The government will not give clearance for any new gas connection to household and commercial users, but only to industries. The government also abolished the advisory committee, which was formed earlier for new gas connections. As a result, entrepreneurs can apply directly for new gas connection to industry.
The energy and mineral and resources division issued a circular on May 23 in this regard, which has been received by all gas distribution companies, an official said. According to the circular industries, power plants and fertilizer factories will be given priority in terms of gas pipeline clearance, while it will be halted for household, commercial and CNG filling station purposes. However hospitals, educational institutions and prisons will be exceptions.
‘Though the gas connection is open for industry, but it was recommended to halt new connections to captive power, in order to make the industrialists use grid power,' the circular said. The government is supplying gas at low cost to the captive power plant industry, but efficiency is 40 percent lower than that in the national power plants. As the country is now capable of generating sufficient electricity, the government is discouraging captive power plants by increasing gas price and diverting to national power plants, a top official said.
The energy division official said, the gas connections for industry is being limited on recommendation of the higher committee led by Prime Minister’s Energy advisor, Dr Tawfiq-e-Elahi, since the past four years. There have been many complaints against the committee. There are many who have taken advantage of the committee's delay in providing gas line. The delay was hampering the industrial work.
The circular said that in order to make industrial gas connection easier, the higher committee, charged with permitting gas connections, has also been dissolved. As a result, entrepreneurs will get gas connections within 7 to 10 days without any hassle, said an energy division official. The gas distribution companies will provide connection as per their availability, and increase the load depending on the applications but follow a specific set of rules for it.
Welcoming the government initiatives, business leaders said, if the decision is implemented, the industrial sector will get additional momentum.
State Minister for Energy and Mineral Resources Nasrul Hamid said that anyone who asks for gas connection in factories will be given clearance which will significantly bring down chances of any graft. Back in 2009, the government halted new connections to residential buildings citing gas crisis. The government started providing these gas permits again at the end of 2013 but then verbally ordered the gas distribution companies to halt it after the 2014 election.
The government is discouraging gas connections in pipeline in the sector due to gas crisis. LPG is recommended as an alternative to ensure future safety.
The government has taken an initiative to supply uninterrupted gas to new industries only in industrial zones, while out of industrial zones, supply is uncertain.
Nasrul Hamid said, the government will ensure uninterrupted gas and electricity supply at affordable electricity price for the industrialists in schematic industrial zones. Out of these, the facility is uncertain in future. If anyone wants to take uninterrupted gas and electricity, he must build his factory in industrial areas.
Due to lack of gas supply, many of the industries in the country are not able to start production in full swing. The government cannot start providing gas to 3,500 factories across the country even after their getting approval for new gas connections. So, the government planned import of LNG to resolve the crisis.
Energy division official said, the country’s gas demand will be 10,000 mmcfd, of which 8000 mmcfd will be for industry. The government has also taken various types of initiatives to meet the demand.
