News Report The captive generation based textile sector will be hit hard because of the government decision to increase gas price by 100 per cent. The previous gas price for the captive generation was Tk 4.18 per cubic meter (CM). Now it would be Tk 8.36 per CM, which has been effective from September 1. The government has taken discriminatory steps in fixing the gas price for the industrial sector. The new industrial gas price other than the captive generation would be Tk 6.74 per MCF whereas the previous price was Tk 5.84 per MCF, leaving an increase of 15.41 per cent. The cent per cent increase in gas price from the captive generation has been seen to be deliberate as the government wants to discourage the captive generation. It has been alleged about the misuse of gas resources in the captive sector has been alleged. The efficiency level of gas used in the power plant is 80 per cent, which is 70 per cent in the captive generation, energy ministry source said. The energy officials said that the country is in a position to meet the electricity demand of the textiles sector and this sector would not face any difficulties if it switches from the captive source to the national power grid source. But textile owners have raised the question about reliable power supply. They said the textiles sector needs uninterrupted power supply for maintaining efficiency level. But the national power grid source would not be able to ensure uninterrupted power supply. Moreover, per unit cost of electricity generated in the captive source is Tk 8.00. But textile owners will have to pay Tk. 8.50 per unit of electricity if they switch to the national grid source, the BTMA source said. The textiles sector has been flourished over the last two decades based on the captive generation, which ensured uninterrupted supply of electricity. The total investment volume in the textiles sector, according to the BTMA, now stands at around US$4billion, which would be at stake if the government sticks to its decision of discouraging the captive generation. As the gas price hike has been effected the production cost of cotton yarn and fabrics have also increased by 100 per cent and Bangladeshi yarn and fabrics will be non-competitive both in the local and the international market. It has been estimated that new production cost of per kg yarn will be USC 20.6, which was 10.3 USC. Similarly the new cost per kg fabrics will be USC 23.6 which was USC11.8. The new gas price will help the Indian cotton producers to use Bangladesh market as a dumping place for their products, the textiles source said.
