Despite extensive efforts in the country's leather industry over many years, progress has been quite limited. In 2017, Prime Minister Sheikh Hasina took initiative for establishing two dedicated leather industrial cities in Chittagong and Rajshahi, aiming to address the crisis and foster growth in the leather sector.
Even after six years have elapsed since the announcement, the land settlement process for these two industrial cities remains far from being finalized.
Bangladesh Small and Cottage Industries Corporation (BSCIC) has plans to establish three additional leather and leather products industrial parks, in addition to the already planned Savar Leather Industrial City.
The BSCIC has taken initiative to set up these three industrial parks in strategic locations--Puthia in Rajshahi, Mirsharai in Chittagong, and tannery industrial city in Savar.
As the third term of the current government draws near its conclusion; the realization of the two proposed leather industrial cities remains unfulfilled.
BSCIC, however, has faced challenges in making substantial progress towards actualizing the Prime Minister's visionary initiative.
The previous establishment of the Savar leather industry by the state agency has proven largely ineffective in safeguarding the city's environment, leading to significant non-compliance issues within the leather sector.
Mentionable, in 2003, there was an initiative to establish the nation's first modern, compliance-focused leather industrial city under the then-government. Subsequently, in 2009, when the current government assumed power, preparations began anew to create the Savar leather industrial city.
In response to the Ministry of Industries' insistence, the Hazaribagh tanneries were relocated to Savar in 2017. Environmental pollution persisted in Savar, leading to no substantial improvement in the sector. Despite nearly six years passing since the inception of the plan to establish two new industrial cities, the progress of implementation has been disappointingly minimal.
Based on a recent report by the Ministry of Industries, the implementation of the Prime Minister's promises and directives faced a hurdle last month. The obstacle arose due to the unavailability of land in the economic zone in Mirsharai.
In response, BSCIC has taken initiative to establish the ‘BSCIC Leather and Light Engineering Industrial Park’ at Mirsharai in Chittagong in the areas of East Ichakhali and West Ichakhali Mouza, located adjacent to the economic zone.
Given the absence of an economic zone in Rajshahi, authorities have undertaken a new initiative to establish the ‘Basic Leather and Engineering Industrial Park’ on a vast expanse of 124.21 acres of land at Swarupnagar and Bharuapara Mauzas in Puthia Upazila of Rajshahi District.
BSCIC sought to secure land from the unutilized economic zone in Mirsharai for the establishment of the ‘BSCIC Leather and Light Engineering Industrial Park’ in Chittagong.
Bangladesh Economic Zones Authority (BEZA) however conveyed that it was not feasible to allocate the requested land. In light of this setback, BSCIC pursued an alternative place by obtaining a no-objection letter to acquire land from sources other than BEZA for the proposed industrial park.
While three years have passed since receiving the no-objection letter, the acquisition of the necessary land is still pending.
In 2021, BSCIC Chairman Md Mahbubor Rahman conducted a visit to the prospective site neighbouring the BEZA economic zone in Mirsharai, with the intention of acquiring land.
Following this visit, the corporation promptly dispatched an urgent letter to district administrator, seeking approval and providing a cost estimate for the acquisition of 100 acres of land. As of now, the land acquisition process remains unresolved and the desired land has not yet been secured.
BSCIC sources said, they submitted a proposal to BEZA authority, requesting the allocation of 322 acres of land at Mirsharai Industrial Park in Chittagong.
Initially, BEZA showed willingness to provide 100 acres of land from the location. Later, BEZA retracted its decision and declined to allocate the specified land to BSCIC.
Taking into account the recommendations put forth by this committee, BSCIC has submitted a consent letter to the Rajshahi district commissioner, requesting the allocation of 500 acres of land situated along the Rajshahi-Naogaon/Rajshahi-Natore highway.
The district administration has granted BSCIC a consent letter, specifying the value of only 124.21 acres of land located in Swarupnagar and Bharuapar Mouza in Puthia Upazila of Rajshahi.
The project named ‘Basic Leather Industrial Park Dhaka’ is intended to be executed through the acquisition of an additional 200 acres of land adjacent to the existing leather industry.
BSCIC plans to revise the Detailed Project Plan (DPP) based on the recommendations derived from the feasibility study for this proposed project.
To move forward, BSCIC has reached out to the Dhaka District Commissioner with three letters, seeking a no-objection clearance to obtain the required land for the project. However, as of now, the company is still awaiting the issuance of the no-objection letter.
When contacted, BSCIC chairman Md Mahbubor Rahman did not any comment regarding the leather industry’s development progress.
