The government is developing the country’s first industrial park for electrical and light engineering product manufacturers at a cost of Tk 300 crore in Munshiganj, which could herald a beginning to bring the highly scattered and unorganised industries under a single platform.
Already 83 per cent of the project work has been completed, and the Bangladesh Small and Cottage Industries Corporation (BSCIC) said the industrial city would be ready by June next year.
This is going to be the first organised industrial enclave for electrical products and light engineering items manufacturing units, which have sprung up in an unplanned manner across the country.
The BSCIC is developing the industrial area to provide all infrastructural facilities to engineering and electrical products making industries that cater to the huge domestic market.
The light engineering sector makes products worth Tk 10,000 crore, meeting a third of the local demand of Tk 30,000 crore annually, according to the Bangladesh Light Engineering Industry Owners Association.
Electrical products makers say the local market for electrical items is Tk 20,000 crore to Tk 25,000 crore, and they cater to a portion of the gigantic market.
“While allotting plots in the industrial park, we will give priority to the manufacturers that make fans, switches, sockets, light fittings, and small-scale substation equipment,” said Enayet Hossain Chowdhury, a director of the Bangladesh Electrical Merchandise Manufacturers Association (BEMMA).
The association represents more than 700 members.
The number of plots is 362 in the industrial park. Half of them will go to the electrical products’ makers and the rest to the light engineering makers.
“We will need more plots,” said Chowdhury, also a former president of the organisation.
The project will create 10,750 jobs.
The project was approved by the Executive Committee of the National Economic Council in June 2016. Initially, the cost was estimated at Tk 213.26 crore. The cost was later revised up to Tk 309.59 crore, according to project documents.
Abdul Jalil, director of the project, said: “Currently, the coronavirus situation is worsening. If there is no major crisis, I will be able to complete the project before the deadline.”
The park is located over 50 acres of land. The construction of the administrative building of the project is underway.
The minimum size of a plot is 6,000 square feet. However, if an entrepreneur seeks a larger plot, the BSCIC will provide it if it deems the demand logical, the state-run agency said.
Abdur Razzak, president of the Bangladesh Light Engineering Industry Owners Association, said the association had been calling for setting up the park since 2006.
“We have 350 members. All of them are interested in getting a plot.”
Entrepreneurs say the quality of the products produced in the sector has not improved in a major way as they still use century-old technology. But at the industrial city, there will be opportunities to run business in an organised manner and improve the quality of products.
The journey of the light engineering industry started after independence. Initially, factories were concentrated in Dholaikhal, Tipu Sultan Road, Narinda, Taher Bagh, Banagram, Jinjira, Keraniganj and other parts of old Dhaka.
Later, factories were set up in Bogura, Syedpur, Jessore, Chattogram, Kishoreganj, Brahmanbaria, Pabna, Natore, Rajshahi, Naogaon, Cumilla, and Noakhali.
There are about 50,000 factories all over the country.
According to the association, $15 billion has so far been invested in the light-engineering sector.
The industry directly employs six lakh skilled and about one million semi-skilled workers. Indirectly, about 6 million people are making a living from this industry.
The annual growth of the sector is 10 per cent.
BSCIC Chairman Mustaq Hasan said after the implementation of the project, entrepreneurs would be able to produce electrical and light engineering products in eco-friendly places.
“SMEs will be able to contribute to the GDP,” he said.
Electrical products’ manufacturers employ 5 lakh people, and the sector is growing at 20 per cent annually.
Entrepreneurs say if the project is implemented, there will be a facility for waste disposal, and the environment will not be polluted.
Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue, said: “If the industrial city is built, it will be the first step to overcome all these problems.”
“This will reduce the transaction cost, make it easier to procure raw materials, broaden the image of the country, and attract more companies to invest in the park.”
“At the industrial city, entrepreneurs will pay more attention to the production of quality products.”
Entrepreneurs need to apply for the plot through the two associations.
