549 BSCIC plots left unused

A total of 549 plots in various industrial estates of the Bangladesh Small and Cottage Industries Corporation (BSCIC) are lying unused as the owners did not set up plants within the deadline.

The non-use of the plots is depriving the government of revenue, people of job opportunities, and the real small and medium enterprises (SMEs) of serviced land.

The information came up in a report of the BSCIC for the period up to April of fiscal year 2020-21.

According to rules, a factory must be built within 18 months after securing the allotment of a plot. But many leasees have not set up factories as per their plans within the stipulated time, said an official of the BSCIC. In 1960, the agency was set up to develop industrial plots equipped with utility connections and better transport connectivity for SMEs to spur industrialisation.

Today, there are 10,922 plots in 76 industrial estates of the BSCIC across the country. Of them, 10,379 plots have been distributed so far.

Currently, 4,570 factories are in production and 901 are export-oriented. The highest number of unused plots is located in the Barisal industrial estate at 48. The Bhola estate came second with 32 vacant plots.

Twenty-nine plots are not in use in Shariatpur, 28 in Rangamati, 27 in Noakhali, 22 in Netrokona, 20 in Meherpur, and 32 in the leather estate in Savar.

Asaduzzaman Shamim, owner of Jaman Metal Works in Rajbari, took the allotment of a plot in 2018 to build a factory to produce household items made of aluminium and steel.

"Though it was allotted in 2018, there were some official procedures. It took a long time to complete the procedures. In the meantime, Covid-19 arrived."

Because of the pandemic, the setting up of the factory has gotten stuck, he said. However, he bought the machinery for the factory and now plans to resume construction in July.

BSCIC Chairman Md Mostaque Hassan said it had taken a strong step against the leasees who had left the plot unused after taking the allotment.

"It can't go on like this. Work is underway to lease out these plots anew."

"Many entrepreneurs have shown interest. Now, the plots will be handed to the real entrepreneurs so that industries can be set up there," Hassan said.

There is a tendency among some district-level entrepreneurs to not stick to the plans cited in their proposals. Instead, they want to set up factories as per their wish. When they cannot do so, they leave the plots deserted, said an official of the BSCIC.

After receiving proposals from the applicants, the BSCIC carries out feasibility studies before awarding the plots. If anyone does not build the factory within the deadline, the allotment can be cancelled.

"We also cancelled allotments in the past," said Nasrin Rahim, deputy general manager of the industrial estate division at the BSCIC.

Each plot is leased out for 99 years. Entrepreneurs can pay the full amount of the lease price in a single payment. Also, they can pay it in 10 instalments in five years.

Many entrepreneurs do not want to build factories in the Rangamati industrial estate because of an absence of a good communication system, said another official of the corporation.

He said if the BSCIC had prepared the plots in the hilly areas through proper planning, the plots would not have remained unused.

Some 543 plots in the industrial estates across the country are yet to be awarded. Of them, 367 are ready to be allotted.

Normally, big factories take multiple plots. So, there is a difference between the number of plots allotted and the number of industries developed.

The factories at the BSCIC estates are employing more than 67 lakh people. A total of Tk 63,318 crore have so far been invested.

Some 112 industrial units, which were earlier sick, have reopened since the beginning of the current fiscal year.