The cabinet yesterday approved forming a new foundation to support small, micro and cottage industries under the Bangladesh Small and Cottage Industries Corporation (Bscic).
The go ahead for the proposed “Small, Micro and Cottage Industries Foundation” was given at a regular cabinet meeting, held at the secretariat with Prime Minister Sheikh Hasina in the chair.
Briefing reporters after the meeting, Cabinet Secretary M Musharraf Hossain Bhuiyan said the government had approved a proposal for forming the new foundation with Tk127 crore.
To start with, the foundation would get Tk77 crore left over from four completed Bscic projects, while the government would donate Tk50 crore.
Bhuiyan said the foundation would work to improve the livelihoods of impoverished people through small loans and microcredit activities.
The funds would be used to give loans for establishing small, micro and cottage industries or businesses.
The cabinet meeting, in principle, also approved the draft of the proposed Bangladesh Academy for Rural Development Act.
“Although we have the Bangladesh Academy for Rural Development in Comilla, there are no acts or rules for running the academy as all ordinances promulgated by military rulers have become invalid...So, the government has to enact a new law to replace [the ordinance],” the cabinet secretary said.
The cabinet sent back the proposal for further review and analysis.