Tk 1.5 Billion Project Overrun by Kans Grass
Graphics: Agamir Somoy
Four years ago, the Bangladesh Small and Cottage Industries Corporation (BSCIC) Industrial Estate-2 in Paba upazila of Rajshahi was declared ready for small entrepreneurs. Built at a cost of nearly Tk 1.5 billion, the project has remained virtually stagnant for a long time because of high-priced plots, inadequate infrastructure and the lack of necessary facilities. Most of the estate, developed on 50 acres of land, is now covered with kans grass.
Located beside the Rajshahi-Dhaka Highway on the outskirts of Rajshahi city, the industrial estate has 286 industrial plots. The project, launched in July 2022, aimed to create employment for around 10,000 people and promote small and medium industries. However, as of April this year, only 71 plots have been allocated to 57 companies. Of those, only four plots have partially started production activities. More than 200 people have been employed there. The remaining plots are now covered with kans grass.
A visit to the site found that three Dhaka-based pesticide manufacturing companies: Agro Link BD, Aramco and Redova Agro Limited—have started operations in the northeastern corner of the project area. A company named Renex has also partially begun production on the northern side of the main gate. However, a central effluent treatment plant (ETP) has yet to be installed in the industrial estate. As a result, the lack of industrial waste management facilities is creating a major public health risk.
Rajshahi Department of Environment Inspector Nil Ratan Sarkar told Agamir Somoy, “There was supposed to be a central ETP here. But it has not yet been installed. Among the companies that have started operations, only one has introduced its own ETP. The others have not even applied. I will inspect the matter on site.”
Meanwhile, a shortage of local entrepreneurs, unusually high land prices, the absence of gas and sewerage facilities, and poor communication systems have caused the industrial estate, built at a huge cost, to stumble at the outset.
According to information obtained, the price of land at BSCIC-2 has been set at Tk 1,148.27 per square foot, which is much higher than in most industrial estates across the country. As a result, many small and medium entrepreneurs in Rajshahi have lost interest in taking plots there.
Masudur Rahman Rinku, former president of the Rajshahi Chamber of Commerce and Industry, said the price is two to three times higher than the market rate. As a result, investment there has become almost impossible for local entrepreneurs.
Md. Hasen Ali, president of the Small and Cottage Industry Owners Association in Rajshahi and president of the Rajshahi Chamber of Commerce and Industries, said industrialization in Rajshahi is lagging because of poor transportation facilities. The high price of land in BSCIC Industrial Estate-2 is also discouraging entrepreneurs. Although a letter was sent to the ministry demanding a reduction in land prices and an increase in various facilities, there has been no response so far.
Md. Sekendar Ali, general secretary of the Rajshahi Business Coordination Council, said BSCIC’s objective was to help small entrepreneurs establish industries. “But buying 4 to 5 kathas of land at Tk 800,000 per katha requires nearly Tk 4 million, which is beyond the reach of most small entrepreneurs.” He said entrepreneurs’ interest would increase if land prices were reduced and installment facilities of at least 10 years were introduced.
Rosettee Najneen, president of the Rajshahi Women Chamber of Commerce and Industry, believes that small entrepreneurs cannot afford to buy these expensive plots unless easy-term loans are arranged.
Rafiqul Islam, deputy general manager of BSCIC Rajshahi, acknowledged the high price of the plots. “The project area was low-lying, and a huge amount was spent on land filling. As a result, the price of the plots is a bit higher.”
