India seeks 1,055 acres of land in Mirsarai Economic Zone

India has sought 1,055 acres of land in Mirsarai Economic Zone (MEZ) in Chittagong to establish industries, exclusively owned by its own investors.

The neighbouring country has recently sent an official letter to the government, seeking land allocation.

Executive chairman of Bangladesh Economic Zones Authority (BEZA) Paban Chowdhury confirmed the receipt of the proposal from the Indian government.

Earlier, India also placed proposals for two special EZs in Bheramara of Kushtia and Mongla of Bagerhat for its investors. With the new proposal, Bangladesh would examine the possibility of allocating land for three EZs to the neighbouring country.

Meanwhile, the cabinet committee on economic affairs (CCEA) is set to approve a joint venture company in its meeting today (Wednesday) for developing and maintenance of Mirsarai EZ.

The joint venture consists of engineering and construction company Gasmin, Powerpac, a sister concern of Shikder group, and East West, an associate organisation of Bashundhara Group.

A developer evaluation company of the BEZA recently selected the companies. The BEZA will sign an agreement with the companies after getting approval from the CCEA.

The three companies will develop 550 acres of land in Mirsarai EZ and maintain it for next 50 years. The tenure might be increased in phases.

The joint venture company will deposit Tk 400 million as upfront ventures for taking lease of the land.

Rent in each EZ is US$ 0.45 or Tk 36 per square feet. The rates of the rent would increase by 7.5 per cent every year and the BEZA will get 6.5 per cent of incomes from the zone.

However, the rates would be finalised after signing the agreement with the joint venture company.

The BEZA executive chairman said the joint venture company would help boost foreign and local investments in the EZs.

"The BEZA has already developed the land for the economic zone. It will also ensure utility connections including gas, water supply, power and connecting roads in the zones. An administrative building of the zone will also be built," he said.

China is also developing EZ on 774 acres of land at Anwara in Chittagong. The CCEA may approve the development work of the Chinese EZ today (Wednesday). During the visit of the Chinese president, a concessional loan agreement worth Tk 22.80 billion was signed with Bangladesh for setting up the Chinese EZ.

doulot_akter@yahoo.com