DHAKA TRIBUNE
Business
Three more years to relocate tanneries to Savar CETP gets going under EU pressure
n Tazlina Zamila Khan After extending the deadline twice for relocating the tanneries in Hajaribagh to Savar, the government has decided to finish the project within three-and-half years. In a press conference at the industries ministry yesterday, Industries Minister Dilip Barua said, “We are trying to modernise the industry. The most important component of the project- CETP has got the final approval from Ecnec after overcoming all hurdles.” “The project will be completed by June, 2016,” he added. However, the construction work of the country’s first large Central Effluent Treatment Plant (CETP) will be completed within 18 months as the European Union, the leading destination of the country’s leather exports, has already warned that it will stop buying products from Bangladesh beyond 2014 if the CETP is not established in the industrial zone by then. The second revised project proposal, which was approved by Ecnec on August 13, includes new components such as solid waste management system, sludge power generation system and sewage treatment plant to make the CETP more effective and eco-friendly. Tannery is the second most exported item after garments in Bangladesh. The minister requested tanners to help the government in implementing the project. The construction of administrative build-
BCSIR gets involved with DCCI’s 2000 new entrepreneurs project
n Tribune Business Desk
The Bangladesh Council of Scientific and Industrial Research (BCSIR) will assist and support Dhaka Chamber of Commerce and Industry (DCCI) in its project of creating 2000 new entrepreneurs this year. To make the project successful, a discussion meeting between DCCI and BCSIR was held yesterday at the BCSIR office in Dhaka, said a press release. DCCI President Md Sabur Khan and BCSIR Chairman Prof Dr Ahmad Ismail Mustafa, among others, participated in the meeting. In his speech, Md Sabur Khan said DCCI in cooperation with Bangladesh Bank has taken a noble initiative of creating 2000 new entrepreneurs in the country. He requested BCSIR to provide their preserved innovative business ideas to DCCI for the final selection of 2000 new business projects in November. In this regard, DCCI chief proposed to sign a Memorandum of Understanding (MoU) between DCCI and BCSIR, assuring of all kinds of support from the Chamber. l
Industry owners put signs on the allocated plots in the Savar tannery estate ings, police outposts, fire brigade stations, pump driver’s quarters and a pump house in the project area are complete. Also, deep tube wells, drains, culverts, water delivery pipelines, electricity lines and gas lines have been already been laid. The central water delivery system, which has a 23 million litre daily capacity, has started lifting water on a pilot basis. A sub-power station with a 10MW generation capacity has been built in the industrial area. Moreover, a maximum of 5MW power can be generated from the sludge to operate the CETP if the project is implemented. The power can also be used for production work. The original project cost doubled in the second revised proposal because of the delay. The project cost now stands at Tk10.78bn, whereas in 2007 the ministry had estimat-
Nashirul Islam
ed the cost at Tk5.45bn in the first revised project proposal. The scheme was originally approved in 2003 with an approximate cost of Tk1.75bn. The government has decided to provide Tk2.5bn as compensation to the tanners for relocation and bear Tk6.63bn (80%) of the total project cost. However, the owners will have to pay the remaining Tk1.65bn (20%) in instalments. The industries ministry has already allocated more than 205 plots on 200 acres of land to 155 industry units under Bangladesh Tanners Association and Bangladesh Finished Leather, Leather Goods and Footwear Exporters’ Association. On March 11, 2011, the ministry gave the work order to build CETP and dumping yard to the Chinese contractor JLEPCL-DCL JV. The total tender value was Tk4.77bn. l
Stocks close higher as DSEX crosses 4,000-mark after two weeks n Tribune Report Stocks closed higher amid increased trading activity yesterday with the benchmark DSEX index crossing 4,000-mark after nearly two weeks. The benchmark DSEX index closed at 4,043 with a rise of 60 points or 1.5%, extending its gaining streak for the fifth consecutive session. The blue chip index DS30 rose 26 points or 1.7% to 1,541. The Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, saw fractional gain of 102 points to 7,947. Investors’ participation at DSE started rising after post-Eid holidays. The total turnover crossed Tk4bn-mark to stand at Tk4.5bn, which was 28% higher over the previous session’s value and highest in ten trading sessions. The highest gaining sector was telecommunications that soared 4.13%, followed by power and financial institutions which rose more than 2% each. “DSEX made robust movement and
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monday, August 19, 2013
crossed 4,000 points level after eleven sessions. As a result, market positivity resumed with natural buy pressure,” said IDLC Investment in its daily market analysis. The demand push and investors’ portfolio rebalancing based on company fundamentals were the prevalent factors in today’s session, it said. It said news of quarterly earnings growth in different national dailies stepped up investors’ sentiment with about 28% increase in the total turnover. In the present market situation, scrip-wise swings were practical as 50 out of 288 traded scrips gained more than 4% of their respective prices. Out of 288 issues traded, 198 gained, 73 declined and 17 remained unchanged. Bangladesh Submarine Cable Company Ltd was the most traded stock with shares worth Tk347m changing hands. It was followed by Meghna Petroleum, United Airways, Padma Oil, Square pharmaceuticals, Olympic Industries, Tallu Spinning and Grameenphone. The new comer, Central Pharmaceuticals Ltd., was the biggest loser as it went down 14.1% on its second day of trade. l
Garments workers want Tk8,114 as minimum wage per month
n Tribune Report
Leaders of garments workers have placed their proposals to the chairman of minimum wage board, formed to fix a fresh minimum wage level for garment workers, proposing a minimum of Tk8,114 as monthly wages for the workers. Sirajul Islam Rony, who represents the workers in the wage board and president of Bangladesh National Garments Workers Employee League, placed the proposals to the board chairman yesterday. "We have prepared the proposals based on the recommendations and opinions of several federations and organisations of workers," Rony told the Dhaka Tribune. They also included some other issues in the proposal to improve workers living standard and to ensure workers’ rights, he added. According to the proposals, a worker needs Tk300 for clothing, Tk500 for treatment, Tk300 for transportation, Tk200 for recreation, Tk375 for toiletries, Tk500 for festivals and Tk500 for family help to lead standard life. In the proposals, there are seven categories of workers minimum wage and 30% of basic has been proposed as house rent. The living cost of a worker has increased substantially but the wages did not increase in accordance with the expenditure, said Roney. Commenting on the proposed waged structure by the labour leaders, Shahidullah Azim, vice president of Bangladesh Garment Manufacturers and Exporters Association, said: “We are for wages hike and will follow the board’s decision.” Earlier, the government constituted a wage board for the readymade garment workers headed by AK Roy, a retired district judge. The committee has inducted a neutral member, a permanent member representing the garment factory owners, a permanent member representing the workers, and two representatives from the garment owners. A minimum wage board was formed in spring 2010 and a new minimum wage, effective from November 2010, was defined in August. The wage board raised the minimum monthly pay for garment workers to Tk3,000 from Tk1662.50 per month. Wages increased by 67% to 81%, depending on job category. The first minimum wage board, constituted in 1994, had fixed Tk940 as minimum wage per month for garment workers. The second one, formed in 2006, set the minimum wage at Tk1662.50 per month. l
Wages in garments sector of some countries Country
Monthly minimum wage (Tk)
India
8486
Srilanka
7321
Nepal
9216
Pakistan
6656
Cambodia
6400
Indonesia
7321
Vietnam
8819
Bangladesh
3000 (existing)