TK 200-CR REVOLVING FUND
BB incorporates new green products
The Bangladesh Bank on Monday incorporated a number of new green products in its Tk 200-crore revolving fund in a bid to build an environment-friendly economy.
The BB issued a circular to the managing directors and chief executive officers of banks saying that it included solar mini grid, solar irrigation pumping system, modern lime kiln, vermicompost, hydro power plant, polyethylene terephthalate bottle recycling plant, solar battery recycling plant, LED bulb production plant, and hybrid hoffman kiln or such kiln in the central bank’s refinance scheme.
Initially, the BB introduced the refinance scheme in August, 2009 to finance the solar energy, bio-gas and effluent treatment plant.
According to the BB circular, a client or a cooperative society can apply to get the bank credit to set up solar min grid under the refinancing scheme.
A borrower will get maximum Tk 1.50 crore with 9 per cent interest but a client will have to pay 11 per cent interest if they get the loan through NGOs.
A borrower will be able to get Tk 35 lakh for every unit of solar irrigation pumping system with an interest rate of 9 per cent. He will have to give 11 per cent interest if he gets the loan through the NGO.
A bank will disburse maximum Tk 2 lakh to a client to produce organic fertiliser with an interest rate of 9 per cent. The client will pay 11 per cent interest if he gets the loan through the NGO.
The BB circular said that the central bank would encourage banks to finance the vermin compost fertiliser projects as such type of manure would increase the crop production and keep the fertility of land.
A farmer will get Tk 90,000 from a bank to produce vermin compost manure.
A client will get Tk 2.90 lakh from a bank if he or she purchases two bulls and produces vermin compost fertiliser. The rate of interest for the finance is 9 per cent.
Banks will sanction maximum Tk 50 lakh to clients for setting up hydro plant (pico, micro and mini) with a rate of interest 9 per cent.
The BB will encourage the banks to finance the modern lime kiln so that the clients will convert their traditional lime kiln to technological-based kiln.
A client will get maximum Tk 35 lakh loan from a bank with an interest rate of 9 per cent.
A bank will sanction maximum Tk 5 crore, Tk 1 crore and Tk 5 crore loans for the PET bottle recycling plant, solar battery recycling plant and LED technology-based bulb production plant respectively. The rate of interest for the loans is 9 per cent.
A client will get maximum Tk 5 crore loan from banks to set up new hybrid hoffman kiln or its equal technological-based kiln.
On the other hand, a client will get Tk 50 lakh in loan if he or she converts his or her traditional kiln to zig-zag kiln.
The rate of interest for the loans for the two products is 9 per cent.
The new BB circular also changed the credit limit for the old three products under the revolving fund.
According to the new circular, a client will get at least Tk 75,000 and maximum Tk 1.75 lakh instead of Tk 60,000 and Tk 1.75 lakh to set up solar home system.
The credit limit for bio-gas plant in the dairy and poultry farm is maximum Tk 50,000 and Tk 25,000 instead of Tk 18,000 and Tk 36,000.
-With New Age input
