City Group's third EZ gets final go-ahead
After observing the potential in its two already operational economic zones, City Group has embarked on its third venture – the Purbagaon Economic Zone – in full swing to attract substantial investment from both home and abroad.
One of the country's top business conglomerates is developing the zone on about 93 acres of land in Narayanganj's Rupganj upazila – an industrial hub – just 25 kilometres from the capital Dhaka and 180 kilometres from the Chattogram seaport via road.
"Tk10,000 crore will be initially invested in the Purbagaon Economic Zone, through which around 11,000 people will be employed," said Md Hasan, managing director of City Group, after receiving final approval for the initiative.
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The Bangladesh Economic Zones Authority (Beza) on Tuesday awarded the licence for the economic zone at a ceremony held at its headquarters in Dhaka with its Executive Chairman Shaikh Yusuf Harun in the chair.
At the programme, Md Hasan said they have already completed land development and will now focus on the construction of internal roads, drainage systems, and other related works for setting up factories. He expects the primary works will be completed in the next one year.
"There are plans to prioritise investment in the steel mills, chemicals, and ceramics sectors. Keeping this goal in mind, sustainable and environment-friendly green industries will be built," he said.
Laying out their future plans, the City Group managing director said they want to expand the zone to 150 acres of land.
Md Hasan told The Business Standard, "Domestic and foreign investors are already visiting us. So far, companies from Japan, China, and Thailand have expressed their interest in investing in the Purbagaon Economic Zone."
Currently, City Group operates two economic zones: the City Economic Zone in Narayanganj and the Hoshendi Economic Zone in Munshiganj, both already in production.
The managing director said local and foreign companies have already invested Tk21,000 crore in the two EZs, lamenting that two of their factories are ready for operation in Hoshendi but cannot do so due to a lack of gas supply.
He said, "We need uninterrupted electricity and gas in the economic zones to ensure domestic and foreign investment. Beza's cooperation is essential for this. Because if we don't get electricity and gas, investors will lose interest."
In response to a question from journalists, Beza Executive Chairman Shaikh Yusuf Harun said economic zones get the necessary electricity supply.
"But, there is a gas crisis at this moment. The government is trying to resolve the crisis by importing liquefied natural gas (LNG). We hope the crisis will be over soon," he asserted.
The Beza executive chairman said, "We want to go for gas-based factories later after resolving the crisis."
According to the company, City Economic Zone, which received its licence in 2018, hosts eight industries, including grain products, edible oil, crude oil, oven bags, poultry feed, food products, dairy products, etc.
After meeting the needs of the country, the products manufactured here are being exported to different countries. Tk15,000 crore has been invested here, and so far, direct and indirect employment opportunities have been created for around 12,000 people.
On the other hand, the Hoshendi Economic Zone was established on 108.57 acres of land. Since obtaining the licence in 2020, six industrial establishments have been set up. These industries include sodium chloride, refined sugar and sugar products, LPG bottling and supplies, paper and paper products, various types of cement and by-products, and shipping. One of the companies has gone into commercial operation.
About Tk7,000 crore has been invested here, and so far, direct and indirect employment opportunities have been created for about 5,000 people.
The Beza is working toward establishing 100 economic zones across the country by 2041 with the goal of generating employment for one crore people. The Beza also expects to produce and export products worth $40 billion annually in and from these economic zones.
