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®he JWilu ^tar Syedpur BSCIC estate makes a difference

Industrial units on all 90 plots: Investors want expansion

EAM ASADUZZAMAN, Nilphamari
The Syedpur BSCIC industrial estate is different from others in the country. While most areas in other estates are virtually grazing fields, the Syedpur BSCIC authorities have appealed to the government for expansion following pressure from investors.
Thirty-seven out of 47 industrial units in the estate are running in full swing, two are ready to go into production soon, one is under construction and seven are 'sick'.
These produce a variety of items including foodstuff, cosmetics, iron
and rubber products, spare parts and small equipment, electric goods, jute products and organic fertiliser.
Despite odds and disadvantages for being in the remote northern part of the country involving higher transportation cost, the units are operating profitably and marketing their products all over the country.
BSCIC (Bangladesh Small and Cottage Industries Corporation) completed the estate on 10.93 acre land in 1990 at a cost of Tk 1,46,78,000.
There are 90 plots in three catego-ries--A, B and S-- according to size. 'A' and 'B' type plots cost Tk 77,479 each
and 'S' type costs Tk 51,652, all payable in 10 equal installments.
Chief Estate Executive Engineer Rahidul Islam told this correspondent that all the 90 plots were allotted to the 47 industrial units, some occupying more than one plot.
The estate authorities help the investors in all possible ways to get bank loan, in preparing project proposals, getting power-water supply, importing raw materials and marketing the products.
They also provide the investors with latest information on invest prospect and technology and technical assis-
tance also, he said.
"Despite many disadvantages our products have good market in the country", said Aminul Islam, owner of Khalil Antomatic Flour Mills ltd. The demand is increasing day by day, he said.
Investors here are enterprising, industrious and practical. "Cheap and skilled manpower and all out cooperation from the BSCIC estate officials are also major factors in our success", Islam said.
"Our products have to compete with imported goods and more privileged industrial units in Dhaka and Chittagong. They enjoy government subsidy given to many sectors but we do not get anything here", he said.
Shawkat Chawdhury, General Secretary of Syedpur BSCIC Industrial Unit Owners Association, had some allegations.
"Despite recommendation from BSCIC authorities, public sector banks do not give us loan", he alleged.
"Private sector banks co-operate with us but their interest rate is too high --from 14 ½ to 16 ½ percent.
"So we have to count huge interests even before going into production".
Electricity rate is also "very high", Tk 7.50 for pick hour consumption and Tk 3.50 for the rest, he said.
As investors we do not get any extra facility, he regretted.
Three industrial units were auctioned for failure to pay huge bank interest.
"We have no gas supply enjoyed by units in Dhaka and Chittagong",
Shawkat said. Their production cost is lesser as they use gas.
Investors in Dhaka and Chittagong get big bank loans by mortgasing small land property because value of land there is at least 10 times the value here, he said.
Shawkat said carrying cost of imported raw material from Chittgoing to Syedpur is Tk 14,000 per truck. But it is around Tk 6,000 for investors in Dhaka.
He demanded reduction of bank interest rate, power subsidy and supply of gas for investors in northern districts.
Despite all these disadvantages, no plot is vacant in the estate since 1996.
Now prospective investors are demanding expansion of the industrial estate.
The BSCIC authorities said they sent a proposal to higher authorities in 1999 to acquire more 15 acres of land for expansion of the estate.
A high-powered five-member team visited the area and submitted a report approving the proposal, they said.
The Industries Ministry approved the proposal and sent it to the Finance Ministry, one source said.
The BSCIC estate authorities said they have at least 75 prospective investors in hand, ready to set up industrial units, if plots can be arranged.
They said the the Industries Minister Motiur Rahman Nizami during a visit to the estate one and a half years back had said that he would take steps for its expansion. But it is yet to be materialised.