In a move that would reduce trade imbalance between Bangladesh and India (which amounts to several billion dollars in favour of the latter) once implemented, according to officials of Bangladesh Economic Zone Authority (BEZA), the neighbouring countries have reportedly set modalities of building two Special Economic Zones (SEZs) in coastal Mongla belt and Kushtia, dedicated to Indian investors, at a Joint Working Group (JWC) meeting between the two sides held in Dhaka recently.
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“The economic zones will be awarded if both parties agree on the relevant terms and conditions,” reportedly said a BEZA official.
The Mongla SEZ would reportedly be set up on about 205 acres of land and the other in Kushtia on 477.16 acres. According to reports the move to set up the SEZs comes under a Memorandum of Understanding (MoU) signed between India and Bangladesh during the last visit of Indian Prime Minister Narendra Modi to Bangladesh, last year.
According to sources, India has chosen the locations for investment, for which a feasibility study had been conducted to find out the economic potential of the Indian investment earlier.
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Officials claim that the two economic zones – formally deemed as Bangladesh-India Government-to-Government Economic Zones – would be set up under the new US $ 88 million second Indian Line of Credit (LoC).
Sources further informed that the JWC discussed framework for setting up the economic zones, feasibility study, sectors of focus, market focus, model of developing the economic zones, preferences of Bangladesh Government, fit address to security concerns of developers, incentives, exemption, concession, legal protection to the EZs, development of infrastructure by Bangladesh Government, human resource supply, etc.
