High land price drives away investors from Sreemangal Bscic Industrial Estate

Bscic Industrial Estate in Sreemangal was launched in 2019 to encourage small and cottage industries, but it has not been able to attract any investor yet as the price of the plot there is too high, said entrepreneurs.

A lack of publicity, security personnel and required officials are also the reasons behind the industrial estate's failure to attract any investors in over three years.

Abul Kalam, a businessman in Sreemangal, said it is not possible to set up industries in the industrial estate without government subsidy as the price of plots there is triple the price of a plot of the same size in the surrounding areas.

"People compete to get plots in BSCIC industrial estates across the country, but the scenario is completely different in Sreemangal. There are plots but no buyers. I do not understand whether the authorities are concerned regarding the matter," he said.

Zahar Tarafdar, member secretary of Tea Planters and Traders Association of Bangladesh, said, the value of a plot in Sreemangal Industrial Estate is around Tk4-5 lakh while the current price of a roadside plot of the same size in the area is around Tk1.5 lakh. Who would buy land at such a high price?"

Raju Ghosh, an entrepreneur from the area, said "A businessman would never knowingly invest double than that is necessary for acquiring land in the same area."

Mohammad Kamal Hossain, general secretary of Sreemangal Business Association, said, "Those who are willing to set up industry here should be given special facilities. The price of land should be in line with the local market."

Photo: TBS

Kabir Mia, a local youth, said, "When the industrial estate was built here, the people of the area were happy thinking that there would be factories and unemployment in the area would be eliminated. But now it seems that only the area has been beautified a little, nothing else. It remains locked throughout the year as there is no activity."

Visiting the Sreemangal Industrial Estate area, our correspondent found that there was no staff except a watchman. There were no signboards or banners with contact details or mobile numbers either.

Biswajit Sarkar, a watchman at the industrial estate, said, "There are supposed to be seven employees here but I am working alone. Thieves stole some materials a few days ago. What could I do alone?"

According to sources at the Bangladesh Small and Cottage Industries Corporation (BSCIC), about Tk50 crore has been spent to build the industrial estate with 122 plots. The work to establish the industrial estate on 20 acres of land started in July 2012 and it was launched in June 2019.

Only three entrepreneurs booked plots when the industrial estate was opened, but later they cancelled their bookings and withdrew their deposit money.

Photo: TBS

Pulak Sutradhar, an entrepreneur who booked a plot but did not buy it, said, "I cancelled the booking when I saw no one else was interested in establishing industries there. I set up my factory on a piece of land way less expensive than that inside the BSCIC industrial estate."

Sources at the BSCIC said recently an entrepreneur has applied for 40 plots in Sreemangal Industrial Estate. Moreover, the authorities have been taking initiatives to attract entrepreneurs through newspaper advertisements, seminars, and workshops.

Moulvibazar Deputy Commissioner Mir Nahid Ahsan told TBS, "Why investors are not attracted to the Sreemangal Industrial Estate despite getting all sorts of facilities will be discussed with the stakeholders. Plans will be made to attract entrepreneurs after ensuring all kinds of facilities there."

Md Bellal Hossain Bhuiyan, deputy manager of Moulvibazar BSCIC, said, "We have been running campaigns as per instructions of the higher authorities. The cost of preparing the plots here was high, so its price is high too."

He said entrepreneurs can buy plots in the Sreemangal Industrial Estate in 10 instalments, which is a good opportunity for them.