Tannery relocation project to get momentum
Friday, 10 August 2007
Shakhawat Hossain
Country's lone project aimed at relocation of tanneries to Savar from the city's Hazaribagh area involving nearly Tk 10 billion (1,000 crore) is expected to get an impetus next week as a high-level government committee is set to look into the problems relating to it, official sources said.
The advisers' committee on economic affairs at a meeting Monday next will review the recommendations made by the committees under the Ministry of Industries to remove the existing barriers to the project that was initiated nearly a decade back.
Various issues like fixation of compensation for the affected tannery owners and establishment of the most modern waste disposal plant have been delaying implementation of the much-talked-about project, according to the sources.
The committees under the industries ministry proposed compensating the affected factories, waiver of interest worth Tk 1.2 billion and acquisition of additional 200 acres of land at the same area of Savar to pave the way for declaring the entire project area a 'Special Economic Zone', said additional secretary of the industries ministry Aiyub Mian.
He said, "In the additional project area of 200 acres, establishment of footwear and leather goods factories has been proposed."
The government has already acquired and developed 200 acres of land at Savar at a cost of Tk 3.75 billion to relocate the tannery industry from Hazaribagh.
As the environmental issue is one of the main reasons for the relocation, the committee proposed establishment of a special effluent treatment plant (SETP) at the new site, said the official.
The estimated cost of the SETP has been projected at Tk 1.0 billion to Tk 1.5 billion. The ministry is now dealing with the tender procedure, he added.
Tannery and leather associations chairman Harun Chowdhury alleged that many of their recommendations were dropped from the final proposal.
"We demanded compensation worth Tk 1.0 billion but the committee finally proposed almost one fourth of the total demand," he said, adding that they also sought interest waiver for some 40 factories.
A ministry official, however, refuted the allegation of the associations chairman on compensation, saying that the committee concerned fixed the compensation package following certain criteria.
The representatives of the associations were among the members who set the criteria and prepared the compensation package, he mentioned.
According to the official, the government has already provided subsidy worth no less than Tk 2.95 billion to acquire and develop plots at the new tannery site at Savar.
The government spent Tk 3.75 billion to develop the plots at the new site, but will earn only Tk 800 million by selling those to the tannery owners.
Besides, the government will have to provide many other facilities like income tax waiver in the form of tax holiday to the footwear and leather goods factories, which will cost a substantial amount of revenue, he added.
Country's lone project aimed at relocation of tanneries to Savar from the city's Hazaribagh area involving nearly Tk 10 billion (1,000 crore) is expected to get an impetus next week as a high-level government committee is set to look into the problems relating to it, official sources said.
The advisers' committee on economic affairs at a meeting Monday next will review the recommendations made by the committees under the Ministry of Industries to remove the existing barriers to the project that was initiated nearly a decade back.
Various issues like fixation of compensation for the affected tannery owners and establishment of the most modern waste disposal plant have been delaying implementation of the much-talked-about project, according to the sources.
The committees under the industries ministry proposed compensating the affected factories, waiver of interest worth Tk 1.2 billion and acquisition of additional 200 acres of land at the same area of Savar to pave the way for declaring the entire project area a 'Special Economic Zone', said additional secretary of the industries ministry Aiyub Mian.
He said, "In the additional project area of 200 acres, establishment of footwear and leather goods factories has been proposed."
The government has already acquired and developed 200 acres of land at Savar at a cost of Tk 3.75 billion to relocate the tannery industry from Hazaribagh.
As the environmental issue is one of the main reasons for the relocation, the committee proposed establishment of a special effluent treatment plant (SETP) at the new site, said the official.
The estimated cost of the SETP has been projected at Tk 1.0 billion to Tk 1.5 billion. The ministry is now dealing with the tender procedure, he added.
Tannery and leather associations chairman Harun Chowdhury alleged that many of their recommendations were dropped from the final proposal.
"We demanded compensation worth Tk 1.0 billion but the committee finally proposed almost one fourth of the total demand," he said, adding that they also sought interest waiver for some 40 factories.
A ministry official, however, refuted the allegation of the associations chairman on compensation, saying that the committee concerned fixed the compensation package following certain criteria.
The representatives of the associations were among the members who set the criteria and prepared the compensation package, he mentioned.
According to the official, the government has already provided subsidy worth no less than Tk 2.95 billion to acquire and develop plots at the new tannery site at Savar.
The government spent Tk 3.75 billion to develop the plots at the new site, but will earn only Tk 800 million by selling those to the tannery owners.
Besides, the government will have to provide many other facilities like income tax waiver in the form of tax holiday to the footwear and leather goods factories, which will cost a substantial amount of revenue, he added.