Canadian company buys Shahriyar Fabric

http://www.thedailystar.net/newDesign/news-details.php?nid=132476

Canadian company buys Shahriyar Fabric
Gildan wraps up deal for $15m
Refayet Ullah Mirdha

Canadian T-shirt giant Gildan Activewear Inc yesterday wrapped up the acquisition of Shahriyar Fabric Industries Ltd, choosing Bangladesh as a base for manufacturing in Asia.

Gildan, based in Montreal, has bought the Bangladeshi company for $15 million.

The acquirer will also assume the debt of Shahriyar Fabric Industries, an export-oriented apparel maker, said Shahriyar Hossain, managing director of the company.

Hossain said he sold the composite factory as he had a heavy financial burden to bear. The factory in Ashulia produces high-quality ring-spun T-shirts and has a capacity to produce 2.2 million dozen T-shirts a year.

“I cannot exactly say the total amount of the liabilities of the company that was established 13 years ago. All I can say is, the amount is huge,” Hossain said.

Moreover, the issues of gas and power, coupled with some personal problems, forced him to sell the factory, he told The Daily Star by phone. Shahriyar Fabric has 3,000 workers.

In October 2009, the company received an interest waiver worth Tk 8.72 crore for its “transaction reputation” with state-owned Sonali Bank, he claimed.

Hossain said the new owning company will not sack workers, and rather, it will upgrade the factory with modern facilities.

The 42-year-old entrepreneur said business was going well, but for some personal and financial problems, it was difficult to continue.

Gildan plans to increase the facility’s annual production capacity to 3.5 million dozen T-shirts to support the company’s international business growth strategy.

According to a montrealgazette.com report, Gildan CEO Glenn Chamandy told the annual shareholders’ meeting in early February that Gildan planned to build a low-cost high-quality manufacturing base in Asia, but excluded China as a potential location.

According to CNNmoney.com, the acquisition is the result of substantial analysis carried out by Gildan to identify a strategic location to begin the development over time of a potential major vertically-integrated manufacturing hub in Asia with an infrastructure and geographical location to position Gildan as a low-cost, high-quality producer to serve its target markets.

reefat@thedailystar.net

Higher GDP, low inflation on target

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Higher GDP, low inflation on target
Rejaul Karim Byron

As investment rebounds, higher GDP growth and a low inflation rate for the next fiscal year is the target to be set by the government.

According to the preliminary projection, 6.7 percent growth in gross domestic product and 6.1 percent inflation on an average are targeted for FY 2010-11.

Meanwhile, development partners forecast the GDP growth for the current fiscal at not-over 5-5.5 percent, while the government expects such growth at 6 percent and inflation 6.5 percent.

The finance ministry officials said the resources committee meeting decided Sunday that the FY 2010-11 GDP and inflation growth rates would soon be set after a consultation with the central bank.

Pointing to a better investment scenario now, a high official hinted at a larger annual development programme for the fiscal to come. “Around Tk 40,000 crore is likely to be earmarked for ADP, while the size of the total budget will be around Tk 1,32,000 crore,” he said.

A bigger public expenditure would help grow GDP, the finance ministry official pointed out. He however linked the inflation control to low prices of petroleum and food on international market.

A Bangladesh Bank official is also upbeat on reaching the target of a higher GDP growth, pointing his finger at the rise in industrial credit and imports of capital machinery and raw materials.

Also, export orders of the main foreign exchange earner readymade garment are picking up.

BB statistics show that disbursement of industrial term loan increased by 41 percent to Tk 12,615 crore during the July-December period of this fiscal year.

Such loan disbursement marked a 7.5 percent negative growth in the same period a year earlier.

The higher inter-bank call money rate also points to the increasing investment demand. The average call money rate was 3.45 percent on March 16, up from around 1.0 percent in June last year.

Although investment rebounded, the inflation rate is on the rise. According to the Bangladesh Bureau of Statistics, inflation went up by 8.99 percent on point-to-point basis in January.

A BB official said if the local food production (including rice) is not hampered and the supply chain goes smooth, inflation could be contained at the targeted level.

He also listed some central bank measures, which include adoption of a cautious and accommodative monetary policy.

Deep-sea port construction to start Dec likely

http://nation.ittefaq.com/issues/2010/04/01/news0602.htm

Deep-sea port construction to start Dec likely
BSS, Dhaka

The construction of much-awaited deep-sea port will begin at Sonadia of Cox’s Bazar district in November-December this year.

The shipping ministry has taken the initiative to present the proposal on complete design and work area of the deep-sea port project in the next meeting of the cabinet.

Shipping Secretary Abdul Mannan Hawlader told BSS yesterday that tenders would be invited for construction of the port after approval of the cabinet.

He said the deep-sea port project will include construction of infrastructures for the port and jetty, beck water, additional channels, export-import zones, system for communications with other ports, road, railway, power supply, gas connection, transit area, township and helipad.

This will require requisition of land and rehabilitation of the affected people.

Shipping Minister Shajahan Khan said the Sonadia deep-sea port would be a regional port. It will expand Bangladesh’s trade with China, Myanmar, India, Nepal, Bhutan, Sri Lanka and Thailand.

During the recent visit to Beijing, Prime Minister Sheikh Hasina discussed with her Chinese counterpart on the construction of deep- sea port and got assurance of assistance.

The minister said the shipping ministry has taken initiatives to construct the deep-sea port soon.

He said about Taka 13,000 crore would be required to complete the first phase of the deep-sea port project. The government will give 30 percent of the fund while the rest would come from public-private partnership.

Shipping Ministry Joint Secretary Abdul Quddus said work on the first phase of construction would begin in 2010 and end in 2017.

He said expenditures for the second phase (2026-2035) has been estimated at Taka 26,000 crore.

He said the deep-sea port would be constructed on 22,000 hectares of land at Sonadia of Kutubjom and Hoyanak union of Moheshkhali. Five international and four general cargo jetties would be constructed in the first phase.

The joint secretary said currently no ship more than nine meter deep can anchor at the Chittagong port. But 14-16 meter deep ships would be able to anchor at the deep-sea port.

AK Ahmed, coordinator of Pacific International of Japan that conducted feasibility study of the deep-sea port, said the Chittagong port now handle 10 lakh tons containers.

After completion of the first phase, the deep-sea port would be able to handle 7.41 crore containers.

Diversify products to take scope of Canadian market Dipu tells exporters

http://www.theindependent-bd.com/details.php?nid=167968

Diversify products to take scope of Canadian market Dipu tells exporters

DIPLOMATIC CORRESPONDENT

Foreign Minister Dr Dipu Moni yesterday urged Bangladeshi business community to diversify their product basket for full utilisation of trade facilities extended by Canada.

“Canada has granted access to 141 Bangladeshi products, almost all products, but we couldn’t take advantage of the scope,” Dipu said while addressing a meeting at a city hotel.

The High Commission of Canada and the Canadian Chamber in Bangladesh jointly organised the meeting on the achievement of a billion-dollar in ‘Annual two-way Trade between Canada and Bangladesh in 2009′.

The Foreign Minister expressed her satisfaction to know that Bangladesh-Canada trade stood at $1.4 billion (Canadian dollar) in the last year from 0.25B in just five years. Canadian export to Bangladesh was worth $626 million while Bangladesh exported goods worth $808 million in the last year.

“We want to strengthen our well established strong trade relations with Canada. The government would provide all possible assistance to the business community,” the foreign minister said.

Canadian High Commissioner Robert Mcdougall said Bangladesh has great untapped potentials to develop. Canada can also play a key role in helping Bangladesh build much needed infrastructure in years ahead including transportation systems, power generation and gas exploration projects.Mcdougall said there remain significant barriers to investment in Bangladesh. The barriers include poor infrastructure.

Sharing a similar opinion with Dipu Moni, he also emphasised the need for diversification of the country’s products and markets to gear up the export growth.

Canada Bangladesh Chamber of Commerce (CanCham) president Masud Rahman said Bangladesh had traditionally been the largest recipient of Canadian bilateral assistance.

The chamber will shortly organise ‘Showcase Canada Programme’ in order to further promote and facilitate trade between the two countries, he informed.

Dhaka-Istanbul direct flight soon

http://www.thedailystar.net/newDesign/news-details.php?nid=132330

Dhaka-Istanbul direct flight soon
Unb, Dhaka

Turkish Airlines will start direct flight from Istanbul to Dhaka in two to three months, aiming at strengthening trade and commerce ties between the two countries.

The country manager of the Turkish Airlines will come to Dhaka within a week to finalise all formalities with the ministries concerned.

Outgoing Turkish Ambassador to Bangladesh Sakir Ozkan Torunlar communicated this to President Zillur Rahman during a farewell call at Bangabhaban yesterday.

The ambassador hoped that the direct flight would help expedite contacts between Turkish and Bangladeshi entrepreneurs to achieve the targeted $1 billion trade between the two countries this year.

Torunlar said Bangladeshi passengers travelling to Europe would also get benefit from the direct flight, as they will be able to use Turkish Airlines as transit passenger at a cheaper rate.

The direct flight would open Bangladesh’s connectivity with other regions of the world.

Zillur Rahman appreciated the outgoing ambassador for his endeavour to enhance the bilateral relation to a new height.

The President conveyed his gratitude to Turkish President Abdullah Gul for visiting Bangladesh in February last and appreciated his desire to increase bilateral trade up to $1 billion.

Zillur Rahman urged the Turkish entrepreneurs to relocate their industries, particularly the textiles, in Bangladesh taking advantage of the prevailing investment-friendly atmosphere.

He remembered his Istanbul visit in November last year to attend the COMCEC Summit of OIC, and thanked the Turkish government for extending warm hospitality during his stay in the country.

IIDFC-NSIC MoU signed to utilise Indian know-how in revamping SME sector

http://www.thefinancialexpress-bd.com/more.php?news_id=96419

IIDFC-NSIC MoU signed to utilise Indian know-how in revamping SME sector

FE Report

Industrial and Infrastructure Develo- pment Finance Company (IIDFC) of Bangladesh and India’s National Small Industries Corporation (NSIC) Tuesday joined hands to utilise Indian experience and expertise in developing the country’s ailing small and medium enterprises.

The IIDFC and NSIC, a focal point of development of SMEs in India, signed a memorandum of understanding (MoU) at the company headquarters in the city. The deal is expected to pave the way for setting up of an IT village.

Under the agreement, NSIC will extend all cooperation, assistance and expertise to facilitate development of SME’s, especially in the engineering, electronics and other non-traditional sectors.

NSIC would also assist in replicating technical services centres for cluster of industries in Bangladesh.

The signing of the MoU will put the country one step ahead towards achieving the channel investment of Tk 240 billion by banks and non-bank financial institutions through cluster approach for SME growth and development, IIDFC officials said.

IIDFC chairman Motiul Islam chaired the ceremony while Dr Mashiur Rahman, economic adviser to the Prime Minister, Atiur Rahman, governor of Bangladesh Bank and H P Kumar, chairman of NSIC, spoke.

Atiur Rahman said, “It would be depressing if we compare NSIC to Bangladesh Small and Cottage Industries Corporation (BSCIC) as India has developed a lot in the sector. We have to cross the hurdle and move forward.”

He said the country is now fixing the institutional framework needed for the development of SMEs. “We have already set up an SME Foundation and adopted loan policies and programmes. But we have to act fast as we cannot afford to wait any longer.”

The governor said the central bank is playing a proxy role in flourishing SMEs. “Our SMEs can do far better if we can give them financial and technological facilities. Bangladesh Bank is also encouraging banks to prepare linkage programmes.”

He said the borrowing cost has gone up because the country does not have any entrepreneur rating.

Mashiur Rahman said the SME sector is crucial for the country’s economic advancement, as it adds value and employment. “Large investment involves more risks. Conversely, the small and medium entrepreneurs invest within their limits.”

He said the MoU between IIDFC and NSIC would be the first venture between India and Bangladesh since the two countries signed a joint communiqué in January this year.

Mr Kumar said lack of information is a key barrier to the development of SMEs. “Non-banking financial institutions can act as a bridge between banks and micro and small entrepreneurs for the development of the sector as banks need good customers and customers need financing.”

Motiul Islam said one of the limitations for the expansion of SME sector to its optimum level and to exploit its full potentials is lack of knowledge.

“Sectors such as light engineering, auto components, electrical and electronics lack viable project profiles, trained manpower and marketing skills,” he said.

India’s SME sector accounts for about 40 per cent of its industrial output.

Mr Islam said introduction of Bangladesh Bank’s refinancing scheme for SMEs at 5.0 per cent interest had given a new impetus for growth of the sector in Bangladesh.

“Development of SME must be diversified and new areas should be identified,” he said adding that a tie up with NSIC would be useful for implanting Indian experience to Bangladesh.

He said Bangladesh has to develop the concept of cluster approach for SME growth.

Officials said under the agreement incubation centres would be set up to figure out suitable locations for SMEs.

“Bangladesh’s micro and small entrepreneurs manufacture products, but they do not know where and how to market the produce. This will be crucial if they go for large scale production for exports,” said IIDFC Managing Director Md Asaduzzaman Khan.

“The agreement will enhance information sharing, marketing and technology transfer. This will pave the way for setting up of an IT village in the country,” he said.

Bonds, derivatives, online trading set for DSE

http://www.theindependent-bd.com/details.php?nid=167824

Bonds, derivatives, online trading set for DSE
Massive expansion could mean millions for local firms
Zakia Tazin

The DSE announced bold expansion plans on Tuesday that could greatly increase its products and scope, and attract billions into Bangladesh’s cash-starved companies.

In a ground-breaking announcement, the newly-elected The Dhaka Stock Exchange (DSE) president committed that online trading, bond trading, a derivatives market and equity trading will be introduced by September. The DSE will be in line with international standards, said Shakil Rizvi on Tueaday, setting a three-year timeframe.

The president said an expanded DSE would greatly enhance the prestige and capital of the exchange, adding that he expects stocks to remain high for the foreseeable future.

The president added that he was pleased with the finance minister’s assurance that shares of state owned companies would be floated soon, which investors hope will end the market dominance of market leaders like GP.

The announcement elicited rare praise from market observers, who have been critical of recent regulatory moves. Professor Mojib Uddin Ahmed said: “Definitely introducing the derivative markets is positive.” But he cautioned that market regulators need to catch up with the DSE’s expanding size and scope.

“The markets require a strong structure in terms of physical facilities, regulations and trading facilities. Those structural changes are essential before introducing such sensitive securities.”

The DSE said that the country’s crumbling power sector could attract funds through the exchange, saying that the DSE is ready to provide TK 20 billion in capital.
Professor Mojib Uddin Ahmed told The Independent that that the president’s projections sound reasonable.

“I personally believe that over 60 per cent of the development plans of the government can be easily funded by the capital market.”

Former DSE President Rokibur Rahman also agreed, saying the state collected over Tk 20 billion against Tk 3.5 million.

He was skeptical about the bourse’s bold expansion, saying that Dhaka is not ready to become a mature market. Renowned economist Abu Ahmed also applauded the announcement that internet trading would be introduced.

He cautioned that the derivatives market will need time to mature, and added that bank interest rates will need to drop if the bond market is to thrive.

The market’s volume has increased greatly over the past year, with turnover exceeding TK 17 billion, mover then 300 per cent over the previous year. The index went up by more than thousand points.

B/O accounts stood at 220,000, 12 thousands of which was only 140,000 in 2009.  Market capitalization to GDP stood 38.38 per cent, which was 18 only per cent.

The number of electronic, versus demit or paper shares stands at 99.13 per cent.

BTCL to provide phone, TV, internet services thru’ single optical wire

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BTCL to provide phone, TV, internet services thru’ single optical wire

Bangladesh Telecommunication Company Limited (BTCL) will provide telephone, television and high-speed internet connections through a single line to the city dwellers within one year, reports BSS

Three international telecommunication giants-Erickson, ZTE and Hu Yi- have already participated in a tender on the project floated recently, BTCL Managing Director S M Khabiruzzaman told the news agency Tuesday.

He said under the project an ultra modern NGN exchange would be set up to make 1,71,000 new connections through optical fibres in the capital city to provide quality telephone and high speed internet service as well as cable network for the television to its subscribers.

“Optical fibre will be set up in all roads and lanes of the city by dividing the capital into 188 factions at an approximate cost of Tk 1.97 billion (197 crore),” he said.

The BTCL chief said it might take one month to issue the work order to the firm whose bid would be the lowest. “After issuing the work order, all the telephone connections would be made within a year,” he said.

He also said that the initiative of setting up optical fibres in all areas of the Dhaka city was taken as part of the government’s programme of building digital Bangladesh.

Summit Power to issue preference shares

http://www.newagebd.com/2010/mar/31/busi.html#7

Summit Power to issue preference shares
Business Desk

Summit Power has informed that the board of directors of the company has decided to issue upto 2,00,00,000 fully convertible, 2.50 per cent dividend, preference shares of Tk 100 each amounting to Tk 200,00,00,000 subject to approval of the shareholders of the company in an extra-ordinary general meeting to be held on April 29 (with record date on April 7) at 10:30am at Bangabandhu International Conference Centre in Dhaka and SEC’s consent to the preference share issue. The company has also informed that board of directors of Summit Uttaranchol Power Company Limited and Summit Purbanchol Power Company Limited, both are 99 per cent subsidiaries of Summit Power Ltd, have declared 20 per cent and 15 per cent stock dividend respectively for the financial year 2009.

The board of directors of Summit Power has recommended 25 per cent stock dividend (one bonus share for every four shares) for the year 2009. The AGM of the company will be held on April 29 at 11:30am Bangabandhu International Conference Centre in Dhaka. Record date will be on April 7.

Trust Bank
The board of directors has recommended 20 per cent stock dividend for the year 2009. The annual general meeting of the bank will be held on June 21 at 10:00am at Bashundhara Convention Centre in Dhaka. Record date will be on April 19. The bank has also reported profit after tax of Tk 610.91m, earning per share of Tk 33.06, net asset value per share of Tk 203.18 and net operating cash flow per share of Tk 590.82 for the year ended on December 31, 2009

Standard Bank
The board of directors has recommended 20 per cent stock dividend for the year 2009. The AGM of the bank will be held on May 6 at 11:00am at Bashundhara Convention Centre in Dhaka. Record date will be on April 15. The bank has also reported profit after tax of Tk 764.25m, EPS of Tk 28.90, NAV per share of Tk 159.67 and net operating cash flow per share of Tk 111.13 for the year ended on December 31, 2009 as against Tk 656.60m, Tk 24.83, Tk155.49 and Tk 44.52 respectively for the year ended on December 31, 2008.

Source: DSE

Furniture Park on the cards

http://www.thedailystar.net/newDesign/news-details.php?nid=132117

Furniture Park on the cards

Visitors take a tour of a furniture fair that began at Bangabandhu International Conference Centre in Dhaka yesterday. Over 70 furniture makers are taking part in the six-day show, which will remain open from 9am to 9pm. Photo: Amran Hossain

Star Business Report

The government will consider setting up a furniture park to develop the promising furniture sector, Commerce Minister Faruk Khan said yesterday at the inauguration of a fair in Dhaka.

“We will consider the demands of furniture makers to set up a furniture village. I think the park can be located outside the capital,” the minister said.

He also pledged to take necessary steps in the upcoming industrial policy to address the issues of the sector.

Over 70 furniture makers are participating in the six-day Eighth National Furniture Fair 2010 at Bangabandhu International Conference Centre.

Shahab Ullah, vice chairman of Export Promotion Bureau, said the size of the global furniture market was $ 162.35 billion in 2007, and $ 180.97 billion in 2008, but domestic furniture exports were insignificant.

He said the sector has an important role to play in terms of diversifying the export basket, as the global furniture market is large. The size of the local furniture sector currently stands at around Tk 1,000 crore.

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Annisul Huq urged the government to set up an industrial zone for the furniture sector.

The FBCCI chief said though businessmen are often blamed for forming syndicates, they actually play a big role in smooth running of the economy.

“If businessmen lift their hands, the government is closed,” he said, hinting that a government cannot run without the support of businessmen.

“Through the fair, furniture makers will be able to compare their product standards, as all the major sector players will come under the same roof,” said KM Akhtaruzzaman, president of Bangladesh Furniture Industry Owners Association. The trade body is organising the fair.

He said the shortage of manpower is a major problem for the sector. He urged the government to arrange training centres to develop the skills of workers.

The fair will be open from 9am to 9pm.

High-profile tech fair begins tomorrow

http://www.thedailystar.net/newDesign/news-details.php?nid=132131

High-profile tech fair begins tomorrow
Hasina named for ASOCIO award
Star Business Report

A high-profile fair designed to showcase the latest in technology and give a glimpse into digital lifestyles starts at Dhaka Sheraton Hotel tomorrow.

About 45 tech-based service providers will showcase their products at the four-day exposition to be organised by Bangladesh Computer Samity (BCS) in association with the ICT business council of the commerce ministry.

Simultaneously, an international event — ASOCIO Multilateral Trade Visit 2010 — will also take place at the same venue. Prime Minister Sheikh Hasina is expected to inaugurate the events as chief guest.

The ASOCIO Multilateral Trade Visit is an event organised regularly by the Asian-Oceanian Computing Organisation (ASOCIO), a Tokyo-based organisation that aims to develop the computing society and industry in the region.

Hasina has been named as the recipient of the prestigious ‘ASOCIO award’ for her contribution to advancing the ICT sector in Bangladesh, said BCS President Mustafa Jabbar at a press conference at the association’s office in Dhaka yesterday.

Mahathir Mohamad, former prime minister of Malaysia, Thaksin Shinawatra, former prime minister of Thailand, and Phan Van Khai, former prime minister of Vietnam, won the award in the Asian-Oceanian region in previous years.

An ASOCIO delegation will organise seminars and business-matching programmes at the fair. The team is also expected to meet the prime minister and Nobel laureate Muhammad Yunus.

The fair will remain open to visitors from 10am to 8pm. The entry fee has been fixed at Tk 20. Students can visit for free by showing their identity cards.

Banglalink network support for post office money transfer service

http://www.theindependent-bd.com/details.php?nid=167711

Banglalink network support for post office money transfer service

ECONOMIC REPORTER

Bangladesh Post Office (BPO) signed an agreement with Banglalink, the country’s 2nd largest mobile operator. As per the agreement, Banglalink, through its cellular network, will facilitate the connectivity of 1,600 post office branches all over Bangladesh becoming the exclusive network service provider for BPO’s electronic money transfer service, says a press release.

The signing ceremony was held at the BPO Head Office in Dhaka where AKM Shafiur Rahman, additional director general (Planning) of BPO and Mohamad Osman, chief financial officer of Banglalink signed the agreement on behalf of their respective organisations. Present on the occasion were M Mobasherur Rahman, director general of BPO, Asher Yaqub Khan, chief commercial officer of Banglalink and Solaiman Alam, head of mobile commerce and PR and Communications, Banglalink.

Under the Electronic Money Transfer Service, BPO will provide the issuance and disbursement of local money orders as well as disbursement of foreign remittances collected through banks. This is going to result in huge convenience for the consumers and improve efficiency in BPO’s part. This service will be made available to the valued customers of BPO very shortly.

Local money order senders can come to any of the post office branches and pay the cash to be sent to the beneficiary. Money order issuer post office will then issue money order instantly and an automatically generated Unique Transaction PIN (TPIN) will be sent to the sender/issuer through SMS as confirmation. Sender will then send the Unique Transaction PIN (TPIN) to the beneficiary. The beneficiary can then walks into any of the nearby post office branches (connected by Banglalink network) with the Unique Transaction PIN (TPIN) and collect the money showing proper identification documents.

For the international remittance disbursement service, the beneficiary receives the remittance information e.g. Unique Transaction PIN (TPIN)
and payable amount from the sender.

Tata keen to source auto-parts Nano plant to be delayed

http://www.newagebd.com/2010/mar/29/busi.html#2

Tata keen to source auto-parts Nano plant to be delayed
Kazi Azizul Islam

Indian auto-giant Tata Motors has shown interests on sourcing auto-components from Bangladesh, said a top official of the company’s business partner here.

A technical team from Tata will carry out a survey here within next two months for assessing the possibility of manufacturing auto-components in Bangladesh, chairman of Nitol Motors, Matlub Ahmed, told New Age on Friday.

Matlub and his colleagues on Thursday had a long and crucial meeting with Tata Motors Managing Director Prakash Telang who was in Dhaka for some hours on the day.

‘Our discussions focussed much on the possibility of sourcing Bangladeshi auto-components for manufacturing Tata vehicles in India as well as assembling them in Bangladesh,’ said Matlub.

Matlub said he had apprised the Tata boss on a growing and quite reliable capacity of Bangladesh Machine Tools Factory, some private sector automobile battery manufacturers and a promising light-engineering industry in Bangladesh.

‘I brought to his [Telang’s] notice the ready capacity here for sourcing components like batteries, vehicle tyres and break drums,’ said Matlub. ‘He agreed to send a Tata team to do an on-the-spot feasibility study.’

Matlub feels that if technical support is provided, ‘many auto-component manufacturers can grow here… We already have a promising light-engineering industry here.

Asked how the Tata MD responded to Nitol’s plan for setting up a plant in Bangladesh for manufacturing Tata’s much hyped small car Nano, Matlub said, ‘As we want to use local components in Nano, so any progress in setting up the proposed plant would depend on the progress of attaining capability in Bangladesh for producing auto-components.’

Though he categorically hinted a delayed possibility for having a Nano plant in Bangladesh, Matlub was however hopeful on his dream project.

Bangladeshi customers showed huge interest in Nano that was showcased in the India Trade Fair in Dhaka last month. But disappointments were there as more than 100 per cent tax on intact car would cost each Nano nearly Tk 6 lakh.

Nitol officials estimated that a locally manufactured Nano would cost Tk 3 lakh. So a plant here for rolling out 50,000 units annually would be viable if 10,000 units are sold locally and the rest are exported, they said.

Nitol assembles and sells Tata trucks and buses in Bangladesh for nearly three decades.

Matlub also discussed with Telang expansion and development of Tata’s assembling facilities and the prospect of setting up a new plant for Tata’s ACE series mini-trucks.

Installation of nuclear power plant: Deal with Russia before PM’s visit likely

http://nation.ittefaq.com/issues/2010/03/29/news0323.htm

Installation of nuclear power plant: Deal with Russia before PM’s visit likely

Shamim Jahangir

The government plans to sign a bilateral agreement with Russia to install 600MW to 1,000MW electricity generating nuclear power plant (NPP) before Prime Minister Sheikh Hasina visit to Moscow.

State Minister for Information and Communication Technology (ICT) Yafez Osman yesterday told The New Nation about the progress of nuclear power plant at Rooppur.

Sheikh Hasina is likely to visit Russia in June or July, an inter-ministerial meeting at the Ministry of Foreign Affairs discussed yesterday.

“We have progressed remarkably about installation of the nuclear power plant,” Yafez Osman said, adding, “I am hopeful to complete bilateral agreement and other formalities with Russia before the prime minister visit to Moscow.”

A high powered team led by Yafez Osman in October last year visited the Kalinin Nuclear Power Plant in Russia, about 200 kilometers north-west of Moscow.

“We are convinced about the Russian initiative to generate electricity from nuclear plant,” he said.

Earlier, the government has signed a bilateral agreement and a Memorandum of Understanding (MoU) in May last year in enhancing cooperation between Dhaka and Moscow in peaceful use of nuclear energy, by way of installing a nuclear plant.

Russian government is now scrutinising the deals to sign the final agreement with Bangladesh, an official who had visited Russia along with team told The New Nation yesterday.

About the financial terms to install the plant, he said it would be settled after negotiation between the high-level policy makers of the two countries during bilateral agreement.

The government might take four to five years to implement the planned 600-1000-MW nuclear power plant after signing the final agreement. The cost of the plant might be US$1.5 billion to 2 billion.

The first initiative to install nuclear power plant at Rooppur in Pabna, Bangladesh was taken by the Prime Minister’s husband late nuclear scientist Dr Wazed Miah in 1961.

Currently 439 nuclear power plants are producing 16 percent of the total electricity around the world.

Solar Home System cost to drop 25 percent: Manufacturing plant to be setup

http://www.bssnews.net/newsDetails.php?cat=0&id=97277&date=2010-03-28

SHS cost to go 25 percent as IDCOL plans set up panel manufacturing plants

DHAKA, Mar 28 (BSS) – Infrastructure Development Company Limited (IDCOL), the state-run non-banking financial institution, has embarked upon a plan to set up solar panel manufacturing plants, which will reduce the cost of Solar Home Systems (SHS) by 25 percent.

“We are now at the mid-stage of financing the solar panel manufacturing plants as 22 applications from the manufacturers have been received and of those one or two would be selected for awarding the task,” Chief Executive Officer of IDCOL Islam Sharif said in an exclusive interview with BSS.

In doing so, he said, 83 million US dollar support from the Asian Development Bank (ADB) has already been earmarked for the move and contract will be awarded to a company having such technical expertise.

About 60 percent cost of each SHS goes to panel, which is now being imported from India, China and Japan, Sharif said adding the cost of each SHS could be reduced to 20 to 25 percent once assembling plant is set up here.

Stakeholders of the IDCOL echoed the same voice as saying the cost of SHS is high and benefiting only middle-income people in rural areas, keeping a large number of hardcore ones in darkness.

Asked about the reason behind the success of IDCOL in which installations were completed three years ahead of stipulated period in 2005, he uttered that although the company is run by the government, there is no ‘bureaucratic tangle’ which led to the success.

Transparency in selection process of Partner organizations (POs) and management teamwork also contributed a lot to that end, said IDCOL chief.

About the quality, he said “We never compromise with quality in exchange for cheaper and our focus was always on quality not quantity. If our product is durable then others would be encouraged to use it.”

Narrating performance of all 23 POs of IDCOL, he said other than two POs, all are producing up to the mark as Grameen Shakti and BRAC Foundation are producing SHS beyond expectation.

“I might discontinue the two POs for inefficiency,” Sharif said but declined to disclose the names of the POs.

He termed maintaining quality as very important for any service and said each SHS can bring change in whole life of a poor family as somebody make business and someone earn livelihood through a SHS.

Up to January this year, 4, 54,170 SHS in addition to 31,909 small SHS have been installed under the solar energy programme and it has also a target to install 6.5 lakh this yearend and one million by 2012.

The IDCOL has so far invested Taka 8, 00 crore and out of this Taka 6,00 crore as loans while Taka 2,00 crore grants. It has also Taka 1,000 crore for investment.

The IDCOL is channeling both grants and soft loans for installation of SHS from the World Bank (IDA), Global environmental Facility (GEF), German Technical Cooperation (GTZ), German Development Cooperation (kfw), Asian Development Bank (ADB) and Islamic Development Bank (IDB).