Bangladesh Economy: News & Updates

[idune]

Bangladesh may benefit from rising labour costs in China

Not for long, lobor and electricity cost will almost doubled in Bangladesh. Its amazing writers of these dime a dozen articles and posters are utterly failed to realize the ground realities.

RMG workers get their way. Wages to be hiked
http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=85491

Govt plans to hike power tariff to offset losses from high-cost plants
http://www.thefinancialexpress-bd.com/more.php?news_id=100099

 

[idune]

Govt permits harmful coal import

Tue, Jul 6th, 2010 11:38 pm BdST

Dhaka, July 6 (bdnews24.com) – The government has again allowed coal import containing over 1 percent sulphur from next year, raising concern among environmentalists who fear that the move would harm the environment.

The commerce ministry, in a press release, said on Tuesday that the high-sulphur coal could be imported considering its demand for the sake of the country's economic development and conserving environmental balance as far as possible until June 30, 2011.

'Over one percent sulphur-mixed coal' is banned in the current Import Policy-2009-12 and Import Policy-2006-9.

The government was forced to take the decision in the face of persistent demand from the businessmen, a ministry official told bdnews24.com. He also said that the permission for importation of such amount of Sulphur-mixed coal ended on June 30, this year.
Reacting to the government move, Save the Environment Movement chairman Abu Naser Khan told bdnews24.com: "Such coal is very harmful to the environment. The permission must be cancelled."

Over one percent sulphur-mixed coal is used in brick fields, which seriously affects surrounding crops, trees and fishes in the ponds and other water bodies, he said.

Most 'Over one percent sulphur-mixed coal' is imported through Sylhet border from Meghalaya state in India.

Sylhet Coal Importers' Group general secretary Falah Uddin Ali, however, supported the government move, telling bdnews24.com, "We must import coal to meet our energy crisis."

Ali said around 0.8 to 0.85 million tonnes of coal are imported through Sylhet border every year. In addition, around 0.2 mln tonnes of coal are imported through Burimari and other borders.

Not a significant amount of coal is imported through China, he said.

The commerce ministry's statement said the Department of Environment will initiate to inform 'over one per cent sulphur-mixed coal users' of advanced methods and technology to keep the pollution at minimum level.

In addition, the National Board of Revenue will be requested to impose more tax on those coal users who use backward technology, the statement.

It further said that Bangladesh mainly imports coal from Meghalaya, West Bengal and Bihar State. The coal of Meghalaya contains over one percent sulphur. Better coal can also be imported from Indonesia and China other than India, but importers don't import from those countries because of its high cost.

Imported coals are used in brickfields, tea gardens, and small mills and factories.


Govt permits harmful coal import | Bangladesh | bdnews24.com

 

[CaPtAiN_pLaNeT]

Bangladesh one of the most convenient FDI destinations: WB

Wednesday, 07 July 2010 20:47

Business

Bangladesh one of the most convenient FDI destinations: WB
Kazi Azizul Islam

Bangladesh is one the most convenient destinations for Foreign Direct Investors as some of the regulations and facilities offered by the country are very much relaxed and attractive.

The FDI friendly index in the WB’s latest report titled ‘Investing Across Borders 2010’ surveyed opportunities in 87 countries to boost global investment competitiveness.

The report rated Bangladesh in the top of the list of countries which provide the strongest land or property lease rights to the foreign investors. Canada, Singapore, Costa Rica, Spain, UK, USA and France deliver such full-fledged facility.

Leasing a private land by the foreign investors is easy in Bangladesh while buying private land is easier in the country than that in India, Pakistan and Sri Lanka.

‘Bangladesh offers the strongest lease rights… allowing land to be used as collateral and in a mortgage contract,’ the report said.

The time required to lease private land in Bangladesh is around 2 months, in Afghanistan 7 months, in India for government land it takes 3 months and in Sri Lanka 10 months, the report said.

The report cited that except for Pakistan all countries in South Asia require some form of investment approval or notification. In Bangladesh and India it merely requires declaration.

The report said starting a foreign business in Bangladesh requires 55 days on an average, completing 9 procedures, in India 46 days with 16 procedures and in china 99 days with 18 procedures.

Along with Angola, Cambodia, Kosovo and Solomon Islands, Bangladesh however has been listed in 10 countries which do not have any arbitration institution.

‘Bangladesh is one of the most open countries to foreign equity ownership, as measured by the Investing Across Sectors indicators,’ the report said. ‘All of the 33 sectors covered by the indicators are fully open to foreign capital participation.’

This is the first World Bank Group report to offer objective data on laws and regulations affecting foreign direct investment that can be compared across 87 countries. Clear and effective laws and regulations are vital for ensuring best results for host economies, their citizens, and investors, the World bank said.

The report finds that countries that do well on the Investing Across Borders indicators also tend to attract more foreign direct investment relative to the size of their economies and population.

Conversely, countries that score poorly tend to have higher incidence of corruption, higher levels of political risk, and weaker governance structures, said the World Bank.

 

[CaPtAiN_pLaNeT]

$29.08m export order received in Manila by pharma companies

Wednesday, 07 July 2010 20:46

The New Nation - Internet Edition

$29.08m export order received in Manila by pharma companies
BSS, Dhaka

As many as 15 Bangladeshi pharmaceutical companies received prospective export orders amounting to US$ 29.08 million in a single country trade fair 'Bangladesh Pharmaceuticals Expo-10' held in Manila recently. The three-day trade fair was organized, for the first time, by the Export Promotion Bureau (EPB) in cooperation with the embassy of Bangladesh in Manila, Philippines from June 16, an EPB press release said here today.

The fair, held at SMX Convention center in Manila, created huge opportunity to export pharmaceuticals products to the Philippines and also other South East Asian countries.

A good number of potential visitors, prospective buyers, distributors, traders and specialized people in the pharmaceutical sector visited 15 stalls set up by Bangladeshi companies to showcase their products.

A seminar was also organized on the occasion where Bangladesh ambassador to Philippines, Ikhtiar M. Chowdhury, delivered the welcome speech. A paper was presented in the seminar on 'Bangladesh Pharmaceuticals Industry' by SM Sofiuzzaman, immediate past president of Bangladesh Association of Pharmaceuticals Industry. Joyce Cirunay, chief of products of Service Division, Bureau of Food and Drugs in Phillippines,delivered her speech on rules and regulations of Philippines about pharmaceuticals industry. She explained all sorts of rules and regulations as well as problems and prospect of Importing pharmaceuticals products in Philippines.

Secretary of the Department of Health in Philipines, Esperanzal Cabral was present in the seminar as the guest of honour.

US ambassador to Philippines Herry K.Tamas, others foreign embassy officials in Manila, representative of concerned trade bodies, a large number of dignitaries and huge numbers of media people were present in the seminar, the press release added.

 

[idune]

Bangladesh’s FDI set to fall sharply

Wednesday, May 26, 2010

DHAKA: Foreign direct investment (FDI) into Bangladesh is set to fall sharply in the first eight months of the current fiscal year which ends in June, officials said on Tuesday.

The BOI said the country received FDI proposals worth $615 million in July-February period compared with $2.1 billion in the same period of the previous fiscal year. An acute energy crisis between July and February hit economic activity and had a knock-on effect on foreign and local investment, officials at the state-run Board of Investment (BOI) said. Demand for power in Bangladesh grows eight to 10 per cent annually, outstripping supply.

World Bank country director in Bangladesh, Ellen Goldstein, speaking separately, said: “Bangladesh must raise electricity production by 10 per cent yearly to meet demand and become a middle income country by the end of 2021.”

“Insufficient power supply is the biggest constraint to growth,” she said at a meeting with investors from the US.

Bangladesh’s FDI set to fall sharply

 

[TopCat]

Bangladesh’s FDI set to fall sharply

Wednesday, May 26, 2010

DHAKA: Foreign direct investment (FDI) into Bangladesh is set to fall sharply in the first eight months of the current fiscal year which ends in June, officials said on Tuesday.

The BOI said the country received FDI proposals worth $615 million in July-February period compared with $2.1 billion in the same period of the previous fiscal year. An acute energy crisis between July and February hit economic activity and had a knock-on effect on foreign and local investment, officials at the state-run Board of Investment (BOI) said. Demand for power in Bangladesh grows eight to 10 per cent annually, outstripping supply.

World Bank country director in Bangladesh, Ellen Goldstein, speaking separately, said: “Bangladesh must raise electricity production by 10 per cent yearly to meet demand and become a middle income country by the end of 2021.”

“Insufficient power supply is the biggest constraint to growth,” she said at a meeting with investors from the US.

Bangladesh’s FDI set to fall sharply

Dont worry dude.. 10 bln investment proposal already in the pipleline only in Power sector. In road infrastructure PPP there will be more than 25 bln dollar within next 4 years. 7 bln dollar airport is going to get started in January next year. 10 bln dollar deep sea port will start from Decembre.
We dont count your millions anymore. That is the best your BNP/Jamat could do...

 

[CaPtAiN_pLaNeT]

Dont worry dude.. 10 bln investment proposal already in the pipleline only in Power sector. In road infrastructure PPP there will be more than 25 bln dollar within next 4 years. 7 bln dollar airport is going to get started in January next year. 10 bln dollar deep sea port will start from Decembre.
We dont count your millions anymore. That is the best your BNP/Jamat could do...

@iajdani can you please tell me which airport is going to be built with 7 billion dollar n will it be completely based on foreign investment. Other than that as far as I knew deep sea port will cost around 5-7 billion USD, not 10 billion dollar. Can you please provide more info to me on that along with some of the big road and insfracture projects that you have mentioned worth 25 billion dollar?

 

[CaPtAiN_pLaNeT]

No shortage of power beyond 2012: Muhith


CNG price must be doubled, he says

No shortage of power beyond 2012: Muhith

FE Report

Finance Minister AMA Muhith urged the entrepreneurs of home and abroad Saturday to invest in the ailing power sector and help accelerate the country's overall economic growth.

"The country has huge prospect of phenomenal growth if the power crisis can be mitigated," said the minister, while inaugurating a day-long conference on power sector investment as the guest in a city hotel Saturday.

Bangladesh has been maintaining gross domestic product (GDP) growth rate of over 5.0 per cent since 1995 and it could be pushed to 8.0 per cent after easing the electricity crisis, said Mr Muhith.

The power ministry organised the day-long conference titled, "Investment in Power Sector of Bangladesh: Opportunities and Challenges," where Prime Ministers' Energy Adviser Dr Tawfiq-e-Elahi Chowdhury, Board of Investment (BoI) Chairman SA Samad and Parliamentary Standing Committee Chairman on energy Shubid Ali Bhuiyan were the special guests.

Some 210 representatives of 140 potential power entrepreneurs of home and abroad took part in the conference.

Speaking on the occasion, the Finance Minister said the country's agricultural and industrial output is being hampered substantially due to power crisis.

"We are in a critical situation due to power crisis," he said.

The minister, however, said that the country would not face power crisis from mid 2012 as the government took a number of projects to increase electricity generation.

"This year we may not be able to overcome the power crisis. The crisis will persist in next year too. But after that you will not see any shortage of electricity," he told the audience.

The Finance Minister reiterated the need for raising the price of compressed natural gas (CNG) saying the CNG price is one-fourth of the liquid fuel.

The CNG price must be doubled from its present price level, he stressed.

Muhith also stressed the need for immediate adoption of the country's first-ever national coal policy saying, "We should have the policy by this calendar year."

Terming Bangladesh an attractive destination for investment, the BoI chairman said the country has a huge market of around 160 million population, which is larger than many Asian countries including Singapore, Thailand and Malaysia.

"Bangladesh never defaulted in its debt payments and never posted negative economic growth during the past 30 years," said the BoI chairman.

Power Development Board (PDB) Chairman ASM Anwarul Kabir said the country would require US$9.32 billion to generate around 7,000 mw of electricity in private sector by 2015.

Some $3.84 billion would be required to generate around 4,000 mw of electricity in public sector, he added.

The PDB never failed to pay money to power plant entrepreneurs, said Mr Kabir.

Seven combined cycle power plants having a combined generation capacity of 1650 mw, eight peaking power plants with 700 mw generation capacity, 2600 mw capacity imported coal based steam plant, renewable energy based power plant to generate 109 mw are, among the power plants, the government has planned to set up on build own and operate (BOO) basis by next five years.

Building a liquefied natural gas (LNG) import terminal having the handling capacity of around 3.5 million tonnes is also in the government's programme.

Several new projects including some high-quality electricity transmission lines of state-owned Power Grid Company of Bangladesh (PGCB) was put on offer for the first time before the investors during Saturday's conference.

Top officials of major donor agencies including the World Bank (WB) and Asian Development Bank (ADB), however, have assured the government of financing the power projects at the conference.

Bangladesh Bank (BB) Governor Atiur Rahman said foreign investment in the country is protected by specific rules and current account convertibility of taka ensures free repatriability of income on foreign investments.

Among the operational power plant manufacturers, Regional Country Manager and Managing Director of Pendekar Energy, Faisal Mubin Chaudhury, who runs Meghnaghat and Haripur power plants, lauded the government's quick payments against electricity sales and honouring of contracts despite change of governments.

 

[bd_4_ever]

@iajdani can you please tell me which airport is going to be built with 7 billion dollar n will it be completely based on foreign investment. Other than that as far as I knew deep sea port will cost around 5-7 billion USD, not 10 billion dollar. Can you please provide more info to me on that along with some of the big road and insfracture projects that you have mentioned worth 25 billion dollar?

I think this may help....

Heres the link for new airport:- Bangladesh plans $7bn airport
It will be on $7 Billion....

Heres the link for the deep sea port:- Global Times - Bangladesh's first deep-sea port expected to start operation in 2016
Its going to cost around $8.57 Billion (Taka 60000 crore)....

Heres the link for the infrastructure project:- Bangladesh's PPP Venture Finally Makes Progress
I am not sure about the amount....various figures are mentioned here....


Cheers!!!

 

[CaPtAiN_pLaNeT]

I think this may help....

Heres the link for new airport:- Bangladesh plans $7bn airport
It will be on $7 Billion....

Heres the link for the deep sea port:- Global Times - Bangladesh's first deep-sea port expected to start operation in 2016
Its going to cost around $8.57 Billion (Taka 60000 crore)....

Heres the link for the infrastructure project:- Bangladesh's PPP Venture Finally Makes Progress
I am not sure about the amount....various figures are mentioned here....


Cheers!!!

Thanks for the links.

 

[bd_4_ever]

Cotton production up


ACCORDING to recent press reports, Bangladesh has witnessed lint cotton production of 70,000 bales in the 2009-2010 financial year, including 2,000 bales of the hybrid variety. Some 31,500 hectares of land were under cotton cultivation and the target production was achieved during the period. For the first time, the cotton farmers here used hybrid seeds and harvested good yield. The lint cotton production, in the previous year, was not encouraging as some 32,600 hectares of land produced only 50,175 bales of cotton. This season farmers grew hybrid cotton as two local business houses ensured marketing of the Chinese varieties of hybrid cotton seeds.

The length of the fibre of the hybrid varieties is also better than the traditional varieties. The state-owned Cotton Board is planning to increase the production target to over 90,000 bales for the next season (2010-2011) by bringing some 42,000 hectares of land under cotton cultivation. A five-year project has been planned to strengthen its research activities. Under the new project from July 2010 to June 2015, hybrid variety of cotton seeds would be developed apart from developing technology at a cost of Taka 18 crore. The manpower of the cotton board would also be increased for this.

The board has a plan to introduce 'a new traditional variety' from the current new season because it is cost effective and it would be less vulnerable to pest attacks. Despite the huge additional cost, the hybrid seed looks profitable for cotton farmers as it takes only 1.5-2 kilogram for each bigha which is much lower than that of the traditional ones. The hybrid variety works well as it offers better yield. Policy planners believe through such expanded programmes, cotton cultivation can be bolstered to meet country's growing demand to a great extend over time.

The New Nation - Internet Edition

 

[akash57]

Three East Asian economies reach out to Bangladesh

Three East Asian countries - Japan, South Korea and China - have expressed their intent to enhance relations with Bangladesh.

Prime Minister Sheikh Hasina, who visited China and South Korea, is due to visit Japan in October to further the ties.

New Japanese Prime Minister Naoto Kan has formally written to invite Hasina, an official in the Prime Minister's Office told New Age newspaper.

Japanese ambassador in Dhaka Tamotsu Shinotsuka said Wednesday that his country 'is ready to extend cooperation in political, economic and social sectors here'.

Japanese investors frequently visit Dhaka to explore possibilities in various sectors, including garment, textile, leather, telecommunication and fishing as they see Bangladesh as a country having both manpower and a market.

Japan government has expressed the intent to cooperate in human resource development, construction of multipurpose bridge over the river Padma and easing traffic congestion in Dhaka city.

Dhaka expects a visit from Korea International Cooperation Agency (KOICA) president Park Dae-won this year.

Resident representative of the South Korean aid agency KOICA, Lee Jung-Wook, said Bangladesh 'is at the top of the priority list among the South Asian countries to get support from South Korea'.

He said South Korea would provide about $5 million to Bangladesh under its newly conceived Overseas Development Assistance Programme.

China has begun to receive Bangladeshi goods duty-free from this month.

By sending Vice President Xi Jinping to Dhaka shortly after Prime Minister Sheikh Hasina's visit to Beijing in March, China has demonstrated its interest in expanding relations with Bangladesh in political, economic and military sectors, foreign ministry director general Monirul Islam told the newspaper.

Three East Asian economies reach out to Bangladesh

 

[akash57]

Bangladesh urged to invest in North-East India

Opportunity is knocking at the door of Bangladesh to expand its business footprint in the North-East and Eastern India as the region welcomes external as well as internal investment, a former Indian minister said Saturday.

"Improvement in trade relations with the North-East India could even take Bangladesh up to China," said Mani Shankar Aiyar, former Indian minister for development of the North-East Region, while speaking at a meeting in the city.

He made the comments at a meeting between visiting Indian business delegation and India-Bangladesh Chamber of Commerce and Industry (IBCCI) at a city hotel.

IBCCI Chairman Abul Matlub Ahmad presided over the meeting while Rajeet Mitter, Indian high commissioner to Bangladesh, Kiren Rijiju, principal secretary to the chief minister of Arunachal Pradesh, Dr K C Nihoshe, parliamentary secretary of Nagaland, spoke on the occasion.

The 38-member business team led by Mr Aiyar is now in Bangladesh on a five-day tour, which will also take them to port city Chittagong.

During the trip, the delegation will hold talks with Federation of Bangladesh Chambers of Commerce and Industry, Chittagong Chamber of Commerce and Industry, Board of Investment and Ministry of Commerce.

Top businessmen from the sectors of information technology, shipbuilding, construction materials, apparels, power, pulp, tourism, airlines, telecoms, fast-moving consumer goods, agricultural products and health care consist of the delegation.

Aiyar said Bangladesh prime minister's successful visit to India in January this year opened up unprecedented opportunities for intensified cooperation and economic integration between Bangladesh and the North-East and Eastern India.

He said until the partition of 1947 the North-East regions were prosperous, but now the region progresses at half the pace of the rest of India.

Aiyar, also a former petroleum minister, said the Indian government has earmarked 10 per cent of the national development budget for the underdeveloped region. "We have already spent 2.0 trillion Indian rupees out of 14 trillion rupees planned for infrastructure development in the region."

"This however has opened up new opportunity for investment for Bangladesh in the region. The North-East India offers Dhaka an important opportunity for expanding market and investment," he said admitting that balance of trade between the two countries is grievously out of equilibrium from the Bangladesh's point of view.

He said during the 1965 India-Pakistan War trade between the then East Pakistan, now Bangladesh, and India was undisrupted. "Now there is an ebb. The historical economic relations can be restored if Bangladesh can exploit market in North-East India."

"Opportunity is now knocking at the door and Bangladesh has to grab it," Aiyar said.

K C Nihoshe said although small-scale insurgency exists in Nagaland, the separatists' activities are limited to rural areas. "There is nothing to fear. Bangladeshi industrialists and businessmen can come up and invest in the province as we welcome both internal and external investments."

Kiren Rijiju said without Bangladesh the North-East India is cut off from the rest of the world.

He said the central Indian government should integrate Bangladesh into their thoughts when they think about development of the North-East India. "This will help the region prosper. Bangladesh needs India and vice versa to achieve sustainable economic growth."

Abul Matlub Ahmad said Bangladeshi industrialists are now mature to invest in large economies such as India and Turkey in the world. "Time has come for us to invest outside the country and bring back billions of dollars in profit remittance. We would like to request the government to allow us to invest overseas."

He said the five-day tour of the Indian delegation will provide a unique opportunity to build and foster better economic ties between the two countries.

During the trip, at least eight joint ventures will be signed, the IBCCI chief said.

Rajeet Mitter said this tour would open up a window of cooperation between the two neighbouring countries. "Since the summit between the two leaders various steps have been taken to take the initiative forward."

Former ambassador Farooq Sobhan, IBCCI vice-president Dewan Sultan Ahmed and directors of IBCCI were present during the meeting.

Bangladesh urged to invest in North-East India

 

[akash57]

World Bank doubles Bangladesh lending to $6.1 bln

WASHINGTON July 9 (Reuters) - The World Bank said on Friday it will double lending to Bangladesh to $6.1 billion over the next four years to tackle poverty and help the disaster-prone country adapt to climate changes.

The poverty-fighting institution said a chunk of the new lending will also support infrastructure investments, particularly in energy, as part of an effort to accelerate economic growth.

Some $1.2 billion of the overall funds will go to building Bangladesh's longest bridge on the river Padma, to unlock the economic potential of the lagging southwest region, the bank said in a statement.

The World Bank said it will back projects that improve water resource management, disaster preparedness and environmental protection in one of the world's most densely populated and poorest countries.

It will also invest in agriculture to help farmers adapt to changing weather patterns that has brought about increased flooding.

Cyclones in 1991 killed about 140,000 people and another in late 2007 killed over 3,300. The United Nations Inter-governmental Panel on Climate Change has predicted Bangladesh could lose nearly one-fifth of its land by 2050 because of rising sea levels due to global warming.

"This new country assistance strategy proposes a doubling of financial support for Bangladesh relative to the (fiscal 2006-09) strategy," said Ellen Goldstein, World Bank country director for Bangladesh.

"To deliver this higher volume of support most effectively, we will work with government to shift to larger, more strategic interventions that enhance selectivity and leverage priority reforms and investments.

World Bank doubles Bangladesh lending to $6.1 bln | Energy & Oil | Reuters

 

[CaPtAiN_pLaNeT]

ERL looks to treble its refining capacity

Saturday, 10 July 2010 21:05

:: The Daily Independent Bangladesh :.. Internet Edition

ERL looks to treble its refining capacity
NURUL AMIN, CHITTAGONG

July 10: The government has undertaken a massive project to treble the production capacity of the Eastern Refinery Ltd (ERL) - from the existing 1.5 million tones per annum to 4.5 million tones per annum.

The capacity will be expanded through the BMRE route (Balancing, Modernisation, Rehabilitation and Expansion).

Rezaul Alam, the managing director of the ERL confirmed to the 'The Independent,' that once this is done the production capacity of the Eastern Refinery Limited "will raise by three times.' The project will also, 'reduce import cost and our dependence on foreign countries," he added.

Already national and international bidders have been invited to prepare a proposal for the financing of the BMRE project under following options; i) Build-own-operate and transfer ii) Public Private Partnership (PPP), iii) Financing only and iv) or any other suitable option.

The proposals have to be submitted by August 10.

The consumption of petroleum in the country is nearly 4 million tonnes annually.

The Eastern Refinery Ltd (ERL), Bangladesh's only petroleum refinery plant is meeting around 30 per cent of the national demand. The remaining is being imported.

The objectives of the BMRE include energy security; production of Euro-3 compliant fuel and reduction in the deficit in national demand.

A feasibility study for the BMRE of ERL had been carried out recently by an International consortium in 2009 - Nichimen of Japan, Technip of France, Indian Oil Corporation and Hindustan Petroleum Corporation.

The project will be implemented in three years.

The projected cost of the project is around $867 US for a capacity of 3 million metric tons per annum. Of this $709 million US will be in foreign currency while the remaining $158 million US is in local currency.

Islamic Development Bank (IDB) has already signed an agreement with Bangladesh government to finance 129 million US Dollar and remaining 7 million US Dollar will be financed by GOB for this SPM Project. The selection of a consultant is presently underway.

It may be mentioned that the Eastern Refinery Limited was established in 1967 to meet the growing demand for petroleum products in the country. The ERL can produce all types of petroleum products including HSD (Diesel), HOBC (Octane), SKO (Kerosene), MS (Petrol), Furnace oil, Lubricants, bitumen, LP gas, JP Etc. The BPC sources said, the rate of demand of petroleum products in the country is increasing about 11 per cent annually. It may be mentioned that the government had earlier decided to set up another refinery within the premises of the ERL with external financial assistance. But this was not found feasible.