SME Foundation mulls setting up industrial park

The Small and Medium Enterprise (SME) Foundation is set to conduct a feasibility study from October on establishing a 'co-located cluster industrial park' for light engineering, plastic and electronic factories.

The SMEF signed a cooperation agreement with International Finance Corporation (IFC), World Bank's lending arm, on September 6 to jointly run the feasibility test. They also signed a memorandum of understanding (MoU) last month.

“The objective of this project is to help establish an SME Industrial Park for light engineering, plastic and electrical engineering sub-sector,” said Ahmed Ali Shah, deputy general manager of the SME Foundation.

The study includes market assessment, demand forecast, planning and financial and economic viability modelling.

“A cluster industrial park will accommodate the three homogenous industries at the same location, which will help tap potentials of these sectors,” he said.

SMEF initially selected Keraniganj to set up the industrial park, but the location will be finalised after site assessment is completed by May 2010.

“IFC will conduct studies on a few other sites and the best location will be chosen for the co-located cluster industrial park,” said Shah.

IFC will provide $5,00,000 to conduct the study, while SMEF would contribute $50,000, he said.

IFC will also fund workshops and roundtables to build capacity of the stakeholders.

Shah also said IFC is keen to assist SMEF in completing the project.

Earlier, the country's light engineering sub-sector planned to set up an exclusive private industrial zone in Dhaka to tap the potential of the emerging business.

Presently, there are around 50,000 light engineering and 5,000 plastic and electronic factories across the country.

Abdur Razzaque, president of Bangladesh Engineering Industry Owners Association (BEIOA) said the industrial park will help increase the sectors' production capacity and competitiveness.

“We have long demanded setting up of an exclusive private industrial zone for the light engineering and other locally developed product sectors, which will help meet local demand and export,” he said. Countries like Japan and India have developed their SMEs through such projects.

sayeda@thedailystar.net