Study blames wrong policy for lacklustre function of BSCIC

FE Report | Published: February 26, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Wrong policy has crippled Bangladesh Small and Cottage Industries Corporation (BSCIC), keeping it away from achieving its desired result in the industrialisation process of the country, a study report revealed Tuesday.
Many entrepreneurs are said to have got allocation of more than 14 plots, while interested and potential small entrepreneurs have been deprived of plot facility due to the 'defective policy' of the corporation.
Also there are many entrepreneurs having plots in the BSCIC industrial estates, who have kept their allotments idle for a long time. Besides, 20 out of the total 74 industrial estates of BSCIC have been established by assessing their economic potential, and the rest have been established under political considerations.
These were revealed during a daylong roundtable discussion titled 'Past, Present and Future of BSCIC' at a city hotel. Industries Minister Amir Hossain Amu was present at the event as chief guest, while Industries Secretary Mainuddin Abdullah chaired the discussion.
The speakers suggested immediate reform in the existing laws, inclusion of medium industries along with small and cottage industries in the BSCIC policy, cancellation of allocation of those plots, which have been kept unused for a long time, setting ceiling on plot allocation and giving priority to genuine entrepreneurs in opening industries in BSCIC estates.
In the study report on BSCIC, it has been found that since its establishment in 1957, there have been 74 industrial estates in 59 districts with 5747 industrial units. More than 74 per cent of these plots, numbering 4287, are operational, and 487 plots are ready for allocation.
Many of these industries have grown into big ones, although BSCIC, as per its policy, was supposed to remain focused on small and cottage industries. Many industrial plot allottees got as many as 15 plots, which violates the principle of BSCIC. There are also some medium industries too in the BSCIC estates. Besides, the infrastructure and utility services are underdeveloped in the industrial estates.
According to the study, BSCIC has yet to have any mission and vision, and is run by laws which reflect the mindset of the 1960s. The service delivery of BSCIC is not up to the mark, and 30 per cent posts of the corporation are lying vacant.
Despite formulation of sub-contracting rules in 1989, many small entrepreneurs could not reap the benefit of it. Although BSCIC has signed memorandums of understanding (MoUs) with 31 agencies/corporations, the small industrial units could not take the advantage of supplying products to big industries under the rules.
Industries Minister Amir Hossain Amu said a total of 0.54 million people are employed in more than 4200 industrial units at the BSCIC estates, which produced products worth Tk 360 billion in the fiscal year (FY) 2012-13. More than 58 per cent of these products are exportable. The government earns Tk 23 billion in revenue from these industries.
"I hope the participants will make recommendations by assessing the long performance of BSCIC to make it dynamic," said the minister, adding: Specific recommendations should come on structural reform, capacity building, infrastructure development and providing other facilities to the entrepreneurs etc.
The Industries Minister assured of taking prompt steps based on expert recommendations to gear up the development process of small and cottage industries and providing policy support to make BSCIC a role-model for all.