Bangladesh Economic Zones Authority (BEZA) has inked a term sheet with Adani Ports and SEZ Limited of India on Friday in Mumbai to establish an Indian Economic Zone (EZ) under the government-to- government (G2G) engagement.
A term-sheet is a nonbinding agreement that shows the basic terms and conditions of an investment.
Through this sheet, full-fledged activities for the development of the Indian EZ will begin.
Other processes, including the formation of a company, to operate the EZ will be started in phases.
A memorandum of understanding (MoU) was signed between the Bangladesh Government and the Indian Government in June 2015 to establish the Indian EZ.
In this context, India selected Adani Ports and SEZ Limited to work as a developer of the EZ.
Talking to the media, BEZA executive chairman Shaikh Yusuf Harun said BEZA signed the agreement to attract more Indian investors in the country.
"This is an important step towards forming the Indian EZ which is being established to attract more Indian investors in the country," he added.
He hoped that the zone will be able to attract Indian investors as it is going to be an international standard EZ by ensuring all investment friendly facilities.
Harun, however, said Bangladesh is becoming a center of the global business community which will help the country achieve Vision-2041.
"Very low labour cost, skilled manpower, favourable government policies, uninterrupted electricity supply, high productivity and political stability are turning Bangladesh into a global investment hub despite the Covid-19 pandemic," he added.
Indian EZ is being established at Mirsarai in Chittagong under the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) on about 857 acres of land with a cost of about Tk964 crore (Indian Flexible Loan LOC $115 million).
It is to be noted that a term sheet is a bullet-point document outlining the material terms and conditions of a potential business agreement, establishing the basis for future negotiations between a seller and buyer.
It is usually the first documented evidence of possible acquisition. It may be either binding or non-binding.