The Government of Bangladesh will not provide electricity and gas supply to new factories if they are set up in any other places except in Government-designated economic zones or industrial enclaves.
The cabinet committee on economic affairs decided this at a meeting on 21st March. The Bangladesh Bank (BB) issued a circular to this effect on Monday.
Prior to issuing loans, banks are required by the central bank to get mandatory clearance certificates from utility service providers.
The Ministry of Energy and Mineral Resources published a circular in 2020 instructing companies located outside of economic zones and industrial parks to cease obtaining new gas connections as of April 2021. But over the past three years, the administration has not strictly enforced the judgement.
The BB stated on Monday that planned industrialisation is necessary to guarantee economic growth.
“Establishing industries at specific locations will ensure proper land and energy management as well as environmental development.”
The Federation of Bangladesh Chambers of Commerce and Industry president, Mahbubul Alam, stated that the choice was made to entice investors to establish new companies in industrial estates and economic zones.
The decision should, however, not apply to those who have already set up factories outside Government-designated industrial zones, according to the top business leader.
