Nearly two
hundred types of machineries, including engine parts, car parts in the country
have become the 'Dholaikhal brand' with huge potential for production and
marketing. More than eight lac peoples are involved in this sector at present. The
Dholaikhal brand's craftsmen are seamlessly preparing everything from bicycles
to cars, tractors, cranes, re-rolling mills and even train buggies.
According to
a report from BUET, around 3,800 types of machines and parts are being
manufactured in the light engineering industry of the country. Out of which 137
items are already being exported to 17 different countries in the world. The
production of goods worth Tk 9,000 crore is possible against the demand of Tk 26,000
crore in the country.
The industry
is so in demand in the country that buyers are booking entrepreneurs with
advance money to make their parts. However, more than two decades ago, the required
components were imported for various industrial sectors and transport sectors.
In addition
to the Dholaikhal brand, the factory has been expanded in Jessore, Bogra,
Sylhet, Chittagong and other parts of the country. There are 50,000 small and10,000
SME factories in the light engineering sector in the 18 districts of the
country. Most of the workers here don’t have educational qualifications or technical
education. They make perfect machine parts based-on their hands-on practical experience.
According to
the estimates of the financial year 2016-2017, the exports from this industry
were more than $ 86 Crore. But without incentives and other government
facilities, the export revenue fell to $ 35 crore in the financial year
2017-2018.
The
entrepreneurs and workers of the Dholaikhal brand have minimized foreign
dependence by providing instruments and parts through sub-contracts in various
government-owned enterprises. Various machines, parts and equipment is being
supplied on a regular basis to Bangladesh Railway, Bangladesh Jute Mills
Corporation, Bangladesh Textiles Mills Corporation, Civil Aviation Authority,
Bangladesh Chemical Industries Corporation, Power Development Board, Department
of Public Health Engineering, Ports and Maritime Authority, Bangladesh Internal
Naval Authority, Bangladesh, Titas, Bakhrabad and Jalalabad Gas Companies,
Sugar and Food Industry Corporation institutions.
Starting of
this sector in Bangladesh:
According to information
from BEIOA - Bangladesh Engineering Industry Owners Association, the light
engineering sector made its way through the start of some factories after 1971.
At first, manufacturing parts for various industries and vehicles were limited.
Later in 1986, the government adopted the 'Dholaikhal Jinjira Project' for the
development and financing of the industry and a loan was given amount of Tk 5
crore. After that the sector developed and expanded. Later, the government
adopted another 'Dholaikhal Jinjira Model Project' with an allotment of Tk 15
crore to spread the industry across the country. And now the number of factories
has grown more than 50,000 across the country.
Problems in
this Sector:
Currently,
there is a 1 percent tariff and VAT exemption at the import level of capital
machinery of the industry. This is helpful for normal industrialization. But
the VAT during the current financial year of 2019-2020 seems unprecedented.
Entrepreneurs in the sector want to exempt up to 5 percent advance tax on the
import of capital equipment. While importing capital goods 1 percent tariff,
the raw material tax need to pay in the country from 25 to 50 percent which is
very high. Entrepreneurs in this sector demanding this tariff must be reduce.
Demand for
setting up of modern industrial park:
Entrepreneurs
want the government's initiative to set up a well-planned and modern industrial
park where there is demand of light engineering products in the country. These
industries should have their own power generation system, common facilities
center, necessary waste treatment plant for protection of the environment,
green park, safety and so on.
Demand for
Establishment of Permanent Training Institute:
At present,
the BEIOA - Bangladesh Engineering Industry Owners Association is training the
craftsmen of this sector to enhance their skills and meet the needs through Bangladesh
Light Engineering Training Institute (BLETI). There are trade courses to create
new artisans. Training is also taking place in different district cities
outside Dhaka. However, there is no own infrastructure to handle these
activities. As a result, the majority of the project's money is spending on rent.
Recently, BEIOA has demanded Tk 20 crore from the government for the
establishment of a permanent training institute for the development of the
sector.
Entrepreneurs
of this sector feel that training system, investment, technology, and
industrial park establishment is urgently needed to achieve bigger success. The
light industry is called the mother industry. The light engineering sector
produces basically the equipment and machinery needed to set up an industry.
Parts are also produced in this sector to keep the industry running. Even the
light engineering works with servicing and maintenance.
Thanks,
Related:
Bangladesh Enters into Russian Economic Block
Super Specialized Hospital at BSMMU
Industrial Sectors in Khulna is Increasing
Karnaphuli Tunnel Project in Chattogram
Industrial Sectors in Khulna is Increasing
Karnaphuli Tunnel Project in Chattogram
