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Govt move to revamp leather industry
The government has decided to take some sweeping measures to revamp the low-performing leather industry whose export earning last fiscal dropped by ov<*r 30 per cent from a year back, reports UNB.
The decision was taken at a meeting between Finance Minister Shah AMS Klbria and a delegation of Bangladesh Finished Leather and Leathergoods Exporters Association held at the finance ministry yesterday.
Commerce and Industries Minister Tofael Ahmed was present at the meeting that reviewed the overall situation in the leather sector for resolving the problems It is facing.
It was decided that if wet blue tannery firms spend their working capital to construct building ana Import machinery for converting their projects into crust and finished units, the amount with interest would be considered as term loan.
On permission from the
Bangladesh Bank, the amount could be transferred to a blocked account after scrutiny by the banks. The same amount could be sanctioned as working capital to the concerned units.
Import of hides, including wet-blue, will continue and enjoy the exemption of the existing 2.5 per cent customs duty and 2.5 per cent import licence fee for three years.
The meeting also decided that the application of those tannery units who produced crust and finished leather, having necessary machinery, and showed satisfactory performance in the past would be considered case-to-case.
it decided to waive the interest of the overdue loan of the wet-blue leather producers and fix a time-limit for repaying the loan.
A decision to follow an identical method and interest policy i by all banks regarding giving loantotheJeather sector was also taken in the meeting.
It took another decision regarding bringing the loanee under one bank and operating his export activities from the same bank.
The leather sector delegation. led by the association Cresident AKM Rahmatullah (P. thanked the finance and commerce ministers for taking the decisions to revitalise the leather industry.
They also mentioned that leather industry is a priority sector as announced by the government.
Banking Division Secretary Syed Amir-ul Mulk and Commerce Secretaiy Syed Alamgir Farrouk Chowdhury were present at the meeting.