Bangladesh Small and Cottage Industries Corporation (BSCIC) has been grappled with an unproductive industries conundrum, as approximately 23 per cent of total industrial units in its different industrial estates remain idle. The state-owned organisation also struggles to make proper use of the allocated plots, sources said.
Many plot owners at BSCIC industrial estates have failed to set up factories within the designated timeframe. Furthermore, among the allotted plots, some are in the process of development, while others languish in a state of disrepair.
The data revealed from a BSCIC report covering the period from the FY23.
Sources said the failure to utilize these BSCIC industrial plots results in missed opportunities for the government to collect revenue, denies employment prospects for the unemployed, and hinders genuine Small and Medium Enterprises (SMEs) from acquiring suitable land for conducting business.
Across the country, the BSCIC has allocated a total of 12,313 industrial plots in 5,984 industrial units, spread over 82 industrial estates. Among these units, 4,570 are currently in production.
Additionally, there are 912 industrial plots undergoing the process of being set up after plot allocation, while 436 plots remain inactive and in a neglected state, having been closed down. In last May, five new industrial units were inaugurated in BSCIC industrial estates, and over the past year, a total of 129 industrial units have commenced operations.
As of two years ago, the BSCIC managed a total of 10,922 plots distributed across 76 industrial estates, with 4,570 factories in active production. However, the current scenario shows an increase in the number of industrial estates to 6, yet a worrisome decline in the count of productive industries. In fact, estimations suggest that there are now more closed-down industrial units than newly established units.
As per the policy, companies are required to establish their factories within 18 months of receiving the plot allotment. However, a majority of companies fail to adhere to this schedule and delay their factory construction beyond the planned timeframe.
In 1960, the organization embarked on its mission to facilitate the industrialization process of SMEs by developing and allocating commercial plots equipped with utility services and improved transportation systems.
According to the data provided by BSCIC last March, there are 11,922 industrial plots in 80 industrial estaes. Out of this, 10,713 industrial plots have been allotted to 5,858 industrial establishments. Out of the allotted establishments, 4,511 industrial establishments were operational. At that time, BSCIC wants application for allotment of 1,003 allotable vacant plots. Until now, the company has published a notification on the website keeping the application for allotment of plots in BSCIC industrial estates.
After receiving applications from entrepreneurs interested in getting plots, BSCIC conducts a feasibility study and then allots plots. If one fails to construct the factory within the time limit, the allotment may be cancelled. Each plot is leased for 99 years. Entrepreneurs can pay the full lease amount at once or in 10 installments over a period of five years.
The BSCIC industrial estate, situated in Mahisherchar area of Madaripur Sadar Upazila, was constructed at a total cost of Tk61 crore. Surprisingly, despite the completion of construction work, half of the industrial plots still remain unallocated. Moreover, the allotted plots are also vacant and not utilized.
The cost of land in this particular industrial estate amounts to Tk910.43 per square foot, while in Gopalganj industrial estates, the price per square foot of land stands at Tk620.62.
Speaking to The Business Post, BSCIC Director Ahsan Kabir said, “The authorities sought applications for establishing industries on available vacant plots. These applications will undergo thorough evaluation and subsequent allocation. The endeavour to transform industrial estate plots into productive sectors is an ongoing and continuous process. The focus is on promoting industrialization, especially for SME entrepreneurs, through the establishment and expansion of new industrial estates.”
Traders claimed that the prices of industrial plots in many new industrial estates are excessively high, leading to a decline in entrepreneurs' interest. The absence of gas connections further contributes to the lack of attraction towards these estates. The land prices surrounding these areas are considerably lower, while BSCIC continues to charge high rates for their plots.
Mentionable, the industrial estates of BSCIC provide employment to approximately 6.7 million people, both directly and indirectly. These estates have seen a substantial investment of around Tk63,318 crores.
