Trade

Gas Rules Eased for Industry

Factories allowed to shift unused load within same premises to improve efficiency

Written by The Banking Post


The government has simplified industrial gas distribution rules, allowing factories under the same ownership and premises to transfer unused gas load—an effort aimed at improving efficiency amid rising energy demand.

A circular issued by the Power, Energy and Mineral Resources Division outlines the revised framework, enabling such transfers with approval from the managing director or regional head of the relevant gas distribution company.

The move is expected to ease operational constraints, particularly for energy-intensive sectors like textiles and garments.

Under the new guidelines, industrial units can also rearrange or replace gas equipment as long as their approved hourly load remains unchanged. Commissioning work must be handled by enlisted contractors, though no additional permission from gas distribution companies will be required.

The policy also allows shifting gas load from captive power use to industrial use within the same premises and ownership. However, reverse transfers—from industrial power to captive use—will not be permitted.

To strengthen oversight, gas companies have been instructed to verify meter quality within seven days of installation.

Industry leaders welcomed the decision, calling it a timely reform.

“This will help enhance productivity, reduce costs and streamline operations,” said a statement from textile mill owners, adding that the flexibility would support smoother factory operations.


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