Top government officials’ recommendations would probably be sought by the Bangladesh Economic Zones Authority (Beza) while determining the future of two Indian special economic zones (SEZs), which have not shown any discernible progress in the last two years or so.
Bangladesh approved a Taka 845 crore project in February 2019 to build a zone for Indian investors on 1,000 acres of land within Bangabandhu Sheikh Mujib Shilpa Nagar in Chittagong Mirsharai. To carry out the assignment, Beza and the Adani Ports and Special Economic Zone which had been selected by India signed a memorandum of understanding in October 2019.
In April 2022, another deal was signed on the terms of forming a joint venture for this purpose. Sources at Beza said they sent a draft to Adani on how the joint venture would be run, but the latter was yet to send any feedback
Besides, two Indian companies selected by India to place bids for the zone’s earth-filling project informed of their withdrawal just a day before the 29th February tender submission deadline this year, sources said.
Beza wrote to the Indian authorities, including the Exim Bank of India, to allow Bangladeshi firms to participate in the bidding process, an option unavailable under an Indian line of credit (LoC) for implementing the project, they said.
Another condition stipulates that 65 per cent of components must be purchased from India during the implementation of any project under the Indian LoC, which is another obstacle to implementing the Indian SEZ, the sources added.
Regarding the other zone, a 2015 deal between Bangladesh and India stipulated that Beza will assign 110 acres of property close to the Mongla port in Bagerhat.
India designated Hiranandani Group as the developer and ARTELIA Consulting to offer the designs, along with an agreement to supply a US $ 15 million loan.
Beza insiders claim that since the Prime Minister’s Office received a draft on the creation of a joint venture to carry out the project more than two years ago, there has been no response. Beza and the Indian authorities have not spoken since the fall of the Sheikh Hasina-led Government on 5th August.
However, Indian Prime Minister Narendra Modi had highlighted the need for initiating operations fast at the two zones with the-then prime minister of Bangladesh, Sheikh Hasina who visited Delhi on 22nd June.
