Local steel and re-rolling mill owners and producers have threatened to close all factories sine die from June 25 if the government fails to ensure uninterrupted power and gas supply to the factories.
They also threatened to go for tougher agitation like laying siege to Dhaka Electric Supply Authority, Rural Electrification Board, Power Development Board, Petrobangla and National Board of Revenue offices and stopping tax payment unless their demands are met by June 24.
The millers lamented the government is yet to take any initiative to save the sector through resolving some problems they are faced with for a long time.
Talking to the Daily Star Masadul Alam Masud, general secretary of Bangladesh Re-rolling Mills Association (BRMA) said re-rolling and steel millers have been suffering from production losses due to power and gas shortage.
"We are facing a seven-hour load-shedding on an average during the production time every day," he said, adding that
production now reached 50 percent behind the capacity.
"We usually pay electricity bills of Tk 2,500 to produce one ton of steel products. But production cost is going up to Tk 6,000-Tk 7,000 a ton due to disruption in the power supply," the BRMA general secretary said.
Placing a demand for an uninterrupted supply of power and gas for the next 50 years, he urged the government to fix up the electricity price at a concession rate for the steel sector.
The re-rolling and steel millers also demanded not to impose any "demand charge" on the monthly bill.
At present there are around 300 re-rolling mills and 100 steel mills in the country. At least 500 entrepreneurs have invested more than Tk 50 billion in those plants.
The annual demand for steel and rod in the country is 2 million tonnes, which is being met by the local producers.
The two associations demanded re-fixation of tariff value of the products in consultation with the trade bodies putting an end to the harassment by the VAT officials. They also demanded repeal of attestation procedure for VAT collection.
The trade bodies demanded introduction of reading-based gas bill for the steel and re-rolling mills and supply of gas at a high pressure flow.
Sirajul Islam Mirdha, a member of Bangladesh Steel Mill Owners Association (BSMOA) said," Our movement is against illegal electricity connection. But unfortunately, some millers who are involved in such illegal activities are highly competitive in the market".
Mirdha demanded immediate halt to such illegal practice.
