The government is likely to transfer the management of the Savar Leather Industrial Estate from the Bangladesh Small and Cottage Industries Corporation to the Bangladesh Export Processing Zones Authority in an effort to boost environmental compliance and revive the country鈥檚 leather export sector.
A high-level committee, led by Bangladesh Economic Zones Authority executive member Major General (retired) Nazrul Islam, met on Thursday at the Bangladesh Investment Development Authority to outline the transition plan.
The committee will submit its recommendations to the Ministry of Industries in a month.
Officials said that the transfer aims to bring the estate鈥檚 central effluent treatment plant under BEPZA鈥檚 control, drawing on its experience managing similar systems in Dhaka, Cumilla and Chattogram export processing zones.
鈥楤EPZA has extensive experience in CETP management. Bringing the Savar estate under its control will improve efficiency and restore global confidence in Bangladesh鈥檚 leather industry鈥�, Nazrul Islam told 抖阴精品.
However, the transition faces legal and financial challenges as BSCIC and BEPZA operate under different laws.
Some tannery owners also have unpaid loans, and revising the cost-sharing model for CETP operations could strain their finances.
Representatives from the law ministry and the attorney general鈥檚 office are working on legal alignment and restructuring proposals, said officials. The final proposal will include recommendations for legal alignment, financial restructuring, and worker welfare protections.
Earlier, the government formed an eight-member task force, headed by industries adviser Adilur Rahman Khan, to coordinate the merger of six state investment bodies, including the BSCIC.
At the task force鈥檚 first meeting in April, Adilur opposed merging BSCIC but supported transferring the leather estate to BEPZA, citing its stronger management capacity.
At the task force鈥檚 first meeting in April, Adilur opposed merging BSCIC but supported transferring the leather estate to BEPZA, citing its stronger management capacity.
The Savar Leather Industrial Estate, established in 2003 to relocate tanneries from Dhaka鈥檚 Hazaribagh, was designed to feature modern waste treatment systems.
Despite investments exceeding Tk 5.47 billion, the CETP remains partly functional and continues discharging untreated waste into the Dhaleshwari River.
The Dhaka Tannery Estate Treatment Plant Company Ltd managing director, Golam Shahnewaz, said that the CETP operates at only 55鈥�60 per cent efficiency.
It was built to treat 25,000 cubic metres of effluent per day, but peak tannery output exceeds 30,000 cubic metres, with effective treatment limited to about 14,000 cubic metres.
Environmental experts warn that the pollution has effectively shifted from the Buriganga to the Dhaleshwari.
A Dhaka University study found lead levels five times above the World Health Organisation limit and widespread microbial contamination in the Dhaleshwari.
Residents report waterborne illness and vanishing fish stocks, while chromium-laden sludge dumped on riverbanks has raised fears of groundwater contamination.
In response, BSCIC launched the 鈥楧haleshwari Protection鈥� project to build a containment pond preventing leachate runoff. But industry insiders blame poor initial planning, citing inadequate space for pre-treatment facilities.
鈥楾hey didn鈥檛 allocate enough space for pre-treatment before the CETP鈥�, Zahidur Rahman, a leather engineer at Salma Tannery, said.
Due to environmental non-compliance, Bangladesh鈥檚 tanneries remain ineligible for Leather Working Group certification, blocking access to premium European and North American markets.
Bangladesh Tanners Association chairman Shaheen Ahmed welcomed the proposed transfer, calling it 鈥榓 long-awaited step toward restoring discipline鈥�.
The sector, which earns about $1.2 billion annually, including $150 million from processed leather, could significantly expand exports if compliance improves, he said.
According to the Export Promotion Bureau, leather exports reached $1.15 billion in fiscal 2024鈥�25.
Officials project that with BEPZA-led management reform and environmental upgrades, exports could reach $5 billion by 2030.
