Banks gave loans to Beximco, S Alam without checking assets: Energy adviser | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
June 12, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JUNE 12, 2025
Banks gave loans to Beximco, S Alam without checking assets: Energy adviser

Energy

TBS Report
30 November, 2024, 03:25 pm
Last modified: 30 November, 2024, 04:17 pm

Related News

  • Govt’s big solar push faces cold responses from local, international cos
  • Farm subsidy goes up, energy still gets bigger slice
  • Budgeting for Bangladesh’s energy transition
  • After clearing all due gas bills, Petrobangla now paying on due dates
  • Govt plans renewable energy, eco-tourism on unused tea estate land

Banks gave loans to Beximco, S Alam without checking assets: Energy adviser

Fouzul has advised banks to approve loans based on the assets of a company or an individual

TBS Report
30 November, 2024, 03:25 pm
Last modified: 30 November, 2024, 04:17 pm
Energy Adviser Dr Muhammad Fouzul Kabir Khan spoke at a seminar titled ‘The Role of Smart Grid in the Future Power System’ at the United International University (UIU) in the city on Saturday (9 November). Photo: UNB
Energy Adviser Dr Muhammad Fouzul Kabir Khan spoke at a seminar titled ‘The Role of Smart Grid in the Future Power System’ at the United International University (UIU) in the city on Saturday (9 November). Photo: UNB

Banks gave loans to Beximco Group and S Alam Group in the past just based on their balance sheets without checking the two conglomerates' assets, said Power, Energy and Mineral Resources Affairs Adviser Muhammad Fouzul Kabir Khan today (30 November).

"Before approving loans, banks generally review a company's balance sheet instead of looking at assets. Such decisions are also taken during lunches and dinners," he said.

Keeping with that system, "banks did not check Beximco and S Alam's assets and only reviewed their balance sheets before approving loans. That's why no money can be found in the bank accounts of the two groups now. All are empty," the adviser added.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

He made the remarks while addressing a seminar, titled "Rapid Transition to Renewables: Role of Domestic Financial Institutions", organised by the Economic Reporters' Forum (ERF) in Dhaka.

Fouzul said ordinary entrepreneurs cannot attend such lunches or dinners as the entrepreneurs of the renewable energy sector do. "As a result, common entrepreneurs do not get loans easily."

He advised the banks to approve loans based on the assets of a company or an individual.

During the now-ousted Awami League's 15-year rule, Beximco Group and related companies took total loans of Tk36,865 crore from seven banks in the country.

During the same period, S Alam Group and its associate companies took out Tk 95,331 crore between 2017 and June 2024 from six banks, with 79% of the sum coming from Islami Bank.

Saying a new policy for the renewable energy sector is being formulated, the adviser said the interim government will provide land and interconnected facilities for the projects of this sector.

"Entrepreneurs will only plug and play. Efforts are on to utilise the unused land of railway, road and other government institutions for the renewable energy sector," he said.

However, the import duty for the equipment used in this sector would not be reduced in order to create a backward linkage industry at the local level, he added.

"The government is moving away from the IPP policy and creating a merchant power policy, under which the power producers will find their customers. The government will not be the only customer anymore and the producers will be able to use the government's distribution and transmission lines by paying fees," Fouzul said.

He further said the government will buy only 10% to 20% of electricity from the new power plants that are in the pipeline, and it will reduce pressure on the government to pay power bills.

"The lack of competition during the government's procurement is a major problem for the country's economy. That is why we have decided to make everything public so that no one needs to know any relatives of any minister or secretary to do business with the government," the energy adviser said.

Urging the government to make financing in the renewable energy sector easier, Centre for Policy Dialogue Research Director Khondaker Golam Moazzem said, "To make funding in this sector easier, 18 types of instruments are followed worldwide. In Bangladesh, only non-concessional loans are given. Financial instruments have to be increased and the way for foreign investment has to become easier."

Center for Environment and Participatory Research Chairperson Gouranga Nandy presented the keynote paper at the seminar, in which he proposed a special fund for easy financing and sale of the additional power by individual producers to the government.

The event was moderated by ERF General Secretary Abul Kashem and presided over by ERF President Refayet Ullah Mirdha.

Top News

energy / Renewable Energy / Bank Loans

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Saifuzzaman Chowdhury. Photo: Collected
    UK crime agency now freezes assets of ex-land minister Saifuzzaman: AJ
  • Chief Adviser Muhammad Yunus speaks at the Chatham House in London on 11 June 2025. Photo: CA Press Wing
    No desire to be part of next elected govt: CA Yunus
  • File photo of BNP Standing Committee Member Amir Khasru Mahmud Chowdhury. Photo: Collected
    Khasru flies to London ahead of Yunus-Tarique meeting

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • File photo of ex-prime minister Sheikh Hasina and her son Sajeeb Wazed Joy. Photo: Collected
    Joy spends Eid with Hasina in India: Indian media
  • Mercantile Bank withholds dividend amid Tk1,700cr provision shortfall
    Mercantile Bank withholds dividend amid Tk1,700cr provision shortfall
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook

Related News

  • Govt’s big solar push faces cold responses from local, international cos
  • Farm subsidy goes up, energy still gets bigger slice
  • Budgeting for Bangladesh’s energy transition
  • After clearing all due gas bills, Petrobangla now paying on due dates
  • Govt plans renewable energy, eco-tourism on unused tea estate land

Features

Among pet birds in the country, lovebirds are the most common, and they are also the most numerous in the haat. Photo: Junayet Rashel

Where feathers meet fortune: How a small pigeon stall became Dhaka’s premiere bird market

7h | Panorama
Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

1d | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

2d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

4d | Bangladesh

More Videos from TBS

Why is Omicron XBB more contagious?

Why is Omicron XBB more contagious?

4h | TBS Stories
What did Dr. Yunus say at the Chatham House Dialogue in London?

What did Dr. Yunus say at the Chatham House Dialogue in London?

5h | TBS Today
News of The Day, 11 JUNE 2025

News of The Day, 11 JUNE 2025

6h | TBS News of the day
WB predicts worst decade for global growth since 60s

WB predicts worst decade for global growth since 60s

7h | TBS Stories
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net