Tk 20 billion fund for shipbuilding industry soon

A Tk 20-billion kiss of life to Bangladesh's emerging shipbuilding industry is coming soon, officials say, as it's one of the thrust sectors of the economy.
A proposal to this effect was approved at a board-of-directors meeting held at the central bank headquarters in Dhaka on Sunday with Bangladesh Bank (BB) Governor Fazle Kabir in the chair.
"Our board has decided to form the refinance scheme to help expedite the emerging sector in line with the 'Shipbuilding Industry Development Policy - 2021,' a top central banker told the FE after the meeting was over.
The borrowers will be able to receive such refinancing facility with 4.50-per cent interest, according to the central bank's decision.
"We'll issue a notification in this connection shortly," he said while replying to a query.
Earlier on January 25 last calendar year, the cabinet cleared the draft of 'Shipbuilding Industry Development Policy 2021' with the target of earning US$ 4.0 billion by exporting ships within next five years.
The draft policy emphasises the need for building capacity of the industry by providing soft loan and tax rebate for further development.
It has proposed public-private partnership (PPP) for building dockyards or shipyards, harnessing blue economy, lowering bank interest rates, independent bank-guarantee facility, performance guarantee and creating fund for its development.
Engr. Md. Golam Sarwar, managing director of Prantik Group, welcomes the latest BB move, saying that it will help expedite the shipbuilding industries of Bangladesh.
Bangladesh started exporting modern ships in 2008, and since then, it has earned around US$180 million by exporting 40 ships to several countries in Europe, Africa and Asia.
There are 100 shipyards and dockyards in Bangladesh. But only six to seven of them go by global standards, according to industry-insiders.
Earlier on January 20 last, the central bank extended the moratorium period for the shipbuilding industries by another two years, given that they paid 5.0 per cent of their total loan installments payable last year.
The BB had issued the notification in line with finance ministry's advice to help out the Covid-hit sector.

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