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The government has issued Light Engineering Industry Development Policy 2022, setting an action plan with a timeframe to ensure developed infrastructure, industrial park, easy financing and industrial incentives for the sector in 2022-2027.
The industries ministry on September 29 issued the policy through a gazette notification saying that the policy would help flourish the sector to attain the goal of increasing industrial sectors’ contribution to GDP to 40 per cent by 2027.
The policy termed light engineering a promising industry and said that the government would implement the action plan with a timeframe to make the sector sustainable and competitive in the global arena.
To implement the action plan, the policy has set 11 strategic targets, including infrastructural development, modernisation of technology, development of forward and backward linkages, human capital development, market expansion, research and development, industrial cluster development, establishing common facility centre, quality assurance and certification, financing and development of investment environment, and industrial incentives.
According to the policy, the government would ensure utilities, industrial sheds for entrepreneurs and IT infrastructure by 2027.
It said that Bangladesh Industrial Technical Assistance Centre would establish a raw material bank and the National Board of Revenue would ensure buy-back management and tax incentive for the light engineering products by 2025.
To ensure sustainable development of the light engineering sector, the Bangladesh Small and Cottage Industries Corporation would establish industrial clusters across the country by 2022.
The policy also said that the Finance Division and the Bangladesh Bank would take initiatives to establish a venture capital fund to ease the production process of light engineering products by 2025.
According to the policy, the industries ministry, the commerce ministry and the NBR would ensure protection for the sector through providing export subsidies and updating tax policy by 2025.
The policy also said that light engineering sector entrepreneurs would get tax holiday facility and loan from the Green Development Fund for establishing compliant factories.
The government has framed the policy to address the challenges of the 4th industrial revolution by developing its infrastructure, quality of products and expanding its market.
According to the policy, a special low interest-rated fund would be generated to encourage modern technology use and expand their usage in the local light engineering sector.
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