Home / Knowledge / News / Textiles / BTMA urges govt to re-adjust energy charges
BTMA urges govt to re-adjust energy charges
28
Nov '12
Mr. Jahangir Alamin
Mr. Jahangir Alamin
Calling on the Government to take wise measures to re-adjust the energy prices, Bangladesh Textile Mills Association (BTMA) president Jahangir Alamin said abrupt rise in energy charges may badly impact the country’s textile sectors, which is considered to be a key stimulator of the nation’s economy.
 
At a media briefing, Mr. Alamin said Bangladesh has a potential to largely draw the investment from China, where production has almost halved due to high wages. Chinese investors are looking at shifting their industries to Bangladesh, however high cost of energy and high interest on bank loans are impeding their way.
 
He added that the Government is planning to increase the energy rates by 104 percent, which is likely to annihilate the textile industry which operates with 1200 mega watt captive generation.
 
Noting that the weaving segment of the textile industry necessitates large-scale investment to cater to the rising demand of the garment sector, Mr. Alamin said the abrupt rise in energy charges and high bank rates are blocking investments.
 
While in 2009, the textile sector in Bangladesh attracted investments of Tk 10.7 billion, the volume reduced to Tk 0.99 billion in 2010 and 2011, due to increased energy cost and high interest rates on loans which now prevails at over 18 percent, he said.
 
Appreciating the Government for the part played by it in development of the textile sector, the BTMA chief specifically highlighted the five percent cash incentive scheme introduced by the Government when the global cotton prices were rising at unusual pace.
 
He said high bank rate and spiralling energy charges would hold back the overseas investors from investing in the domestic weaving sector, which is already impacted by the one stage GSP facilities.
 
Mr. Alamin requested the Government to re-adjust the energy charges, as around €3.15 billion has been invested in the textiles sector, which directly and indirectly employs around two million people.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 28th Apr 2017

Fix 5% GST rate for textile goods: Textile bodies

Uniform levy of 5 per cent Goods and Services Tax (GST) on all...

Textiles | On 28th Apr 2017

India lifts CVD imposed on Nepali Jute goods

The countervailing duty (CVD) that was imposed on Nepali jute...

Courtesy: Williamsburg Garment Company

Fashion | On 28th Apr 2017

'We have grown by staying small & maximising efforts'

The easiest way to go out of business is to be too big or expand too...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X