Govt plans Tk 30b 2nd phase of Savar Tannery Estate

The government is contemplating the second phase of Savar Tannery Estate on 200 acres of land at a cost of around Tk 30 billion to accommodate the left-out tanneries in the first phase, supporting businesses, foreign entrepreneurs as well as the leather goods manufacturers.
Sources concerned said the planning of the project is still at early stage. The Bangladesh Small and Cottage Industries Corporation (BSCIC) is likely to submit the project profile next month to the Ministry concerned.
A BSCIC official involved with the second phase of Savar Tannery Estate said they will launch the new project officially following relocation of maximum number of tanneries to Savar from Hazaribagh.
The government earlier in October this year set December 30, 2016 as the latest deadline for relocating the tannery units in Dhaka's Hazaribagh area to the under-construction Savar Tannery Estate.
The BSCIC official, however, said they hope the tanners to relocate by December this year.
According to the plans for second phase, the authority will create 300 plots on 200 acres of land, bordering the existing under-construction tannery estate in Savar.
The plots will be allocated to 30-35 tanners who did not get plot in the first phase, 60-70 other plots to the leather goods manufacturers, support linkage sectors will get 40 plots while 10-15 more tanneries may relocate from outside the capital city.
The second phase of Savar Tannery Estate will also accommodate vocational training institute, research center, large multi-storied building to showcase leather goods, playground, mosque etc.
"We are still assessing the cost of the project, we think the cost may go up to Tk 30 billion maximum," said an official of the BSCIC.
The first phase is on an area of about 200 acres of land, being implemented by the BSCIC at a cost of Tk 10.79 billion.
"The government began land requisition for the first phase in 2003, the prices of land and other construction materials went up manifolds over the period of last 13 years," he said.
Meanwhile, the BSCIC sources said a total of 55 tanneries have already relocated to Savar till now and Tk 1.7 billion has already been allocated to the tanners as compensation out of a total of Tk 2.5 billion compensation money.
As per a Memorandum of Understanding (MoU) signed for the first phase of the project 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 by December, 2014.
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