Govt eases rules on industrial gas distribution to cut costs, boost efficiency
Business leaders welcomed the initiative, saying the reforms would streamline operations, particularly for energy-intensive sectors such as textiles.
The government has simplified the industrial gas distribution system, allowing factories to rearrange equipment and transfer unused gas load with fewer approvals, in a move expected to boost productivity and reduce costs.
The Power, Energy and Mineral Resources Division issued a circular today (20 April) outlining the revised guidelines aimed at easing operational bottlenecks for industrial users.
Business leaders welcomed the initiative, saying the reforms would streamline operations, particularly for energy-intensive sectors such as textiles.
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According to the circular, industrial units will be allowed to rearrange or replace gas equipment while keeping the approved hourly load unchanged. The commissioning work must be carried out by a contractor enlisted with the relevant gas company, but prior permission from the gas distribution company will no longer be required.
The circular also allows the transfer of unused gas load between industrial units located within the same premises and under the same ownership, subject to approval from the managing director or regional head of the respective gas distribution company. Previously, such transfers required approval from the head office board, often resulting in lengthy delays.
In addition, gas load allocated under the captive power category can now be transferred to the industrial category within the same premises and ownership, if required.
The directive further states that gas distribution and marketing companies must install meters within seven days, after which the quality of installation must be verified.
Textile mills are among the largest consumers of industrial gas in the country, making the sector particularly affected by the new measures.
The Bangladesh Textile Mills Association (BTMA) welcomed the decision, saying it would help improve operational efficiency.
In a statement issued today (20 April), the association said reforms in the energy sector would contribute significantly to increasing productivity, reducing costs and improving energy management in the country's textile and apparel industries.
