Ship-builders ask for govt suppport
The shipbuilding industry has sought an incentive package from the government to make the country's shipyards competitive against those of Vietnam, India and China.
The proposal was made yesterday by the leaders of the Association of Export Oriented Shipbuilding Industries of Bangladesh at a meeting with Finance Minister AMA Muhith.
Md Sakhawat Hossain, the association's general secretary, urged the minister to make the cost of finance for shipbuilding similar to those of other competing countries in Asia.
Precisely, the shipbuilders demanded consolidated bank guarantee issuing cost as 1.5 percent a year and long-term funding at 7 percent interest and working capital with single digit rates.
The industry now gets short-term loans, so a minimum duration of 8 to 10 years would help in repayment, Hossain said.
If the cost of financing cannot be brought down to their desired levels, they called for the cash incentive on export of ships to be increased from the existing 5 percent to 15 percent in the budget for fiscal 2015-16.
“If the incentive is granted, we are confident of securing more international orders and thereby add more values to the economy,” he said.
The association also proposed a refinancing scheme of Tk 2,000 crore that would be re-loaned to the shipbuilding industry at single digit interest rate.
This would facilitate the shipbuilders to develop their businesses further and progress their ongoing work orders for 20-25 ships.
Recently, the industry received orders from New Zealand, East Africa and India, which, Hossain said, shows the global shipbuilding market is showing keen interest in Bangladesh. The upcoming treaty between Bangladesh and India on Protocol on Inland Water Transit and Trade may create a huge demand for coastal ships, he said.
“If our shipyards are not competitive in the Asian market, we may lose all the opportunities of getting these orders,” Hossain added.
The minister said their proposals will be scrutinised.
- President optimistic about formation of strong EC
- ‘Export earnings to exceed $60bn by 2021’
- Full verdict of Mufti Hannan published
- You need to eat more chocolate for best mood
- Salman Khan thanks fans for support in arm case
- Why not MP Rana’s bail, ask HC
- Peanut vendor’s story of learning English
- AD declares Kader Siddiqui’s nomination invalid
- Mushi to miss the 2nd test
- 'SAARC is very much alive'
- Arsenal Alexis Sanchez admits tax fraud
- 'Govt firm to ensure compliance in RMG industry'
- Man found dead with throat slit in Rupsha
- Graft case: 3 Agrani Bank officers jailed in Chittagong
- Mother gets death penalty for burning her daughter
- Sunamganj clash over water body grabbing kills 3
- ‘Eviction drive is human violation’
- Some common hair myths disclosed
- Shah Rukh raises the heat in new dialogue promo
- BCL leader found death in Amtola Beel
- 5 killed on the spot in a bus-truck collision
- Last man to walk on the moon died at 82
- Main suspected of Istanbul nightclub attack held
- Former Chief Justice MM Ruhul Amin no more
- Iran is the world's most powerful people salimi
- Prostitution picnic spot, detain 96
- Now Shakib Khan will acting with Pauli Dam
- Respect us as women off-screen: Deepika
- Bangladesh is now one of the over millions of Facebook users.
- Cosmic connect and colours of passion
- Renewable energy for 3m families: PM
- High hope on solar
- Pipra Bidya
- Zimbabwe fold for 368
- The meal will sleep problems
- Indictment hearing against Fakhrul, 66 others on Dec 8
- Lawyers meet Kamaruzzaman at jail
- Embattled health secretary quitsBreaking
- Easy way to identify harmful drug feeding cows
- I wish Upen and I continue, says Karishma Tanna
- Craze Mahiya mahiya’s hijab fashion!
- Reduction the age of marriage for girls!
- Jhalakathi death toll rises to 10
- Facebook Status: calm to raise the temperature of Sylhet
- Detectives have neglected insurgency in Syria: Obama
- No less than 453 slaughtered in Saudi Arabia
- Hrithik told to stay away from me: Katrina
- Nudulase raise interest being dope remix!