Work on relocation of tanneries in city's Hazaribagh area is progressing at a snail's pace. The latest deadline set for relocating those expired last month. Official sources say that all the tanneries will not be shifted at a time. This will be done in phases.
But as per a Memorandum of Understanding (MoU) signed earlier between the government and the Bangladesh Tanners Association and the Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association, a total of 155 tanneries were due to be shifted to Savar Tannery Estate by December last year. The progress of relocation is very slow.
Until now relocation of some 20 tanneries has begun. In fact, the tanneries in Hazaribagh could not be shifted to Savar for more than a decade though the ministry of industries undertook a project in this regard in 2003. The project at Savar on an area of about 2000 acres of land is being implemented by the Bangladesh Small and Cottage Industries Corporation at a cost of Taka 10.79 billion.
In 2009 the High Court asked the government to relocate Hazaribagh tanneries by February 28, 2010. Later, the court extended the deadline until April, 2011.
In view of the delay, industries minister announced on October 25 last that the government would shut down tanneries in Hazaribagh if the owners failed to shift their units within the stipulated time. The minister cautioned all concerned that the allotment of plots in favour of the tannery owners in Savar Tannery Estate would also be cancelled.
The industries minister also stated that the government "cannot allow millions of people to suffer from environmental pollution due to the whims of a few industrialists". He expressed resentment at the slow progress in tannery relocation despite allout cooperation extended by the government to this effect.
In fact, the tanneries operating in Hazaribagh for decades have been playing a key role in polluting the river Buriganga. The river is now in a moribund state. Green activists have also urged the government to realise an amount of Taka 25.29 billion as compensation from the owners of tanneries in Hazaribagh area for polluting Dhaka city's lifeline-the Buriganga. The Poribesh Bachao Andolon (POBA) has put forward the demand recently.
A survey report released by POBA last year reveals that about 21,000 cubic metres of untreated toxic wastes from Hazaribagh tanneries find their way into the Buriganga every day. The work on relocation of tanneries mainly includes building construction, installation of electricity connections and transfer of machineries.
Unless all the tanneries are relocated to Savar, the danger of toxic chemicals being released into the river will continue much to the detriment of the waterways and public health. The toxic materials discharged from the tanneries are entering the food chain and water supply. Not only the Buriganga, but also three other rivers around Dhaka city are facing serious pollution and loss of navigability.
On the other hand, the tannery owners say that they will have to invest around Taka 60 billion to relocate the factories as reported in this newspaper recently. The Financial Express report says the central bank has announced an incentive package for tannery owners to help them shift their factories to Savar.
According to Bangladesh Bank (BB) package, the tanners who have already moved to Savar or under process to do so will get an opportunity to transfer their irregular loans into block accounts and will have a period of eight years for repayment with a one-year grace period. The tanners will be charged 10 per cent rate of interest on loans in the block accounts or banks' cost of fund or whichever is lower. The BB also asked the banks to consider relaxation of the existing down payment while rescheduling old loans or granting new loans for tanneries engaged in exports. But the tannery owners complained that some of the banks are not showing interest to give them loans. They said that the BB's directive is welcome if the loan is disbursed accordingly.
According to Export Promotion Bureau, country's leather industry fetched $1.29 billion from exports in 2013.
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