Korean EPZ clears all barriers to jump on production extension

Pankaj Dastider CHITTAGONG, Sep 22: Overriding all bureaucratic and administrative barriers only through legal interceptions the Karnaphuli Shoes Industry (KSI) has finally started expansion of production in the Korean Export Processing Zone (KEPZ) in Chittagong. After gaining environment clearance and electricity from the concerned authorities the KEPZ set up by the country's garment manufacturing giant Youngone Corporation is yet to get gas connection to jump on full-swing operation and mutation of the land purchased by the private EPZ management. Operational activities were under forced suspension for over 18 months as the department of environment cancelled its clearance certificate on the 'compliance issues' and the PDB (power division board) snapped its electricity connection without showing any reason whatsoever. Failing to get any clear answer from the concerned government agencies the Korean EPZ authority finally resorted to legal course in the High Court which restored the export zone with environment certificate on August 8, 2012 and 14 megawatt electricity from national grid only on September 18 last. In its letter the Department of Environment (DoE) of Bangladesh said the cancellation of the environment clearance certificate "resulted from lack of mutual communication and coordination. Since KEPZ is a priority project in augmenting the country's economic development activities of the organization should continue." The letter singed by senior assistant secretary Habibur Rahman however stated that hill cutting would in no way be allowed, which seemed to be redundant to KEPZ authority since the clearance certificate earlier issued by the DoE was restored unconditional. "We are now ready to jump on full-swing operational activity as import of additional equipment for our shoe industry is already in the pipeline," said MD of the KEPZ Brig Gen (retd) Hasan Nasir. Some 6000 workers are now working at the Karnaphuli Shoes Industry (KSI) in the export zone while 3000 more workers from the locality are likely to join the industry in the next three months, he said. He said that 10 buildings to install machinery on a huge area of 0.1 million square meters of land have already been constructed while construction of eight more factory buildings on another 80,000 square meters, each building on 10,000 square meters, are now under construction in two phases. "By January 2014, development and construction of factory areas on 2, 40,000 square meters will start, which is expected to be completed within one year and a half from then," he said. Apart from that, construction of 12 workers dormitories was scheduled to start recently and four contractors were also selected for that purpose. But some local people have forced them to leave the construction site. KSI, a concern of the Youngone Corporation, will be largest shoes manufacturing industry in the Southeast Asia region located on an area of 113 acres of land in the KEPZ, a private sector specialized industrial zone in the country. A good number of industrial entrepreneurs from abroad have expressed eagerness to set up industries at an estimated cost of Tk 70 billion but the investment has been delayed as the concerned land administration is yet to provide mutation of the land to its owning company Youngone Corporation and the zone is yet to be provided with gas connection which was sought long back, sources said.