Both the government and RMG leaders agree that energy policy needs to be improved to allow SEZ’s to grow.
Lack of reliable and sufficient electricity and gas supplies are a major bottleneck preventing RMG units from increasing production.
It is good then the prime minister has told members of the BGMEA board that the government intends to review its policy and wants the country’s industrialisation to proceed in a more planned way than before.
This is a hopeful sign that policies may be amended to enable future industrial development to be focused on special economic zones.
While it is important for the government to consider some of the alternative suggestions and incentives sought by manufacturers to improve energy supplies, it is clear the best way forward is to move to a potion where special economic zones are always guaranteed continuous power.
The obvious way to do this is to incorporate building new power plants as part of the development of every new special economic zone.
In tandem with this, the government should also speed up action against illegal gas connections.
These use over 200 million cubic feet of gas each day, causing the government to daily lose several hundred crore taka. In addition to the safety risks and revenue losses caused by such theft and corruption, their existence causes huge harm to the country’s industrial sector.
The government has to act more firmly against illegal connections to help free up supplies that can be provided to these industrial customers.
It is vital for the economy that energy policy gives priority to guaranteeing supplies to industry and new entrepreneurs.
This is essential to incentivise new investment in SEZs to create valuable new export jobs and to prevent industrial growth stagnating.