Bangladesh Economy: News & Updates

[bd_4_ever]

Dhaka stocks bounce back

Dhaka stocks bounced back Monday, regaining the major part of the ground that was lost on the previous day.

The decision of the Securities and Exchange Commission (SEC) to raise the exposure limit of brokerage houses to individual investors to Tk.100 million helped the market to return to a positive territory, market insiders said.

The benchmark DSE General Index (DGEN) shot up by 125.56 points or 2.02 per cent to end at 6325.76, recovering from previous session when it plunged 3.19 per cent or 204.75 points -- its highest single-day drop since November 6, 1996.

But trading activity was rather lacklustre as the market witnessed lesser number of buy orders from retailers who, apparently, were taking time to recover from the last Sunday's shock, said stockbrokers. Institutional investors dominated the Monday's trading.

The broader DSE All Shares Price Index (DSI) gained 1.95 per cent or 100.89 points to 5259.28, while DSE 20 comprising blue chips ended at 3704.58 with a rise of 74.21 points or 2.04 per cent.

Sunday's drop prompted the Securities and Exchange Commission to raise single-client borrowing to Tk 100 million from Tk 50 million from the stockbrokers.

It also extended the deadline to September 30 from August 31 for adjusting the margin loan for those clients whose credit exposure is over Tk 100 million.

"The decision has helped the market make a turnaround," said Abdul Awal, managing director of the Multi Securities and Services Ltd.

Turnover stood at Tk 12.84 billion, down 11.3 per cent over the previous session. Out of 252 issues traded, 198 gained, 46 lost and eight remained unchanged.

All the major sectors, apart from mutual funds, gained ground unlike previous session when all the sectors except mutual funds fell due to the securities regulator's putting cap on single-client borrowing and the central bank's show-cause notice to seven banks for not adjusting their overexposure to the capital markets.

Experts criticised the regulator's such intermittent directives that were hurting the investors, particularly small ones. "The regulator should look for long-term solution to cool off the overheated market," said an expert.

Banking issues--the market bell weather-- was up by 1.83 per cent with Southeast Bank rose highest 3.91 per cent, followed by Exim Bank 3.27 per cent and Islami Bank 2.44 per cent.

Grameenphone, the country's top mobile operator and most weighted shares in DSE, gained 2.28 per cent. Non-banking financial institutions (NBFIs) gained 2.55 per cent

Lanka Bangla Finance was the top turnover leader with shares worth Tk 688.40 million traded.

Titas Gas came second after remaining top position over the two weeks. Its shares worth Tk 594.39 changed hands.

The other turnover leaders were PLFSL, Aftab Automobiles, Summit Alliance Port (SAPORT), Beximco Ltd, AB Bank, Summit Power and RAK Ceramics.

The prominent gainers included Marico, Confidence Cement, SAPORT, United Airways, Fine Foods, First BSRS and Bay Leasing.

Savar Refractories, Prime First ICB AMCL Mutual Fund, Monno Staffler, Apex Spinning, Dhaka Fisheries and ICB AMCL Second NRB were among the major losers.

Dhaka stocks bounce back

 

[bd_4_ever]

Govt setting up e-info bank at UP level

The government has taken move to establish a national e-information bank (e-tothyo kosh) aiming at making different information and data available at the Union Parishad (UP) information centres.

The information bank will be enriched with different information including agriculture, human rights, disaster management, health, education, law, employment and tourism.

The Union Parishad information and service centres scheduled to be launched across the country by December will be strengthened by the e-information bank.

These centres will provide information relating to life of people at the Union Parishad level.

However, a number of private organisations have already established such information and service centres in the country.

The Prime Minister's Office (PMO) Monday arranged a workshop for the members of the information bank on its premises. A total of 35 representatives of 24 organisations attended the training programme organised by the UNDP-funded programme Access to Information (A2I) under the PMO.

A2I has prepared different contents to incorporate in the e-information bank. Different private organisations have registered as members of the e-information bank to disseminate their respective contents through the bank.

Representatives of the private organisations attended the training workshop to learn about how to upload and link their content with the e-information bank. The private organisations include ICDDR,B; BRAC, Save the Children (Sweden-Bangladesh), Ain O Shalish Kendra, Manusher Jonno Foundation etc.

Govt setting up e-info bank at UP level

 

[bd_4_ever]

Banks to enter MICR era


Clients of banks will get their cheques cleared within one working day as automated clearing houses will be introduced across the country on November 1 and machine-readable cheques will be in place by the time.

The traditional cheques take at least three days to be cleared.

The central bank yesterday directed the banks to issue the machine-readable magnetic ink character recognition (MICR) cheques, which can be verified online. Bangladesh Bank (BB) has also asked the banks to give their branches necessary guidelines.

The BB said no clearing house in the country will accept non-MICR cheques after November 1.

The BB in a circular also said MICR cheques will have to be issued from all branches of the banks in the district towns by August 19.

The banks will have to phase out such cheques by October 31.

The central bank on May 31 this year stopped clearing all non-MICR cheques at about 1100 branches under Dhaka Clearing House.

After a trial run on August 4, the automated clearing house will formally start functioning in Dhaka.

The BB in a letter on Sunday said the activities of the manual clearing house for cheque processing will be kept suspended on August 4 as a preparatory measure to introduce Bangladesh Automated Cheque Processing System (BACPS).

The central bank sent the letter containing five-point guidelines to all the commercial banks. The BB circular said the manual clearing of cheques will remain suspended for one day to check the integrity and fitness of BACPS and all settlements of the instruments sent by the banks will be made through the automated system.

If any cheque remains uncleared on the day, it will be sent to the paying bank.

BB officials said automated cheque processing system is going to be introduced in all the banks in Dhaka after September. As part of it, necessary preparatory works are going on, they said.

Banks to enter MICR era

 

[M_Saint]

Bangladesh ratifies two key APTA deals

Bangladesh on Sunday formally joined the big Asian economies to promote investment and faster trade facilitation by ratifying two key agreements, a top official in the Ministry of Foreign Affairs (MoFA) said.

Foreign Minister Dipu Moni ratified the agreements. The agreements are the Framework Agreement on Promotion, Protection and Liberalisation of Investment and the Framework Agreement on Trade Facilitation, the official added.

The commerce ministers of Bangladesh, China, South Korea, India, Sri Lanka and Laos, the six member countries of Asia Pacific Trade Agreement (APTA) signed the two framework agreements in December 2009 in South Korean capital Seoul.

The MoFA informed the APTA Secretariat in Bangkok on Sunday about the ratification of two agreements concerned by the government, it is learned.

The APTA was signed in November 2005 and it came into effect from July 01, 2006.

"We have formally joined the big Asian economies through the ratification two agreements on investment and trade facilitation to boost regional trade and investment," a top MoFA official said.

"It will also help us enhance our capacity in trade, modernize customs department and contain cross-border smuggling," the official added.

"The agreements will be a major tool to attract foreign direct investment from major Asian countries, particularly from China and Korea as those would provide protection to investment to the investors from APTA member countries."

Presently, trade of more than 4,000 items originating from APTA member countries including those from Bangladesh enjoys tariff concessions under the deal, officials in the Ministry of Commerce (MoC) said.

According to the Framework Agreement on Promotion, Protection and Liberalisation of Investment, member countries will enact new laws to give full security and protection to investments to be made in the countries that are its members.

The contracting countries under the framework agreement will not practise any unreasonable or discriminatory measures, impairing the operations, management, maintenance, disposition or liquidation of investment to be made by member countries, said the agreement.

The member countries of the agreement will protect and uphold the principles of Intellectual Property Rights, in line with the spirit of the World Trade Organisation (WTO), the agreement said further.

No restriction could be imposed on transfer of capital, profit to be derived from such investment, royalties and other income, said the agreement referring to basic criteria of foreign investment.

All sorts of movable and immovable products, share, debenture and stock will be considered as investment, the agreement said.

The member countries of the Investment Pact will promote free flow of investments and encourage transfer of technology among participating countries, according to the regional investment agreement.

"The least developed countries (LDCs) will be provided flexibility, in terms of observing and maintaining the main features of the agreement," a trade diplomat said.

As far as Framework Agreements on Trade Facilitation is concerned, the six countries would also enhance cooperation in 10 major areas including market access and speedy release of goods from the ports.

In addition, it would cover other key areas such as harmonisation of HS Codes, handling foreign passengers in airports, and exchange of best practices to contain customs corruption, sources said.

Meanwhile, the MoC on Monday started the process to form a Working Group comprising representatives from different ministries to finalise the schedule of commitments under the two deals and determine the negotiation strategies with partner countries, sources said.

The first round of negotiation under the two deals will begin from September, a trade diplomat said.
Bangladesh ratifies two key APTA deals

By stopping the supply of "Economic Lubricant" in major exporting sector,

Govt takes a hard-line on RMG incentives;
Business) rapist AWAMY Malaun Leaguers are intencifying their befooling efforts and manufactoring more Ganjas like above news just to distract people from their 'Jamaat killing' mission through phony/Baloony "WAR CRIME" charges....
(????? ????? ????? ??? ??????????? ?????? ????? ????????? ??? ?????????? ???????? ???????? ?

?????? ??????? ????????????? ? ????? ??????? ???????? ?????????????? ????????? ??????? ???)

 

[M_Saint]

Govt setting up e-info bank at UP level

The government has taken move to establish a national e-information bank (e-tothyo kosh) aiming at making different information and data available at the Union Parishad (UP) information centres.

The information bank will be enriched with different information including agriculture, human rights, disaster management, health, education, law, employment and tourism.

The Union Parishad information and service centres scheduled to be launched across the country by December will be strengthened by the e-information bank.

These centres will provide information relating to life of people at the Union Parishad level.

However, a number of private organisations have already established such information and service centres in the country.

The Prime Minister's Office (PMO) Monday arranged a workshop for the members of the information bank on its premises. A total of 35 representatives of 24 organisations attended the training programme organised by the UNDP-funded programme Access to Information (A2I) under the PMO.

A2I has prepared different contents to incorporate in the e-information bank. Different private organisations have registered as members of the e-information bank to disseminate their respective contents through the bank.

Representatives of the private organisations attended the training workshop to learn about how to upload and link their content with the e-information bank. The private organisations include ICDDR,B; BRAC, Save the Children (Sweden-Bangladesh), Ain O Shalish Kendra, Manusher Jonno Foundation etc.

Govt setting up e-info bank at UP level

Whereas real economic engines are getting shut off one after another, digitize ganjas are making headway by the likes of above news...

By implementing another recipe for destroying local farms, poultry and fishery, rapist malauns are paying their debts to Bharat Mata. In 1972 Awami Malaun League did that once but this time Awamy rapist Malauns are making sure that the destruction of local farm and industries stay permanent.

Dhaka, Delhi likely to sign 'border haat' agreement during PM's visit


Dhaka, Delhi likely to sign 'border haat' agreement during PM's visit

 

[M_Saint]

Banks to enter MICR era


Clients of banks will get their cheques cleared within one working day as automated clearing houses will be introduced across the country on November 1 and machine-readable cheques will be in place by the time.

The traditional cheques take at least three days to be cleared.

The central bank yesterday directed the banks to issue the machine-readable magnetic ink character recognition (MICR) cheques, which can be verified online. Bangladesh Bank (BB) has also asked the banks to give their branches necessary guidelines.

The BB said no clearing house in the country will accept non-MICR cheques after November 1.

The BB in a circular also said MICR cheques will have to be issued from all branches of the banks in the district towns by August 19.

The banks will have to phase out such cheques by October 31.

The central bank on May 31 this year stopped clearing all non-MICR cheques at about 1100 branches under Dhaka Clearing House.

After a trial run on August 4, the automated clearing house will formally start functioning in Dhaka.

The BB in a letter on Sunday said the activities of the manual clearing house for cheque processing will be kept suspended on August 4 as a preparatory measure to introduce Bangladesh Automated Cheque Processing System (BACPS).

The central bank sent the letter containing five-point guidelines to all the commercial banks. The BB circular said the manual clearing of cheques will remain suspended for one day to check the integrity and fitness of BACPS and all settlements of the instruments sent by the banks will be made through the automated system.

If any cheque remains uncleared on the day, it will be sent to the paying bank.

BB officials said automated cheque processing system is going to be introduced in all the banks in Dhaka after September. As part of it, necessary preparatory works are going on, they said.

Banks to enter MICR era

Toeing the line of WB/Bharati Malaun Praful Patel's prascription, AWAMY rapists have been systemitacally destroying BD's economy. No real Banking reform except exessive borrowing, no plan to entice investors by disbursing idle money, no 10 TK KG rice offering
are just some of its neforious activities; whilest malauns are flooding the thread of ganja stories supplied by Bharati Ganja maker.

 

[CaPtAiN_pLaNeT]

Who is interested in your personal story????? And your indo muslim bashing color already evident in your post and some post deleted by MOD. Refrain from acting victim.

If you like to talk for indo-awami cause show guts dont hide behind Bangladeshi identity.

It seems to me that you are trying to potray yourself as more genuine muslim than others... In reality all the fake muslims and rajakars like you are the worst enemy of the muslims within... If you do not like bangladesh... has so much love with the razakar and war criminals than why do not you leave bangladesh and go to pakistan...

You still did not said any thing about the corruption of begum zia and war crime of your razakar guru nizami....

N listen no one tried to play the role of victim... but trying to show how some troll like you promoting hate, intollerance in this forum based on nationality and religion.

Just remember 1 thing all the razakars days are numbered in bd... so your countdown already begins...

 

[CaPtAiN_pLaNeT]

Bangladesh receives $170m IDA credit

Business Report



The Government of Bangladesh on Monday signed a credit agreement worth $170m for Chittagong Water Supply Improvement and Sanitation Project (CWSISP) with the International Development Association (IDA), the World Bank's concessionary arm to help improve water and sanitation services in Chittagong, the second largest city in Bangladesh. The agreement was signed at the Economic Relations Division on Monday afternoon. Arastoo Khan, Additional Secretary, Economic Relations Division and Tahseen Sayed, World Bank Acting Country Director, signed on behalf of the Government of Bangladesh and the World Bank respectively.

"The Government is committed to increase access to safe water and sanitation services for its people as highlighted in the Second National Strategy for Accelerated Poverty Reduction (NSAPR-II).

This project will make a significant contribution in ensuring increased access of these services to the people of Chittagong and will also support CWASA's institutional development." Said Arastoo Khan, Additional Secretary, Economic Relations Division, Government of Bangladesh.

The credit from the International Development Association (IDA), the World Bank's concessionary arm, has 40 years to maturity, including a 10-year grace period; and carries a service charge of 0.75 percent.

The CWSISP will support the improvement of water supply and sanitation services in Chittagong city where approximately 4 million inhabitants live. The project will support the Chittagong Water Supply and Sewerage Authority (CWASA) to improve its services through construction of selected water production, transmission, and storage and distribution facilities.

The project has a special focus to serve the poor population living in urban slums. At present piped distribution networks are largely nonexistent in these areas.

CWSISP will support formulation of sewerage and drainage master plan for Chittagong. The project will also support a comprehensive institutional development of CWASA. The project aims to increase production, rehabilitation and expansion of CWASA's water distribution network, leading to increased access to safe water.

The New Nation - Internet Edition

 

[CaPtAiN_pLaNeT]

Work of Padma Bridge starts in Jan ’11



Staff Reporter



The government will start much desired construction work of Padma multipurpose bridge in the next year.

"The construction of the Padma multipurpose bridge will start on January 2011. Tender invitations and the signing of agreements to construct the main bridge will be completed by December this year. The construction will begin from the next year and will be completed by January, 2013" Communication Minister Syed Abul Hossain told journalists at an agreement-signing ceremony, held at 'Setu Bahban' at Banani in the capital yesterday.

The Communication Minister said the project authorities and the contractors responsible for building infrastructure would rehabilitate residents of the affected areas in adjoining districts.

He said four contractor agencies will work to rehabilitate the people located in areas where construction is taking place. The rehabilitation will also include establishing a school, college, health centre, roads and markets.

Mentioning the rehabilitation costs about Tk 835 million, Abul Hossain said, the development work in Munsiganj district's Lauhajang, Shariatpur district's Zazira and Madaripur district's Shibchar would be completed within the next six months.

MRM-ARK's director general Ataur Rahman Khan, MEC-PNL's managing director Abul Kalam and project director of Padma multipurpose bridge Mohammed Rafiqul Islam signed the agreements on behalf of their respective sides.

The Communication Minister also said that they will be signing an agreement with the remaining contracting agency Khan & Sons within a few days.

Earlier, the government announced in December last year that the bridge would costsan estimated $2.4 billion. The World Bank would provide $1.2 billion, the Asian Development Bank (ADB) $550 million, Islamic Development Bank (IDB) $120 million and Japan International Cooperation Agency (JICA) $300 million. Abu Dhabi Development Group will also lend $31 million. The remaining $140 million would be raised locally, primarily by issuing bonds.

Bridges Division secretary Mosharraf Hossain Bhuiyan and Joint Secretary Mohammed Chabir Ahmed were present at the ceremony.

The New Nation - Internet Edition

 

[CaPtAiN_pLaNeT]

NBR sets Tk 111.49b AIT target from 39 sectors


Doulot Akter Mala

The National Board of Revenue (NBR) has set a target to collect Tk 111.49 billion revenue as advance income tax (AIT) from 39 major sectors in the current fiscal.

Around 64 per cent or Tk 72.82 billion of the AIT will come from three major sectors -- import, contractors' bill and interest in savings and fixed deposits.

The government has brought about a massive change in income tax measures in the budget for 2010-2011 fiscal for raising tax collection.

The revenue collectors expect higher advance income tax, which is more than 50 per cent of the income tax collection target set for current fiscal. The NBR collected Tk 82.73 billion advance tax in the just-concluded fiscal.

For 2010-2011 fiscal, the government has set TK 210 billion target for income tax collection.

Officials said individuals and corporate tax collection will contribute 50 per cent of the income tax collection target while the rest amount will be collected from advance tax.

A total of 39 major sectors have been selected for advance tax collection for the current fiscal, they said.

The NBR has prepared a paper with comparative study of advance tax collection in the previous year for its field offices.

The revenue board has handed over the paper to all tax commissioners in a meeting with a target set for income tax collection by respective zones, officials said.

From contractors' and subcontractors' bill, the revenue board targeted Tk 31.74 billion tax at source as the government has raised tax rates by 25 per cent in this sector.

The NBR has set a target of Tk 24.10 billion from import of different products. In the current fiscal, the government has raised advance tax at import stage to 5.0 per cent from 3.0 per cent excepting 230 essential products.

The NBR wants to achieve 76.67 per cent growth in revenue collection from AIT at import stage over the corresponding period last year. The income tax wing collected Tk 13.64 billion from this sector last fiscal.

The government targeted Tk 16.98 billion by way of interest on savings and fixed deposits, expecting 10 per cent growth. In 2009-2010 fiscal, NBR collected Tk 15.43 billion tax out of interest.

NBR sets Tk 111.49b AIT target from 39 sectors

 

[CaPtAiN_pLaNeT]

Landmark power deal signed with India 250MW to be imported from late 2012
Staff Correspondent

Bangladesh yesterday signed a 35-year power transmission agreement with India aiming to import 250 megawatt electricity from the neighbour, starting from late 2012.

Representatives of the Power Grid Corporation of India Ltd (PGCIL), and Bangladesh Power Development Board (BPDB) signed the deal at a ceremony in Sonargaon Hotel in Dhaka last night in presence of the Bangladesh finance minister, energy adviser to Bangladesh prime minister, and other officials of both countries.

The agreement keeps the provision for Bangladesh to export power to India in the future, and the transmission system will have the capacity to exchange 500 MW of power soon after the system is launched.

"This is a small step for Bangladesh and India, but a giant leap for regional cooperation," said Bangladesh Prime Minister's Energy Adviser Dr Tawfiq-e-Elahi Chowdhury.

The agreement is the result of a memorandum of understanding signed on January 3 this year during Bangladesh Prime Minister Sheikh Hasina's visit to Delhi.

Bangladesh Finance Minister AMA Muhith termed the signing as "a dream of regional cooperation coming true", and lauded the fast pace of reaching the agreement. "I hope the pace will continue in implementing the project," he added.

BPDB Chairman Alamgir Kabir noted it was the first step in regional cooperation in energy, and in the future more interconnections might be built with Nepal, Bhutan, and Myanmar to ensure greater energy security.

PGCIL Director Arun Kumar, and BPDB Secretary Azizul Islam signed the agreement. Bangladesh secretaries of power AK Azad, and of energy Mesbahuddin Ahmed, and representative of the Indian High Commission were also present.

According to the agreement, PGCIL will invest and construct 80 km of transmission line and own, operate and maintain it. The Indian company will recover the construction cost under a fixed rate over 35 years. BPDB officials said PGCIL will incur a cost of about 80 crore Indian rupees.

The Indian power and transmission tariff will be determined by the Indian Energy Regulatory Commission.

The Indian part of the infrastructure will also include a 400 KV switching station at Baharampur, loop-in and loop-out of Farakka-Jeerat 400 KV single circuit line at the same place, and a 400 KV double circuit line from Baharampur of India running up to Bheramara in Bangladesh.

BPDB will pay the transmission tariff on a monthly basis.

During the tenure of the agreement, if the line is used by any other beneficiary in either country, the transmission charges will be proportionally shared by the beneficiary. The BPDB chairman explained to the press, "If in future we can export power, the beneficiary or the Indian consumers will share the cost. This is why this agreement is a power exchange deal."

BPDB will make the payments through letters of credit within 45 days of billing. In case BPDB delays to pay beyond 60 days, interest will be charged for late payments.

In case of disputes, the parties will first try to settle the issue mutually through discussions, but if not settled within three months, the matter will be referred to the governments.

Power Grid Company of Bangladesh (PGCB) floated a tender in April to set up a 40 km transmission line in Bheramara with a high voltage sub-station at a cost of 150 million US dollars, funded by the Asian Development Bank (ADB). Most of the cost is related to construction of the sub-station.

ADB has been reviewing the tender evaluation results for the last two months. Once that is over, PGCB will award the contract to the lowest responsive bidder, so the job can be completed within two years.

Power Secretary AK Azad yesterday said the contract for constructing the transmission line will be awarded within a month.

Landmark power deal signed with India

 

[CaPtAiN_pLaNeT]

This is a very good move by BD to limit the load shedding prob. Bangladesh should open up more ways to bring hydro electric from bhutan through india until we solve the power crisis and build all the necessary power stations to meet up local demand...

 

[CaPtAiN_pLaNeT]

Square launches Ansulin, a new brand of Insulin

Monday, 26 July 2010 22:05

http://www.theindependent-bd.com/details.php?nid=184006

Square launches Ansulin, a new brand of Insulin
economic REPORTER

Square Pharmaceuticals Ltd., has launched an Insulin on its own brand name as 'Ansulin,' targeting a large number of diabetic patients across the country, a company official told an orientation programme on the vital medical help for the diabetics.

An introductory progrmme to formally launch the product,named, "Ansulin Orientation Programme," was organised by the Square Pharmaceuticals Ltd. at a city hotel yesterday.

Inaugurating the programme,Managing Director of Square Pharmaceuticals Ltd., Tapan Chowdhury said that his company product was very important for the diabetic patients to buy at an affordable price.

Diabetes was increasing alarmingly in the country. According to World Health Organisation (WHO), the diabetes affected population would cross 11 million by 2030.Many diabetic patients require expensive imported insulin to control diabetes. The new brand of "Ansulin," comes at a sustainable rate for the diabetic patients to help cut down the prevalence rate of diabetes in Bangladesh, tapan Chowdhury said.

 

[CaPtAiN_pLaNeT]

BAPEX to drill exploratory well in Netrakona field

Saturday, 24 July 2010 21:56

BAPEX to drill exploratory well in Netrakona field

BAPEX to drill exploratory well in Netrakona field
FHM Humayan Kabir

BAPEX, the state-owned energy exploration firm, will drill exploratory well at a potential field in Sunamganj-Netrakona area next year as a preliminary survey estimates the presence of nearly two trillion cubic feet of recoverable gas there, officials said.

The company officials said if the exploratory well brings positive results the company will go for developing wells for production of natural gas by 2013.

"BAPEX will drill exploratory well in the gas field next year. We are very much hopeful of producing a good quantity of gas from the potential structure," Petrobangla chairman Hossain Mansur told the FE Saturday.

He said the preliminary estimate based on the last two-dimensional (2D) survey has suggested a reserve of 2-tcf of recoverable gas in the field, situated in Dharmapasa Upazila in north-eastern Sunamganj district.

"We will complete the exploratory well drilling next year and will analyse the data. If the gas is struck, we will go for well development works aiming to produce gas by 2013," a senior BAPEX official said.

He said the gas field is situated in the Surma-basin where the country's largest Bibiyana gas field is situated. "The new structure in the same basin has made us more hopeful."

BAPEX (Bangladesh Petroleum Exploration and Production Company Ltd.) has conducted 2D seismic survey in 300-line kilometers in 2009 and 259-line kilometer early this year.

The survey data has been interpreted by the BAPEX. The data analysis has been communicated to the state-run energy corporation --Petrobangla.

The Petrobangla chairman asked the BAPEX to complete exploratory well drilling in the potential gas field as soon as possible as the country is facing acute energy crisis.

Bangladesh's daily natural gas demand is more than 2200 million cubic feet (mcf). The gas producers supply less than 2000mcf of gas a day.

BAPEX general manager Amzad Hossain said it is expected that there is a big dispersion of gas structure in Sunamganj-Netrokona areas. "We are very much hopeful of discovering a large quantity of gas in that structure."

The BAPEX has already taken initiatives to conduct seismic survey in other potential sites including Modanganj, Khaliazhuri, Bazitpur in Netrakona-Sunamganj areas.

Amzad Hossain said: "As the potential gas structure in Sunamganj-Netrokona is situated in haor and bill areas, roads and other infrastructure will be developed first before going for further works in the gas field."

 

[CaPtAiN_pLaNeT]

Deshbandhu Sugar to float Tk 1.0b IPO

Tuesday, 27 July 2010 21:20

Deshbandhu Sugar to float Tk 1.0b IPO

Deshbandhu Sugar to float Tk 1.0b IPO
Jasim Uddin Haroon

Deshbandhu Sugar Mills Limited (DSML), a leading refinery, wants to float shares worth Tk 1.0 billion later this year aiming at mobilise fund for expansion, its chairman Golam Mostafa told the FE.

"We've taken move to raise fund worth Tk 1.0 billion for expansion. We've already appointed issue manager for this purpose," Mr Mostafa, told the FE in an exclusive interview recently.

Mr Mostafa said pre-placement which will begin shortly to the tune of Tk 600 million and the IPO (initial public offering) worth Tk 400 million subject to the approval of the SEC.

"This fund will be utilised to raise capacity of my refinery," he added.

Currently, the DSML has capacity worth 300 tonnes a day and it is planned to make double at 600 tonnes a day.

DSML, a member of prestigious RSA (Refined Sugar Association), is located at Kawadi area of Palash in Narsingdi.

Mr Mostafa who is also secretary general of Bangladesh Sugar Refiners' Association (BSRA) said sugar market remains volatile in many times mainly because of its distribution system.

"The traditional DO (delivery order) system to distribute sugar from mills is a major reason behind the price hike of the essential item," Mr Mostafa added.

He claimed that the capacity of the country's seven sugar refineries is much more higher than that of the country's consumption.

BSRA sources said Bangladesh's sugar demand is around 1.4 million tonnes a year and the capacity of the seven refineries is 2.4 million tonnes.

Deshbandhu chairman said sugar distribution through dealers will help stabilise the market.

He said there are 4000 dealers under the BSFIC (Bangladesh Sugar and Food Industries Corporation).

"If the dealers registered with the BSFIC involve with us (private refineries), proper distribution of sugar will be ensured and market will remain stable most of the time," Mostafa added.

"I can assure you that the dealers will get at least Tk 300,000 a year if they (dealers) come with us and their experiences will help ensure smooth distribution," he added.

Currently, BSFIC dealers get around Tk 20,000 a year by depositing security money worth Tk 100,000 with the state-owned corporation.

Mr Mostafa said the refiners' association proposed to the government to form a committee comprising representatives of commerce ministry, industries ministry, BSFIC, national board of revenue, BSRA, and dealers to monitor the sugar market.

The committee will also determine the prices at mill gates after revision of the international market each two months, he added.

"Our association has already appealed the government to introduce the dealer-based distribution system and form a committee to ensure smooth supply and keep stable the prices of sugar," Mostafa added.

Mr Mostafa, who hailed from Rangpur began his business through trading.

He has another venture Deshbandhu Polymar Limited (DPL), also a leading plastic bag manufacturer in the country.

The DPL is located at Polash in Narsingdi and it mainly produces woven bags and other kinds of bags needed mainly in poultry feed plants, fertiliser factories, cement, food grains and chemical factories.

DPL is also going to float IPO within next month (August).

The DPL has planned to raise Tk 100 million through issuing a total of 10 million primary shares with a face value Tk 10 each.

SEC (Securities and Exchange Commission) has already approved the DPL IPO.

Mr Mostafa who is also chairman of the DPL said it will manufacture large size bags, which have potential export market.

"Our foreign buyers want to import jumbo bags and we have planned to manufacture this kind of bag after realisation of money from public."

DPL, the third largest bag manufacturer, will repay bank loans as well from the money to be realised through IPOs.

DPL currently produces 55,000 bags a day, and its major customers in the country are Bangladesh Chemical Industries Corporation, Kafco and Kazi Farms.