A planned $800 million investment by Meghna Personnel of Industries (MGI) for three main factories in the Cumilla Financial Zone faces uncertainty attributable to delays in securing electrical energy and gas connections.
The venture entails a $400 million steel mill, a $200 million paper mill, and a $200 million glass factory, with manufacturing before all the pieces field to open in early 2024. MGI says it has already invested spherical Tk3,000 crore (spherical $250 million) in civil work for the factories, unparalleled of which is financed through bank loans. Nonetheless, without a manufacturing underway, the company incurs essential hobby expenses on the borrowed funds, it says.
At an match in the capital the day prior to this, Industries Adviser Adilur Rahman Khan said, “We are in a position to prioritise gas provide to industrial factories. We’re attempting to make consume of the gas point to in Bhola. We’re also working on importing gas, which will amplify the provide.”
Venture Director of Energy Grid Network Strengthening Venture Md Alamgir Hossain told TBS that the constructing of a 660-megawatt substation in Gazaria is in the relaxation phases and is predicted to launch by November.
“We’re underneath essential stress as the dwelling of enterprise of the chief adviser has advised us to full the house all of a sudden. Once operational, electrical energy from this substation shall be supplied to Cumilla Financial Zone,” he said.
The Cumilla Financial Zone, owned by MGI, bought remaining authorities approval on 20 March 2022. Construction started quickly after, to launch operations in the three factories. Nonetheless, the absence of fundamental energy infrastructure has left the ambitious venture in limbo.
“No topic a colossal decision of efforts, now we have gotten been unable to make certain gas and electrical energy connections in the Cumilla Financial Zone. If these had been on hand, manufacturing in the glass and steel re-rolling factories can have started,” Mostafa Kamal, chairman and managing director of MGI, told TBS.
He said attributable to the dearth of a gas connection, the industrial zone is unable to head into manufacturing, and which potential that, international investments are also no longer coming in.
On the far fringe of Gazaria upazila in Munshiganj, shut to the Dhaka-Chattogram Freeway in Meghna Upazila of Cumilla, lies the industrial zone spanning 246.3 acres of land. MGI has a belief to expand the zone to 350 acres.
During a fresh visit, TBS realized that the constructing of the Meghna Glass Industries constructing is quite full, waiting for a gas connection. The executive constructing and connecting roads had been carried out, while work on organising a steel re-rolling mill factory with a producing potential of 1.4 million tonnes per year is underway.
MGI says attributable to the dearth of gas and electrical energy connections, it has slowed down its work tempo. It is also unable to import machinery from abroad for manufacturing.
Suman Bhowmik, general supervisor (accounts) of MGI, told TBS, “Roughly $200 million has been invested in Meghna Glass Industries. The constructing of the steel re-rolling mill factory infrastructure is predicted to payment spherical $400 million. Additionally, about $100 million has been spent on developing the infrastructure of the zone. All these investments stay stalled attributable to the dearth of gas and electrical energy connections.”
Currently, MGI operates three economic zones. Among them, the Meghna Industrial Financial Zone and Meghna Financial Zone are engaged in the manufacturing of domestic and world industrial products.
But, MGI says, the dearth of a gas connection is deterring patrons from forthcoming to Cumilla Financial Zone
It says work is also underway to field up a energy plant to make certain electrical energy provide to the Cumilla Financial Zone.
Within the Meghna Industrial Financial Zone, spherical 13 international corporations have already established their industrial amenities, says MGI. Equally, several international patrons from worldwide locations esteem China, Cambodia, the Netherlands, and India have expressed hobby in constructing industries in Cumilla Financial Zone, it says.
Nonetheless, attributable to the uncertainty surrounding gas and electrical energy provide, MGI says, it has no longer been doable to enter into agreements with these international corporations no topic their investment hobby. It has already submitted a letter to Chief Adviser Prof Muhammad Yunus and advisers wanting to resolve the impart on the earliest.
Infrastructure for gas and electrical energy
In December 2016, the Bangladesh Financial Zones Authority (Beza) issued a pre-qualification letter for the Cumilla Financial Zone. To facilitate gas provide, the Cumilla Financial Zone authorities applied to Titas Gasoline Transmission and Distribution on 15 October 2018. Following intensive discussions, it used to be firm to place a brand new off-rob point at Bhoberchar on the Bakhrabad-Haripur-Meghnaghat 42″ pipeline for the Cumilla Financial Zone.
Primarily based mostly on the choice, the Cumilla Financial Zone authorities bought 20 bighas of land for Gasoline Transmission Company Restricted (GTCL) and 15 bighas for Titas Gasoline to compose the required infrastructure for the pipeline.
Equally, to make certain electrical energy provide to the Cumilla Financial Zone, 25 bighas of land had been bought at Gazaria for organising a 230/132 kV grid substation as per the requirements of the Energy Grid Company of Bangladesh. Currently, infrastructural and civil work are ongoing on the positioning.
Additionally, the Cumilla Financial Zone authorities have spent roughly Tk300 crore on purchasing mandatory equipment and supplies for organising the gas connection.
Nonetheless, no memorandum of concept (MoU) has been signed to this point relating to the gas connection.
Beza Executive Chairman Chowdhury Ashik Mahmud Bin Harun told TBS, “Beza is coordinating with all stakeholders to make certain that Cumilla Financial Zone receives a gas connection promptly. Nonetheless, there’s currently a nationwide gas provide shortfall of roughly 25% compared to position a question to. Additionally, the pipeline infrastructure for gas provide is rather outdated. Broadly talking, meeting the country’s gas attach a question to can no longer be finished in a single day — this may perhaps well rob some time to accommodate the be anxious.”
He said in some unspecified time in the future, when economic zones are popular, coordination shall be completed with diversified ministries to resolve how prolonged this may perhaps well rob them to offer their products and services. “As an illustration, the Ministry of Energy will specify how prolonged this may perhaps well rob to offer a gas connection. As a consequence, patrons will have a clear concept and can make investments accordingly.”
