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EPZ agro-based units to get cash incentive

BSS, Dhaka
The government yesterday decided to provide 30 percent cash incentive to agro-based industries in the Export Processing Zones (EPZ) to encourage export of agricultural products.
The 21st meeting of the Board of Governors of Bangladesh Export Processing Zones Authority (BEPZA) took the decision with Prime Minister Khaleda Zia, also
chairperson of the BEPZA, in the chair.
Earlier the facility of 30 percent cash incentive was available only for the agro-based industries outside the EPZs.
"This incentive will immensely encourage foreign investors to invest in the country's agro-based industries. A proposal for investment of $8 to $25 million to set up agro-based industries at the Ishwardi EPZ has been received from Sri Lanka," BEPZA Executive Chairman M Zakir Hossain told reporters after the meeting.
The BEPZA gave permission earlier in the country's different EPZs for setting up 291 industrial units of which 203 units have gone into production in six EPZs at Chittagong, Dhaka, Comilla, Mongla, Ishwardi, and Nilphamari.
The BEPZA executive chairman told the meeting that about 1.39 lakh people are presently employed in six EPZs of the country. Of them, 39 per cent are women.
A total of 2 lakh people are expected to be employed when all industrial units in the EPZs would be operating, he said.
The EPZ enterprises in Bangladesh earned $1354 million in 2003-04 FY -- $ 129 million more than the targeted export earning of $1225 million. The amount is 17.8 percent of the total exports of the country, sources said.
Presently, total volume of exports in the EPZs is $8455 million as against $4823.79 million in June 2001. Exports from the EPZs have increased by 75.27 percent in the last three years.
The BEPZA governing body meeting also decided to hand over the remaining 148 acres of Chittagong Steel Mills land and 57.5 acres of land of Central Storage Depot (CSD) Halishahar in Chittagong for the new EPZ. Earlier, the Chittagong Steel Mills handed over 74.2 acres of land to the EPZ.
On a proposal for setting up two new EPZs in Gazipur and Feni, prime minister said the proposal for new EPZs would be considered after full utilisation of the existing EPZ plots in the country.
The BEPZA meeting was informed that the existing 132 KV power line would be removed from Chittagong EPZ while the Ishwardi EPZ would be allowed to use its bypass road permanently from now on.
Finance and Planning Minister M Saifur Rahman, Law and Parliamentary Affairs Minister Barrister Moudud Ahmed, Industries Minister Motiur Rahman Nizami, Food and Disaster Management Minister Chowdhury Kamal Ibne Yusuf, Foreign Minister M Morshed Khan, Shipping Minister Akbar Hossain, Commerce Minister Altaf Hossain, State Minister for Home Lutfozzaman Babar, BEPZA executive chairman and other senior officials concerned were present in the meeting.