Project taken up for expanding 40 BSCIC industrial estates

FE Report The government has taken up a project for expanding 40 industrial estates of the Bangladesh Small and Cottage Industries Corporation (BSCIC) in a bid to accommodate more entrepreneurs there and help boost country's industrialisation, Industries Minister Dilip Barua said Wednesday. "New plots will be allocated to the small and medium enterprises (SMEs) and women entrepreneurs will get priority over others after successful implementation of the project," the minister said. The minister was speaking as chief guest at the seminar on "Infrastructure Development and Sectoral Zones for Small and Medium Enterprises (SMEs) in Bangladesh" held in the city. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) organised the seminar on the occasion of fifth SME fair 2011 at Bangabandhu International Conference Centre. "The government is attaching priority to the establishment of sustainable private industrial sector for employment generation," Mr Barua said, adding though the government will not set up any new industry it will provide all-out policy, logistics, marketing and infrastructural support to the private sector to set up new industrial units. The minister also underscored the need for single digit bank interest and a separate bank for SMEs for the fast development of the sector. "The proposed SME Park will create direct employment for 2,000 people while another 17,000 will get full time job during its construction, operation, supply of goods and services," Executive Director and Chief Executive Officer of IIFC, Dhaka Nazrul Islam said while presenting his key note paper. This project could be integrated with other projects such as the Padma Bridge Project as the latter is supposed to affect 13,500 households due to acquisition of land while the SME Park will provide them with job opportunity, he said. The SME Park project will be viable if it is done under PPP model which the SME Foundation considers as their preferred choice, he said. FBCCI president AK Azad sought government assistance for infrastructural development in the country. He stressed on implementation of PPP and more economic zones and expansion of BSCIC estates to attract more investment. Speakers at the seminar stressed on the need for sectoral zones for SMEs through private public partnership (PPP) for successful and smooth industrialisation in the country. Government can utilise the unused land of the state-run industries for setting up economic zone as land acquisition becomes major challenges for setting up industrial park, they said. Abu Reza Khan, member of Bangladesh Export Processing Zones Authority (BEPZA) said land acquisition is the main challenge to setting up economic zone for SMEs and land prices rose manifold in recent times. Long- term master plan should be taken for future entrepreneurs regarding the area of industrial park for SMEs as the park proposed 150 acres at Keraniganj or near the location, he suggested lauding the proposed park location saying it will help reduce traffic congestion in the capital city. But Director of FBCCI Fazlul Hoque expressed his doubt whether SMEs would relocate in the proposed industrial park for SMEs since the relocation might cost more than the setting up of factories. "The project for setting up economic zone might not be viable if 80 per cent new investment could not be attracted," he said. He also laid emphasis on more feasibility study and discussion with businessmen to get real benefit from the park. They also stressed on separate industrial zone for women entrepreneurs to utilise the creative potentiality of women.