Reliable Brokers
Online Investing
Alerts & Analysis
Easy Trading

Amu warns of cancelling idle BSCIC plots

Update : 30 Mar 2014, 07:27 PM

Industries Minister Amir Hossain Amu yesterday threatened cancelling allotted plots in the BSCIC industrial estates for keeping those idle for years.

He also warned of cancelling the plots at Savar leather estate if the allottees do not relocate their factories faster from Hazaribagh.

“Allotted plots in BSCIC estates will be cancelled if they are not in production,” he said, adding the allotted plots in Savar tannery perk also will be cancelled if tanners do not relocate faster. He, however, did not give any deadline for relocation of factories.

He rang the alarm bell in response to the country’s business community’s concern over non-availability of land with adequate infrastructure facilities for industries raised at a meeting at Metropolitan Chamber of Commerce and Industry (MCCI).

Bangladesh Small and Cottage Industries Corporation (BSCIC) has 74 industrial estates in 59 districts. Of the 5,747 industrial plots, some 4,278 units are now in production and 321 have either become sick or shutdown. Some 487 plots have not been allocated yet, according to BSCIC.

The allotment policies were allegedly flawed as many entrepreneurs refusing to set up factories in the allocated plots due to poor communication, and lack of gas and electricity, affecting investment in the industrial estates, sources in the BSCIC said.  

“Many plots have been allotted under political consideration,” said an official, adding that the plots are now sitting idle, with some being used for grazing cattle or as playgrounds.”

Last month, the industries ministry had directed the related agencies, including the contractor firms, to begin work within a week on setting up the central effluent treatment plant (CETP) at the Savar leather estate.

“Nobody will be spared if dilly-dally is noticed in complying the order,” the Industries Minister told a meeting on tannery relocation.

Owing to the long delay, the tannery relocation cost now doubled to stand at Tk1,079 crore, a sharp increase from the first revised project proposal worth more than Tk550 crore taken in October 2007.

The government, which initiated the tannery relocation in 2003, deviated from its original plan and imposed the relocation expense on the owners under a loan agreement for over 15 years, after the CETP is installed. 

Top Brokers