Solar power leads growing green industries

http://www.newagebd.com/2009/jun/17/busi.html#5

Solar power leads growing green industries

The AFP file photo shows a woman solders components as she works in a solar panel factory in Mouna just outskirts of Dhaka.

Afp, Nayeb Ali Bazar

Like all rural Bangladeshis, Saidul Islam knows the hardships of summer, when his tin-roofed house turns into a furnace with not enough electricity to power even a fan.

For the 100 million Bangladeshis — most of them farmers — who live in the countryside, the notion of electricity supply is little more than an empty promise bandied about by politicians at election time.

Only villages close to highways or large farms with irrigation pumps have access to the national grid, and even then for an average of just one hour in four.

Fed up with promises of a connection that never came, Islam took matters into his own hands, and four years ago scraped together 335 dollars to buy a solar panel for the roof of his modest mudbrick-and-tin home.

“My family and friends thought I was stupid, but I knew it would be worth it even though the price was eight months of income,” said Islam, who lives in the village of Nayeb Ali Bazar, 80 kilometres (50 miles) north of Dhaka.

The investment has more than paid off for the 40-year-old tailor, who used to finish work when the sun set.

Now most days he sews until midnight, thanks to five hours of power from the solar panel, and his income has doubled.

For the 70 percent of Bangladesh’s 144 million people who have little or no access to electricity, alternative energy sources are the only option.

Years of under-investment means state-owned power plants generate only 3,500 megawatts of electricity a day, whereas demand is 6,000 megawatts and growing by 500 megawatts a year due to increasing industrialisation.

The government, elected in December, has promised to boost power supply but says improvements are at least three years off.

In the meantime, figures show that Bangladeshis are doing it for themselves. In the past year alone, the number of solar-powered household systems has doubled to 300,000, delivering electricity to 2.5 million people.

Leading the rapid expansion is Grameen Shakti, a sister concern of Nobel laureate Muhammad Yunus’s micro credit giant Grameen Bank.

The charity, along with 14 other smaller organisations, extends loans with generous conditions to enable the poor to purchase the wherewithal to produce solar energy.

“Solar systems are selling so fast in rural areas that we’re struggling to keep up with demand,” said Dipal Barua, Grameen Shakti’s head.

Growth also means new employment opportunities.

“We have created some 20,000 green jobs, some 2,000 of them employing rural women who earn a decent income of 100 dollars a month,” Barua said.

“Our goal is to get half of the country’s rural households using solar energy by 2015 and create jobs for 100,000 women.”

Energy expert Shahidul Islam, from the Bangladesh University of Engineering and Technology, said the rapid expansion of solar energy had helped bring the cost of panels down.

“What we are witnessing in rural areas is nothing short of a green revolution,” he said. “It is changing the face of rural Bangladesh, which has until now been in the dark.”

Local company Rahimafrooz, which produces batteries to store the solar energy, has tripled output this year to meet demand.

“The renewable energy business in Bangladesh is the fastest growing green industry in the world,” said company CEO Niaz Rahim.

“It will be a billion-dollar industry within the next six years. Every solar accessory except the panels is now produced in Bangladesh which means we are going to be self-sufficient very soon to keep driving the growth.”

In Bhutuli, north of Dhaka, greengrocer Nurul Islam jokes that his village was once renowned for producing jackfruit, but is now better known for the number of solar panels sprouting from its roofs.

“The best thing about having solar energy is coming home at 10pm from work and seeing my three sons reading their books,” he said.

“We never had the opportunity to do this in the past. It’s changing our country’s fate.”

Tyre production soon using local rubber

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Tyre production soon using local rubber
Bangladesh Sangbad Sangstha . Dhaka

The communications minister, Syed Abul Hossain, on Tuesday said tyre production under a joint venture would begin in the country soon using local rubber.

He said this while inaugurating marketing of Tata Jenon pickup vans produced by Tata Motors Ltd and Kasumina tyre produced by a Vietnamese company.

The Indian high commissioner, Pinak Ranjan Chakravarty, Vietnamese ambassador, Noguen Ven Thet, chief of Sales Department of Tata Motors Ltd South Asia Division, Bishwadev Sen Gupta, Nitol Motors managing director, Abdul Musabbir Ahmad, and the Tata Motors country manager, M Ram Chandan, addressed the function with Nitol Motors chairman Matlub Ahmad presiding.

The minister said the government had undertaken several steps to improve the country’s communications system including reducing traffic jam in the cities.

About 400 environment-friendly buses will be procured from India to this end, he added.

Rise in killings on the frontiers with India

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Rise in killings on the frontiers with India
Raheed Ejaz

There has been a significant rise of killings of Bangladeshi people by the Indian border guards along the frontiers with the death of 52 people in first six months of 2009 despite repeated pledges of Indian authorities to curb such killings.

The death figure of Bangladeshi nationals in the border areas is almost double compared to the tally of corresponding period of last year when 30 people were killed, according to information available with human rights watchdog Odhikar.

Among those killed, some 37 people died in the first three months of 2009 while the figure was 3 and 10 in April and May respectively.

During a director general level meeting of the BDR and BSF held in Dhaka on August 20-24, 2008, the then chief of the Indian border guards Ashish Kumar Mitra had said they would show ‘zero tolerance’ to border killings as they did not want anyone to be killed on the frontiers.

The human rights watchdog’s statistics also revealed that apart from killing 52 Bangladeshi nationals in the border areas, the Indian BSF also injured and abducted some 65 Bangladeshis in recent months.

According to news agency reports, Indian BSF on Tuesday morning gunned downed Rabiul Islam, 30, of Barogram sadar upazila of Dinajpur district while he was working in the field along the border.

Quoting Fulbari 40 Rifles Battalion sources, the reports said that the BSF members of Doghati camp also injured another Bangladeshi citizen, Anwar, 28, of the same village.

In a recent report, Odhikar revealed that on April 23, Rabindranath Mandal, 45, and his wife Kalyani Rani Mandal, 38, from the village Bolabari under Ashashuni Upazila in Shatkhira, were arrested by BSF from India’s Ghojadanga Camp as they were returning to Shatkhira from India along Main Pillar No 4.

The report said that BSF officers beat Rabindranath to death and tortured and raped Kalyani and left their dead bodies near the Main Pillar Number 4 on the Shatkhira-Lokkhidari border.

The couple had gone to the Nadiya district in India for medical treatment six months ago.

Odhikar said that Indian border guards from Dubli border camp entered into Bangladesh territory on the morning of March 21 and abducted three Bangladeshis namely, Sultan Hossain Dhabok (20), Bokul Hossain Dhabok (19) and Alamgir Hossain Dhabok (18) from the village of Choyghoriya of Boikari Union in Shatkhira.

The following day Sultan and Bokul were rescued after being tortured by the BSF. But the other person, Alamgir, is still missing.

Tipaimukh dam: Farm output to fall, spelling disaster for Sylhet region

http://nation.ittefaq.com/issues/2009/06/17/news0277.htm

Tipaimukh dam: Farm output to fall, spelling disaster for Sylhet region

bdnews24.com, Dhaka

Farm output will fall and poverty will rise, spelling ‘disaster’ for the Sylhet region if India’s proposed Tipaimukh dam and Fulertal barrage are built, maintain experts.

“The dam will cause water flow to slow down while the barrage will ensure their full control of water resources,” former director general and chief engineer of Water Resources Planning Organisation,engineer Inamul Haque told bdnews24.com Thursday.

“The cultivation of early variety of boro in the northeast would be hampered,” he said.

“So far as I know the Tipaimukh dam will be built 200 kms from the Amolshid border, at Zakingong, to construct a vast water reservoir for hydro-power generation.”

“The water from three rivers-the Barak, Tipai and Irang-would be required to feed the water reservoir to cover an immense area,” said Inamul.

“Besides, another barrage is to be built 100 kms off our border at Fulertal in India for irrigation purposes which would feed the waters through canals,” Haq said.

Haq said downstream regions will experience two major impacts: firstly, with the decrease of water in December, the people who now grow early varieties of boro on the land which used to arise in the haor areas would no longer have this resource.

Secondly, the water flow of the river Surma will decrease significantly, he said.

IUCN resident director Dr.Ainun Nishat told bdnews24.com that the construction of Tipaimukh dam will reduce the the natural monsoon flood patterns of the area on which cultivation depends.

He said the construction of barrage at Fulertal on top of the Tipaimukh dam could seriously reduce the water flow during the dry season.

“The extent of drop in water flow depends on the volume of water withdrawn through the irrigation canals,” he said.

“We could see the Surma and Kushiara rivers dry up completely during the dry season, he said

Anu Muhammad, professor of economics at Jahangirnagar University, told bdnews24.com the Tipaimukh dam and Fulertal barrage would spell “a great disaster.”

“Arable land will decline and production of crops fall, leading to a rise in poverty,” he said.

According to some reports, the proposed Tipaimukh dam across the river Barak in the Indian state Monipur will 162.5 metres high and 390metres long to create a reservoir by permanently submerging some 2.75 square kilometers of land.

India expects to generate around 1500 megawatt of hydropower from the project.

FDI up by 67.4pc in nine months

http://www.thefinancialexpress-bd.com/2009/06/16/69964.html

FDI up by 67.4pc in nine months

FHM Humayan Kabir

Foreign direct investment (FDI) in Bangladesh has swelled to US$882 million, up by 67.4 per cent, in first nine months of the current financial year compared to the same period last year, officials said Monday.

The central bank data showed net investment by the foreign firms in July-March period of last FY2008 was worth of $527 million, which has risen by $355 million to $882 million in the same period of this fiscal.

“It’s a great news for Bangladesh. At last, the country has started to recover from the ailing FDI trend in last couple of year,” a Bangladesh Bank (BB) official told the FE.

The investment flow of $882 million during nine months (July-March) of current fiscal is also 36 per cent higher than US$650 million investment during 12 months of the previous FY2007, the central bank official said.

He said political stability and transition to democracy have mainly helped to regain the investment flow to the country from second quarter in the outgoing financial year.

He said during the interim government period imposition of the state of emergency had affected the FDI flow to Bangladesh though it had been maintaining growth till FY2006.

In FY2006, Bangladesh bagged $793 million worth of net foreign direct investment, which plunged to $650 million in FY2007 and to $527 million in FY2008.

Economist Mustafizur Rahman told the FE that it was a good news that the FDI flow started to regain in the current fiscal.

“But you should bear in mind that the country has grabbed $300 million single investment from a Japanese company to local mobile phone industry which helped build the net foreign investment,” he said adding if the trend shows a gain in the last quarter then the real picture would be realised.

Mr. Rahman, also executive director of the local think tank –Centre for Policy Dialogue (CPD), said there is massive potentiality of investment in the coming days as the registration for fresh investment with the Board of Investment (BoI) has gone up nearly three-fold.

“If the government can supply adequate energy and develop the infrastructure, plenty of investment will come to the country,” he said.

A senior BoI official said there are lot of investment proposals coming especially for the textile sector.

“We’ve already registered billions of dollars worth of investment proposals both from local and foreign countries this fiscal. It is more than double compared to the same period last fiscal,” he said requesting anonymity.

As per BoI statistics, the board has registered $4.1 billion worth of investment proposal till April this financial year, more than half a billion dollar higher than the total registration in previous FY2008.

The BoI official said most of the investment proposals are coming to the manufacturing sectors including textile, pharmaceuticals, sports-wear etc.

Mustafizur Rahman said since the government has proposed adequate funds in the next budget for power and energy sector development and introduced new paradigm of investment –public-private partnership (PPP), there is potentials of boosting investment.

Zaid Bakth, research director of Bangladesh Institute of Development Studies (BIDS), said: “Since Bangladesh has abundant cheap labour, some manufacturing units from different countries including China have been relocating to the country. It will boost our investment further.”

There is a possibility of a heafty sum of foreign investment in energy and power sector in the coming days, he added.

Mr. Bakth said the government should take quick decision on the “offshore bidding round 2008″ for the sake of exploring new oil and gas sources as those would facilitate more investment to the country.

Electrical products fair begins in city on June 18: 80pc electrical goods being produced in country

http://nation.ittefaq.com/issues/2009/06/16/news0213.htm

Electrical products fair begins in city on June 18: 80pc electrical goods being produced in country

Business Reporter

Country’s electrical manufacturers are now producing 80 per cent of electrical products against the total demands in the local markets worth about Tk 20,000 crore.

“We are producing international standard electric goods in the country. But the tendency of local customers are to the foreign goods,” said Nasim Ullah Hemayet, President of Bangladesh Electrical Merchandise Manufacturers Association (BEMMA).

Addressing a press conference at the National Press Club yesterday, he said they also export electric products aboard after meeting the local demands.

The BEMMA President said they are going to organise the ’3rd Bangladesh Electrical Product Fair-2009′at Bangladesh-China Friendship Centre from June 18 to 20 with a view to introduce local products to the customers.

Commerce Minister Faruk Khan will inaugurate the programme as chief guest and FBCCI president Anisul Huq will also attend as special guest, they mentioned.

The three-day long fair to be organized with the aim of focusing the quality based locally made electrical products will start 10am and close 8pm, which is open for all. The BEMMA President said that they are organising the fair in collaboration with Light Engineering Product-Business Promotion Council (LEP-BPC) and Ministry of Commerce to introduce people with Bangladeshi quality based electrical products as many people have tendency to buy foreign quality less products.

He said about 70 stalls exhibit electrical accessories like switch, cable, fan, meter etc.

Anayet Hossain, a former President of the BEMMA, urged all to buy local products and the government to remove electricity and financial problems.

Shahin Ahmed, co-chair of the fair committee and CEO of Shahin electrical industries told The New Nation that they would not allow any stall without its own brand.

Nurul Amin, senior vice president, Golam Mostafa, vice president, Nuruzzaman, chairman of the fair committee, among others, were also present on the occasion.

Govt harps on Delhi’s Tipaimukh justification, unfortunately

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Govt harps on Delhi’s Tipaimukh justification, unfortunately

THE Awami League-led government seems to have chosen to rely on ‘diplomatic sources’ and assurances from New Delhi – and not the growing body of scientific evidence gleaned by experts in both Bangladesh and India – to arrive at its conclusions about the controversial Indian plan to construct dam/s on the upstream of the river Barak at Tipaimukh in the Indian state of Assam. The water resources minister, Ramesh Chandra Sen, told the parliament on Sunday that the government has ‘learnt from diplomatic sources that the proposed dam is a hydroelectricity project’ and that ‘Indian authorities have assured that they will not divert water from the dam elsewhere.’ Late last month, the commerce minister, Faruk Khan, told journalists that ‘those who are talking too much against construction of the dam are talking without knowing anything’ on the basis of, it now seems, information gathered from ‘diplomatic sources’ and assurances from the Indian government. The foreign minister, Dipu Moni, also appeared assured when she told the private news agency bdnews24 that ‘The Indian government has assured us that they will in no way act to harm Bangladesh.’ However, there is hardly any reason for the people to have faith in either the AL-led government’s ‘diplomatic sources’ or the Indian establishment’s ‘assurances’.

The government’s views about the Tipaimukh Dam/s appear increasingly similar to, if not the same as, what New Delhi has thus far said about the controversial project. If it is so because of the information provided by the ‘diplomatic sources’ there is hardly any reason to have faith in the credibility of such sources. On the other hand, the assurances of the Indian government count for very little; after all, seldom has New Delhi remained true to its promises and followed the bilateral agreements that it signed with Dhaka to the letter. Surely, the government needs not be reminded that India has consistently denied Bangladesh its due share of the Ganges water and that, before the construction of the Farakka Barrage, New Delhi had also reassured Dhaka that the barrage would not harm Bangladesh in any way. In the case of the Tipaimukh Dam/s, India did not even bother to consult with Bangladesh before commissioning the project.

Against such a grim reality, the government’s self-professed conviction in the Indian government’s assurances that the Tipaimukh Dam/s would not harm Bangladesh in any way and claim that there are actually benefits to be had for Bangladesh from the dam could only be construed as its willingness to submit to New Delhi’s designs. It is all the more so because of the Indian establishment’s perceived predilection for the Awami League. The government needs to realise that, along with the life and livelihoods of millions of people, its own credibility could also be at stake here. Hence, it will do a great service to the people and also to itself, if it discontinues reliance on its ‘diplomatic sources’ and the Indian government’s ‘assurances’ and, for once, looks at the scientific evidences against the proposed Tipaimukh project and listens to what experts, particularly in Bangladesh, have to say about the catastrophic consequences that the project looks set to bring upon the people of Bangladesh. The government, after all, was voted to power by the Bangladeshis.

‘MPs, Ministers should quit if they fail to stop Tipaimukh Dam’

http://nation.ittefaq.com/issues/2009/06/16/news0188.htm

‘MPs, Ministers should quit if they fail to stop Tipaimukh Dam’

UNB, Dhaka

Former TIB chairman Prof Muzaffer Ahmed on Monday said the lawmakers and ministers should step down from their respective position if they fail to protect people’s and nation’s interest by saying no to Tipaimukh dam.

“We voted them to protect our rights and interests… I don’t know how they claim the dam will not be harmful for Bangladesh,” he said, while speaking as chief guest at a national seminar on Tipaimukh Dam at the Jatiya Press Club auditorium in the morning. Assistant Professor of Chittagong University Geography Department Kazi M Barkat Ali presented the keynote paper at the seminar, organized by ‘Movement to Protect Surma-Kushiara-Meghna’, a citizens’ forum.

Former DG of BDR Maj Gen (retd) ALM Fazlur Rahman, former secretary Mohammad Asaf Uddowlah, Engr Dr SI Khan and Prof Dr Mahbub Ullah, among others, addressed the seminar with convener of the forum Abdul Qayyum Chowdhury in the chair.

Prof Muzaffer Ahmed doubted the patriotism of the lawmakers and ministers who are advocating in favor of Tipaimukh Dam ignoring the nation’s interest.

He said Prime Minister Sheikh Hasina should lead the nation to protest India’s bid to make the dam and people are ready to go for a movement with her to protect the country’s interest.

He urged the government “not to kill people by welcoming drought saying yes to Tipaimukh dam.”

“It’s not a political issue at all, it’s a national issue and we’re virtually in a do or die situation,” said the eminent economist and social activist. “It is unfortunate that an elected government is apparently favoring the dam,” he added.

He said he was alone when he protested against the same issue in 2004 and now the entire nation is united against the dam. This will help to force India to change their mind over the issue.

Prof Muzaffer asked the Prime Minister why she is sending a team to India without demanding documents of feasibility study and technical assessment on Tipaimukh dam.

“Make your stand over the issue clear before the nation, people will cooperate you,” he said suggesting direct discussion before agreeing on the construction of the dam.

He urged the people to remain alert against any conspiracy and continue their movement until India suspends its plan. “For sustainable development of Bangladesh, its rivers and water-bodies would have to be protected.”

Dr Asaf Uddowlah said national unity is urgently needed to stop the construction of Tipaimukh Dam as it has become a great cause of concern for the entire nation.

Former BDR DG Maj Gen (retd) ALM Fazlur Rahman said people are making promises on various issues but none was found to pledge to stop the Tipaimukh Dam. “Promising to stop Tipaimukh dam is more urgent than any other promises.”

Indicating at those who are talking in favor of Tipaimukh Dam, he said: “Wrap up your business with India, people will never forgive you for anti-state activities.”

Barkat Ali in his keynote paper suggested an all-party committee to deal with the issue so that the country’s interest can be protected.

Describing some adverse impacts the Tipaimukh Dam might cause, he said all patriotic citizens of the country should stand against the dam as India is moving with their own agenda keeping Bangladesh in dark.

Earlier, speakers said democracy, independence and sovereignty of the country are now in great peril and all the people with “nationalistic spirit” should get united to protect the country’s interests.

They said country would incur huge “economic and environmental losses” if India builds the Tipaimukh Dam.

The speakers called upon the government to take all possible initiatives to stop the construction of Tipaimukh dam on Borak River saying that the northern and eastern side of the country would be turned into desert if Tipaimukh dam is constructed. They were highly critical of the government for remaining silent when the Indian government is implementing the construction of the dam violating the international river law and ignoring the interest of Bangladesh.

Turkish top retailer to nearly treble apparel purchase from Bangladesh

http://www.thefinancialexpress-bd.com/2009/06/15/69785.html

Turkish top retailer to nearly treble apparel purchase from Bangladesh

A Z M Anas

Top Turkish retailer Tema group unveiled a plan to procure US$ 500 million worth Bangladeshi apparel items by 2012 as it moves to make the country its main sourcing hub, a top company official said.

The Istanbul-based group with an annual sales turnover of $ 812 million will also set up joint venture apparel plants in the country to churn out denim and jacket.

Group Vice President Ted Southall said Sunday Tema, which sells LC Waikiki brand clothing, would import US $ 200 million worth garment items from Bangladesh this year even as global recession stings the industry.

“Bangladesh is a fantastic place for productivity and we are pinning our hopes on its growth,” Southall told the FE during a short visit to the country.

“This country, I think, has incredible future. What you need is to improve mid-management and make policies predictable and consistent,” he added.

Last year, the Turkey-based group imported garments worth $182 million from the country, but Southall said the amount would nearly treble within the next three years.

“Our dream is to make US $ 500 million purchase (from Bangladesh) by 2012,” Mr Southall told his company’s top 30 Bangladeshi suppliers in a conference.

Square Group, Fakir Group, Misami, Mohammadi and Babylon are Tema’s top suppliers making up 75 per cent of the company’s total procurement from Bangladesh.

The company has already tied up with local groups to make sweater and shirt, and has also unveiled plans to establish joint ventures in all segments including denim.

Global consultancy Nielson last year put Tema’s LC Waikiki brand as the six most popular in the world, leaving behind Levi’s, Mavi Jeans and Bosch.

His announcement comes at a time when the worst global economic downturn has sapped demand for costlier clothing in the West, with Bangladeshi exporters warning of a slump in shipment in the coming months.

Data released by the Export Promotion Bureau (EPB) show that Bangladesh has done relatively well despite the downturn, as top global retailers kept their faith in the country’s low-end apparel products.

Swiss retailer H&M is the largest importer of Bangladeshi textiles and its officials have said they have increased sourcing from the country in the past 18 months.

Organised retailers like H&M and Wal-Mart account for some 30 per cent of the clothing items produced by Bangladeshi manufacturers, which smaller shops make up the rest.

Mr. Southall said Bangladesh has defied all odds and continued prosper even in this dour global economic scenario.

“We have been sourcing from Bangladesh for the last 12 years. And all I can say that the country has made rapid strides in apparel sector in each of the passing years,” he said.

“I think garment exports from Bangladesh will grow in the near future,” he said.

Today, Tema Group is running a store chain which is the leader of its sector and serves millions of people and 240 LC Waikiki stores in 50 cities in Turkey.

The group has interests in retail, architecture, equity investments and apparel-making and is the biggest retailer in Turkey.

City’s mega wheat mills start production

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City’s mega wheat mills start production
Kazi Azizul Islam . Rupganj

The country’s largest ever wheat mills went into production on Sunday to produce 550 tonnes of finer quality flour and semolina every day.

Law maker Gazi Gulam Dastagir, FBCCI director A Rouf Chowdhuy, former commerce secretary Sohel Ahmed and Pubali Bank managing director Helal Ahmed Chowdhury addressed the inaugural ceremony.

Former adviser to the caretaker government Geetiara Shafiya Chowdhury, ambassadors of Myanmar, Sri Lanka, Canada and Switzerland to Bangladesh also attended the ceremony held at Rupshi under Rupganj upazila in Narayanganj.

‘City Group has earned reputation by not only acquiring large market share but also delivering products of reliable quality, so its latest venture will remain committed to consumers’ satisfaction,’ hoped Gazi Gulam Dastagir.

Located at the bay of the river Shitalakhya, Shampa Flour installed plants from Buhler, the Swiss maker and world leader of milling plants.

City Group chairman Fazlur Rahman said their mission was to deliver best quality food items to the consumers at an affordable price and Shampa Flour Mills would be a part of that mission.

‘For decades we have been in pursuit of delivering reliable quality food products to market and we will continue our efforts,’ said Rahman.

With Shampa Flour’s production, City’s wheat milling capacity has reached to 750 tonnes per day and it is more than one-forth of the country’s entire flour market’s demand, especially of premium grade packed and brand segment.

The country annually consumes around 30 lakh tonnes of wheat when import meets half of the demand. The market of premium-grade and packed flour and semolina is estimated at nearly 5 lakh tonnes.

City Group is the leader in Bangladesh food commodity market, especially for edible oil, flour and sugar. It also has businesses in bulk trading of imported food grains and manufacturing and marketing of poultry feeds.

Hong Kong co to invest $1.5m in Uttara EPZ

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Hong Kong co to invest $1.5m in Uttara EPZ
Business Desk

Hong Kong’s Uttara Sweater Manufacturing Company Limited will extend a Sweater Manufacturing Industry in the Uttara Export Processing Zone.

The 100 per cent foreign-owned company will invest $1.5 million more in setting up its unit. The company will also create employment opportunity for 500 workers, a news release said.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and Uttara Sweater Manufacturing Company Limited in BEPZA Complex in Dhaka on Thursday.

BEPZA member (investment promotion)Prasanta Bhushan Barua and Uttara Sweater Manufacturing Company general manager Che Chit Meng signed the agreement on behalf of their respective sides.

Other officials concerned were present on the occasion.

ICT Equity Entrepreneurs Fund doubled

http://www.thefinancialexpress-bd.com/2009/06/12/69504.html

ICT Equity Entrepreneurs Fund doubled

FE Report

The government has doubled the Equity Entrepreneurs Fund (EEF) for information and communications technology (ICT) to Tk 2.0 billion from the existing Tk 1.0 billion.

“I’m proposing to enhance the amount of the existing EEF relating to ICT-promotion from Tk 1.0 billion to Tk 2.0 billion,” Finance Minister AMA Muhith said in his budget speech Thursday.

The finance minister also proposed to allocate Tk 1.0 billion to meet the emergency expenditure in the ICT sector.

On June 1 last, the Bangladesh Bank (BB) handed over the operation of the fund to the Investment Corporation of Bangladesh (ICB) as sub-agent of the central bank.

The ICB has received fund worth Tk 1.0 billion under the agreement signed with the central bank that has operated the government fund since December 2000 under an agreement.

The EEF was launched in 1999 by the central bank with an initial allocation of Tk 1.0 billion aiming to promote the agro-based industries and IT sectors.

The central bank has, so far, sanctioned Tk 5.65 billion from the fund and disbursed Tk 5.08 billion to 217 agro-based projects and 34 ICT projects, according to the central bank statistics.

Three more public universities under education plan

http://www.thedailystar.net/newDesign/news-details.php?nid=92214

Three more public universities under education plan
Staff Correspondent

The government yesterday promised more teachers, three more public universities, and one technical institute in every upazila as part of a massive injection of funds into the education and technology sector in the budget for fiscal year 2009-2010 (FY10).

Finance Minister AMA Muhith proposed Tk 14,387 crore for the education and technology sector, with Tk 6,611 crore for Mass and Primary Education ministry, Tk 7,395 crore for the Education ministry and Tk 381 crore for the Science, Information and Communication Technology ministry.

As part of government efforts to narrow regional disparity in higher education, Muhith announced plans to establish a university each in Barisal, Rangamati and Gopalganj.

“In response to increasing demand for diversified and improved quality of higher education and proper management of Universities, the Government has been preparing Private University Act, 2009,” he said in his speech.

The minister also declared the government’s commitment to ensure 100 percent enrolment at the primary level by 2010 and to prevent dropouts.

He said the budget also includes a provision to construct 1500 new primary schools in less-served areas and reconstructing 370 primary schools which were destroyed or damaged by flood and river erosion.

Muhith stressed on recruiting more and better teachers, saying the government has developed a medium term programme to recruit science teachers and setting up science laboratories in each secondary school.

The government target is to recruit a minimum of five teachers for each primary school in order to bring down the teacher-student ratio by 2011-2012.

“We are determined to bring down the teacher-student ratio from 1:50 to 1:40 by 2011-2012 in order to remove illiteracy from the country within 2017,” he said and

The government has an ongoing project to construct a model school with modern equipment and amenities in 306 selected upazilas in the current fiscal year.

Muhith said the government is planning to introduce appropriate recruitment procedures to appoint qualified and trained teachers in educational institutions.

He said the government proposed to disburse Tk 3,904 to non-government teachers and an additional Tk 112 crores to non-government institutions for FY10.

The finance minister placed a particular focus on boosting vocational education, rising its allocation by 56.3 from last fiscal year’s budget to allot Tk 322 crore for FY10.

“Only 3-4 percent of the total students are currently enrolled in technical and vocational education at secondary and higher secondary levels. We want to engage our youth more in vocational education and to that end we have introduced vocational and technical courses at secondary and higher secondary levels,” he said.

The government is planning to establish one technical institute at each upazila in phases, he said, adding the government will also introduce compulsory computer and technical education at secondary levels by 2013 and 2021 respectively.

The number of students receiving stipends will also rise in FY10, with 79 lakh students expected to receive stipends in the next fiscal year, a massive jump from the 48.25 lakh students who are currently on stipends.

The government has taken up a priority programme to increase the percentage of stipend beneficiaries from 40 percent to 100 percent in poverty-stricken Monga, slum areas and areas affected by river erosion and cyclone.

Muhith also said 4.77 crore textbooks would be distributed among primary school students for free in 2009, with an additional future programme to distribute free textbooks to all primary school students.

He also proposed to allocate Tk 300 crore in the next fiscal year for free distribution of textbooks to secondary school students to achieve the target of removing illiteracy from the country by 2014.

The finance minister also proposed to provide grants to registered and community primary school teachers to generate momentum in the primary education system.

New taxation measure for new industries to replace tax holiday

http://www.thefinancialexpress-bd.com/2009/06/12/69525.html

New taxation measure for new industries to replace tax holiday

FE Report

The government has proposed to replace the tax holiday facility for new industries by a new taxation measure titled ‘reduced rate’ from fiscal 2009-10.

The existing industries are entitled for tax holiday until 2012. The Finance minister AMA Muhith in his budget speech Thursday has proposed not to extend the facilities further.

“Tax holiday acts as an impediment to the taxpaying culture,” Finance minister said.

He said: ” …..it would be more appropriate to replace the existing tax holidays with provisions for payment of taxes but at a reduced rate to create an enabling environment for industrialisation, investment and job creation in the country.”

Finance minister has proposed to offer reduced tax rate for a number of sectors. The rates would be variable for newly established industries depending on the location.

For industries located in Dhaka and Chittagong divisions (barring Rangamati, Bandorbon and Khagrachori districts) reduced tax of 5.0 per cent will be applicable for the first two years 10 per cent for the subsequent two years and 15 per cent for the fifth year.

In Rajshahi, Khulna, Sylhet, Barisal divisions and Rangamati, Bandarbon and Kharachori districts of Chittagong division, 5.0 per cent reduced tax will be applicable for first three years, 10 per cent for the subsequent three years and 15 per cent for the seventh year.

Duty slab on basic raw material import down, but luxury items to be dearer

http://www.thefinancialexpress-bd.com/2009/06/12/69461.html

Duty slab on basic raw material import down, but luxury items to be dearer

FE Report

The duty slab on import of basic raw materials will be lowered to 5.0 per cent from the existing 7.0 per cent to help the local manufacturing industries compete with the imported goods, according to the budget proposal Thursday.

The government in the new budget also proposed a new measure, 5.0 per cent additional ‘regulatory duty,’ on import of medicine, raw cotton and some luxury goods.

Presently, 25 per cent duty is charged on import of such finished goods.

But importers now will have to pay 30 per cent duty on their finished goods as per the budget proposal made in the parliament.

“Government is pledge-bound to discourage import of luxury items and products detrimental to public health. In view of that, I propose to impose 5.0 per cent regulatory duty against tariff lines alongside the 25 per cent customs duty,” the finance minister said.

The present duty structure is-3.0 per cent for capital machinery and parts, 7.0 per cent for basic industrial raw materials, 12 per cent for intermediate raw materials and 25 per cent for finished products.

He also proposed to continue with the zero tariff on import of fertilizer, seeds and major foodgrains.

He proposed to withdraw VAT on import of raw materials to produce pesticides to make them easily available to the farmers.