Bangladesh’s textile millers have called for an increase in the bulk consumer limit for captive power gas connections to 20 megawatts (MW) from the current 10 MW.

Bangladesh Textile Mills Association (BTMA) also sought the removal of the no objection certificate (NOC) requirement for connections up to 20 MW.

In a letter to power and energy adviser Fauzul Kabir Khan, BTMA president Showkat Aziz Russell proposed reducing the security deposit for captive gas connections from two months’ worth of bills to one, with a bank guarantee for the deposit.

Currently, connections exceeding 10 MW require an NOC from power distribution companies, a process BTMA claims is outdated and unnecessarily complex.

BTMA letter said that primary textile mills were facing major financial losses due to underutilised production capacity, which could lead to reduced export competitiveness.

It said that the poor gas supply had disrupted production, making it difficult for mills to meet export deadlines. Rising production costs were also reducing their competitiveness.

Textiles and apparel account for more than 85 per cent of Bangladesh’s total export earnings, with nearly 70 per cent of the sector’s supply chain driven by BTMA-member industries.

These industries are heavily reliant on captive power generation, which primarily uses natural gas as fuel.

However, the rising cost of production, exacerbated by the current gas price of Tk 42 per cubic meter, has put additional strain on businesses.

In another letter to the adviser, the BTMA president urged the Ministry of Energy to ensure a fair and proportionate gas supply to industries, warning that continued shortages could lead to widespread factory closures and labour unrest.

BTMA said that Titas recently diverted more gas from industries to the power sector, exacerbating the crisis.

Citing data from Petrobangla, Russell said that from February to April 2025, Titas supplied approximately 100 million cubic feet less gas daily to industries compared with previous periods, while increasing gas supply to the power and fertiliser sectors by the same volume.

‘Despite maintaining a stable gas supply to the residential sector, industrial gas deliveries were disproportionately reduced,’ the letter read.

Due to the limited gas supply, export-oriented textile mills have been unable to maintain expected production levels. Russell also said that if the current situation persists, many textile mills may be forced to shut down permanently, jeopardising the timely payment of wages and allowances to workers ahead of Eid-ul-Azha.

BTMA represents 1,856 member mills, covering spinning, weaving, dyeing, printing, and finishing operations.

The sector boasts a combined investment of approximately $22 billion, making it the most significant single investment in Bangladesh’s private sector.