July 08, 2020: Bangladesh Economic Zones Authority (Beza) is all ready to start site development for an India Special Economic Zone (ISEZ), where billions of dollars in investment are expected to pour in from the neighbouring country.
The Indian authority approved $115 million in funds for the project on June 11 under its third Line of Credit (LoC) worth $4.5 billion to Bangladesh, which was agreed upon in 2017.
“We will sign a commercial agreement with the Adani Ports and Special Economic Zone Limited (APSEZ) shortly to start the implementation work after completing of necessary negotiations,” said Paban Chowdhury, executive chairman of Beza.
He expects the project to be ready for factory setups within June 2021 and the factories to go into operation in full swing by 2023.
Beza already signed an agreement with the APSEZ to develop the zone and the Prime Minister’s Office approved it in January this year.
The government allocated Tk 80 crore under the annual development project this fiscal year for the ISEZ.
Meanwhile, the pre-qualification report for a project management 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 already been completed at Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai, Chattogram.
Now only negotiations are ongoing on whether Beza will be involved in equity or not.
According to Chowdhury, the APSEZ wants Beza to be an equity partner of the ISEZ.
Prime Minister Sheikh Hasina has given her nod for the Ahmedabad-based Adani Group to develop the ISEZ, Chowdhury said.
He believes successful implementation of the ISEZ would eventually reduce the trade imbalance between the two countries that are heavily tilted towards the neighbouring country.
In fiscal 2018-19, Bangladesh’s merchandise shipments to India amounted to $1.24 billion, crossing the $1 billion-mark for the first time, according to data from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
At the same time, Bangladesh imported goods worth $7.64 billion, down from $8.61 billion in the previous year.
The trade imbalance would be reduced while the ISEZ would go into manufacturing products and export it to the neighbouring countries, particularly to the Seven Sister States of India, the Beza executive chairman said.
An Indian diplomat in Dhaka on condition of anonymity told The Daily Star that the Indian side was sincere in completing the construction for the site’s industrialisation.
“Our investors, including giant Adani Group, do not want to waste time for setting up their industrial units in the economic zones,” he added.
Adani eyed the ISEZ as the Indian government supported it and it has got clearance from the Indian authority, said the BEZA executive chairman.
Almost all official formalities have been wrapped up as per Adani Group’s expectations, Chowdhury said.
Adani, which has vast experience as India’s largest private multi-port operator, wants to set up a dedicated port in the zone.
The number of companies that will set up shop at the ISEZ is yet to be finalised but the zone is expected to create about 3 lakhs jobs directly.
The economic zones aim to promote balanced development of multi-product industries in different parts of the country, create jobs for the locals and attract foreign direct investment, Chowdhury added.
An official of Economic Relations Division (ERD) said the Indian authority has given its nod to the ISEZ project last month.
Now, Beza will sign the commercial agreement with the APSEZ to start the implementation work.
The Indian authority has given clearance to five projects under the third LoC, including this one.
Source: The Daily Star
