New law aims to boost boiler production, exports

The government has formulated the “Boiler Act, 2022,” a new law aimed at facilitating commercial production of boilers and making way for their exports in different countries.

The new act includes regulations regarding boiler production and exports that replaces the previous Boiler Act, 1923.

Many new industries are currently being established with local and foreign investments; especially 100 economic zones were launched in the country which has also increased the use of boilers in factories across the country.

In 2009, the country had a total of 6,195 registered boilers for industrial use, which rose to 12,380 in 2021. So, the government is concentrating on boosting production of boilers and reducing dependency on imports.

Following enforcement, the new law will check boiler-related accidents and ensure a safer work environment in industrial mills through the use of quality boilers. Besides, none will be allowed to operate boilers without a license. A maximum of two-year jail or Tk 2 lakh fine will be imposed on anyone found violating the law.

The previous law had a provision of Tk 10,000 in fine for rule violations.

On April 3, Industries Minister Nurul Majid Mahmud Humayun moved the act in the parliament which was unanimously passed by voice votes with Speaker Dr Shirin Sharmin Chaudhury in the chair.

Industries Ministry Secretary Zakiya Sultana said the demand for boilers is rising gradually in line with the trend of speedy industrial expansion.

“To fulfil this demand, we need to reduce dependency on imports and focus more on producing boilers. The Industries Ministry has formulated the new act to ensure standard boiler production, import and security of use.” she said.

The Boiler Act, 1923, was formed in the colonial era. The new act contains stronger punishments for offences and direction of a new framework for the development of this sector.

The new act mainly aims to ensure a safe work environment in workplaces, reduce boiler related accidents, increase awareness, make standard boilers and their import, use and operation.

The definition of boilers has also been changed in the new act. Previously, pots with the capacity to carry 22.76 litres of steam were called boilers, but now pots with the capacity to carry 25 litres of steam are called boilers.

At the same time, boiler components were newly included in the act which stated three types of boilers – electrode boilers, small industrial boilers and industrial boilers.

Implementation of the Act

There will be chief boiler inspector and boiler inspector to ensure the implementation of the law, and their institution under the industries ministry will establish its headquarters in Dhaka and local branch offices in different areas.

Besides, a boiler board will be formed with a three-year tenure which will have a chairman, six members and chief boiler inspector will be member secretary of it.

This board will place recommendations regarding boiler manufacture, imports, installations, use and repairs, while also approving the list of other assisting institutions.

The chief inspector will be able to fine Tk 1 lakh after holding a hearing and can double the fine for repeated offence.

The Secretary of the Industries Ministry will be chairman of the boiler board. Chief inspector will also provide a record of registration.

Rules to be followed while making boilers

According to the act, anyone will be able to make boilers locally for export or domestic use but they will have to follow some certain regulations.

The boiler producers must have adequate manpower, equipment and suitable place as per the rule and code of conduct, and they have to follow specific processes and pay fees.

Boiler design and drawing should be approved by the chief boiler inspector or inspector’s organisation and this organisation will also inspect and examine the boiler production at different stages.

Manufacturers will have to collect certification from the Chief Boiler Inspector. Two-year jail or Tk 2 lakh fine will be imposed over violation of any of these rules. The same penalty and fine will be also imposed if the registration number of a boiler gets removed, changed or used in another boiler.

For offences such as using boilers or permitting anyone to use boilers violating the rules, the offender will also face the same punishment. Besides, boilers should be exported following the conventional export policy.

The act said boiler users, operators and other stakeholders will be responsible for any mishaps and compensation will be imposed on them.

But they won’t be responsible if they manage to provide evidence of installing adequate measures to prevent accidents.

Boiler accidents

The country witnessed a total of 15 boiler accidents from 2017 to 2021, which claimed 42 lives. Among them, at least 13 people died in a boiler explosion at a garment factory in Nayapara of Gazipur and 15 more were killed in Jamuna auto-rice mill in Shekhati of Dinajpur.

These accidents prompted the government to take different measures to form a new law regarding the matter.

Boilers usage, and its market

Boilers are considered a must element for almost all types of industries in the country. They include power stations, fertiliser factories, sugar mills, textile mills, paper mills, feed mills, rice mills, apparel factories and pharmaceutical companies.

Currently, the country has a yearly demand of 850 to 900 boilers. Of the demand, nearly 50 per cent are manufactured locally with Modern Erection and Golden Boiler dominating the market. Besides, another around 20 local firms including Azad Boilers, Fulton Engineering, SM Boiler Centre, Powertech Associates, RS Enterprise, Techno Tower are involved in the boiler manufacturing business to cater to the increasing industrial demand for the machine, industry sources said.