Shortage of fund is hindering the operational activities of Equity and Entrepreneurship Fund (EEF) for agro-processing projects as nearly Tk 20 billion is badly needed for the sector, officials concerned said.
Currently, some Tk 19.53 billion is urgently needed for the agro-based projects. Bangladesh Bank (BB) and Investment Corporation of Bangladesh (ICB) have contributed only Tk 1.60 billion to EEF for agro projects, they added.
But funds for information and communication technology (ICT) sector remain unutilised due to lack of adequate number of qualified entrepreneurs, an official concerned said.
"Funds for agro-processing and its different sectors are insufficient while ICT sector has a surplus of fund. So, we are going to slow providing funds to farm sector projects pending with us due to dearth of resources," he said.
"A good number of entrepreneurs want to finance the agro-based projects, but ICT fund cannot be disbursed due to lack of getting qualified and competent entrepreneurs," he added.
The EEF agro fund suffers from capital deficit whereas IT sector has a surplus of fund, although a good number of applications from entrepreneurs for agro-processing sector has been lying pending with the state entity, he mentioned.
ICB sanctioned over Tk 31.06 billion against 1,727 agro-related projects under EEF till February in 2016. Some Tk 11.53 billion was released against 717 projects under EEF during the same period, according to the latest data.
A sum of Tk 4.0 billion has been earmarked in the budget for the current fiscal year (FY) 2015-16 for agro-based projects. It was Tk 3.0 billion for FY 2014-15. But the finance ministry didn't release the money.
The EEF unit of BB recently sent a letter to the Bank and Financial Institutions Division (BFID) under the ministry of finance (MoF), seeking to release Tk 4.0 billion for agro-based projects.
"It would be better for implementation of agro-processing projects if the sector gets Tk 4.0 billion from the government," a high official concerned told the FE.
The government's financial support to EEF is inadequate. The amount should be increased as per demand, sources concerned 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 industry (excluding conventional sub-sectors such as rice mills, flour mills, fishing trawlers, and cold storage etc), and information technology (IT).
The decade-old fund was earlier managed by 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 project appraisal arm for EEF.
Officials of BB and EEF unit of ICB who deal with the issue declined to make any comment in this regard. They said they are not authorised to say something to any media.
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