Solar module manufacturers demand Tk 5b stimulus

Solar module manufacturers have demanded sought a Tk 5.00 billion stimulus package from the government to overcome the crisis impacts of coronavirus outbreak.

Appreciating the Prime Minister for stimulus packages, the manufacturers sought support from them.

They suggested giving the sector Tk 1.00 billion as grant, Tk 2.00 billiion as interest-free loan and Tk 2.00 billion to implement the government’s project to set up rooftop solar panel on public office buildings.

They also demanded tax waiver for the next five years and extended grace period for bank loan and also extended rescheduling bank loan repayment time.  

Solar Module Manufacturers Association Bangladesh (SMMAB) made the demand through a letter sent to the commerce ministry, reports UNB.

Solar module manufacturers said the coronavirus outbreak has hampered their operations and forced them to shut down factories leading to a huge financial loss which will be “impossible to overcome without the government’s assistance”.

Industry insiders said nine local companies are currently manufacturing solar panels to meet the growing domestic demand with their annual production capacity of 100MW.

About 10,000 people are employed in the sector directly and indirectly, they said.

Coronavirus outbreak and subsequent government-announced holidays brought economic activities to a grinding halt, leaving millions of people without jobs and forcing businesses to suffer huge losses.

The manufacturers said they have been facing a shortage of raw materials since the crisis broke out, putting them in great peril.

“At the same time, the manufacturers had to shut down production following the government’s order to ensure workers’ health safety,” Munawar Moin, president of SMMAB, wrote in the letter to the commerce ministry.

SMMAB said many local entrepreneurs have made huge investments in the sector using the government help as the Prime Minister declared the solar photovoltaic panels as Product of Year 2020 under light engineering product category.

It said the government has been extending support to flourish the solar industry and a result of it, so far 5.8 million solar home systems have been installed across the country.

Currently, efforts are on to increase the use of solar energy in irrigation pumps which will make a significant contribution to the rural economy reducing use of conventional energy, the SMMAB said adding that it will create many jobs.

But the coronavirus outbreak rattled the industry and aggravated the crisis of the sector which has been reeling from the uncontrolled import of sub-standard solar panels, no mandatory quota for the use of local panels and absence of a supportive banking policy, said Munawar.

 “We don’t know where it will reach if such a situation continues,” he said adding that investors are now worried and this could derail the government’s solar-centric targets.

The government set a target to generate 10 per cent electricity from renewable energy by 2021 in line with its Vision 2021 which means 2,000MW power should come from renewable sources.

Local manufacturers said they are currently capable of producing 100MW of solar modules. Many of them are exporting the modules.