Entrepreneurs from the information and communications technology (ICT) sector remain cool about getting financial support from the Equity and Entrepreneurship Fund (EEF).
Only 20 per cent applicants qualified for the EEF financial support for the ICT sector against more than Tk 4.25 billion (425 crore) still up for grabs, concerned sources say.
More than 50 per cent applications were found to be substandard. So, they were not qualified for the fund. On the other hand, about 30 per cent were found of the middle standard, the sources say.
Besides, most of the applications by large, medium and small enterprises seeking the ICT fund did not meet the provision for 51 per cent required capital. As a result, the fund disbursement was at a lower level, according to the sources.
Moreover, many of the entrepreneurs submitted their applications containing mistakes and incomplete information as noticed by project inspectors.
"Funds for agro-processing and its different sectors under the EEF are insufficient while the ICT sector has got a surplus allocation. We have slowed down the fund flow to farm sector projects due to the dearth of resources," a high official of the ICB (Investment Corporation of Bangladesh) told the FE preferring anonymity.
"A good number of entrepreneurs seek funds for the agro-based projects, but the ICT fund cannot be disbursed in the absence of qualified and competent entrepreneurs. Besides, some applicants from the ICT sector do not receive their funds despite being sanctioned," he said.
"The EEF funds for agro-based projects see a deficit whereas the ICT sector has a surplus fund. The ICT sector has still more than Tk 4.25 billion," he added.
The ICB sanctioned over Tk 28.51 billion for 1,567 agro projects under the EEF until January last. About Tk 10.24 billion was released, according to the latest data.
The ICB sanctioned over Tk 1.53 billion in favour of 103 ICT projects. Of the amount, only Tk 860 million was disbursed against 74 projects until January last.
"We are trying to increase participation of entrepreneurs from the ICT sector. We have requested Bangladesh Association for Software and Information Services (BASIS), Bangladesh Computer Samity (BCS) and Internet Service Providers (ISPs) to encourage competent entrepreneurs to take the funds," General Manager of the EEF unit at the ICB, Md Abul Hossain, told the FE.
The authority cut the experience period of an entity to one year instead of 3 years fixed earlier in a bid to increase the number of entrepreneurs receiving the ICT fund, he said.
The government introduced the EEF in the fiscal year (FY) 2000-01 to help promote entrepreneurship and create employment opportunities in areas of agro-based industries, excluding conventional sub-sectors such as rice mills, flour mills, fishing trawlers, and cold storage etc, and information technology (IT).
The fund had earlier been managed by the Bangladesh Bank (BB). In June 2009, the central bank handed over its management to the state-owned ICB. The ICB Capital Management Ltd acts as the project appraisal arm for the EEF.
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ICT entrepreneurs coy about EEF credit
Rezaul Karim | Published: April 09, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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