Bangladesh’s power transmission equipment makers, who hold one-fourth of domestic market, struggle to stay competitive due to lack of policy support.

The government allows entrepreneurs to import equipment such as electric transformer, switchgear and voltage regulator duty-free if they set up independent power plants.

The decision to allow duty-free import of equipment was taken to woo foreign invest ment in power generation in the face of acute power shortage.

But the decision leaves local manufacturing units bleeding, said industry people, who have invested around Tk 1,000 crore in 22 factories.

The domestic manufacturers have to pay 15 to 25 percent import duty on raw materials such as copper steel, silicon

steel and transformer oil,

"The duty-free facility for power generation companies has put local power transmission equipment makers into unfair competition. We are also currently exporting our products to many countries but the government policy is hurting us," said Rabiul Alam, managing director of Energypac Engineering Ltd.

The electric equipment manufacturers vented their grievances as they met National Board of Revenue Chairman Muhammad Abdul Mazid at a pre-budget discussion at his office Wednesday.

Energypac, GEM, GEC Shakti Engineering, Electro Venture and Battleco are the major players in Bangladesh's Tk 25,00 crore market.

"Our company has got substantial export orders from India, Sudan and Yemen. We hope to get more orders from many Middle Eastern and

African countries," Rabiul said.

Electricity transmission equipment making is very labour intensive for which European investors are planning to shift their factories to many developing and least developed countries.

"Bangladesh could be a very suitable investment destination for power transmission equipment making industry,’’ Ahmedul Kabir Babu, a professional in the industry said.

Babu said around 500 local engineers are working in the factories.

Babu said Bangladesh's Rural Electricity Board (REB), Power Development Board (PDB), and Dhaka Electric Supply Authority (Desa) are some of the companies that buy equipment from local sources.

China and India are the big players globally as they produce basic raw materials of the equipment.