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BGMEA offers to generate 1000MW electricity
Jul '11
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has offered to establish several small-scale area-based electricity generation plants to ensure uninterrupted power supply to the export-oriented ready-made garments (RMG) manufacturing units in the country.

The Association has submitted their plan to the Prime Minister, under which it proposes to add 1000-megawatt (MW) more electricity to national grid. While the project still awaits the Government's clearance, the BGMEA plans to soon begin an assessment about the technical feasibility of the same.

In May this year, Prime Minister Sheikh Hasina had given a call for establishment of such power plants to meet the growing demand for power by the country's RMG sector. The Prime Minister had also made an offer of making loan available at lower rate of interest for setting up of power plants.

Power supply in Bangladesh suffers from insufficient generation and not so well-organised distribution system.

For the growing Bangladesh RMG sector, availability of power is very vital. Although the total demand for power in the garments sector at present is 720MW, only 406MW is being supplied by the Government.

Besides general power generation, area-based power plants are also important as garment units are located in areas such as Badda, Narayanganj, Uttara, Malibagh, Mirpur, Ashulia, Savar, and old parts of Dhaka, which need to be assessed separately.

This year, the cost of garment production has gone up due to shortage of power supply and increase in the price of furnace oil, on which the RMG sector has to depend owing to shortage of electricity.

Due to their dependence on captive power, the RMG units have incurred an additional cost of Tk 20 billion. The hike in the price of furnace oil has led to a 35 percent increase in RMG production cost.

Fibre2fashion News Desk - India

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