PHP power plant to offload shares in the capital market

http://www.thefinancialexpress-bd.com/more.php?news_id=98036&date=2010-04-20

PHP power plant to offload shares in the capital market
Our Correspondent

Chittagong, Apr 19: PHP Power Generation Plant Ltd, a concern of the country’s major industrial enterprise PHP Group, is shortly floating its shares in the capital market.

A memorandum of understanding (MoU) was signed in this regard between PHP Group and Industrial and Infrastructure Development Finance Co Ltd (IIDFC) today at the PHP head office in the city.

The MoU was signed by PHP chairman Mizanur Rahman and IIDFC chairman M Matiul Islam. Managing director of IIDFC Asaduzzaman Khan, MD of PHP Power Generation Plant Ali Hussain Chowdhury, director Akhter Parvez Chowdhury and senior officials were present on the occasion.

IIDFC chairman said the capital market would have grown much stronger if the major entrepreneurs come forward with their shares in the bourses.

The PHP power plant was established in 2002 with an installed capacity of 15 megawatt electricity.

Once-in-a-lifetime opportunity to grow at 10pc awaits Bangladesh

http://www.thefinancialexpress-bd.com/more.php?news_id=97996&date=2010-04-19

Once-in-a-lifetime opportunity to grow at 10pc awaits Bangladesh
Urgent solution to power, energy problems needed: Prof Papanek

A Z M Anas

With China’s labour costs ballooning, Bangladesh can more than double its exports and grow 10 per cent a year, provided the government fixes power and energy problems through a fast-track decision-making, an American economist said.

Gustav F. Papanek, an emeritus professor at Boston University, said the country can have an annual growth of 8.0 to 10 per cent and can create 3-4 million jobs a year by just taking the advantage of its cheap labour and overcome the key constraints.

China’s labour costs went up by 15-20 per cent in its industrial coastal belt, forcing companies to move into the interior part of the world’s third largest economy, according to a report at the New York Times.

The decline in China’s ability to compete “opened up a once-in-a-lifetime opportunity for 10 per cent growth, economic transformation and dramatic cut in poverty,” said Prof Papanek, who did a landmark study on the country’s industrialisation and industrial policy in the 1970s. “The main source will be rapid growth of labour-intensive exports overtaking the Chinese markets. If you can grab 10 per cent of China’s $185 billion exports, you can achieve that kind of growth intended.”

He said the government should target labour-intensive production such as manufacturing of shoes, textiles, furniture, toys, plastic goods, electrical and electronic items and car parts-areas which are no longer attractive for China.

“Today, China needs to buy car parts for its own car brands. You can capture that segment,” he said.

Prof Papanek, who is now in the capital to advise the state-run Board of Investment, also said Bangladesh can entice foreign investors from China, given the fact China no longer needs overseas investments after its economy is saddled with $2.5 trillion in foreign reserves.

But he said investors wouldn’t come to this country, instead move to Indonesia, India and Vietnam for their better image and infrastructure, both are in short supply in Bangladesh.

“Investors can’t wait. They have choice. It’s up to you how you can convince them,” said Prof Papanek who is turning 84 this July.

The Harvard-trained development economist said the Bangladesh would never be able to reduce poverty with the current rate of growth.

Economic growth in Bangladesh has averaged 6.0 per cent over the last six years, with apparel exports and overseas remittances becoming the two key drivers of that growth. In 2009, the country’s exports surged to US$ 14.5 billion while remittances reached an all-time high, amounting to $10 billion.

“The goal of 8.0 to 10 per cent growth is something that must be achieved,” he said in an interview with the FE.

“What worries me is that if you miss this opportunity, it wouldn’t come in your life time. You either deal with the obstacles, or you are condemned to low growth for the next 10 years,” he said.

In 1971, Prof Papanek moved to Kolkata to help garner public opinion in favour of Bangladesh’s independence war after then Pakistani government declared him persona non-grata for his support for the liberation war.

He said he requested his Harvard fellow Henry Kissinger, then U.S. secretary of state, to side with Bangladesh, saying it is not possible to put together East Pakistan and West Pakistan into a single nation after the bloodshed and atrocities committed by Pakistani military forces.

But the U.S. government preferred to support the Pakistani government because it was geo-politically more compelling for Washington to support Islamabad than its eastern part.

Prof Papanek came to Bangladesh again in 1974 when the country was experiencing a “terrible” famine in its history, people dying on the street by starvation.

“I think it’s morally unacceptable to have widespread poverty that continues to exist in Bangladesh,” he said, adding it is important for Bangladesh to create greater equal opportunities and increase the income of the poor.

NBR to simplify tax return form

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NBR to simplify tax return form
United News of Bangladesh . Dhaka

The National Board of Revenue is going to introduce a simplified two-page income tax return form for the convenience of the taxpayers.

‘The NBR will introduce a simple two-page tax return form for the marginal taxpayers,’ NBR chairman Nasiruddin Ahmed said, in a programme arranged to honour new taxpayers of Karwanbazaar in the capital.

Tax Zone-3 of Dhaka arranged the programme in the Institute of Chartered Accountants Bangladesh premises to handover income tax certificates to the new taxpayers.

The NBR chairman said that the government would make the tax returns system easier in the budget for the upcoming fiscal by introducing the simplified form for small taxpayers.

He also assured the small taxpayers that the government will ensure convenient locations for them to pay income tax.

Ahmed also singled out lack of knowledge on payment of income tax as one of the major reasons for the poor tax culture.

In this connection, the NBR chairman said that his organisation would start a training programme for taxpayers, especially businessmen, from July 1 on payment of income tax.

He also assured them of stern action against tax officials who harass the taxpayers.

NBR member (income tax policy) Aminur Rahman informed the businessmen that taxmen will meet them to collect income tax before the deadline for filing tax returns.

NBR member (tax survey and inspection) Shamvu Nath warned that the revenue collecting authority would be empowered to take legal action against the tax evaders who conceal their actual income.

He preferred a motivational campaign to net more new taxpayers, but vowed action for non-cooperation in the survey.

He instructed the surveyors not to harass marginal taxpayers, and to help them fill in return forms.

Plans to build 52,000 units for people from low income bracket

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Rajuk to launch project for flats
Plans to build 52,000 units for people from low income bracket
Helemul Alam

Implementation of a Rajuk plan for construction of around 52,000 flats for lower and lower middle-income people under three massive projects begins on Wednesday.

Of the flats, 22,525 will be built under Uttara Residential Model Town Phase-3 project, 20,000 under Purbachal New Town Project and about 10, 000 under Jhilmil Residential Project of Rajdhani Unnayan Kartripakkha (Rajuk)

The projects are likely to be completed in five years, said a top official of Rajuk.

Prime Minister Sheikh Hasina is scheduled to lay the foundation stone for construction of the flats at Uttara Model Town on Wednesday formally kicking off execution of the three projects.

Rajuk Chairman Md Nurul Huda said the flats will be allotted to applicants in eight instalments, and an allotment guideline will be prepared within three months.

Applications for allotment of the flats will be invited in June or July, he told The Daily Star.

Construction of flats on 215 acres of land at Sector-18 of Uttara Phase-3 will start in November.

The Rajuk chairman mentioned that the project proposal for Uttara flats is now awaiting approval of the Executive Committee of National Economic Council. And that for the flats at Jhilmil awaits approval of the housing and public works ministry.

The project proposal for Purbachal flats will be sent to the housing and public works ministry within a month, he added.

At Uttara, 160 buildings will be constructed — each 15-storey–

at an estimated cost of around Tk 8,633 crore. The fund will come from allotment of the flats, said the official.

“The buildings will have solar power apart from normal electricity supply. We also plan to provide the facility of rain harvesting,” he said.

Some 9,224 flats will be constructed under the Jhilmil project.

These will include 3,284 flats of 1,001 to 1,200 square feet each, 4,377 flats of 801 to 1,000 sqft and 1,563 of 600 to 800 sqft .

At Purbachal, there will be 7,000 flats of 850 sqft and 1,250 sqft , and 6,000 flats of 1,500 sqft, said the official.

Ventura to invest $8.142m in Karnaphuli EPZ

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Ventura to invest $8.142m in Karnaphuli EPZ
Star Business Desk

A Bangladeshi company will set up a garment-manufacturing factory at Karnaphuli Export Processing Zone at $8.142 million.

The 100 percent locally owned company Ventura (Bangladesh) Ltd will establish a plant to produce garment items employing over 4,000 people, including 132 foreign nationals.

Md Moyjuddin Ahmed, member (investment promotion) of Bangladesh Export Processing Zones Authority (Bepza), and Sarowar Hossain, managing director of Ventura, signed a deal at Bepza complex yesterday.

Alliance to go public for power, telecom ventures

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Alliance to go public for power, telecom ventures
Sheikh Shahariar Zaman

Alliance Holding Limited (AHL), a diversified investment company, is going to raise fund from the capital market to invest in power and telecom sectors.

“Alliance has substantial stake in 14 companies including inland container terminals, financial institutions and real estate firms. Now we want to invest in new sectors like power, telecom and shipbuilding,” AHL managing director Syed Yasser Rizvi told the FE.

AHL was incorporated in 1998, and last year it earned Tk 774 million net profit with diluted earning per share of Tk 7.69. The company will float 35 million shares, he said.

The initial public offering (IPO) price of each share will be determined through book-building method, and the company is going to organise a road-show tomorrow (Tuesday) to find the discovery price, he also said.

The company has so far invested Tk 880 million in 14 companies including three listed firms – Summit Alliance Port Limited, Ocean Containers Limited and Industrial Promotion and Development Company.

It also has stake in Global Beverage Company Limited.

PEB Steel Alliance, another concern of AHL, is the first company in the country to export pre-engineered buildings, Mr Yasser added.

Country ratings to lower fees charged by FCBs for LC confirmation

http://www.thefinancialexpress-bd.com/more.php?news_id=97849&date=2010-04-18

Country ratings to lower fees charged by FCBs for LC confirmation
Sheikh Shahariar Zaman

Foreign banks engaged in confirmation of letter of credit (LC) will face competition after Bangladesh has received good ratings back-to-back from S&P and Moody’s.

The multinational banks charge fees to endorse LC opened with local banks. Now, the charge for the service is expected to come down significantly in the coming months following the positive ratings.

The LC confirmation charge depends on risk factors of a country and the local banks.

Last week, S&P has assigned BB- and Moody’s Investors Service Ba3 rating for Bangladesh meaning macroeconomic fundamentals of the country is better and it has less chance to face severe stress on creditworthiness.

Bangladesh’s rank is above Pakistan and Sri Lanka but lower than India in the sub-continent.

“We will face competition as foreign banks will now have to charge less fees for confirming the LCs,” said Mamun Rashid, country head of Citibank NA Bangladesh, which provide LC confirmation service.

It is not possible for a foreign bank to charge higher fees as country risk for Bangladesh is now known to everybody and they will have to charge accordingly or lose business, he explained.

“If a foreign bank charges higher rate, local banks can go to another that offers lower rate,” he said.

Within three months there will be visible change in the rate of fees, he hoped.

Citicorp, one of the biggest banks in the world, has recently conducted its own rating for Bangladesh and its rating is similar to those of the two international agencies, Mr Mamun said.

International banks working in Bangladesh now can bargain with their head offices to increase the exposure limit for the country, he said.

Mutual Trust Bank managing director Anis A Khan said foreign banks will fix a limit on LC value for all local banks for which they will not need any confirmation.

“Suppose a foreign bank gives $50 million limit for a certain local bank and it does not need any confirmation until the limit is exhausted,” he explained.

For LC confirmation above the limit, the charge is expected to fall by fifty percent of the current rate, he said.

It is expected that it will take one and half years to complete the whole process, but the impact will be visible after three to four months time, Mr Anis said.

The benefit will also pass on to exporters as they also import a huge volume of raw materials for re-exporting in the form of finished goods, he said.

The country’s imports were worth $21 billion and exports $15.56 billion in the last fiscal.

Exports of readymade garments coupled with robust remittance flow and procurement of minimum foreign commercial loan and extremely well debt servicing performance are the reasons behind the good country ratings.

Chalna site for coal-fired plant

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Chalna site for coal-fired plant
Concludes Indo-Bangla technical team after study
Bss, Dhaka

The joint technical team of Bangladesh and India selected Chalna, near Khulna port, an ideal site to install the proposed 1,310 mega watt coal fired power plant in joint venture between the two countries.

As per agreement of first steering committee for cooperation in power sector, the joint committee comprising with the officials of Bangladesh Power Development Board (BPDB) and National Thermal Power Company (NTPC) visited Khulna last week and selected the site for the proposed plant.

“We will install the power plant at Chalna. However, it will be a two-unit power plant on equal equity basis”, ASM Alamgir Kabir, chairman of BPDB, told BSS yesterday.

According to the official sources, the NTPC team has suggested the BPDB officials to engage local consultant to do the feasibility study on socio- environmental and ecological impact on coal fired power plant. It also suggested engaging consultant to workout on the plan of coal transportation.

“We do not have enough idea about coal handling, it would be a huge power plant and we need to import huge coal, depot it and to transport it. So, they suggested us to work on the issue”, he said.

The PDB chairman said, the committee has started feasibility study and hopefully sign the joint venture agreement between BPDB and NTPC soon.

Earlier the committee selected two sites, Khulna and Chittagong. Finally, both the parties agreed to install a 1,320 MW plant in joint venture.

The committee also worked out on the grid inter-connection between India and Bangladesh as well as co-operation between NTPC and BPDB.

Bangladesh and India has signed a memorandum of understanding on exchange of power during the off-peak hours (17 hours a day) during the visit of Prime Minister Sheikh Hasina to India in January last.

The power ministry sources said, NTPC offered to carry out technical assessment for BPDB’s old thermal power stations to improve efficiency, do renovation and modernisation work.

Jute geo textile has huge scope for international use

http://www.theindependent-bd.com/details.php?nid=169942

Jute geo textile has huge scope for international use
UNB, Dhaka

There is immense potential for jute geo textile both in domestic and international market as it possesses much more advantages than the synthetic fibers.

“Jute geo textile has got immense potential. It is used in controlling soil erosion – of roadside, riverbanks and hillsides,” said Dr. Latifa Binte Lutfar, operations officer of International Jute Study Group (IJSG).

Citing that neighboring India is using jute geo textiles in the construction of national roads, she said that this could also be used in road construction to a large extent in Bangladesh.

Mentioning some of the advantages of jute geo textile, Dr Latifa said that jute geo textile is biodegradable and it doesn’t spoil the nutrition of soil. It is highly hygroscopic and could suck water as well as help consolidate soil, enhance the flexibility of soil and above all, it is cheaper than the synthetic fibers.

“This item can be produced in our local mills as we have access to raw materials,” she said adding that the jute geo textiles could be made even from inferior jute.

Dr Latifa informed that jute geo textile has so far been used locally in two projects-Hatirjheel project and the road from Prime Minister’s office to Agargaon in the capital.

Jute geo textile is a textile to address geo technical problem, she said. Geo textiles are of different kinds-coir geo textiles, jute geo textiles and blend of different fibers.

Dr. Latifa informed that a five-year project, titled ‘Development and Application of Potentially Important Jute Geo Textile’, is underway in Bangladesh and India under the auspices of Common Fund for Commodities (CFC) to promote jute geo textile.

Of the total project cost of US$ 3.962 million, CFC is providing $ 2.045 million, Indian counterpart contribution is $ 1.24 million while Bangladesh counterpart contribution $ 0.567 million.

IJSG is the supervising agency of the project while Jute Diversification Promotion Center (JDPC) is the collaborating institution. BJRI, BUET, BJMC, WDB, LGED and RHD will work as facilitating agencies. Under the project, there will be 26 field trials — 16 in India and 10 in Bangladesh. The trials would be held by the facilitating agencies while JDPC will coordinate their works.

Talking to UNB, JDPC director Md. Mainul Hoque said jute geo textile is now being used globally, including USA and Australia.

Mentioning that jute geo textile is more environment friendly than traditional geo textiles, he noted that Bangladesh is the major contributors of jute geo textiles.

“It’s a new idea and if the use of geo textiles could be increased, the demand of jute would further rise as also its cultivation,” Hoque said.

He informed that Latif Bawany Mills under state-owned BJMC and privately-owned Janata Jute Mills are now exporting jute geo textiles to different destinations including EU, Australia and Canada.

Deputy managing director of Janata Jute Mills Mahmudul Huq said they export around 2,000-2,500 metric tons of jute geo textiles per year.

About the prospect of the product, he said although there is a bright potential they are not in a position to increase their production capacity due to machinery problem and unstable jute price. “The manufacturing base should also be widened.”

Other areas where geo-textiles can be effectively used include management of eroding slopes of roads and railway embankments, mild landslides, prevention of railway track settlement, river embankment and management of solid waste.

Ceramics importers turn manufacturers

http://www.theindependent-bd.com/details.php?nid=169944

Ceramics importers turn manufacturers
Huge global market seen

MEER SAIFUL ISLAM

Ceramic products importers have turned their attention to produce the items locally, thanks to a government policy that helps prevent the import of low quality ceramic products having health hazard ingredients.

The policy decision has also encouraged local ceramicware manufacturers and exporters to seek few more policies and fiscal support to give the sector an extra push to capture part of a potential global market apart from meeting the local demand.

“Export of  ceramic products can be increased to US$ 100 million in the next six years from US$ 35 million now,” Bangladesh Ceramic ‘Ware Manufacturers’ Association (BCWMA) president Rashed Maudud Khan told The Independent.
He said the European Union was a very big market while four or five factories could rely on the Canadian market, having demand for quality products at a low price.

The export of ceramic products registered an average growth of 20 per cent during the last one decade. The six-year projection has been made on the basis of the average 20 per cent growth for the last decade.

The exports stood at US$ 35 million in 2009-10, rising from only one million dollars in 1991, while domestic sales would stand at around Tk 1,000 crore annually and save foreign exchange equivalent to around Tk 400 crore per annum.

The association president said five or six new ceramic factories were being set up in the country in addition to the existing 40 with an investment of around Tk 3,000 crore and employing around 500,000 workers, including 40 percent women.

Two of the new factories would commence production by this year.

The importers, who used to import low-cost Chinese goods, were now coming up to set up manufacturing units. He said the association had been successful in convincing the government to prevent import of low-cost ceramic items mainly from China.

The quality of the ceramic products mostly depends on the quality of gas supply, which also helps keep wastage at a minimum level.

The BCWMA president said the government had told them that the overall gas supply would be improved from next year. Assured of the gas supply, he said the industry would require some fiscal incentive to achieve the target of export growth for the next six years.

“We need some duty rebate on the import of raw materials and a single digit interest rate on bank loans to reduce the product cost to some extent,” he said, adding that competitors like China and Thailand have their own raw materials. “The duty rebate would help attract new investors and create employment opportunities.”

The association would submit a proposal in this regard for inclusion in the forthcoming budget for the fiscal 2010-11. They would soon meet the Finance Minister to seek fiscal support. The raw materials account for 35-40 per cent of the total production cost of the ceramic products.

Khan said they would also urge the government to simplify the pre-shipment inspection (PSI) procedure. The existing complex procedure delays the process and involves additional expenditure to increase product cost, added the association president.

The ceramic industry pays an amount of Tk 300 crore annually to the national exchequer as revenue and Tk 100 crore to the utility services, including gas.

Govt draws huge plan to link country with Asian Highway

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Govt draws huge plan to link country with Asian Highway
Munima Sultana

The government has planned to expand the country’s key highways and bridges at a cost of 158.91 billion taka to link Bangladesh with the Asian highway-a network of 141,000 kilometres of roads encompassing 32 nations including Europe.

The Roads and Highways Department (RHD) has drawn up 23 projects to execute the giant construction work in the sixth five year development plan that begins in July next year, officials said Thursday.

The expanded road network will link the country with the Asian Highway through Sylhet, Jessore and Panchagarh border, boosting trade and economic growth by ushering in a new era of connectivity with the continent’s top powerhouses.

“We have already started implementing some of the projects to connect the country with the Asian Highway (AH),” said M Mahbub Ul Alam, a RHD superintend engineer who looks after the Bangladeshi part of the AH.

The rest of the projects would be financed partly by the government and the development partners, Mr. Mahbub said.

He added the Prime Minister in her next tour to Malaysia and South Korea would seek support for some projects. The anti-poverty lenders, the Asian Development Bank and the World Bank, are also keen to bank-roll the expansion work.

“We need donors assistance to complete the projects in time. Some projects would also be implemented through public-private-partnership,” he said.

Bangladesh joined the Asian Highway in July last year, some five years after the Bangkok-based UN-ESCAP kick-started the world’s largest transport network with blessing from top Asian giants including China and India.

Officials said under the projects, major national highways and bridges would be expanded into four lanes in line with the standards set by AH’s executing agency United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

The ESCAP has proposed Bangladesh join the Asian Highway through two routes. First one starts at Benapole in Jessore and ends at Tamabil. The second AH-2 route starts at Banglabandha and ends at Tamabil.

Officials said the Awami League government has in principle okayed the routes which begins and ends in India. The previous BNP-led government delayed signing the deal, as it wanted the country to link with the Asian Highway through Myanmar.

A sub-regional route called AH-41 has also been proposed connecting the Mongla and Chittagong seaports with Myanmar through Teknaf border. The total route length is 1,806 kilometre of which 1,199 km roads have two lanes and 584 km roads have only one.

RHD officials said the ADB has started surveying the roads on the two routes to find out their conditions. It is understood, the development lender may recommend changes to upgrade the roads in line with AH standards.

“We expect funds from the development partners after the study,” said another official.

The ESCAP said its secretariat is now working with member countries to identify financial sources for the construction of the gigantic road network and improve its transport capacity and efficiency.

Though the United Nations’ agency has already invested a total of US$26 billion in the improvement and upgradation of the network, there is still a shortfall of US$18 billion.

RHD officials said among the 23 projects, upgradation of Bohaddarhat-approach road of the third Karnaphuli bridge and the Jatrabari-Demra road into four lane have been undertaken with government funding.

They said the government has sought credit from China to construct two more bridges on the river Meghna on Dhaka-Chittagong Highway as the existing two-lane bridges are struggling to accommodate increasing number of traffic.

The ADB has said it would bankroll the Bogra-Natore road upgradation and Benapol-Jessore-Bhatiapara road improvement project.

The mammoth Asian Highway was cinceived in 1959 aimed at promoting trade and connectivity among the countries within the continent.

The Intergovernmental Agreement on the Asian Highway Network was adopted on 18 November 2003 by an inter-governmental meeting at Bangkok. It entered into force on 4 July 2005.

Active Fine Chemicals to raise Tk 16cr from market

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Active Fine Chemicals to raise Tk 16cr from market

Sarwar A Chowdhury

Active Fine Chemicals Ltd, a chemical reagent and active pharmaceutical ingredients (API) maker, plans to raise Tk 16 crore from capital market to strengthen its foothold in a sector that is now heavily dependent on imports.

The company will also use a portion of the money through initial public offering (IPO) to pay off bank loans that it took against its project established in 2004 on 10 acres in Munshiganj.

Active Fine Chemicals, which started commercial production in 2009, has recently submitted an IPO prospectus to the Securities and Exchange Commission with a proposal to raise funds from public.

If approved by the regulator, the company will pay off Tk 6.55 crore bank loans, while the rest of the amount will be added to the working capital structure for business expansion and for IPO expenditure, said a high official of Active Fine Chemicals.

Local companies take up 80 percent of the Tk 7,000 crore pharmaceutical industry, but the raw materials or ingredients market is nearly completely dependent on imports, especially from China and India, industry people said.

Some leading pharmaceutical companies manufacture a few ingredients only for their use, not to sell in the local market. A raw material industry did not flourish largely because of a lack of technology.

Active Fine Chemicals has laid out a vision for the drugs market in Bangladesh through manufacturing laboratory reagents and API. Sixty-seven drug makers — some market leaders — buy reagents and API from Active Fine Chemicals, said ABM Jamaluddin, the company’s senior vice-president.

“We are now producing 150 types of laboratory reagents and six types of API. We will add more after expansion,” he said.

He said the company’s target is to capture a 10 percent share of the import-based raw material market by mid-2011.

According to the IPO prospectus, the company’s existing paid-up capital is Tk 24 crore, of which Tk 4 crore was raised through private placement.

Face value of each Active Fine Chemicals share is Tk 10. As of December 2009, the company’s earnings per share (EPS) were Tk 0.51 on net turnover of Tk 2.25 crore. The EPS has been projected to reach Tk 2.30 by year-end.

As of December 2009, the company’s net asset value (NAV) per share was Tk 11.57.

Janata Bank is the issue manager of Active Fine Chemicals IPO.

At present, 20 pharmaceuticals and chemicals companies are listed on the stockmarket. On Dhaka Stock Exchange, market capitalisation of pharmaceuticals and chemicals sector as of March 2010 was Tk 16,259 crore — 8.61 percent of the total market capitalisation. The price earnings ratio of the sector is 31.01.

sarwar@thedailystar.net

Bumper wheat production in Faridpur

http://www.theindependent-bd.com/details.php?nid=169946

Bumper wheat production in Faridpur
UNB, Faridpur

Apr 16: Farmers have achieved bumper production of wheat in the current season in the district due to favourable weather.

Department of Agricultural Extension sources said this year per hectare wheat production was 2.76 mts against 2.55 mts in the previous season.

Various high yielding varieties of wheat – Pratibha, Shourav, Shatabdi, Kanchan, Pradip, Bioyl – have been cultivated this season.  Of those, Shatabdi variety was cultivated on about 70 per cent land. DAE sources said some 73,393 mts wheat have been produced this season cultivating 26,628 hectares of land. Siraj Miah, a farmer of Boalmari uapzila, said he cultivated wheat on five bighas of land and got good production.

Golden Son to make solar lights, CPU casings

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Golden Son to make solar lights, CPU casings
Twin projects to cost Tk 25cr, shares jump 3.98pc

Sohel Parvez

Golden Son Ltd is set to venture into making solar powered lights and central processing unit (CPU) casings for computers with a focus on domestic and international markets.

Golden Son makes an array of products — aerosols, household items, perfumes, body sprays, air-fresheners, garment accessories, sporting toys, fans and fan accessories.

The initial cost of the two projects has been estimated at Tk 25 crore.

Production of the solar powered light-emitting-diode (LED) modules will start in August and the project that will make CPU casings will start in September, the company said in a filing to Dhaka Stock Exchange (DSE) yesterday.

Golden Son shares rose 3.98 percent to Tk 81.60 on DSE.

The Bangladesh-Taiwan joint venture said it has taken up the project to make solar energy system, LED lighting modules, for the masses, considering demand for green energy at home and abroad.

As per plans, the company wants to make 3-watt equivalent lights and 4.5-watt solar panels.

“It will be handy and easy to use,” said Belal Ahmed, managing director of Golden Son.

The company says the life span of these bulbs is 50,000 hours and the life of the module is 25 years.

“We want to cater to local and world markets,” said Belal, adding that Golden Son aims to make up to 10 lakh pieces of such LED lights in the first year after starting production.

Referring to the plan for computer CPU casings, Belal said Golden Son has taken the venture to target the local market that depends on imports.

“Every year a huge quantity of casings of CPUs is imported forcing consumers to buy covers at high costs. We want to supply CPU covers at a price lower than imported ones,” said Belal.

Golden Son said it would implement these two projects by borrowing from banks and investing its own.

The company said it would log an additional annual profit of Tk 10 crore after the implementation of these two projects.

Grameen Shakti plans to double green tech sales

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Grameen Shakti plans to double green tech sales
Sohel Parvez

Grameen Shakti has set a target to double solar home system (SHS) sales in 2010 and establish more biogas plants and improved cook stoves to expand green and sustainable energy.

It aims to sell 2.20 lakh solar home systems in 2010. The ‘not-for-profit’ company said it sold 1.13 lakh solar home systems in 2009.

Along with focusing on expanding the sales of improved cook stoves, the organisation will increase more biogas plants — a jump by almost four times — from over 4,000 units in 2009 to 16,000 this year.

“We want to expand and promote renewable energy technologies in rural areas to enable more people in the off-grid areas to access electricity,” said Abser Kamal, acting managing director of Grameen Shakti, a member of the Grameen family.

Grameen Shakti plans to establish 10 lakh SHSs and one lakh biogas plants, and construct 10 lakh improved cook stoves by 2012.

In addition to saving on kerosene costs, Kamal said it would create thousands of new green jobs and generate income opportunities for the rural people.

Established in 1996 to provide green energy solutions to rural areas with no electricity, GS has so far installed over 3.6 lakh PV (photovoltaic) SHSs, benefiting around 30 lakh people, according to Kamal.

As per installation, the power generation capacity of these SHS is 17.5 MW.

“These SHSs reduced consumption of thousands of litres of kerosene that these households would have used otherwise,” said Kamal. By one estimate, he said, about Tk 180 crore worth of kerosene has been saved, thanks to the SHS.

The Grameen Shakti official said the organisation crossed the 3.5 lakh SHS installation mark mainly due to faster sales since 2006.

“In the initial years, sales were slow. But we have registered about 50 percent growth a year from 2006,” said Kamal.

He linked the sales growth of SHSs to a rise in awareness among the rural population.

Network expansion by Grameen Shakti and offers to sell SHSs both on credit and cash also helped lure buyers to green energy technologies in the rural areas.

The company also hit stride by establishing biogas plants by using cow dung, poultry droppings and organic waste, enabling rural households to enjoy gas for cooking and electricity.

In five years to 2010, Grameen Shakti established around 11,000 biogas plants. Owners of many of these plants are now generating income by selling excess gas to other neighbourhoods.

“Currently, we are installing 500 biogas plants a month,” said Kamal.

In a bid to promote sustainable energy technology, the organisation now makes a mark in making improved cooking stoves, which are believed to cut fuel wood consumption by up to 50 percent than traditional stoves.

According to Grameen Shakti, improved cooking stoves help households reduce firewood consumption from 20 kilograms to 40 kilograms, saving between Tk 250 to Tk 500 a month.

Kamal said the company is now examining the feasibility of solar thermal water heaters, so that consumers can heat water without using gas or electricity.

In response to consumer demand, the company also started installing SHS in homes on the urban grid areas.

“But our main focus is on the rural areas. We are not promoting the solar power systems in urban areas. But if anyone wants to establish solar systems in urban areas, we respond to them,” said Kamal, adding that most do not advance after knowing the installation costs.

“Urban households want different options, like running fans, lights and refrigerators. But when we share the prices, they lose interest.”

“We do not get any soft loan to establish solar systems in urban areas. That is one reason installation costs are higher.”

Presently, state-owned financial institution IDCOL (Infrastructure Development Company of Bangladesh Ltd) offers soft loan and grants to organisations working to expand green energy, mainly solar home systems in the off-grid rural areas.