Mirsarai BSCIC Industrial Estate stifled with power, gas, water crises for years

Infographic: TBS

Reliance Can Industries received two plots, each 6,000 square feet, at the BSCIC Industrial Estate in Mirsarai, Chattogram, in 2021 to set up a blood bag manufacturing factory.

The company plans to invest Tk14 crore in the facility, which will produce medical equipment, with 70% of its output intended for export to various African countries.

However, persistent crises of electricity, gas and water have delayed its construction for three years. Additionally, the company requires another 6,000-square-foot plot to proceed with its planned facility.

These ongoing challenges have caused delays in its investment timeline, leaving the owner uncertain about when the issues will be resolved.

Reliance Can Industries is not alone in facing delays; numerous local and foreign companies allocated plots in the country's 75th BSCIC (Bangladesh Small and Cottage Industries Corporation) Industrial Estate are unable to commence factory construction due to similar challenges.

The industrial estate lacks a gas connection, while frequent load shedding caused by reliance on rural residential electricity lines is deterring investors from starting factory setup.

Since the completion of the Mirsarai BSCIC Industrial Estate project in 2017, only eight companies have commenced production in seven years, employing just 55 people.

Despite 80 industrial companies acquiring 88 plots on the 15.32-acre site, full-scale operations are yet to begin. Once fully operational, the estate is expected to create 5,000 jobs.

BSCIC officials attribute the delays to a lack of gas supply and uninterrupted electricity. Currently, Mirsarai experiences four load-shedding events daily. On 21 November, the BSCIC authorities sent a letter to the Chattogram Rural Electricity Association seeking a resolution.

Ekramul Hoque, managing director of Reliance Can Industries, told The Business Standard, "We plan to set up a medical plastic unit. However, shortages of electricity, gas and water, along with the unavailability of plots suited to factory requirements, pose significant challenges."

"Many companies have acquired plots for resale rather than factory construction, despite the rule prohibiting plot transfers within five years of allocation. These issues are becoming increasingly frustrating for us," he added.

He said infrastructural development in the estate is also lacking, adding that Reliance has been allotted two plots under two company names, but an additional plot is needed to execute its factory plan.

"Due to legal restrictions, we cannot acquire it from a neighbouring plot holder. If these problems are not resolved quickly, investors will lose interest in this industrial estate," he cautioned.

He said once operational, the factory is expected to create 180 jobs.

The BSCIC Industrial Estate benefits from a good communication network, being located near Mirsarai Sadar and the Dhaka-Chattogram Highway. In 2020, BSCIC proposed expanding the estate's size but could not proceed since many allocated plots remain non-operational.

Mohammad Tanjilur Rahman, promotion officer of BSCIC Mirsarai Industrial Estate, told TBS, "Mirsarai experiences load shedding four times a day, leaving factories without electricity for over three hours during working hours. Additionally, gas connections have not been provided to the factories."

He noted that many companies are unable to start production due to the lack of gas and uninterrupted power, adding, "It is very difficult to operate even a small factory without a stable power supply. Therefore, I wrote to the Mirsarai Rural Electricity Association on 21 November, requesting an uninterrupted power system."

Chattogram Palli Bidyut Samity 3 covers Mirsarai upazila and parts of Sitakunda and Hathazari upazilas, with an electricity demand of 68MW, which drops to 50MW in the winter.

Mridul Kanti Chakma, general manager of Chattogram Palli Bidyut Samity 3, told TBS, "An application has been submitted by BSCIC for a dedicated feeder line. We have forwarded the matter to the higher authorities for approval. If approved, it may take around six months to connect the feeder, which will span approximately 1.5 kilometres from the Mithachara Substation."

The eight companies currently operating in the BSCIC Industrial Estate are Ayaqub Auto Rice Mill, Khaja Bhandar, Khan Accessories, Nasir Chemical, Alif Food, Meghna Dal Mill, Innova Textile and AB Commodities. Together, these companies employ 55 people. Innova Textile alone has 25 employees and is expected to create several hundred jobs once fully operational.

Investors have expressed concerns about the lack of basic facilities, including the unavailability of drinking water even at depths of 60 feet. They emphasised that these issues must be resolved before further factory work can commence. Without these basic amenities, attracting investment to the estate remains challenging.

M Fazle Karim Liton, Director of China-based Intex Link Garments (BD) Limited, told TBS, "Due to the small plot sizes, setting up a factory here requires three to four plots. Even when additional plots are acquired, various complications arise in transferring them from others."

He added, "Although we were allotted two plots two years ago, we have been unable to begin construction as we are awaiting registration for two more plots. Once confirmed, we plan to build a solar factory alongside the garments factory, which will employ over 1,000 people."

According to BSCIC, the government initiated the establishment of the Mirsarai BSCIC Industrial Estate in 2009. In 2010, then-prime minister Sheikh Hasina formally announced the project at an event in Mirsarai. However, its progress was delayed due to complications such as earth filling.

The industrial estate, completed in 2017 at a cost of Tk29.25 crore, offers plots priced at Tk800 per square foot. Entrepreneurs can pay for the plots in nine instalments over five years.