Regulatory Alerts2024-04-25
Added
DFIM Circular No. 14: Obtaining NOC from the concerned authorities of electricity and gas suppliers in case of loan disbursement
The Department of Financial Institutions and Markets directs all finance companies operating in Bangladesh to obtain a No Objection Certificate (NOC) from the relevant electricity and gas supply authorities before disbursing loans, leases, or investment facilities to new industrial establishments. This directive implements decisions made by the Economic Zone and Government-Designated Industrial Area Exemption Committee on February 7, 2024, which prohibit providing utility connections and loans to new industries without such clearance. The instruction is issued under Section 41(2)(d) of the Finance Companies Act, 2023, and takes immediate effect.
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh.
DFIM Circular Letter No. 14 Managing Director / Chief Executive Officer All Finance Companies operating in Bangladesh.
Dear Sir,
Regarding obtaining No Objection Certificate (NOC) from the concerned authorities of electricity and gas suppliers in the context of loan disbursement.
In this regard, it is informed that the following decisions were taken in the meeting of the Exemption Committee on Economic Matters held on 07.02.2024 AD (2nd meeting of 2024):
(a) Not to provide electricity connection and gas supply if a new industrial establishment is constructed at any location other than an Economic Zone or an industrial area designated by the government; and (b) Not to provide loans to new industrial establishments without obtaining the No Objection Certificate (NOC) from the concerned authorities of electricity and gas suppliers.
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In this context, you are hereby directed to obtain the No Objection Certificate (NOC) from the concerned authorities of electricity and gas suppliers before providing loan/lease/investment facilities to new industrial establishments.
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This instruction is issued under the powers conferred by Section 41(2)(d) of the Finance Companies Act, 2023, and shall take immediate effect.
Yours faithfully,
(Md. Asaduzzaman Khan) Director (DFIM) Phone: 9530178.
Date: 12 Baisakh 1431 25 April 2024
Department of Financial Institutions and Markets