SEC okays amended mutual fund rules

The Securities and Exchange Commission on Wednesday approved the amended Securities and Exchange Commission (Mutual Fund) Rule, 2001, allowing asset managers to handle funds of institutional clients and increasing the individual placement ceiling to Tk one crore.

'The commission finalised the amendments taking into consideration the opinions of stakeholders and public,' SEC  executive director Saifur Rahman told a press

briefing at the commission office.

He also said, 'Provident funds, pension funds, and endowment funds will now be considered as institutional clients.'

Before making the draft of mutual fund rules public, the commission had proposed that the individual placement ceiling should be Tk 25 lakh, which it later raised to Tk one crore.

The SEC also allowed advisory service for the mutual funds subject to approval of the commission, Saifur said.

The capital market regulator on Wednesday also formed a three-member committee headed by Saifur Rahman to prepare and place a set of recommendations to the commission

for amending the Securities and Exchange Commission (Merchant Banker and

Portfolio Manager) Rule, 1969.

Saifur said, 'The committee will submit the recommendations within 15 working days after receiving the office order.'

BB warns banks against rat race for collecting remittance

Bangladesh Bank on Wednesday warned the authorised dealer banks that it would cancel the licence of any bank found involved in a rat race for collecting remittance from abroad by offering high rates of dollar.

The BB warning came from a meeting of the central bank with chief executive officers and managing directors of all banks at the BB headquarters on the ongoing dollar crisis.

BB deputy governor Ziaul Hasan Siddique presided over the meeting.

BB officials observed that the price of dollar shoot up because of unhealthy competition between banks to bring in remittance by offering high rates of dollar.

'Some of the banks are in a rat race for collecting remittance. If a bank offers Tk 75 for a dollar, others offer Tk 76 to bring in the remittance. This sort of practice must be stopped, otherwise the BB would cancel the licences of the errant banks,' said a BB official.

The inter-bank buying rate of dollar soared to Tk 75.41 on Wednesday from Tk 74.90 on September 18 while the selling rate increased to Tk 75.45 from Tk 75.05 because of a supply dearth of dollar.

BB officials also asked the banks to expedite repatriation of export proceeds in the wake of the country's depleting foreign exchange reserve.

A BB high official said BB's forex reserve had been depleting in recent times because of rising import.

BB officials told the bank chiefs that, although as per the rules the banks were given a maximum of four months to repatriate export proceeds, they should take steps so that the proceeds could be brought in by a week or two.

They also told the banks to negotiate vigorously with their clients to repatriate the export proceeds fast, considering the current state of the country's foreign exchange reserve, which came down to around $9.94 billion at the moment from around $11.32 billion in March.

Bank credits to large industries on decline

Banks' and financial institutions' credit to the big industries decreased 0.92 per cent in the April-June period of this year compared to the previous quarter of January-March, according to the latest data of the central bank. 

And the industrial term loans disbursement posted only 1.47 per cent growth in the April-June period.

Experts and business leaders said that the energy crisis, high lending rate, the government's borrowings from banks and lack of business confidence were the reasons for the decline in the industrial loans.

Bangladesh Bank data shows that the total amount of term loans of the big industries was Tk 5316.43 in April-June period which was 5267.47 crore in the previous quarter.

The amount of industrial term loan disbursement stood Tk 7675.49 crore in April-June period of this year.

On the contrary, in the January-March period term loans disbursement was Tk 7564.01 crore.

Meanwhile, disbursement of working capital loans was Tk 18067.41 crore in the April-June period which was Tk 17619.86 in the previous quarter, a rise by 2.54 per cent.

According to the BB data, loans for the medium industries increased 8.76 per cent and small industries loans increased 2.80 per cent.

Bangladesh Institute of Development Studies research director Zaid Bakht said that the industrial term loans disbursement was not satisfactory due to shortage of energy and infrastructure.

He said that big industries were not interested enough to get loans and there were different problems such as high lending rate and business confidence that discouraged the enterpreneurs.

Centre for Policy Dialogue executive director Mustafizur Rahman said that the economy has been passing through a crucial time with the balance of paymentsproblems and depleting foreign exchange reserves.

He said that bank borrowings by the government rose significantly in the recent days which was a major concern for the credit flow to the private sector.

'If the term loans disbursement to the big industries slows down the overall investment might be affected,' he cautioned.

Federation of Bangladesh Chambers of Commerce and Industries president AK Azad said that if banks charge interest rates of 18 to 20 per cent for lending it would be difficult for the business community to run their business.

He said, 'Many industries are still waiting for gas connection to start their operation while inadequate power supply is also a great concern.'

'But the situation will improve soon as the government has taken initiatives for solving the energy crisis,' FBCCI chief added.

BB data shows that imports of capital machinery were worth Tk 2,894 crore in 2010-11 fiscal year while the total import posted 41.79 per cent growth.

As on October 3, 2011, the country's total foreign exchange reserves came down to $9.94 billion from around $11.32 billion in March.

According to the central bank data, the government's borrowings from banks stood at Tk 7,893 crore till 15th September, 2011.

JU admission tests schedule published

Jahangirnagar University has published the schedule of the intake tests of its bachelor's degree courses under academic session 2011-12.

The tests will begin on October 8.

The seat plan will be available on mobile phone from October 7. To know the sitting arrangement, the aspirants have been asked to type JU<Space> SP<Space>Roll Number and send to 9934.

To know the results of the intake tests the aspirants will have to type JU<Space>R<Space>Roll Number and send to 9934.

The intake test for Ka Unit (faculty of mathematics and physical sciences) will be held on October 8, for Kha Unit (faculty of social sciences) on October 11, Ga Unit (faculty of arts and humanities) on October 13, Gha Unit (faculty of biological sciences) on October 09, Uma Unit (Business Studies Institute) on October 10, Cha Unit (Institute of Business Administration) on October 12, Chha Unit (Institute of Information Technology) on October 11 and Ja Unit (Law Institute) on October 13.

The seat plan and other details on the tests is available on the JU website www.juniv.edu.

This year 69 students will vie for each seat with around 166,000 aspirants competing for a total of 2400 seats under eight units.

From this academic session bachelor's courses at different departments will have 500 seats more and three new departments, Public Health, Communication and Media Studies and Law, have also been launched.

HSBC-The Daily Star Climate Award launched

The Hong Kong and Shanghai Banking Corporation and The Daily Star on Wednesday launched the HSBC-The Daily Star Climate Awards, 2011 to honour and recognise the individuals and institutions working to preserve environment and tackle climate change impacts through their green business.

The launching ceremony of the second edition of the award was jointly organised by the HSBC Bank and The Daily Star at the Sonargaon Hotel in the capital.

HSBC, Bangladesh chief executive officer Sanjay Prakash said HSBC engaged its employees in this initiative as it was a right thing to recognise the individuals and institutions striving in the fight against the negative impacts of climate change.

The Daily Star editor Mahfuz Anam urged the print and electronic media journalists to give more coverage of climate change issues to change people's indifference to preserving the nature in their daily life.

He said if the entire environment was ruined, noting would survive in that situation.

Iftekhar Anayetullah, director of Waste Concern, knowledge partner of the award programme, said many unexposed elements were active behind the climate change and they should be disclosed. 

The awards will be given in five categories. The first one is climate champion in green business for the commercial organisations that introduced products or services that mitigate the effects of climate change.

The second category is climate champion in green operations for the commercial companies with full Bangladeshi ownership and full or partial foreign ownership that adopt eco-friendly processes and technologies in business operations.

The third category is climate champion in knowledge management for research initiatives that focus and/or provide solutions relevant to climate change and environmental preservation.

The forth one is climate champion in community engagement for social initiatives that aim to improve the lives of people and communities affected by climate change.

Detailed information can be found at thedailystar.net and hsbc.com.bd websites while the application has to be sent on or before November 3, 2011.

After being scrutinised by a jury board, trophies will be handed over to the winners in the first week of December, 2011, said the programme officials.

Among others, HSBC, Bangladesh head of marketing and communication Talukdar Noman Anwar and public relations manager Iftekhar Hasan were present at the programme.

Change in temperature unlikely

Light to moderate rain or thundershowers accompanied by temporary gusty wind is likely at a few places in the Chittagong, Khulna and Barisal divisions and at one or two places in the Dhaka and Sylhet divisions till 6:00pm today.

Weather may remain dry with temporary partly cloudy sky elsewhere over the country, the Meteorology Office said in a forecast on Wednesday.

Day temperature may remain nearly unchanged over the country.

The sun sets in Dhaka today at 5:42pm and rises tomorrow at 5:52am.

The country's highest temperature, 35.5 degrees Celsius, was recorded on Wednesday in Chuadanga and the lowest, 24.0 degrees Celsius, in Srimangal.

ACC to probe alleged graft of ex-RHD chief engineer

The communication ministry on Wednesday asked the Anti-Corruption Commission to probe allegations of corruption against roads and highways department former chief engineer Shahabuddin, a self-declared corrupt official.

'The communications ministry has approved a proposal requesting the ACC to investigate the allegations of corruption and irregularities against Shahabuddin. The official letter to this effect has been sent to the ACC,' a senior official concerned told New Age.

In the face of widespread criticism and pressure from different quarters, Shahabuddin who earlier confessed of his involvement in corruption to the now-defunct Truth and Accountability Commission, seeking clemency, and deposited his ill-gotten money with the public exchequer, resigned from service on August 18.

The condition of roads and highways across the country has recently turned dilapidated allegedly due to his rampant corruption and misuse of funds. 

On September 15, a total of 14 engineers of the RHD were made officers on special duty. They also went to the TAC and confessed to their guilt during the army-backed interim government. 

The communications ministry earlier promoted most of these officials following the law ministry's opinion, instead of initiating departmental proceedings against the self-declared corrupt officials.

'We have taken a move to initiate departmental proceedings against the self-declared corrupt engineers of the RHD,' a senior official of the communications ministry said.

The move came in the face of strong criticism from various quarters including civil society organisations against the communications ministry for the poor condition of the road network across the country.

PM stresses secular, democratic ambience for country’s progress

The prime minister, Sheikh Hasina, on Wednesday called for maintaining a secular and democratic atmosphere in the country for building a happy and prosperous nation with contribution of every citizen.

'The country can progress if every citizen can contribute to its development under a secular and democratic atmosphere,' she said while addressing devotees during her visit to Dhakeswari National Temple and Ramkrishna Mission in the city on Wednesday afternoon.

She said the present government has been making relentless efforts aimed at establishing a secular Bangladesh through ensuring rights of every citizen irrespective of their religious identity.

She extended her greetings to the members of the Hindu community on the occasion of Durga Puja and said, 'It's nice to see that people of every religion are enjoying the Durga Puja and religious festivals of others communities together.'

On her arrival at Dhakeswari National Temple, leaders of Bangladesh Puja Udjapan Committee received the prime minister.

In the Ramkrishna Mission, principal of the mission Swami Amiyanandajee received her.

Awami League advisory council member Suranjit Sengupta, chief patron of Bangladesh Puja Udjapan Committee CR Dutta Bir Uttam, lawmakers Mostafa Jalal Mohiuddin, Mijanur Rahman Khan Dipu, Puja Udjapan Committee president Subrata Chowdhury, committee leaders Nirmal Goswami addressed, among others, were present on the occasion.

The prime minister said, due to the government steps, people of the country have been celebrating their religious festivals, including Eid, Janmastami and Puja, peacefully and in a festive mood.

This year, she said, the Durga Puja is being celebrated at the highest number of 196 mandaps in Dhaka City while the number across the country is about 28,000, thanks to democratic and harmonious atmosphere in the country.

Economic solvency of the people also contributed to celebrating the religious festivals in festivity, she said.

The prime minister thanked the law enforcement agencies for their constant stride to ensure peaceful atmosphere across the country to help the members of the Hindu community to celebrate their biggest religious festival.

She said, peaceful coexistence is our constitutional right as we irrespective of caste, creed and religion have liberated the country together under the leadership of Bangabandhu Sheikh Mujibur Rahman. She said the government has amended the constitution to ensure religious rights of all.

Listing various steps taken by her government for development of the country, she said, 'Our main goal is to make the country self-reliant with the united efforts of all so that Bangladesh can stand on the world stage keeping its head high.'

State minister for religious affairs M Shahjahan Mia, state minister for law, justice and parliamentary affairs Qamrul Islam, state minister for home Shamsul Haque Tuku, Awami League joint general secretary Mahbub-ul-Alam Hanif and PM's press secretary Abul Kalam Azad were, among others, present.

Govt forgot its election pledges to teachers

Teachers got none of the benefits the Awami League-led government had pledged to them in its election manifesto three years back, teachers' association leaders said Wednesday.

Instead, harassment of teacher by the ruling party leaders has increased, they told a rally at the Central Shaheed Minar on Teachers' Day.

National Alliance for Teachers and Employees organised the rally to mark World Teachers' Day.

Teachers across the country observed the day on the theme, 'Teachers for Gender Equality.'

School and college teachers are sacked and face harassment for political reasons, association leader Salim Bhuiyan told the rally. 

Newspapers often publish reports of harassment of teachers across the country, he told the rally attended by teachers from all over Bangladesh.

Several other associations of teachers observed Teachers' Day demanded better pay and facilities.

Bangladesh Teachers' Association (Bashar-Selim) at a rally held at a city school demanded implementation of a separate salary structure as Awami League had pledged in its election manifesto to win the 2008 parliamentary polls.

BTA president Abul Bashar Howlader said that the teachers would have no option but to go for a movement unless their demands were met.

Hundreds of teachers attended a discussion hosted by National Committee for Observing Teachers' Day at the Teacher Student Centre of Dhaka University.

Speaking at the session, National Professor MR Khan said that teachers deserved better recognition from the society because they shaped the minds of the future citizens.

State minister for Women and Children Affairs Shirin Sharmin Choudhury said that the government was fully committed to ensure equal rights of girl children in education.

National Front of Teachers and Employee convenor Quazi Faruque Ahmed presided over the discussion.

In the morning, teachers took out a procession from Central Shaheed Minar carrying the banners of their associations.

World Teachers' Day has been observed each year since 1994.

Two drown, one missing in Padma

At least two people drowned and another went missing in a boat capsise in the river Padma at Ishwardi in Pabna Wednesday morning, police and family sources said.

Local people recovered the bodies of Selim Pramanik, 24, and Seken Pramanik, 30, from the river at about 12.30pm on Wednesday.

Mintu Pramanik, 27, elder brother of Selim is missing police and his family sources said.

Officer in charge of Ishwardi police station Kazi Haniful Islam said that the boat set off at about 7 AM carrying 35 to 40 persons overturned due to strong current 30 minutes later at Laxmikunda in Ishwradi upazila.

All the passengers, except the three, swum ashore, the OC said.

Laxmikunda Union parishad chairman Anis Mollah said that the local people recovered the bodies of Selim and Seken.  But Mintu remained missing, he said.

Fire brigade divers from Rajshahi and the police rushed the spot to join the rescue efforts, the OC said.

BNP says no to unilaterally formed EC

The opposition Bangladesh Nationalist Party on Wednesday called on the government to reconstitute the Election Commission in consultation with all the political parties after the incumbent commission served out its tenure.

The BNP will not accept any commission unilaterally formed by the government without consulting the political parties, BNP standing committee member MK Anwar told a human chain organised by Jatiyatabadi Sangskritik Dal in front of the National Press Club.

'If the government does not reconstitute the Election Commission after the present one serves out, the BNP will not accept it,' he said. He also said the incumbent commission should leave office immediately as the opposition lost its trust in it.

He alleged that the government was out to form the next commission with its chosen people to sweep the next general elections.

'Still there is time. Try to understand the meanings of the graffiti and announce elections under a caretaker government,' he urged the government from the human chain organised in demand of reinstating the caretaker government system.

Anwar said people of the country would never accept an election not held under a caretaker government and any such move would be thwarted. He also called on the people to join demonstrations to ensure the government's exit.

BNP leader Ruhul Quddus Talukder, Nagarik Forum president Abu Naser Muhammad Rahmatullah, and Jatiyatabadi Sangnskritik Dal president Humayun Kabir Bepari were also present.

Law, order better than any time in decade: Sahara

The home minister, Sahara Khatun, on Wednesday claimed that law and order now was better than any time in a decade.

Sahara said this at a press conference after a meeting of an inter-ministerial task force composed of home affairs, foreign affairs and law ministries on brining back home the convicted accused in the Mujib murder case hiding in other countries.

Asked about an increasing number of cases of disappearance and secret killing, she repeated her speech and said, 'According to reports

of the mass media at home and abroad, Bangladesh's law and order is better than any time in 10 years.'

the law minister, Shafique Ahmed, said, 'How has the number of such incidents increased? Such incidents also took place in the past. We get to know of them as such incidents are now reported in the mass media.'

As for allegation of involvement of the law enforcement agencies in such disappearance and secret killing as an alternative to extrajudicial ways such as 'crossfire,' she said that there were law enforcement agencies, courts and the home ministry to look into such allegations. Aggrieved people could easily get justice by way of laws, she added.

As for bringing back home six fugitive convicts of the Mujib murder case, Shafique said that the government was making all-out efforts, including resorting to legal means, to bring back home Noor Chowdhury from Canada and Rashed Chowdhury from the United States.

He said that foreign and home affairs ministry were working to bring back the two convicts.

Shafique, however, said that the government was yet to identify the whereabouts of the remaining four convicts as they were moving about.

Of the 12 convicted, five were hanged to death, one died abroad and six others are in hiding.

Asked about the probable complications in bringing back home any condemned convicts from Canada as the law there does not allow execution, Shafique said that they could appeal to the Appellate Division, seek review of the High Court judgement and seek presidential clemency.

ACC asks govt to get Canada court verdict

The Anti-Corruption Commission has requested the foreign ministry to collect the Canadian court verdict in the Niko bribery case through the Bangladesh mission.

The commission on June 27 appointed an 'enquiry officer' to look into the allegation against former BNP state minister for energy AKM Mosharraf Hossain that he had been bribed by the Canadian oil company Niko Resources Limited so that the company could be exempted from giving compensation for the damage caused by the explosion that took place in the Tengratila gas field in Sylhet on January 7 and June 24, 2005.

The commission had made the decision in line with the verdict delivered by the Alberta Court on June 24 that had fined the company nearly $9.5 million for bribing the state minister.

'We have requested the ministry on several occasions to get the documents but the ministry has not yet collected the documents,' the commission chairman, Ghulam Rahman, told New Age on Tuesday.

He, however, said that there was no reason for the Canadian authorities to provide Bangladesh with the documents.

Ghulam also said that the commission would provide the foreign ministry with the money that would be spent on collecting the documents.

The Bangladesh mission is in touch with the Canadian authorities to get the Niko case documents, a foreign ministry official said.

The law minister, Shafique Ahmed, who is scheduled to visit Canada on October 8, told New Age on Monday that Mosharraf's matter might be discussed if the Bangladesh mission showed interest in this regard.

According to a source to the commission, the enquiry officer, Shaidur Rahman, who is also an assistant director at the commission, had sent at least three letters to the foreign ministry requesting steps to collect the documents, including the Royal Canadian Mounted Police investigation report, Alberta Court of Queen's Bench verdict and the Niko's confession in the court about the crime.

The latest commission letter, addressed to the foreign secretary and issued on Tuesday, said that the ministry was again requested to expeditiously collect the documents which are needed to dispose of the complaint filed against Mosharraf.

Calgary-based oil company Niko Resources on June 24 agreed to pay nearly $9.5 million in fines and penalties after admitting in the Alberta Court that it had bribed Mosharraf Hossain.

According to a report published on June 24 by a Canadian daily newspaper, the Globe and Mail, the company accepted charges of providing Mosharraf Hossain with a car and trips to Canada and the United States to escape from giving compensation for the damage caused by the explosion that took place in the Tengratilla gas field in Sylhet in 2005.

Mosharraf resigned on June 18, 2005 after the media in Bangladesh revealed that Niko had given him a Toyota Land Cruiser-Signus 2005.

When asked, Mosharraf, however, brushed aside the allegation levelled against him and termed the verdict of the Canadian court fabricated.

The Globe and Mail report said that Alberta Court of Queen's Bench Justice Scott Brooker said that the bribery 'was an embarrassment to all Canadians' and 'a dark stain on Calgary's reputation' as he passed the sentence that had already been agreed to by prosecutors and the company.

The report said that for several years, a team of Royal Canadian Mounted Police, known as the force's international anti-corruption unit, had investigated the company after the arrests of several Bangladeshi politicians on corruption charges by authorities in Dhaka during the immediate-past military-backed interim government in 2007.

The commission on December 9, 2007 sued the two former prime ministers, Sheikh Hasina and Khaleda Zia, who were then detained for alleged corruption in signing contracts with Niko showing an undiscovered gas field as marginal which caused the state to incur Tk 23,630.50 crore in losses.

Three former ministers, five retired bureaucrats and a Niko official were also accused.

Hasina was implicated in the case filed by the commission's deputy director MM Shabbir Hasan with the Tejgaon police for causing a loss of Tk 13,630.50 crore.

Her chief secretary SA Samad, former state minister for energy in her cabinet Rafiqul Islam, former energy secretaries Tawfiq Elahi Chowdhury and M Akmal Hossain, the then Petrobangla chairman Mosharraf Hossain and Niko's South Asia vice-president Quashem Sharif were also accused of the same charges.

Khaleda was sued for causing a loss of Tk 10,000 crore. Former law minister Moudud Ahmed and former state minister for energy AKM Mosharraf Hossain in her cabinet, the then acting energy secretary Khandaker Shahidul Islam and Quashem Sharif of Niko were the other accused.

The High Court on March 11, 2010 quashed the charges against Hasina while it earlier stayed the trial against all others.

 source : New Age

Two killed in RAB ‘shootouts’

A Biplabi Communist Party leader and a crime suspect were killed in separate incidents of 'shootout' with the law enforcement agencies in Jhenaidah and Natore early Wednesday.

Mukul Hossain, 25, of Par Alandanga in Chuadanga, was killed in a 'shootout' with the Rapid Action Battalion in Jhenaidah and Jahangir Alam, 45, of Daulatpur in Kushtia, was killed in the other 'shootout' with the battalion in Natore.

The New Age correspondent in Jhenaidah said that Mukul, a regional leader of the Biplabi Communist Party (Moazzem Group), was shot dead in a 'gunfight' with the battalion at Pairadanga of Harinakundu early

Wednesday, Jhenaidah battalion camp commander Major Sakhawat Hossain said. Two of his associates managed to get away.

Sakhawat said that acting on a tip-off, a team of the battalion and the police had raided the area about 3:10 am Wednesday. As the lawmen approached, the outfit operatives fired on the lawmen, who fired back, triggering a 'gunfight' that continued for 15 minutes.

The law enforcers found Mukul lying on the spot with bullet injuries. He was sent to Jhenaidah General Hospital where he was pronounced dead.

Sakhawat said that the deceased was wanted in seven cases, including two for murder and abduction, filed with the police in Jhenaidah, Chuadanga and Kushtia.

In the other 'shootout' with the battalion, the United News of Bangladesh said, the crime suspect Jahangir had been killed at Padma Char of Lalpur in Natore early Wednesday.

The deceased Jahangir, of Natunchar at Daulatpur in Kushtia, was the second-in-command of the Panna Bahini, the lawmen said.

Acting on a tip-off, a battalion team raided the char area about 3:30am when Jahangir and his associates were holding a meeting.

As the lawmen approached, the group fired into the lawmen, who fired back, leading to a 'gunfight.' At one point, Jahangir became wounded and his associates managed to get away.

The battalion later sent Jahangir to Lalpur health complex where he was pronounced dead.

Five firearms, 54 bullets, some sharp weapons and 15 bottles of Phensedyl (codeine) syrup were seized.

Another round of power price hike on cards

The Bangladesh Energy Regulatory Commission on Wednesday took cognisance of a Dhaka Power Distribution Company proposal for raising its average retail power price by 11.93 per cent and another proposal submitted by the Power Development Board seeking a 15 per cent average power price hike.

The commission earlier took cognisance of a Dhaka Electricity Supply Company proposal for increasing its average retail power price by 21.34 per cent and another proposal for raising that of the West Zone Power Distribution Company by 18.99 per cent, and asked the Rural Electrification Board to revise its proposed power price hike.

Officials of the power distribution agencies expect that the commission will increase the power tariff by the next winter.

Before that, the BERC will have to complete by December public hearings on the proposals for power price hike of the five power distribution agencies.

BERC chairman Yusuf Hossain said they would complete the public hearings on the proposals of the PDB and the DPDC by November.

The PDB sought to increase the power price so that the power distribution venture of the board would break even.

The board also proposed that the commission should categorise the residential consumers into four slabs based on power consumption instead of three to realise higher revenue from the rich.

The DPDC proposed that the commission should increase the power price in accordance with its demand so that the company could pay a part of the dues it had inherited from the DESA to the PDB. The price hike will also enable it to pay off the loans taken from the government and different lending agencies, in addition to Tk 107 crore in corporate tax, the power distribution company argued.

The PDB high-ups along with experts and consumer rights activists for the first time reached at the consensus that failure to increase power generation in the public sector matching the private generation was leading the country's power sector to an anarchic situation.

ASM Alamgir Kabir, chairman of the PDB, the country's lone power buyer and distributor, on Wednesday afternoon said at present the private-public power generation ratio was 50:50, which would increase to 70:30 soon, leading the PDB to a huge monetary deficit as its purchasing price of power from the private sector was much higher than its selling price.

Alamgir emphasised increasing capabilities of the PDB so that the board could invest more in power generation.

Power expert Shamsul Alam, who also represents the Consumers Association of Bangladesh, told New Age that it seamed the government had been gradually waking up to the reality that power price hike was not the solution to the imbalance between cost and revenue of the state-run power distribution companies.

He said the policy of realising the addition cost for power generation from people would not offer the government any solution in the socio-economic perspective. Rather, the government should go for a combination of a major portion of low-cost public sector power and a smaller portion of high-cost private power, he added.

The government, however, is implementing 58 per cent power projects in the private sector and the remaining 42 per cent in the public sector in line with the power generation plan for 2010 to 2016.

As for increase in power generation cost, the BERC increased the bulk price of power in two phases – one by 11 per cent with effect from February 1 and the other by 6.66 per cent with effect from August 1.

The commission also increased the retail price of power by 5 per cent with effect from February 1.

The BERC on November 3, 2010 accepted the proposal of the PDB for increasing the bulk rate of electricity by 110 per cent in the next three years.

Govt agrees to fund JnU, 2 other univs

The government in the face of student movement has decided to amend three laws to continue giving budgetary grants for academic activities of Jagannath University, Comilla University and Kabi Kazi Nazrul Islam University as is done with other public universities.

The proposed amendment would allow the government to continue funding the three public universities like it does for other public universities, the prime minister's press secretary Abul Kalam Azad quoted prime minister as saying when a Jagannath University delegation called on her on Wednesday.

After the government announcement, Jagannath University students who had rallied for amendments to the Jagannath University Act 2005 brought out a procession celebrating their achievement, with the government for the first time after 1991 conceding the demand of the students.

As the students had continued rallying, the Jagannath University delegation, led by the vice-chancellor, Mesbahuddin Ahmed, met the prime minister, Sheikh Hasina, to discuss the problems of the university.

The students had rallied for more than a year so that the university was given government support as is done with other public universities.

The students had demanded repeal of Section 27(4) of the Jagannath University Act 2005 which provisioned for the university to generate its own funds five years after its establishment and the five-year time frame expired in 2010.

The education secretary, Kamal Abdul Naser Chowdhury, who attended the meeting, at a press briefing at the secretariat in the evening formally announced the decision on the amendment to the laws.

The related provisions in the Comilla University Act and in the Kabi Kazi Nazrul Islam University Act would also be amended and it would be done in the shortest possible time to continue with government grants to run the campuses, the education secretary said.

Naser said that the prime minister had ordered for amendments to the laws of the three universities.

The education secretary also said that the Jagannath University vice-chancellor

would take steps for the withdrawal of the cases filed against the university students, including the university correspondents of daily newspapers.

The Jagannath College, founded in 1884, was upgraded to a public university in 2005 with the enactment of the Jagannath University Act 2005.

Section 27(4) of the Jagannath University Act, however, stipulated that the university would run on public funds for five years and the university would need to generate its own funds after five years.

With support of the teachers, the students of the university in Old Town of Dhaka had for long demanded that the provision should have been scrapped.

Students had demanded repeal of the section of the act for long before they took to the streets on September 24 as the university increased the semester fees from Tk 3,500 to Tk 20,000 to increase its internal revenue.

Comilla University was set up in 2006 at Kotbari in the district headquarters and Kabi Nazrul University started its journey in 2006 at Trishal in Mymensingh with the enactment of the Comilla University Act 2006 and Jatiya Kazi Kabi Nazrul Islam University Act 2006.

Section 27(3) of both the acts stipulated that both the universities would need to be run on their own funds after 10 years of their establishment.