendations included allowing the transfer of unused gas loads between units under the same ownership without reclassifying them as new connections, permitting inter-premises load transfers within the same company, and introducing a digital application system for gas connections and meter installations with a processing timeline of 3–5 working days. The leaders also called for empowering regional gas offices to authorize load rearrangements and creating an approved list of gas meter brands to expedite procurement and installation.

In areas facing chronic low pressure, they urged automatic approval for low-pressure regulators. The industry leaders believe these reforms would significantly improve energy efficiency, enable the adoption of modern machinery, and support uninterrupted production ultimately contributing to increased export earnings and foreign exchange reserves. The letter was also sent to the Adviser to the Ministry of Commerce for necessary action.

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