Small, medium RMG units to get 5pc cash incentive

http://newagebd.com/newspaper1/business/33734.html

Small, medium RMG units to get 5pc cash incentive

Staff Correspondent

The Bangladesh Bank on Sunday decided that small and medium apparel exporters would get a 5 per cent cash incentive for finding new markets, besides the 5 per cent subsidy they already enjoyed.

The BB also decided that small and medium readymade garment units that used captive power plants of less than 1MW capacity would get 10 per cent rebate on their bills for on-grid power.

The central bank issued a circular on the day amending two circulars issued in 2010 on providing cash incentives to the RMG industry.

As per the earlier circulars, the export-oriented apparel units are getting a 5 per cent cash subsidy.

From now on, the small and medium garment factories will get an additional 5 per cent cash incentive for finding new markets.

The large exporters will continue to get 2 per cent cash incentive for finding new markets, except in the United States, European Union, and Canada, along with 5 per cent cash subsidy.

BB officials said, although the earlier circulars said that all small and medium apparel industries that did not have captive power generator would get a 10 per cent rebate on power bills, as per the central bank’s latest circular, the industries that had power generators of less than 1MW capacity would get the rebate.

The government, on November 25, 2010, announced a Tk 1,000 crore second economic stimulus package for export industries to help the country’s export sector withstand the adverse impacts of the global recession.

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