Gas to N dists a prime need

The Rahateen Industries Ltd., now closed due to uneven competition from products produced in units having gas supply in other areas of the country. PHOTO: STAR

Even the government-offered Equity and Entrepreneurship Fund is lying unused with banks.

In 2002, the Bangladesh Bank offered loans up to Tk one crore at four per cent interest rate through commercial banks for setting up of agro-based industries, with a provision to share the loss.

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But none of the commercial banks received any proposal so far for agro-based industry in greater Rangpur, banking sources said.

Business circles and prospective investors here say industries without gas supply will not survive the uneven competition from those in other areas having gas.

Many industries have been closed down and many others have become sick as their products are costlier, they told this correspondent.

Absence of gas is one of the main obstacles, they said. At least 10 medium scale industries using furnace oil and electricity were closed in only Rangpur district in the last several years due to uneven competition from units using gas, they claimed.

Notables are RV Audible Oil Refinery Ltd, Dimple Biscuit Private Ltd, government owned Rangpur Distilleries and Chemicals Ltd, Rangpur Automatic Rice Mills Ltd, Rahateen Industries Ltd and Rangpur Flour Mills Ltd. All were agro-based.

Shariful Islam, Managing Director of RK Metal Industries which produces fan said his industry is limping and may be closed any time. The production cost could be reduced by at least 25 per cent if he could use gas instead of electricity in the factory, he said.

Manager of Rangpur Auto Rice Mills Ltd. Sarwar Jahan said he could save at least Tk one lakh a month if his mill could use gas.

Talking to this correspondent, a good number of prospective entrepreneurs in agro-based industries said they have shunned their plans due to uncertainty in gas supply.

The Rangpur Chamber of Commerce and Industry (RCCI) on several occasions submitted memorandums to the authorities for initiative to bring Rangpur and Dinajpur region under the government's five-year gas supply plan.

"None dares to take any risk without gas (supply) ", said RCCI President Mostafa Azad.

So the Equity and Entrepreneur-ship Fund (EEF) still remains unutilised in Rangpur and adjoining districts, he said.

"Whereas major portions of EEF in southern districts have been disbursed", he claimed.

After the present government took over, a RCCI team called on the minister-in-charge of the district and State Minister for Housing and Public Works Alamgir Kabir and handed over a memorandum for gas supply.

"But no initiative has been taken", Mostafa said. "There are good prospects for setting up agro-based industries in Rangpur but we can not avail the scope", he regretted.

The people had hoped that they would get gas after commissioning of the Jamuna Bridge. But their hopes have been shattered.

Bogra would be brought under gas pipeline network by 2006 but there is no government declaration when Rangpur and Dinajpur will get gas, he deplored.

RCCI Vice President Jahangir Hossen said, over 91000 hectors of land are brought under potato cultivation in eight districts in greater Rangpur and Dinajpur region every year. Export quality potato chips, bear and other items could be produced from potato, he said.

The Brihottor Rangpur Unnayon Forum (Greater rangpur development Forum) held a rally on June 14 at the town to press their 12- point demand, including gas supply to northern districts.

A high official of Bangladesh Bank at Rangpur seeking unanimity said commercial banks are eager to give loan for setting up industries but entrepreneurs are not coming forth due to lack of gas.

Vice President of National Credit and Commerce (NCC) Bank Ali Ashraf said the Rangpur branch of his bank has invested a huge amount of money in maize cultivation. "We are ready to finance small industries to produce food products from maize", he said.