EEF Circular No. 34: Equity & Entrepreneurship Fund (EEF) - Sanction of Food Processing & Agro-based Projects

Bangladesh Bank Head Office EEF Unit EEF Circular No. 34 Date: 09/04/2013 Managing Director / Chief Executive Officer All Scheduled Banks and Financial Institutions Dear Sirs, Regarding the sanctioning of Food Processing and Agro-based Projects under the Equity and Entrepreneurship Fund (EEF). We would like to draw your attention to the above subject. In relation to the sanctioning of Food Processing and Agro-based Projects under the EEF, the following decisions have been taken by the competent authority: a) Henceforth, more than one project shall not be sanctioned for the same family when considering such sector-specific projects. Here, "family" refers to "the wife, husband, parents, sons, daughters, brothers, sisters, and all dependents of any person" as explained in Section 14(k) of the Bank Companies Act, 1991. According to this definition of family, a declaration containing the details of the concerned person(s) must be attached with the EEF Application Form required to be submitted for establishing Food Processing and Agro-based Projects. b) Henceforth, to ensure smooth implementation of capital machinery-dependent projects in Food Processing and Agro-based sectors, the total project cost of such projects is increased from BDT 10 crore to BDT 12 crore. In this regard, the ratio of promoter's equity to EEF assistance will remain 51:49 as usual. In this regard, it is mentioned that, in accordance with the instructions contained in EEF Circular No. 28 dated 04/12/2008, the maximum limit of total project cost for other projects in this sector, excluding capital machinery-dependent Food Processing and Agro-based projects, will remain unchanged at BDT 10.00 (ten) crore. These instructions shall be effective immediately. Please acknowledge receipt. Yours faithfully, Signed/- (Md. Sirajul Islam) General Manager Phone: 9530212