Pacific Denims Limited, a denim manufacturer in Gazaria, Munshiganj, with an over 15 million-yard annual production capacity, has been struggling to maintain operations since February 25 as it abruptly faced a gas supply cut by Titas Gas Transmission and Distribution Company without prior warning.
Upon contacting Titas, Pacific Denims learned that the disruption was caused by an action taken against illegal gas connections in the Gazaria zone.
Although Titas restored the connections after 22 days, it again cut it on April 28 without any notice. The gas has still not been restored.
On June 6, the capital market-listed company announced it would stop production, citing the gas shortage.
Pacific Denims’ Company Secretary MdSorhab Ali told The Business Post, “We already faced losses worth at least Tk 20 crore due to the gas unavailability. Then, they finally decided to halt production.
“We do not know how we will pay the workers as Eid-ulAzha nears and how we will continue supply to our customers.”
Just like Pacific Denims, several factories in the area have been facing a gas crisis as Titas cut off the whole area’s gas lines. These factories are facing millions in monthly losses.
The owners of the victim factories wrote to the concerned authority and even sought the intervention of the Bangladesh Investment Development Authority (BIDA) to take proper measures. But the crisis has yet to be resolved.
As a result, many factories continue production by running costly diesel-based or LPG-run generators, and many have also entirely stopped their production.
Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon said, “We are already in a losing position due to the gas supply shortages; the crisis at Gazaria will make the area’s factory owners bankrupt.”
“I do not know how they could stop the gas supply into the legal lines while saying that illegal connections are also there.”
The Businesses Post contacted the Titas Gas Operation Division General Manager, MdSalimMiah, regarding the issues, and he stated that he did not know about them. The Business Post also tried reaching out to the Deputy General Manager of the Naryanganj area, MdManunar Rashid, but it has yet to find a response.
A document acquired by The Business Post shows that 13 factories in Gazaria wrote to the BIDA executive chairman on March 13, saying that the legal gas connection cut put them into a financial crisis. Due to the crisis, they are likely to fail to pay their workers on time, which may turn into an unsettling situation.
Hence, the factory owners sought BIDA’s intervention.
Sources at BIDA said that they held a meeting on June 06 regarding the issue and asked Titas to restore the lines as soon as possible to ensure uninterrupted production.
Despite three days already passed following the meeting, the industries did not get gas connections at all.
Pioneer Paper and Board Mills was one of the victims in the incident and has been forced to stop production since April 28. The factory’s gas bills have all been paid to date.
The company’s DGM ZillurRahman said, “Along with us, at least 15 factories have been forced to stop production in this area, though they have legal connections and pay bills regularly.
“Many run factories occasionally through using costly LPG. We need connections as soon as possible; otherwise, we will fail to pay workers.”
