BSCIC plans to allocate 1,089 vacant plots, revitalise inactive industrial units

The Bangladesh Small and Cottage Industries Corporation (BSCIC) plans to allocate 1,089 unalloyed plots and revitalise inactive and closed industrial units in its industrial cities across the country.

According to BSCIC sources, applications from interested entrepreneurs have already been invited through a circular. Male entrepreneurs must pay 20% of the total plot price to apply, while female entrepreneurs need to pay 15%.

"We have held meetings with deputy commissionersto ensure that plots can be allocated to entrepreneurs promptly. Our short-term action plan is to complete the allocation of vacant plots within two months," BSCIC Chairman Ashraf Uddin Ahmed Khan told TBS.

According to BSCIC sources, as of June 2024, 11,271 out of 12,360 industrial plots have been allocated across 82 industrial areas developed by BSCIC in Dhaka, Chattogram, Rajshahi, and Khulna regions.

Of these, 4,704 units are operational, 1,139 are under construction, and 357 are categorised as inactive or closed.

On inactive or closed industrial units, the BSCIC Chairman said, "Entrepreneurs are not using the plots for their intended purpose. Some have constructed buildings but are not producing goods. We are taking steps to revitalise these units and are engaging with the entrepreneurs to find solutions."

Earlier, applications were invited from entrepreneurs for several industrial areas, but the response was poor. Entrepreneurs say high land prices, broken roads, lack of security, and inadequate essential services discouraged them from showing interest.

For example, 341 plots remain vacant in the electrical products and light engineering industrial area, where the price per acre is set at Tk4.94 crore.

Entrepreneurs have complained that land prices are excessively high, making it infeasible to establish industries there.

Esrat Jahan Chowdhury, owner and founder of Tulika, a specialised brand from manufacturing and exporting jute products, said, "I considered acquiring a plot in BSCIC, but the high land prices deterred me. Additionally, the lack of good transportation infrastructure and difficulty in finding workers have prevented me from setting up a factory there."

The BSCIC Chairman said, "Entrepreneurs often complain that plot prices are too high and request a reduction. However, we have to repay loans taken from the government. The funds borrowed from the Finance Division to develop the industrial areas must be repaid."

He added, "Entrepreneurs compare plot prices with nearby land rates, but we buy land at three times the cost and then develop it, providing many additional facilities, which increases our expenses.

"We are trying to lower plot prices." 

Esrat Jahan Chowdhury, who is also the former director of the Bangladesh Jute Goods Exporters'Association, noted that despite having a large number of entrepreneurs, many plots remain vacant because BSCIC industrial areas are not modernised to meet current demands.

She emphasised the need for an effective one-stop service. "Entrepreneurs should be able to rent small or large offices as needed, along with shared meeting rooms, interview rooms, or dedicated desks. There should also be centralised training facilities to build a skilled workforce. Dormitories should be available so that workers can stay on-site if necessary," she said.

She also highlighted the importance of establishing a reliable ecosystem, including dependable transportation services for product delivery, access to raw materials and accessories. "This would help small factories support each other and thrive," she added.

"The most crucial aspect is having ready-made structures in various sizes for setting up factories. Entrepreneurs should be able to install machinery and start operations easily," she further said.

According to BSCIC sources, Dhaka division has the highest number of vacant plots, with 502 across 27 industrial areas. In BSCIC industrial city Rajshahi-2, 241 plots remain unoccupied, while Gopalganj(expansion) has 100, Sreemangal has 65 and Chuadanga has 53 vacant plots.

BSCIC's latest annual report shows there are currently 6,842,884 cottage industries, 104,007 micro-industries, 859,318 small industries and 7,106 medium industries. In the 2023-2024 fiscal year, this sector contributed 37.95% to GDP.

Benefits of acquiring BSCIC plots

When an entrepreneur acquires a plot from BSCIC, he or she is provided with various facilities, including drainage systems, roads, electricity, gas, water supply and security.

The notice for vacant plot allocation issued by BSCIC offers the option to pay in instalments. The plot prices can be paid either in a lump sum or in 12-14 instalments over 6-7 years.

Interested industrial entrepreneurs can apply for plots at the relevant district or industrial city office of BSCIC. The plot allocation will be done through the respective district plot allocation committee.

Currently, BSCIC has 82 industrial cities across the country. To date, 6,200 industrial plots have been allocated for setting up factories, of which 4,704 are operational. In the 2023-2024 fiscal year, industrial factories generated exports worth Tk31,757 crore. Around 825,000 people have gained direct employment in these factories.