Transformer makers seek govt aid amid financial strain

Transformer producers in the country have urged the government to establish a special fund to address their financial difficulties, sources said.
They have also requested a 10-year loan rescheduling facility.
In a letter, Bangladesh Manufacturers' Association of Transformers and Switchgears (BMATS) has recently appealed to the finance adviser for necessary action on this matter.
BMATS is the national association representing transformer and switchgear manufacturers, whose member firms play a crucial role in the country's power generation, transmission, distribution, and protection sectors.
The products manufactured by BMATS members adhere to national and international standards and are well-regarded both domestically and internationally.
The association claims that its members contribute directly to the country's GDP by producing domestic products, boosting government revenue through VAT and taxes, and reducing foreign import costs.
The letter from BMATS highlights the severe impact of the COVID-19 pandemic (2020-2022) on global business, which has adversely affected local industries.
Although the government provided some incentives, they were deemed insufficient, the association said, adding that the situation was further exacerbated by the resurgence of the Russia-Ukraine conflict, ongoing conflicts in the Arab world, and the recent student-led uprising in Bangladesh that led to a government change.
Additionally, the price of raw materials on the international market rose by 20 to 25 per cent. However, local producers were unable to raise the selling price of their products, as sales orders were placed before the increase in raw material costs, resulting in substantial financial losses, the association said in the letter.
To ensure an uninterrupted power supply and enhance contributions to the country's GDP, BMATS has requested the creation of a special fund with favourable loan terms and interest rates.
They also sought the facility for rescheduling of all long-term bank loans taken since 2020 over the next 10 years.

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