Bangladesh Bank sets green loan target

All commercial banks will provide loans up to Tk 1 crore for setting up effluent treatment plant (ETP), solar panel and bio-gas plant at a 9 percent interest rate.

The banks will disburse the loans under a Tk 200 crore refinance scheme of the central bank, which announced yesterday the special loan scheme and sent letters to all banks in this regard.

"The loan scheme is already activated. Any bank can finance under the scheme from today," said Md Nazrul Huda, deputy governor of Bangladesh Bank, yesterday.

The central bank will monitor the scheme to ensure proper disbursement, Huda said.
Setting up ETP at industrial units has been discussed at different levels over the last few years. But industry owners were refusing to set up such plants with their own fund, demanding a special financing system from the government.

"The Bangladesh Bank move will help the industrial units become environmentally compliant," said Abdul Hai Sarkar, president of Bangladesh Textile Mills Association.
In line with environment protection rules, setting up ETP is mandatory for all industrial units that produce liquid wastes.

Under the refinancing scheme, these industrial units will get preference, and the industry owners will be entitled to a maximum Tk 1 crore loan for setting up ETP.
However setting up of ETP should be ensured within six months after taking loans.

Any customers from urban areas can get Tk 60,000 to Tk 175,000 as loans to install solar power system of 170 watt to maximum 520 watt. The interest rate is 9 percent, which will be 10 percent if the loans are disbursed by any non-government organisation.

The loans will have to be repaid within three years.
In rural areas, if anyone wants to set up 520-watt solar system for commercial purpose, the maximum limit of the loan will be Tk 175,000. But for personal use, customers will get Tk 10,000-Tk 70,000 for 10-130 watt.

The loan range will be from Tk 18,000 to Tk 36,000 for setting up poultry or dairy firm-based bio-gas plants for both individual and commercial use.

Source: The Daily Star, August 4, 2009