Govt plans to allocate Tk2,150cr to RMG sector

31 Aug '06

2 min read

Many garment factories became sick for past several years due to natural calamities and cancellation of orders.

To build 'compliant' production facilities and restore ailing readymade garment (RMG) units, Government of Bangladesh has decided to allocate around Tk2,150 crore.

This package may be announced by Prime Minister on September 21 at inaugural ceremony of BATEXPO-2006, annual show of garment exporters.

Government will fund Tk2,000 crore for operational garment factories which will enable them to shift to the cost effective areas.

Tk150 crore will be allotted to ailing garment factories to revamp their units.

Through these funds, garment factories will be able to set up proper infrastructure and safety facilities as per their requirement.

This fund will be provided only to those units, which promise to start production and clear discounted liabilities, Government officials informed.

In collaboration with World Bank, Government is going to set up Special Garment Village at Gazaria of Munshiganj, 30 km south-east of the Dhaka.

At present, there are some 5,000 readymade garment factories which employ over two million people, according to Bangladesh Garment Manufactures and Exporters Association and the Bangladesh Knitwear Manufacturers and Exporters Association.

RMG sector of the country contributes around 75 percent of total exports to $7.9 billion.

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