The cabinet on Monday approved a proposal for establishment of a new foundation with four finished project of BSCIC on poverty alleviation, aimed at continuing its poverty alleviation drive through development of small scale industries. The cabinet in its weekly meeting approved a proposal of the industries ministry for establishing the ‘Small, Micro and Cottage Industries Foundation.’
Prime minister Sheikh Hasina presided over the meeting held at the Bangladesh Secretariat. Cabinet members, state ministers in charge of different ministries and secretaries concerned were present.
Briefing reporters after the meeting cabinet secretary M Musharraf Hossain said the objective of the constitution of the foundation was to continue four completed poverty reduction projects in a new shape.
Four projects to be amalgamated by the foundation are: women entrepreneurs development programme, small and cottage industries project for self-employment, income generating project for poverty alleviation, and project for revitalisation of rural economy through rural industries development.
The cabinet secretary said the initial capital of the foundation would be Tk 127 crore, out of which, Tk 50 crore would be given by the government as seed money while Tk 54 crore will come from the principal amount disbursed under the four projects and Tk 23 crore interests on the amount.
Musharraf said the government had made the decision for establishment of the foundation as recommended by a cabinet committee headed by the finance minister.
He said the foundation would be a registered body of Joint Stock Company under the commerce ministry and operate under a memorandum of association and articles of association with a five-year business plan.
The foundation will give credit and financial support for establishing
small, micro and cottage industries, poverty alleviation programmes, income generating activities, facilitate employment generation, support to innovation and transfer of new technologies and capacity building of the related personnel.
The cabinet also approved in principle the draft of Bangladesh Rural Development Academy Act 2014, aimed at revival of a law became defunct through a judgment of the Supreme Court declaring all ordinances promulgated by two past military regimes null and void.
Department of Rural Development and Cooperatives placed the draft of the act to the cabinet with some small modification of the ordinance of 1986 include in the areas of formation of the board of the academy.
-With New Age input
