Bangladesh Bank has brought 26 new products under its green banking refinance scheme taken up five years back due to growing demand for renewable energy and promote environment-friendly activities in the country.
The total products under the scheme now increased to 44. The central bank also increased the credit limit for the products from Tk1.5 crore to Tk30 crore, according to a circular issued yesterday.
The new products include biomass based large bio-gas plant, poultry and dairy based large bio-gas plant, 1-mw or above solar PV plant, solar cooker assembly plant, solar water heater assembly plant, solar air heater and cooling assembly plant, solar driven cold storage, bio-energy driven power generation plant, power switch assembly plant for power saving, hybrid cook stove assembly plant, LED bulb or tube light assembly plant, power generation from municipal waste, compost generation from municipal waste, recyclable non-oven polypropylene yarn and baggage manufacturing and palm oil production plant.
The central bank launched the Tk200 crore scheme in August 2009 to set up solar panels, bio-gas plants and industrial ETPs (effluent treatment plants) under the scheme to help reduce industrial pollution and increase the power generation.
Under the scheme, the central bank is providing loans to commercial banks at 5% to 12% interests for direct refinancing and credit wholesale to the entrepreneurs, who will then have access to commercial bank loans in those sectors at a maximum interest rate of a further 5%.
Overall interest rates will not exceed 12%, according to the fund’s conditions.