Monthly Archives: January 2011

BPC to install two more oil storage tanks

http://www.theindependentbd.com/business/others/28260-bpc-to-install-two-more-oil-storage-tanks.html

BPC to install two more oil storage tanks
BSS

DHAKA, Jan 09: The Bangladesh Petroleum Corporation (BPC) will install two new oil storage tanks at Parbatipur under Dinajpur and Maheshwarpasha of Khulna districts to store petroleum products. The BPC has decided to increase its storage capacity as demand and consumption of petroleum products increased this year to run the rental power plants. The capacity of Baghabari oil storage tank will also be increased to store imported fuel in future as the PDB will need more diesel and furnace oil to produce electricity.  According to the BPC, it will have to increase its import by more than 40 percent as the government plans to generate 1350 MW of electricity from rental power plants which would use diesel and furnace oil. BPC chairman Anwarul Karim said around four lakh metric tons of diesel and furnace oil would be required this year to run the rental power plants.

The energy ministry sought Expression of Interest Letters from the private sector to install new oil storage tank to store increased amount of petroleum product, official sources said. Bangladesh imports around 3.5 million tons of oil every year at a cost between $2.5 and $3.5 billion.

Killing thy neighbour: India, and its Border Security Force

http://newagebd.com/newspaper1/editorial/4482.html

Killing thy neighbour: India, and its Border Security Force
Rahnuma Ahmed

Felani’s clothes got entangled in the barbed wire when she was crossing the Anantapur border in Kurigram. It was 6 in the morning, Friday, 7th January 2011. Felani was 15, she worked in Delhi and was returning home with her father after ten years. To get married. She screamed. The BSF shot her dead. They took away her body.

THE fence is made of steel and concrete. Packed with razor wire, double-walled and 8-foot high, it is being built by the government of India on its border with Bangladesh. When completed, it promises to be larger than the United States-Mexico fence, Israel’s apartheid wall with Palestine, and the Berlin wall put together. It has been dubbed the Great Wall of India.

The fence is being constructed, with floodlighting in parts, to secure India’s borders against interests hostile to the country. To put in place systems that are able to ‘interdict’ these hostile elements. They will include a suitable mix and class of various types of hi-tech electronic surveillance equipment such as night vision devices, handheld thermal imagers, battlefield surveillance radars, direction finders, unattended ground sensors, high-powered telescopes to act as a ‘force multiplier’ for ‘effective’ border management. According to its rulers, this is ‘vitally important for national security.’

Seventy per cent of fencing along the Bangladesh border has been completed. In reply to a question in the Rajya Sabha on November 10, 2010, the Indian state minister for home affairs said, fencing will be completed by March 2012. One estimate puts the project’s cost at ?600 million.

The colonial boundary division between East Pakistan/Bangladesh and India, notes Willem van Schendel, had little to do with modern concepts of spatial rationality. It was anything but a straight line, snaking ‘through the countryside in a wacky zigzag pattern’ showing no respect for history, cutting through innumerable geographical entities, for example, the ancient capital of Gaur. It was reflective of someone with an ‘excessively baroque mind’ (The Bengal Borderland: Beyond State and Nation in South Asia, 2005)

The fence divides and separates. Villages. Agricultural lands. Markets. Families. Communities. It cuts across mangrove-swamps in the southwest, forests and mountains in the northeast (Delwar Hussain, March 2, 2009). It divides villages. Everyday village-life must now submit to a tangle of bureaucracy as Indian Muslim law clerk, Maznu Rahman Mandal and his wife Ahmeda Khatun, a Bangladeshi, discovered after Ahmeda’s father died. To attend the latter’s funeral in the same village, Bhira, they would now have to get passports from Delhi, visas from Kolkata (Bidisha Bannerjee, December 20, 2010). It split up Fazlur Rehman’s family too, the fence snaked into their Panidhar village homestead, his younger brother who lived right next door, is now in another country (Time, February 5, 2009). Other border residents have had their homes split in two, the kitchen in one country, the bedroom in another.

To access one’s field, or markets, residents must now line up at long queues at the BSF border outposts, surrender their identity cards. They must submit to the BSF’s regimen, which often means disregarding what the crop needs. As Mithoo Sheikh of Murshidabad says, ‘The BSF does not understand cultivation problems.’ By the time we get to the field it is noon. Sometimes we get water only at night. But we have to stop working at 4pm, because they will not let us remain in the field. If we disobey, they beat us, they file false charges. (‘Trigger Happy’. Excessive Use of Force by Indian Troops at the Bangladesh Border, Human Rights Watch, December 2010).

This lack of ‘understanding’ percolates to the topmost levels of both border forces. During an official visit to Bangladesh and talks between the BSF and the BDR (Bangladesh Rifles, recently renamed Border Guard Bangladesh) in September 2010, Raman Srivastava, director general of the BSF, in response to allegations that BSF troopers were killing innocent and unarmed Bangladeshi civilians said: ‘The deaths have occurred in Indian territory and mostly during night, so how can they be innocent?’ Ideas reciprocated by the BDR chief Major General Mainul Islam in March 2010, who, while explaining that there was a history of ‘people and cattle trafficking during darkness’, said, ‘We should not be worried about such incidents [killings]…. We have discussed the matter and will ensure that no innocent people will be killed.’

Abdur Rakib was catching fish in Dohalkhari lake, inside Bangladeshi territory. It was March 13, 2009. A witness saw a BSF soldier standing at the border, talking loudly. ‘It seemed that he wanted the boy to give him some free fish.’ Heated argument, verbal abuse. ‘The BSF pointed a gun at the boy. The boy ran and the soldier started to shoot.’ Two were injured. Rakib was shot in the chest. He died instantly. He was 13.

Smuggling, cattle rustling and human trafficking has increased in the border areas as poor farmers and landless people faced by population increases, poor irrigation, flooding, and continuous river erosion struggle to make ends meet. While both the BSF and the BGB accuse each other of corruption, the reality, says the recent Human Rights Watch report, is that some officials, border guards, and politicians on both sides are almost certainly involved in smuggling. It quotes a senior BSF official, ‘There are a lot of people involved, including our chaps. That is why only these farmers, with one or two cows are caught, not groups that ferry large consignments of cattle or drugs.’

A culture of impunity prevails, says Kirity Roy, head of Manabadhikar Suraksha Mancha (Masum), a Kolkata-based human rights organisation. We have repeatedly approached the courts, the National Human Rights Commission (NHRC), the National Minorities Commission, the National Commission for Scheduled Castes and Scheduled Tribes, the National Commission for Protection of Child Rights. But none of the cases raised have been brought to a satisfactory conclusion. In some cases, family members appeared before the BSF court of inquiry but we, as the de facto complainant, were never summoned to appear or depose before any inquiry conducted by BSF. No verdicts have been made public.

Neither has the BSF provided any details to Bangladeshi authorities of any BSF personnel having been prosecuted for human rights violation. Impunity is legally sanctioned as the BSF is exempt from criminal prosecution unless specific approval is granted by the Indian government. A new bill to prohibit torture is being considered by the Indian parliament, it includes legal impunity.

On April 22, 2009, when Rabindranath Mandal and his wife were returning to Bangladesh after having illegally gone to India for Rabindranath’s treatment, a BSF patrol team from Ghojadanga camp detained them. She was raped. Rabindranath tried to save her, they killed him. The following morning, the BSF jawans left her and her husband’s dead body at the Zero Line at Lakkhidari.

The reason for building the fence, said an Indian Ministry of External Affairs spokesperson, is the same as the United States’ Mexico fence. As Israel’s fence on the West Bank. To prevent illegal migration and terrorist infiltration.

But Rizwana Shamshad points out that the hysteria generated by the Hindu nationalist Bharatiya Janata Party during the 1980s and 1990s—Bangladeshi Muslim ‘infiltration’ by the millions constitutes a serious strain on the national economy, it poses a threat to India’s stability and security, it represents a challenge to Indian sovereignty, demographic changes will soon lead to Bangladeshi citizens demanding a separate state from India—did not withstand investigation. A study carried out by the Centre for Study of Society and Secularism in 1995 revealed that the BJP-Shiv Sena allegations were not only an exaggeration, but a complete fabrication. Fears and insecurities had been deliberately whipped up to consolidate Hindutva ideology; migrants, it seemed, were more preoccupied with struggling to make a living. While the BJP-Shiv Sena had alleged that there were 300,000 illegal Bangladeshi migrants in Mumbai, they were able to detect and deport only 10,000 Bangladeshi migrants, when in power (1998-2004).

The numbers vary with each media or official report, writes Rizwana. A BJP National Executive meeting declared over 15 million (April 1992). Nearly 10 million, said former Union Home Minister Indrajit Gupta (May 6, 1997). The group of cabinet ministers (home, defence, external affairs, finance) set up by prime minister Vajpayee post Kargil, reported 15 million (2000). The definitions, she adds, are prejudiced: Muslim migrants are described as ‘infiltrators’. Hindu migrants as ‘refugees’. Neither is there any mention of the Indian economy having benefited from cheap labour.

The HRW report notes, few killed by the BSF have ever been shown to have been involved in terrorism. In the cases investigated, alleged criminals were armed with nothing but sickles, sticks and knives, implements commonly carried by villagers. Nor do the dead bodies bear out the BSF’s justification that they had fired in self-defence. Shots in the back indicate that the victims had been shot running away. Shots at close range signal they were probably killed in custody.

The BSF kills Indian nationals too. In Indian territory. Basirun Bibi and her 6-month old grandson Ashique, May 2010. Atiur Rahman, March 2010. Shahjahan Gazi, November 2009. Noor Hossain, September 2009. Shyamsundar Mondal, August 2009. Sushanta Mondal, July 2009. Abdus Samad, May 2009. The imposition of informal curfews on both sides of the border at night, reportedly to prevent the accidental shooting of villagers, has not lessened the number of innocent people killed.

Beatings, torture, rape, killings. What could be the reason for such compulsively violent behaviour? According to the HRW report, it could have been caused by previous deployment in the Indo-Pakistan border in Kashmir, by ‘difficult and tense periods of duty.’

However, checkpoints, curfews, hi-tech electronic surveillance equipment, harassment, intimidation, beatings, torture and sniper fire remind me of Gaza. Not surprising, given that once finished, the fence will ‘all but encircle Bangladesh’ (Time, February 5, 2009).

The 1947 colonial border division was reflective of someone with an ‘excessively baroque mind.’ Its brutal enforcement through fencing, through the deployment of trigger-happy BSF soldiers speak of a Nazi-state mentality.

Not too far-fetched given Israel and India’s ‘limitless relationship’ (Military ties unlimited: India and Israel, New Age, January 18, 2010). This includes Israeli training of Indian commandos in urban warfare and counter-insurgency operations (in Kashmir), and proposals for offering the Border Security Forces specialised training. Given Israel’s behaviour, which Auschwitz survivor, Hajo Meyer, likens to the Nazis. ‘I can write up an endless list of similarities between Nazi Germany and Israel.’

Israel’s inability to learn to live with its neighbours is increasingly turning it into a ‘pariah state’ (British MP). Its ‘paranoia’ has been noted by Israelis themselves (Gideon Levy). That a similar future awaits India is increasingly clear.

Sunman sets up country’s largest home textile plant

http://www.thefinancialexpress-bd.com/more.php?news_id=122352&date=2011-01-09

Sunman sets up country’s largest home textile plant
Tk. 8.0b plant to cash in on EU relaxed import rules.

Jasim Uddin Haroon

Sunman Group said Saturday it is setting up the country’s largest home textile plant to grab new-found opportunities in the European Union’s four billion dollars bed-sheet and curtain market.

The clothing-to-beverage maker is investing more than eight billion taka in a state-of-the-art plant at Iswardi export processing zone, which will go into operation mid-2012, its CEO said.

“We have bought 57 plots covering a third of the Ishwardi EPZ. Some 70 per cent of the civil work has been completed,” said Shafiqur Rahman, the Chief Executive Officer of the group.

The plant will have a capacity to produce 100,000 yards of bed sheet and curtains a day, making it the country’s largest home textile manufacturers.

The investment has been fast-tracked after the EU last month relaxed its import rules, allowing products with 30 per cent value addition to get duty-free access in the world’s second largest clothing market.

Earlier a manufacturer had to add at least 60 per cent value in Bangladesh to get free market access to the highly-lucrative market.

Rahman said the $4 billion EU market is their prime target but products of the new facility will also be shipped to the US, Japan and Australia.

The factory will manufacture all kinds of home textile under one roof. It will make yarn from imported raw cotton and then weave it into fabrics such as bed sheet, cushion cover, decorative pillow and curtain.

Sunman’s CEO said the nearly $200 million group went ahead with the investment despite acute shortages of gas and energy in the country.

“The EPZ authority has assured us of supplying power and gas once we go into production in mid-2012,” he said.

General Manager of the EPZ, situated 220 kilometre north-west from Dhaka, said the massive Sunman plant has changed the once-staid atmosphere at the industrial park.

Launched in 2000-1, the country’s eighth EPZ had to wait five years to see its first investment. Since then it has wooed a few top names including Rahmafrooz’s 25 million dollars automotive battery plant.

Experts said the latest investment in home textile would make Bangladesh one of the top players in global bed sheets and cover markets.

Presently, Pakistan is the largest home textile exporter, both in the key US and the EU. Islamabad exported 685 million euro worth of home textile in EU in 2009, followed by Turkey worth 600 million euro.

Bangladesh with an annual shipment of 185 million dollar is also a top-five exporter in the EU. “We shall be in the race for top position once our plant goes into production,” said Rahman.

Textile millers said political and security problems in Pakistan have forced many buyers to search new import destinations with Bangladesh drawing most attention because of its low-cost labour.

“We’ve abundant cheap labour and our workers also learn quickly — the ideal conditions for home textile growth,” former Bangladesh Textile Mills Association president Abdul Hye Sircar said.

Mr Hye said: “This is an area where profit is guaranteed as China is becoming costly and Pakistan has been in troubles for some time.”

Sunman’s project, named Sunman Industrial Corporation, is being funded by a consortium of local financial institutions led by One Bank.

The banks are financing 60 per cent of project outlay while the company is investing the rest from its own coffer.

Zillul Hye Razi, trade adviser of European Commission’s trade delegation in Dhaka, said the EU’s relaxed import rules would boost Dhaka’s home textile export to the 27-nation economic block.

According to new EU rules of origin (ROO), Bangladeshi companies can be able to export homes textiles by sourcing fabrics from a third country.

“All an exporter needs is to dye and complete the products here under the new ROO, which became effective from first day of the new-year,” Razi said.

“I think this is the right time for Bangladeshi entrepreneurs to invest in the sector,” he added. “There is also huge export potentials in the US market.”

Nurul Islam, chairman of Noman Group — the country’s largest home textile maker — said arrival of a new player will enhance competitiveness and raise Dhaka’s global market share.

“It will create new challenges and opportunities for us,” Islam said, adding in the short-term the country may face shortage of skilled labour.

At present, Bangladesh has only eight export-oriented home textile mills: seven in the greater Dhaka district and one in the port city of Chittagong.

Noman Group exports around 20 million US dollars worth of home textile each month. Other producers include Alltex, ACS Textile, Sad Musa, Regent, JK Group and Classical Home.

$20b annual RMG exports knocking on door

http://newagebd.com/newspaper1/business/4393.html

$20b annual RMG exports knocking on door

A file photo shows workers busy at a garment factory in the city. Recent trend of exports of Bangladeshi garment products indicates that the country can earn $20 billion from the shipments of readymade garments and some textile products by the end of this

Kazi Azizul Islam

Bangladesh can earn $20 billion from the shipments of readymade garments and some textile products by the end of this year.

The Export Promotion Bureau’s data showed that in the January-December period in 2010 the export earnings from readymade garments amounted to almost $15 billion with around 25 per cent growth.

Exporters, representative of importers and economist said that a robust growth of the demand for Bangladeshi garments last year and new market opportunities clearly indicate that even more growth is possible this year.

But they said that such opportunities can be missed if smooth supply of workers and energy and congenial worker-owner relations are not ensured.

A top executive of the Dhaka sourcing office of a major European retailer said that 2011 should be better than 2010 for Bangladesh’s garment sector due to more growth in shipments, both in terms of volume and value.

‘Demand from importers is really so high now that increasing garment export earnings by hundred per cent or even more is possible for Bangladesh, but growth may be similar to last year’s growth or slightly more due to poor infrastructures,’ he said.

He suggested that improvement of productivity in existing factories, increased supply of gas and power and development of more infrastructures are crucial factors now for the industry’s growth.

The EPB’s data showed that shipments in terms of value of readymade garments, in the January-December period in 2010, totaled $14,846 million against $11,892 million last year.

The EPB said that garment exports grew by 42 per cent to $8 billion in the July-December period of the current FY 2010-11

Shipments of textiles, terry towels and other textile products earned nearly $800 million in 2010, and observers say that their earnings can rise to between $1.2 billion and $1.4 billion in 2011.

In 2009 RMG shipments showed almost no growth as the tail impact of the severe recession in the EU and US markets caused decline in the demand for garments. However, Bangladesh’s export shipments on an average in that year did not decline like that of the other major apparel exporting countries.

Shafiul Islam Mohiuddin, the acting president of the Bangladesh Garment Manufacturers and Exporters Association, said that the local factories are seeing huge demand from global importers, and the simplified EU-GSP regime, effective from January 1, is set to bring more buyers to Bangladesh.

‘The government should work desperately for arranging short training courses for unemployed youths across the country as our factories can provide jobs for them, enhance production and increase exports as much as possible,’ he said.

Due to the shortage of electricity, most of the RMG manufacturers are raising production by ensuring even costlier supply of power from diesel oil-powered captive generators, said Mohiuddin. ‘The RMG industry hopes that the power supply situation will start improving soon. The government should act now to enhance the capacity of roads and rivers and ports so that transport of imported raw materials and shipments of finished products get speedier.’

He pointed out that demand by importers in the US and EU markets has already increased as many of them have diverted a portion of what they sourced to China to Bangladesh in the last few months, while the demand from new markets like Japan, Turkey, Korea and South Africa have pushed up shipments.

Khondaker Golam Moazzem, senior research fellow at the Centre for Policy Dialogue, said that the higher growth of garment shipments in 2010 was calculated on a base of low growth in 2009, but new market opportunities indicate that this high growth will be sustained in 2011.

‘Bangladesh is being regarded as a hub of sourcing by garment importers across the world, while enhanced market opportunities in Europe have opened up more scope for export,’ he added.

Moazzem advised the government to ask its embassies in Europe to proclaim the enhanced capacity of Bangladesh in making high value garments and the benefits that importers will get due to the newly provided zero duty on Bangladeshi woven garments.

Jute pulls in investors

http://www.thedailystar.net/newDesign/news-details.php?nid=169264

Jute pulls in investors

Sohel Parvez

The jute industry sees a surge in investment, as nearly a dozen companies are set to spin out jute goods and value-added items, inspired by the rising global demand for green products.

Local business conglomerate Partex Holdings, battery maker Panna Group and Aftab Group, and some shrimp processing firms are likely to invest hundreds of crores of taka in the resurgent jute industry.

At least eight new players, concentrating on yarn or jute goods, signed up to associations such as Bangladesh Jute Mills Association and Bangladesh Jute Spinners Association. Some are modernising their factories to increase production.

The new entrepreneurs are likely to create thousands of jobs and increase production capacity.

But a sudden increase in production capacity might spark a price war for exports, warned the industry insiders. Manufacturing more diverse products from jute is the need of the moment, they added.

At the same time, crop output has to be increased to meet the requirements of an increasing number of factories emerging to exploit demand on the international market.

Officials of Partex, Panna and Aftab said they would initially make yarn to exploit demand for carpets and jute-fabrics. But Partex and Aftab want to diversify production to make denim fabrics and home textiles.

“We see a new window of opportunity for exporting jute goods. The world market is excited about jute as people look for eco-friendly products,” said Rubel Aziz, managing director of Partex Jute Mills. “We want to enter the market with our golden fibre,” he said.

With a daily production capacity of 80 tonnes of yarn, Partex Jute Mills in Faridpur is likely to begin operation around mid-year. Partex will invest about Tk 140 crore for its yarn and twine factory.

“Our goal is to make value-added jute goods. We aim to make denim fabrics from jute and ladies handbags to market globally,” said Aziz.

He urged the government to ban raw jute exports to help Bangladeshi manufacturers increase their value-added jute goods volume for international markets.

The latest investment frenzy in the jute sector occurs at a time when the sector beat its longstanding competitor frozen foods in export earnings.

The local jute industry, employing about 150,000 workers, is now the second largest export earner after clothing, thanks to sustained demand.

In fiscal 2009-10, the sector logged 76 percent higher earnings at $736 million (Tk 5,225 crore) than the previous year, which remains buoyant in the current fiscal year.

The sector where 40 lakh farmers are involved is also set to reap the benefits of the packing law passed last year. The law made it mandatory to pack certain percentage of food items and fertilisers with jute to boost the industry and cut the use of environmentally-harmful polypropylene bags.

Such prospects on local and international markets also lured investors like Panna Group, according to its Deputy Managing Director Ramendra Nath Basak.

Panna Group took a Tk 160 crore project to set up its concern Altu Khan Jute Mills at Madhukhali in Faridpur, a major jute-growing belt. The mill will produce 60 tonnes of yarn a day and Hessian sacks. It is likely to start production in April, creating jobs for nearly 3,000 people, said Basak.

Kamrul Hasan, operative director of Aftab Jute Mills, said it is a pity that jute did not receive due attention in the past, despite immense prospects.

“Petrochemicals will be exhausted over time. But the demand for jute will continue as long as we can grow it. Many European countries are discouraging use of synthetic bags to protect the environment,” he said.

“Everything about jute is positive. It is a versatile product. If we can showcase it properly, we will be able to tap the global market,” said Hasan of Aftab Jute Mills, which aims to kick off operations this year to spin out 15 tonnes of yarn a day.

“We will begin with yarn. But our goal is to make diverse products from jute including shopping bags and home textiles,” he said.

“It will not be wise to stay content with yarn making only, because the market for yarn is almost saturated and prices will fall as soon as supplies surpass demands,” Hasan warned.

Kazi Shahnewaz, owner of a frozen fish processing plant in Khulna, has recently signed up to make twines and sacks from jute. The factory, Shahnewaz said, is likely to begin production about mid-year with 2,000 people working each shift.

sohel@thedailystar.net

4 new country-made sea trucks on coastal routes

http://www.thefinancialexpress-bd.com/more.php?news_id=122325&date=2011-01-09

4 new country-made sea trucks on coastal routes

BARISAL, Jan 8 (BSS): Bangladesh Inland Water Transport Corporation (BIWTC)has placed four new sea trucks built locally on coastal routes in this month.

Of the four sea trucks ST Shaheed Abdur Rab Serniabad will ply on Hatiya-Charbata, ST Bhasha Shaheed Sala on Char Alexander- Mirzakalu, ST Bhasha Shaheed Jabbar on Teknaf-Saint Martin Routes. The fourth one ST Shaheed Sheikh Fazlul Haq Moni would be kept standby at Chittagong port. With these four new vessels total number of sea trucks in the BIWTC fleet reached 13.

BIWTC sources said the organisation in 2006 planned to include four new sea trucks in its fleet for plying on the risky coastal routes. It chose a Bangladeshi shipyard for building the sea trucks. The vessels were handed over to the BIWTC authority in December last year. The cost involved in building the sea trucks is Tk. 15 million, sources said.

The BIWTC now in it fleet has eight locally built sea trucks, four china made trucks and one old trucks.

Assistant general manager of BIWTC Barisal station, Gopal Chandra Majumdar, said four sea trucks have been built at a Chittagong dockyard at total cost of Tk.15million.

Every newly built sea truck is 101 feet long and 20 feet wide and has the capacity to carry 200 passengers and ten tonnes of goods. The vessels can run at the speed of 10 nautical miles.

The newly built sea trucks could run smoothly for 20 years under proper maintenance. The builder has ensured one-year warranty for each vessel, BIWTC sources said.

Energy boost forlocal industries

http://www.thedailystar.net/newDesign/news-details.php?nid=169335

Energy boost forlocal industries
Import duty on furnace oil to go; power producers, industries allowed to import it

Sharier Khan

In a major policy decision, the government is withdrawing import duty on furnace oil to help local industries overcome the on-going energy crisis and resolve their problems on their own.

Private power plant developers and industry operators who will directly benefit from this will also be allowed to import furnace oil to meet their own requirements with permission from Bangladesh Petroleum Corporation (BPC).

All industries, except ship-breaking industry, will be allowed to import duty-free furnace oil for their needs. This is a major incentive, as the duty is now 37.5 percent.

Since furnace oil or Heavy Fuel Oil (HFO) is the cheapest commercially used oil, industries are now expected to solve their own energy problem by using it.

On the other hand, it is one of the most polluting petroleum products.

The prime minister’s energy adviser Towfiq-e-Elahi Chowdhury disclosed the government decision regarding furnace oil while exchanging views with four non-resident Bangladeshi (NRB) energy experts and officials of the Power Division and Power Development Board.

The Daily Star had invited the four NRBs to Dhaka to talk about alternative energy and new technology. The PDB invited them for further sharing of knowledge.

Towfiq said the government decision comes in the wake of various measures taken by it to ease the country’s power crisis. And a Statutory Regulatory Order (SRO) has been framed in this regard.

He also said as in the previous year, the government will again distribute 12 million energy saving lamps for free across the country to discourage use of traditional light bulbs. A traditional 100 watt bulb utilises only five percent of the power it consumes, and its replacement will reduce power demands.

Later, talking to The Daily Star, Chairman of the National Board of Revenue (NBR) Nasiruddin Ahmed said the SRO on the withdrawal of duty is now being printed for gazette notification.

“There is a severe energy crisis in the country, and this will help ease this crisis. It’s true that we will lose some revenue from import. But, as the import (of furnace oil) will increase power generation and industrial production, we expect our overall revenue to increase,” the chairman said.

Meanwhile, large industries like Youngone are seeking this kind of incentive from the government so that they can build their own power plants based on imported furnace oil. They want it even though the cost of furnace oil-based power will be higher than that of gas-based power. “I can tell you that within six months, industries will change the power crisis ” said Captain Sikder Ahmed of Youngone.

Gas supplies have become erratic and no one knows for sure when the government will be able to supply it with appropriate pressure to industries to run their boilers or generators. Salman Karim of Orion Group says, “All our new equipment are ready to consume both gas and furnace oil.”

The decision concerning furnace oil will also help ease storage of imported oil issue. Till now, the BPC imports and stores all kinds of petroleum at its depots. This year the government’s oil import will go up by 1.9 million tonnes just to cater to the needs of diesel and furnace oil- based rental, private and government power projects. Of this additional import, most will be furnace oil. The BPC does not have adequate storage facility for this additional oil.

The government opted for diesel and HFO-based expensive power projects to add around 2,400 megawatt of power by the end of this year. Use of oil will ensure that the ongoing gas crunch will not affect this new power generation.

Other than these power projects, majority of the country’s large industries generate power for their own requirements using natural gas. In the last few years, their power generation was greatly disturbed.

The PDB estimates these industries generate more than 1,000 MW of power, in addition to that on the national grid. But Titas Gas Transmission and Distribution Ltd, which deals with gas supplies for major industries, says these industries generate more than 2,500 MW of power using gas.

Besides, the industries also use natural gas to run their boilers and other generators. Now they will have the option to run those using furnace oil.

However, furnace oil-based production causes heavy pollution which requires the industries or power plants to have their own treatment plants. Otherwise, this will create a new problem for the country, officials noted.

Bangladesh 15th best investment destination

http://www.thedailystar.net/newDesign/news-details.php?nid=169083

JBIC Ranking
Bangladesh 15th best investment destination
Unb, Dhaka

Bangladesh has ranked 15th in an international rating among the investment-potential countries for the foreign investors and businessmen in 2010.

The country has made tremendous progress within a short span of time as it was in the 28th place in the 2009 ranking.

This was revealed in a survey conducted by International Research Office of Japan Bank for International Co-operation (JBIC).

JBIC Residential Executive Officer of Asia and Oceania Region Ryuichi Kaga disclosed this when he called on Industries Minister Dilip Barua at his residence yesterday morning.

During the meeting, Ryuichi said Japanese entrepreneurs are willing to shift their export-oriented industries from Japan to Bangladesh.

“Japanese entrepreneurs are also very much keen to invest in hi-tech textile, IT, railway and road infrastructure sectors in Bangladesh,” he said.

About the country’s Industrial Policy-2010, Ryuichi said that as the industrial policy has created a scope for local and foreign entrepreneurs to investment under direct investment, joint venture and Public Private Partnership, Bangladesh will achieve rapid investment growth in near future.

He informed that Japanese investors have given special emphasis on setting up Japanese special industrial zone in Bangladesh.

Bangladesh will welcome Japanese investors as a long-time development partner of the coutnry, industries minister said.

The government has been providing various supports including tax holiday, visa facility, work permit and cash incentives for the foreign investors, he added.

The minister urged the Japanese entrepreneurs to invest in various sectors including setting up fertilizer factory, developing road and rail network, setting up environment friendly shipyard and ICT sector in Bangladesh.

Number of internet subscribers touches 6 million

http://www.bssnews.net/newsDetails.php?cat=0&id=154019&date=2011-01-07

Number of internet subscribers touches 6 million

DHAKA, Jan 7 (BSS) – The country’s internet subscribers jumped to six million from only six lakh in 2008 thanks to the present government’s drastic slashing of bandwidth charge and rapid expansion of the network by private regulators.

“Though the internet penetration in the country is now only three percent, the number of internet subscribers climbed to six million in the last two years from only six lakh in 2008,” said Naimuzzzaman Mukta, People Perspective Specialist of the UNDP- funded Access to Information (A2I) Programme under the Prime Minister’s Office.

He said a huge number of people have brought under the mobile internet broadband facilities as there are 66 million cellphone subscribers in the country. “The mobile phone companies are playing the key role in increasing the internet subscribers,” he said.

Besides broadband internet service providers, he said, there are two fast-growing Worldwide Interoperability for Microwave Access (WiMAX) companies in the country.

The number of WiMax subscribers in the country is now about 80,000. Two WiMax service providers–Qubee and Banglalion—launched the broadband wireless internet service in the country in 2009.

Mukta said a large number of internet subscribers in the country have been brought under the optical fibre network as the state-owned Bangladesh Telecommunications Company Ltd has expanded the network up to upazila level in line with the present government’s vision to build Digital Bangladesh by 2021.

Meanwhile, Bangladesh Telecommunication Company Ltd (BTRC) has decided to further cut the bandwidth charge. “The price of internet bandwidth will be reduced to Taka 12,000 from existing Taka 18,000,” BTRC Chairman Maj Gen (retd) Zia Ahmed told a function in the city recently.

“The further slashing of internet bandwidth charge would help increase the number of internet subscribers,” Mukta said.

A recent study said that Bangladesh could have nearly 20 million internet subscribers by 2020. The study titled “Towards a Connected Bangladesh: Socio-economic Impact of Internet in Bangladesh Economy,” was released through a press conference last year.

According to the findings of the report, “with the appropriate initiatives and policy frameworks in place, analysis suggest 18.3 million internet subscribers in Bangladesh by 2020, equaling approximately 10 subscribers per 100 inhabitants.”

These figures translate to a household internet penetration level of 32 percent and business adoption of around 66 percent.

The internet study was conducted by the Boston Consulting Group (BCG) on behalf of the Telenor Group, the majority shareholder of Bangladesh mobile phone operator Grameenphone. The BCG report was part of an in-depth research into the adoption rate of Internet and its impact in the emerging economies with special focus on Bangladesh, Thailand and Serbia.

According to a report published by the International Telecommunication Union, Bangladesh has the second lowest internet penetration in the region. “The government and regulators are playing a crucial role in creating awareness and opportunities to experience benefits of internet,” the report said.

It indicates the Bangladesh government’s policy directive to “ensure internet for all” highlights the importance of Internet at the policy level, adding that the ICT Policy 2009 has specific direction and guidelines reflecting most of the priorities of the ‘Digital Bangladesh’ agenda.

In terms of overall GDP contribution in 2020 for Bangladesh, the report states that internet is expected to contribute 2.6 percent of total GDP and suggests that a 10 percentage in internet penetration is correlated with a 1 percent increase in the annual rate of new business formation; calculating the creation of over 129 K jobs alone in Bangladesh by 2020.

The findings are very optimistic about the potential of the telecom industry of Bangladesh with its footprint in every aspect of Bangladesh’s socio-economic life.

The report concluded that due to limited coverage and poor quality of fixed lines in Bangladesh, it is likely that the majority of internet subscribers in Bangladesh will be using wireless technologies and that provided with the appropriate investments, over 90 percent of connections could be wireless in 2020.

BD set to become a large ship-owning country

http://www.thefinancialexpress-bd.com/more.php?news_id=122243&date=2011-01-08

BD set to become a large ship-owning country
Jasim Uddin Haroon

Bangladesh is now heading to become a big merchant ship-owning nation, which has already surpassed the number of these types of ships owned by Pakistan, Sri Lanka and Myanmar, officials and persons familiar to the trade told the FE.

They also said the number of ocean-going vessels has increased following favourable taxation policy and funding by local banks.

The local people have bought a record 12 vessels in 2010 alone. Bangladesh traders also bought 10 vessels in 2009, according to official statistics of Mercantile Marine Department.

Bangladeshi traders have so far purchased 65 vessels spending more than 1.0 billion US dollars, according to Bangladesh Ocean-going Ship Owners Association (BOSOA).

But traders and shipping companies registered 47 vessels in the country and the remaining 18 were listed in other countries.

Ship-owning companies have to register with the department concerned under Merchant Shipping Ordinance 1983.

Neighbouring India owns more than 300 vessels, while Pakistan, Sri Lanka and Myanmar on an average 22-25.

The department said local commodity conglomerate Abul Khair bought a ship, so far the largest in size, named MV Amsir worth 68000 tonnes (dead weight tonnes).

Brave Royal Shipping Management, a Chittagong-based company, tops the list with the highest number of vessels — eight.

The company’s MV Jahan Moni, hijacked during the first week of December last year with 25 crew by Somali pirates, is yet to be rescued.

Habibur Rahman, principal officer of Mercantile Marine Department, said: “The number of vessels increased significantly following government policy support.”

He also said local traders bought 22 vessels in the last two years, more than 35 per cent.

The government waived import and value added tax on purchase of ships in its budget placed for 2009-10.

Local banks like AB Bank, One Bank and Prime Bank have come up with funding purchase of vessels, mostly bulk carriers.

There is no scope for price manipulation while purchasing ships as its prices are controlled by international brokerage houses mainly in Singapore and London.

Shah Alam, chairman of Continental Liner Agencies, said: “We’re specialised in the trade and we have huge potential to become a leading ship- owning country in the world.”

Mr Shah Alam, who owns 6 vessels said: “Many commodity market players are also in the race to purchase ships to minimise their import cost and make their products competitive.”

Apart from Abul Khair, Akiz Group (Akiz Wave, 46640 tonnes) and sugar refinery Deshbandhu Group (Golam-e-Mustafa, 16210 tonnes) had also purchased ships in 2010.

Shah Alam, BOSOA vice president, however, said Bangladesh now pays around 6.0 billion US dollars each year as freight cost, for carrying goods to and from Bangladesh.

Bangladeshi ships now carry less than 10 per cent of its export-import goods, BOSOA statistics said.

“We urge the government to make relaxation of the ships’ age bar,” he added.

Local traders are now allowed to purchase ships, which are at best 25 years old.

However, sources at the Ministry of Shipping said they are planning to extend ships’ ages up to 30 from the existing 25 years, set in 2004.

A good year for IT

http://www.thedailystar.net/newDesign/news-details.php?nid=168136

A good year for IT

Country's first software park. Photo: Rashed Sumon

Mehdi Musharraf Bhuiyan

The country’s nascent IT arena was all-abuzz recently. There was news of Bangladesh finding a spot among the annual rating of the top 30 spots best places for IT outsourcing around the globe by Gartner, a leading research and consulting firm.

“Bangladesh, an emerging country from an offshore location, offers a good cost proposition, but ranks poorly in language, infrastructure and data, and intellectual property security,” Gartner said.

Sounds like a rational observation, but it was quite heartening to see that global IT giants have finally started recognising the potential of Bangladesh as the next big hub for a digital revolution.

The news caps off an eventful year, which saw some bold steps in taking IT services to the doorsteps of the common people.

“The most significant aspect of the outgoing year is that we have been able to draw the attention of Bangladeshis living aboard,” said Bangladesh Association of Software and Information Services (BASIS) President Mahboob Zaman.

“In October, the US Bangladesh Technology Conference was held in New York, where we received response from the Bangladeshi IT professionals living abroad.”

“Their global exposure, investment, and expertise is invaluable to our sector and in this regard, we have already opened an NRB cell in BASIS,” Zaman added.

Software export reaches $35 million

According to Export Promotion Bureau statistics, the country earned a total of $35.36 million from the export of software and IT enabled services in 2009-10, while the target till the end of 2010-11 is $37.48 million.

“One notable achievement is that apart from overseas export, a significant domestic market has been created for the local IT companies, thanks to the ongoing automation and digitisation drive,” the BASIS president said.

Janata Tower becomes the country’s first Software Park

The year also saw the Digital Bangladesh Taskforce, the country’s apex body for formulating ICT sector policies, sitting together for the first time in 24 months.

In a significant move, the taskforce, headed by the prime minister, decided to turn the abandoned and much talked about Janata Tower in Karwan Bazar, Dhaka, turn into the country’s first software park.

The tower was formally handed over to the science and ICT ministry and it was inaugurated in December.

The 11-storey tower is now being renovated and is expected to be ready for use by hi-tech companies in nine to twelve months.

BB softens international fee clamps for software firms

In September, the software and ITES companies were given a green light to remit up to $1,000 at a time and $10,000 a year in foreign exchange, without prior approval of the central bank.

The software exporting and outsourcing companies were also allowed to receive payments for their exports and services via internet, V-Sat or other electronic media.

All unions joined the information super highway

Taking IT services to the rural doorstep was a great challenge.

In November, a total of 4,501 Union Information Service Centres (UISCs) were launched across the country.

Prime Minister Sheikh Hasina formally inaugurated the service by talking to United Nations Development Programme Chief Helen Clark.

“With the opening of 4,501 UISCs, all unions of Bangladesh will be linked with the information super highway,” said Nazrul Islam Khan, national project director of A2I Programme.

USB drives, mid range PCs and dual SIM handsets, all the rage

Significant growth was seen in the sale of ultra portable equipments, such as USB flash drives, MP3 players, digital media players and memory cards. Related accessories, like card readers, USB hubs, data transfer cables and HDMI cables, also witnessed growth.

mehdi@thedailystar.net

Bangladeshi company to invest US$ 7.17m in Dhaka EPZ

http://www.bssnews.net/newsDetails.php?cat=0&id=153584&date=2011-01-05

Bangladeshi company to invest US$ 7.17m in Dhaka EPZ

DHAKA, Jan 5 (BSS)- M/s Cassmark Fashion Limited will set up a Garment Industry in Dhaka Export Processing Zone.

This 100% Bangladeshi owned company will invest 7.671 million US Dollar in setting up their unit and will produce garments items. The company will also create employment opportunity for 1,897 Bangladeshi nationals.

An agreement to this effect was signed between Bangladesh Export Processing Zones Authority and M/S. Cassmark Fashion Limited in BEPZA Complex Dhaka yesterday.

Md Moyjuddin Ahmed, Member (Investment Promotion) of BEPZA and Ms Sabrina Islam, Managing Director of M/S. Cassmark Fashion Limited signed the agreement on behalf of their respective organizations.

Major General A T M Shahidul Islam, Executive Chairman, Abu Reza Khan, Member (Engineering), A K M Mahbubur Rahman, Member (Finance), Md Shawkat Nabi Secretary and other officials of BEPZA were present at the signing ceremony.

Exports rise 41pc

http://www.thedailystar.net/newDesign/news-details.php?nid=168895

Exports rise 41pc
Refayet Ullah Mirdha

High demand coupled with a recovery from global recession has pushed up six months’ exports.

During July-December of the current fiscal year, exports soared 41 percent, compared with the same period a year ago, according to the latest data released by the Export Promotion Bureau yesterday. In the first six months, Bangladesh shipped goods worth $10.26 billion.

In December alone, the country earned $1.99 billion.

The combined export growth of both knitwear and woven garment rose 42.09 percent in the period compared with the same period a year ago.

Bangladesh exported knitwear worth $4.31 billion in the six months, registering 43.39 percent growth. The country earned $3.63 billion in woven garment exports during the period, which means 40.79 percent growth.

Shipbuilding is another bright spot, as the sector fetched $18.02 million from exports of ocean-going vessels. The sector recorded 1,924 percent growth.

Monoj Kumar Roy, joint secretary (export) of the commerce ministry, said every sector showed a positive trend with the recovery from the financial meltdown.

China is losing its market for higher production costs and a shortage of workers in its garment sector. “This is part of the reason exports from Bangladesh went high,” Roy said.

Salim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association, said many orders have shifted from China to Bangladesh.

“Also, the export of garment products is increasing in some new destinations. As a result, we are getting more markets and more value,” he said.

Anwar-ul-Alam Chowdhury Parvez, former president of Bangladesh Garment Manufacturers and Exporters Association, said the increased price of per unit of apparel item also contributed to the higher growth.

Although the prices of raw materials such as cotton and yarn have gone up on the international market, buyers are paying high for the finished products, he said. “As a result, the overall growth was higher.”

“Such high growth will continue in future as the orders are shifting to Bangladesh from other competing countries,” Parvez added.

Saiful Islam, chairman of Western Marine Shipyard Ltd, a leading shipbuilder, said the export of ocean-going vessels went high, as the growth in the sector was almost zero before.

“My company exported two vessels recently, and from now, I can export one ship per two months as I have abundant orders.”

reefat@thedailystar.net

Rajshahi Jute Mills 2nd unit to be opened soon: Latif

http://newagebd.com/newspaper1/business/4002.html

Rajshahi Jute Mills 2nd unit to be opened soon: Latif
Bangladesh Sangbad Sangstha . Rajshahi

Textile and jute minister Abdul Latif Siddiqui has said the second unit of Rajshahi Jute Mills would open as early as possible.

In this regard, he asked the authorities concerned to complete the construction and other infrastructure development works of the unit so that it can go into operation very soon.

Minister Abdul Latif made the instruction while sharing views with management of the mill and others concerned.

Mayor of Rajshahi AHM Khairuzzaman Liton, chairman of BMDA Nurul Islam Thandu, secretary of textile and jute ministry Ashraful Mokbul and chairman of Bangladesh Jute Mills Corporation Tulshi Das Mitra also spoke on the occasion.

Latif Siddiqui underscored the need for making the jute mills more effective for adequate consumption of the raw jute together with boosting the employment generation.

He said the nation produces around 60 to 65 lakh bales of jute at present and the BJMC consume 30 per cent of the total production annually and called for enhancing the consumption to at least 50 per cent.

‘We have enormous prospect of market expansion of jute and jute goods globally and we are committed to materialise the prospect through proper utilisation of the existing resources,’ the minister asserted.

Earlier, he visited different sections of the first unit and the under-construction second unit and directed the officials concerned to expedite the production rate of the first unit.

Later, he visited the now-defunct Paksi Paper Mills at Ishwardi in Pabna and shared views with the officials concerned on the last leg of his three-day official visit in the region.

Vegetables output high in B’baria

http://www.thefinancialexpress-bd.com/more.php?news_id=122012&date=2011-01-06

Vegetables output high in B’baria

Our Correspondent

BRAHMANBARIA, Jan 5: Use of modern technology and quick compost has brought a breakthrough in production of seasonal vegetables in nine upazilas of the district, sources said.

According to the Department of Agriculture Extension (DAE), farmers are getting a huge production of vegetables in the current season.

The DAE officials said, favourable climate and use of quick-compost and high yielding variety (HYV) of seeds have made it possible.

A good number of educated and unemployed youths of the district have got involved in the cultivation process and reaping profits.

But the growers are deprived of making expected profit due to the absence of proper marketing channels.

Now, brinjal is being sold at Tk35 per kg, karola at Tk 30, green banana at Tk25 per four, borbati at Tk35 per kg, gourd at Tk26 to Tk32 per piece, papaya at Tk25 per kg, ladies finger at Tk30 per kg, chichinga at Tk 32, cucumber at Tk 20, jhinga at Tk30, pui shak at Tk 10 per kg, lal shak at Tk10 per kg and lemon at Tk 20 per four respectively.

When asked, DAE Deputy Director Md Mosarof Hossain said, “We have brought 3560 hectares of land in nine upazilas of the district under seasonal vegetable cultivation programme in the current season.”