Work on Indian economical zone to finally get off the ground soon
Bangladesh Economic Zones Authority (Beza) is ready to start site development for an India Particular Economic Zone (ISEZ), where vast amounts of dollars in purchase are anticipated to pour on from the neighbouring country.
The Indian authority approved $115 million in funds for the project on June 11 under its third Credit line (LoC) worthwhile $4.5 billion to Bangladesh, that was agreed upon in 2017.
"We will sign a commercial contract with the Adani Ports and Special Economic Area Limited (APSEZ) shortly to start out the implementation work after completing of important negotiations," said Paban Chowdhury, executive chairman of Beza.
He expects the job to be ready for factory setups within June 2021 and the factories to get into operation completely swing by 2023.
Beza already signed an arrangement with the APSEZ to develop the area and the Primary Minister's Business office approved it found in January this year.
The government allocated Tk 80 crore under the annual creation project this fiscal year for the ISEZ.
Meanwhile, the pre-qualification statement for a project operations consultant has been sent for vetting to the Exim Bank of India, which is supposed to disburse the LoC.
The site selection and land acquisition for the ISEZ have been completely completed at Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai, Chattogram.
Now just negotiations are ongoing about whether Beza will be engaged in equity or certainly not.
Relating to Chowdhury, the APSEZ would like Beza to be a great equity partner of the ISEZ.
Prime Minister Sheikh Hasina has given her nod for the Ahmedabad-based Adani Group to build up the ISEZ, Chowdhury said.
He believes successful implementation of the ISEZ would eventually decrease the trade imbalance between the two countries that are heavily tilted towards the neighbouring region.
In fiscal 2018-19, Bangladesh's merchandise shipments to India amounted to $1.24 billion, crossing the $1 billion-mark for the very first time, relating to data from the Federation of Bangladesh Chambers of Commerce and Market (FBCCI).
As well, Bangladesh imported goods worth $7.64 billion, down from $8.61 billion in the last year.
The trade imbalance will be reduced as the ISEZ would get into making products and export it to the neighbouring countries, particularly to the Seven Sister Claims of India, the Beza executive chairman said.
An Indian diplomat in Dhaka in condition of anonymity told The Daily Superstar that the Indian side was sincere in completing the engineering for the site's industrialisation.
"Our shareholders, including giant Adani Group, usually do not wish to spend your time for establishing their professional units in the monetary zones," he added.
Adani eyed the ISEZ as being the Indian authorities supported it and it's got clearance from the Indian authority, said the BEZA executive chairman.
Virtually all official formalities have been wrapped up as per Adani Group's expectations, Chowdhury said.
Adani, which includes vast experience due to India's major private multi-port operator, really wants to setup a dedicated port found in the zone.
The quantity of companies that will setup shop at the ISEZ is yet to be finalised however the zone is expected to create about 3 lakhs jobs directly.
The economic zones try to promote balanced creation of multi-product industries in several parts of the country, create jobs for the locals and attract foreign immediate investment, Chowdhury added.
The official of Economic Relations Division (ERD) said the Indian authority has got provided its nod to the ISEZ job last month.
Now, Beza will sign the commercial arrangement with the APSEZ to get started on the implementation work.
The Indian authority has given clearance to five projects beneath the third LoC, including that one.
