BANGLADESH

Light engineering industry of the country expects subsidised metal testing services for the sector's development.

"Subsidised metal testing services will add to the sector's growth," said Bangladesh Engineering Industry Owners' Association (BEIOA) President Abdur Razzaque.

The thrust sector, as determined in the Export Policy-2010, is facing several hurdles, including obsolete technology and lack of production management skills and dice-making technology, according to the associations.

It also lacks a research and development (R&D) institution, quality assurance and accredited inspection, and marketing ability for export promotion.

Razzaque said: "Light engineering acts as a support industry to all other industries."

This industry comprising around 40,000 firms produces motor launches and marine transport spares, and machinery and spares for agro-processing, textile, jute, construction, bread, biscuit and food processing sectors.

Razzaque, also owner of Sunrise Engineering, says: "If the government provides subsidies to the sector, the country will get greater return."

Justifying the subsidy demand, he said: "If the machineries are not produced locally, they have to be imported at five times higher prices."

In 2009-10 financial year, export from the light engineering sector was $311 million, which constituted nearly 1.89 percent of the country's total exports worth $16.5 billion.

Mentioning that developed countries offer metal testing services to the engineering industry at minimal costs, Razzaque said: "Without low-cost metal testing services it will very difficult for the industry to grow."

According to him, the five metal testing facilities in the country -- Bangladesh Council of Scientific and Industrial Research (BCSIR); MAWTS Institute of Technology, Engineering and Technological Services; Bangladesh Atomic Energy Commission (BAEC); Bangladesh Industrial Technical Assistance Centre (BITAC); and Bangladesh University of Engineering and Technology (BUET) -- charge exorbitant fees.

BUET's Material and Metallurgical Engineering (MME) Department professor A S W Kurny stressed the need for setting up a metal testing institute.

He said: "This (light engineering) is a support industry for all other industries. They (the sector) are now making complicated equipment. But without a metal testing institute, their long-term costs will escalate, as the equipment made without proper metal may not perform well."

Kurny, however, said the industry owners needed to realise that the tests could not be conducted for free.

Director of BUET's Institute of Appropriate Technology (IAT) Prof M Kamaluddin echoed the view of Kurny.

He said: "Metal testing needs very sophisticated equipment like spectrometer which is very costly. Many light engineering firms are even going to India for some tests."

Kamal also suggested setting up a metal testing institute under the public-private partnership initiative to solve the problem.

He said a lower mid-level institute would cost Tk 300 million and solve at least short-term problems of the industry.