• Tuesday, September 23, 2014

State enterprises buck the losing trend

Rejaul Karim Byron

State-owned enterprises are on course to register a profit after three years in the outgoing fiscal year on the back of the huge 3G licence fees collected from mobile operators.
In fiscal 2013-14, the SoEs are forecast to make a net profit of Tk 3,022 crore, in contrast to the loss of Tk 2,626 crore in the previous year, according to Bangladesh Economic Review presented in parliament on Thursday.
Of the 48 SoEs, 34 made profits of Tk 14,252 crore, while 14 counted losses of Tk 11,230 crore, according to an estimate of the finance ministry using data until April. The eventual figures though might be higher.
Bangladesh Telecommunication Regulatory Commission made the highest profit or income of Tk 9,398 crore, up 76 percent year-on-year. Spectrum fees account for more than Tk 4,000 crore of the sum, while the remaining amount came from revenue shares.
State-run mobile operator Teletalk also purchased spectrum but is yet to submit the Tk 1,650 crore of licence fees.
Another SoE, Bangladesh Oil, Gas, Mineral Resources Corporation, made a profit of Tk 3,505 crore in contrast to Tk 882 crore last year.
Of the loss-making SoEs, Bangladesh Power Development Board saw its losses increase the most—41 percent to Tk 7,092 crore—owing to purchase of electricity from quick rental power plants at higher prices.
Due to differences between supply cost and sale rate, BPDB is counting losses of about Tk 1.5 for per unit of electricity. In fiscal 2013-14, some 18.5 percent of total electricity generation was fuel-based, which was 16.51 percent last fiscal year.
However, due to increased electricity generation from quick rental power plants, the contribution of the production to GDP is going up, the report said.

Bangladesh Petroleum Corporation too counted a loss, of Tk 2,489 crore, in the outgoing fiscal year, but the loss was 49 percent less than in the previous fiscal year.
The loss was less as the fuel price was low in the international market.

Published: 12:00 am Tuesday, June 10, 2014

Last modified: 10:58 pm Monday, June 09, 2014

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