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Some 132 small and cottage industrial units inside two estates of the Bangladesh Small and Cottage Industries Corporation (BSCIC) in Sylhet have long been suffering due to the poor infrastructure and other facilities available to them.
Owners of the affected industries have been reporting their grievances to the estate authorities and related government offices for decades now, yet the problems persist.
The two BSCIC industrial estates in Sylhet are located at the Gotatikor and Khadimnagar areas on the outskirts of Sylhet city.
During a recent visit to the Gotatikor estate, this correspondent found that the key problem for industries present is that the estate’s drainage system is almost completely clogged.
As a result, many low-lying areas become waterlogged during heavy rain, according to the mangers and other officials of several factories inside the estate.
Meanwhile, the Khadimnagar estate is plagued by damaged and muddy roads that become submerged when it rains, as witnessed by this correspondent.
Alimul Ahsan Chowdhury, managing director of Alim Industries Limited, said other than poor infrastructure and waterlogging, industries at the estates are being deprived of certain benefits owed to them.
For example, Jalalabad Gas Transmission and Distribution System Limited, a state-owned gas distribution company in Sylhet, is charging the industrial rate for gas connections even though a reduced rate for small and cottage industries is in effect.
“Similarly, the Power Development Board is charging the commercial rate for electricity without providing the promised rebate,” said Chowdhury, who is also president of the Sylhet chapter of the National Association of Small and Cottage Industries of Bangladesh.
“Besides, the ongoing load-shedding is causing difficulties in production,” he added.
The managing director of Alim Industries, a leading agricultural machinery manufacturer in Bangladesh, went on to say that certain laws, especially those related to tax, are troubling industrialists.
The BSCIC, Department of Inspection for Factories and Establishments, Fire Service and Civil Defence, and Department of Environment have separate rules for establishing a factory.
“As a result, investors at times face harassment by a few unethical officials,” he said.
Chowdhury then suggested a broader government development initiative for small and cottage industries at the BSCIC industrial estates.
The BSCIC had initiated the One-Stop Service back in July 2021 to ease new investments and facilitate smooth business operations inside its industrial estates. However, the service in Sylhet seems ineffective as no concerned government offices have agreed to be a part of it yet.
Tahmin Ahmed, president of the Sylhet Chamber of Commerce and Industry (SCCI), sent a letter to the Prime Minister on September 6 earlier this year, demanding a reduction in the 15 per cent VAT imposed on industries at BSCIC estates in Sylhet even though the law says it should be 4 per cent.
He also demanded a new industrial estate in the region considering the high demand from existing industries as well as potential investors.
Likewise, the BSCIC has been planning to establish a new industrial estate in Sylhet for years now.
After selecting 165 acres of land on September 14, 2020, the BSCIC forwarded a memorandum to the additional deputy commissioner of revenue of Sylhet for further processing.
M Suhel Hawladar, acting deputy general manager of the BSCIC office in Sylhet, said they are pushing the matter with higher authorities but the establishment of a new estate is still stalled on the decision over land.
Regarding the poor infrastructure of existing estates, he said the BSCIC is implementing a Tk 10 crore project at Khadimnagar, where new drainage systems and roads will be constructed.
Another Tk 1.3 crore has been proposed for upgrading the Gotatikor estate while an express power connection for industrial estates is being planned, Hawlader added.
He then said many industries at BSCIC estates are not complying with certain regulations as they do not clear their VAT and other taxes accordingly.
“40 per cent of the industries at estates are of the food industry, and most investors are from outside Sylhet as locals are not keen on industrial investment. Still, we are offering entrepreneurship development training to youths and arranging start-up loans from Karmasangsthan Bank to change the scenario,” he added.
(TDS)
