Govt Eases Industrial Gas Rules to Cut Costs

Representational image.

The government has relaxed regulations on industrial gas distribution, allowing factories greater flexibility in using gas connections in a move aimed at reducing costs and improving efficiency.

The Power, Energy and Mineral Resources Division issued a circular on April 20 outlining the revised guidelines, designed to remove operational bottlenecks for industrial users.

Under the new rules, factories can rearrange or replace gas equipment without prior approval from distribution companies, provided the approved hourly gas load remains unchanged. However, the work must be carried out by contractors enlisted with the respective gas company.

The directive also allows industrial units operating within the same premises and under the same ownership to transfer unused gas load, subject to approval from the managing director or regional head of the distribution company. Previously, such transfers required approval from the head office board, often causing delays.

In another significant change, gas allocated for captive power generation can now be shifted to industrial use within the same facility and ownership, offering businesses more flexibility in managing energy resources.

The circular further instructs gas distribution and marketing companies to install meters within seven days, followed by verification of installation quality.

Industry leaders have welcomed the move, saying it will streamline operations, particularly for energy-intensive sectors.

Bangladesh Textile Mills Association said the reforms would help improve productivity, reduce operational costs and strengthen energy management in the textile and apparel sector, one of the largest consumers of industrial gas in the country.