Govt Opens 10,000 Acres to Restart Loss-Making Factories
Representational image: Collected
Government launched a mega plan to restart 44 loss-making and closed state-owned industrial factories.
To facilitate this, authorities have opened over 10,000 acres of strategic land belonging to five state agencies for domestic and foreign private investment.
Foreign firms have already completed business feasibility studies for these stagnant assets. Under the direct supervision of the Prime Minister, his office already held two high-level coordination meetings to accelerate this priority initiative.
Bangladesh Investment Development Authority (BIDA) is supervising and coordinating the entire process.
BIDA officials said that the plan identifies 44 factories under the Bangladesh Chemical Industries Corporation (BCIC), Bangladesh Sugar and Food Industries Corporation (BSFIC), Bangladesh Jute Mills Corporation (BJMC), Bangladesh Textile Mills Corporation (BTMC), and Bangladesh Steel and Engineering Corporation (BSEC).
Government intends to revitalize these assets through joint ventures, Public-Private Partnerships (PPP), and long-term leases.
Strategic Advantages and Investment Pipeline
The land for these identified factories sits in strategic industrial zones equipped with gas, electricity, and water utilities. Road, rail, and water transport links, along with existing infrastructure, significantly reduce investment risks and initial costs compared to new greenfield projects.
Authorities have developed individual business profiles for each factory, detailing potential products, investment return periods, and profit rates.
Within the chemical and paper sector alone, BCIC has established an investment pipeline of around Tk 54,685 crore. Key projects include:
- Khulna Newsprint and Hardboard Mills: A Tk 2,200 crore conversion into a modern pulp, paper, and packaging plant using jute sticks, with potential for a mega lithium battery and energy storage system.
- Savar Tannery Industrial Estate: A Tk 1,500 crore modern leather and waste-to-fertilizer/gelatin plant.
- Chittagong Chemical Complex: A Tk 5,000 crore caustic soda and PVC plant.
- Mirpur: A Tk 748 crore modern insulator and sanitary ware plant, and a Tk 3,000 crore semiconductor and IT industrial technology park on 30 acres.
Diversifying Sugar and Engineering Sectors
Government decided to transform the vast land banks of 15 sugar mills under BSFIC into multi-purpose agro-industrial hubs.
For closed mills in Panchagarh, Setabganj, Shyampur, Pabna, and Kushtia, proposals include corn and fruit processing, dairy processing, grain storage, food packaging, and solar power generation.
Meanwhile, active mills in Thakurgaon, Joypurhat, Natore, Rajshahi, Faridpur, and Mobarakganj will undergo modernization alongside the establishment of export-oriented food processing and cold chain logistics centers.
In the steel and engineering sector, BSEC plans to leverage its brand value to capture import-substitute markets. Pragoti Industries in Chattogram will expand into electric vehicle (EV) manufacturing and CKD assembly, while Atlas in Tongi will produce EV two-wheelers and batteries.
Moreover, the government has finalized a Tk 1,940 crore mega project for North Division’s first eco-friendly “Green MS Steel Mill” in Chhoypukuria, Bogura, with an annual capacity of 3,00,000 tons.
A Transparent Path for Investors
Government established a clear path for investors involving an Expression of Interest (EOI) followed by a Request for Proposal (RFP).
In this partnership model, the government provides land or infrastructure as equity, while the private partner provides capital, technology, and commercial management.
BIDA Executive Chairman Ashik Chowdhury stated, “The private sector is the most suitable for running commercial enterprises. In this win-win formula, the government benefits by creating jobs and reducing financial burdens. Through a transparent structure and fast approvals, investors will have a clear and easy path to acquire these assets.”
Industry Secretary Abdun Naser added, “Initiatives have been taken to increase investment by reopening closed factories according to the government’s election manifesto. Several local and foreign companies have already shown interest. Work is progressing accordingly.”
