THIS is deplorable that the authorities have failed to address the issues that have rendered Bangladesh Small and Cottage Industries Corporation Industrial Estate 2 in Rajshahi unattractive to entrepreneurs. Launched in July 2022 as a Tk 1.5 billion project, the estate was meant to create 10,000 jobs and stimulate small and medium enterprises in the region. It, however, remains largely vacant. Exorbitant land price, incomplete infrastructure and the absence of utility services have made the estate unappealing. The estate has set the plot price at Tk 1,148.27 per square foot, which two to three times higher than market prices. Such inflated rates, combined with a lack of facilities, have discouraged local small-scale entrepreneurs from investing. Several entrepreneurs who initially expressed interest and even applied for plots have withdrawn their applications, citing that the estate鈥檚 condition falls far short of what was promised.
Progress in providing utilities has been painfully slow. The estate has only recently been on-grid while sewerage and gas lines are yet to be installed. More concerning is the absence of a central effluent treatment plant, crucial for managing wastewater. Yet, more than 80 per cent of the allotted plots have been assigned to pesticide and chemical-processing industries. Without a CETP, the operation of the industries would threaten the environment and public health. Entrepreneurs are also wary of the increased operational costs associated with the estate鈥檚 location, seven kilometres off the city, which lacks direct train or river links. This logistic shortfall will drive up transport costs for raw materials. Additionally, banks are reluctant to finance ventures in the estate because of the high initial capital requirement and infrastructural uncertainties. Consequently, only 49 of the 286 industrial plots have so far been allotted and industrial activity has begun on only three plots, that too partially. The authorities are now reportedly considering inviting large industries from Dhaka and Chattogram to use the estate. This, however, undermines the purpose of the park of fostering local SMEs.
Rajshahi BSCIC 1 also remains in a poor condition as its problems have similarly gone unaddressed. Yet, the authorities have proceeded with a second estate. The state of BSCIC 2 starkly illustrates the neglect and systemic challenges faced by the SME sector, which employs around 80 per cent of workers in the informal economy. The authorities should address the issues to make the estate viable and attractive to meet the project鈥檚 original purpose.