The Cabinet approved a draft of 'Bangladesh Small and Cottage Industries Corporation (amendment) Act' on Monday to set up a 'Small, Micro and Cottage Industries Foundation' for operating four completed projects of BSCIC aiming to alleviate poverty through employment generation schemes.
The approval was given at the Monday's regular Cabinet meeting held at the Secretariat with Prime Minister Sheikh Hasina in the chair.
At the same time, the draft of 'National Planning and Development Academy Act' was also given nod.
Cabinet members, state ministers in- charge of different ministries and secretaries concerned were present.
After the meeting, Cabinet Secretary M Musharraf Hossain Bhuiyan told reporters that both of the draft acts were given approval in principle. Those will be placed in the Cabinet again for final approval after necessary amendment.
As per the BSCIC Act, the proposed foundation will operate four completed projects under the Bangladesh Small and Cottage Industries Corporation (BSCIC) for generating new employments and skill development.
The four projects are: Women Industry Entrepreneur Development Programme, Self- employment Project through Small and Cottage Industries, Poverty Alleviating Project through Income Generating Activities and Boosting of Rural Economy Project through Development of Rural Industries.
Initially the foundation will start its operation with an initial capital of Tk127 crore. Out of the amount, the Finance Division under the Ministry of Finance will provide Tk50 crore as seed money while Tk54 crore will come from the principal amount disbursed under the four projects. The rest Tk23 crore will come from the interests on the amount.
"The objectives of the foundation are to provide credit and other assistance to the target group of people for making them self- reliant through income generating activities. There are some complications in the existing law to set up a foundation. So, the government has taken initiative to amend the law," the cabinet secretary added.
He said the foundation will also facilitate the innovation and transfer of new technologies, capacity building and skill development that will help contribute to the country's economic development.
Bhuiyan said that there will be a third party audit after two years of its (foundation) functioning. The Finance Division will provide additional fund if the audit report is found satisfactory.
Meanwhile, the National Planning and Development Academy, which is functioning under an 'umbrella law' at present, will operate under a separate law titled 'The National Planning and Development Academy Act'.
A board of directors, led by Planning Minister or State Minister for Planning, would be constituted to run the academy properly.