Introduction
The Bangabandhu Sheikh Mujib Shilpa Nagar, also known as the Mirsarai Economic Zone will become the nation’s first multi-sector EZ. The Bangabandhu Sheikh Mujib Shilpa Nagar may meet the requirements to develop into one of the nation’s prosperous economic zones. Located in the strategically important Dhaka-Chittagong industrial corridor, the BSMSN area is one of the most ideal major locations nationwide. It will help the nation’s economy grow by attracting both domestic and foreign direct investment (FDI) and Direct Investment(DI) mostly because of its advantageous location.
Background
Export Processing Zones (EPZs) are a powerful tool for promoting the Bangladeshi economy. The EPZ concept was used as a strategic instrument to attract FDI and fix shortcomings in the country’s overall investment climate. Although beneficial in many ways, the EPZ model deployed in Bangladesh has limitations in terms of its overall effects and capacity to deliver positive advantages for the domestic economy. Despite their status as export regions, Export Processing Zones (EPZs) have shown weak backward and forward links with the local economy. As a result, they have shown poor levels of technological innovation and efficiency, which are usually associated with foreign investment. Furthermore, investments outside of the RMG market did not develop. To address these issues, the Government of Bangladesh (GoB) examined the current framework of Economic Zones (EZs). It relied on plenty of successful examples from around the world.
The Bangladesh Economic Zone Act was passed by the Bangladesh Parliament in August 2010, and it serves as a complete framework for the construction of Economic Zones (EZs) throughout the country. The passage of this Act, which falls under the authority of the Prime Minister’s Office (PMO), permitted the foundation of the Economic Zone Authority (BEZA). BEZA is governed by a Board of Directors, which is chaired by the Prime Minister. The EZ law establishes a regulatory structure for attracting and utilizing private sector investment in the construction and operation of zones. This includes zone developers or operators as well as the supply of critical infrastructure services such as power, water, drainage, sewage, effluent treatment, wastewater treatment, and telecommunications. The Act also allows for the creation of EZs and the building of infrastructure through the use of a Public-Private Partnership (PPP) framework.
Location & Area
The BSMSN site is situated 200 kilometers (km) from Sylhet, 330 km from Dhaka, 60 km from Chattogram, 70 km from Chattogram Port, and 60 km from Chattogram International Airport. There are 26 mouzas in the BSMSN Master Plan area, which is divided into two districts, three upazilas, and six unions. With a 25-kilometer coastline along the Sandwip Channel in the Bay of Bengal, BSMSN has a total land area of 33,805 acres, or 136.86 square kilometers (km2), the majority of which is reclaimed land. The area where the site is located has moderate to intense monsoons, with 500 mm of yearly rainfall on average. The site has annual temperature variations of 15 to 25 degrees Celsius on average.
The seashore and Mirsarai Town encircle the BSMSN site, which is situated at the easternmost point of the Bay of Bengal. It is only 10 km west of the Dhaka-Chittagong Highway, as well as 11.5 km west of the nearest railway station. Both the seaport and the Shah Amanat International Airport at Chittagong are situated 67 km and 79 km south of the site, respectively. The closest market, Azampur Bazar, is located around 2 kilometres north of the location.
Connected by water and road with the country’s largest seaport in Chattogram, the BSMSN will produce numerous import substitutes and export-oriented products and provide opportunities for entrepreneurs to transport raw materials and finished products by water and road.
Vision
Over two years, a vision and development direction for BSMSN was developed, aiming to maximize development potential, create value, and provide economic, social, and environmental benefits for the region and Bangladesh. BSMSN will be the first large-scale, mixed-use, combined urban/industrial city and economic zone in Bangladesh, incorporating smart, green, and resilient technology. It will compete with top-tier zones in China, South Korea, and the Middle East. Strategically located 60 km from Chattogram, BSMSN will become the premier destination in Bangladesh’s new economic corridor, the third largest and first comprehensively planned city. The zone will be created with advanced infrastructure and services, with a focus on green technologies and safety measures. BSMSN will attract new investment opportunities, increase exports, diversify industry sectors, knowledge transfer, and create job prospects for the local community. The GoB must prioritize and support the project, abide to the BSMSN concept, master plan, and development standards, and collaborate with stakeholders to establish the economic zone.
Benefits of BSMSN
As per BSMSN’s Official website, the outputs of BSMSN are:
- Private investment (PI) and Foreign Direct Investment (FDI).
- Green investment (GI), compliance standards and resilience.
- Women empowerment as well as employment
- Public-Private-Partnership (PPP)operation and decentralization in EZ management; and
- Efficient management in BEZA and BSMSN.
Investment Proposals
At this point, BEZA said 127 local and international business groups have sent the government investment proposals worth a total of US $23 billion for the creation of Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai.
An official from the Bangladesh Economic Zones Authority (BEZA) also said that the economic zone had received business proposals worth about US $5 billion during the stagnant situation of COVID-19.
Invested Amount
As per the English Newspaper businesspostbd.com’s report on November 24, 2023, for 50 years, BEZA has been leasing developed land to investors for Tk 2 crore per acre and undeveloped land for Tk 1 crore. The authority has already allocated 5,271 acres of land to 152 investors, and $1.23 billion has been invested in the zone so far.
Job Opportunity
On January 2, 2021, Md. Tazul Islam, Minister of Local Government, Rural Development, and Cooperatives said that the Mirsarai Economic Zone will create about 30 lakh jobs.
Zone for Textile & Other Industry
BGMEA Garments Park:
The Bangladesh Economic Zones Authority gave the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) 500 acres of land in the BSMSN so that they can build a well-planned ready-made clothing industry park. The BGMEA will spend $2 billion to build RMG and clothing accessories companies in this park, which will give jobs to 500,000 people.
According to the BGMEA website, so far, some 41 apparel manufacturers have taken allotments of industrial plots at Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) to establish garment factories in the park.
The following factories got the plot allotment at the Bangabandhu Sheikh Mujib Shilpa Nagar:
- Apparel Gallery Ltd.
- Uni Gears Ltd
- R. D. M Apparels Ltd
- Mars Sportswear Ltd.
- Shamser Rezia Fashion Ltd
- R.O Textile Mills (Pvt) Ltd
- Four H Fashions Ltd
- Charm Fashion
- Columbia Garments Ltd
- Columbia Apparels Ltd
- Shin Shin Apparels Ltd.
- Visual Knitwears Ltd.
- Sams Attire Ltd
- Uranus Apparels Ltd
- TBH Fashion Tex (Pvt) Ltd
- Advance World Ltd
- Epyllion Style Ltd
- Al-Ittefaq Textiles Ltd
- B.L.P. Warm Fashions Ltd
- Chowdhury Fashion Wear Ltd
- Well Fashion Ltd
- Graphics Textiles Ltd
- SF Denim Apparels Ltd
- Impressive Knit Composite Ltd
- Clifton Cotton Mills Ltd
- Clifton Apparels Ltd
- SQ Celsius Limited
- Afrah Dresses Ltd
- Energypac Fashions Ltd.
- Denim Fashions Ltd
- EH Fabrics Ltd
- Pacific Cotton Ltd
- Global Shirts Ltd
- Karim Textiles Ltd.
- Avant Garments Ltd
- Alps Apparels Ltd
- Image Garments Ltd
- Musk Trousers Ltd
- Delicate Garments Ltd
- Babylon Garments Ltd
- Babylon Casual Wear Ltd
- Pacific Cotton Ltd
- Global Shirts Ltd
- Karim Textiles Ltd.
- Avant Garments Ltd
- Alps Apparels Ltd
- Image Garments Ltd
- Musk Trousers Ltd
- Delicate Garments Ltd
- Babylon Garments Ltd
- Babylon Casual Wear Ltd
Ananta Group in Mirsarai:
Ananta Group is going to build six additional manufacturing facilities in the Mirsarai Economic Zone to make yarn and fabrics. As one of the biggest clothing exporters, Ananta Group signed a land lease deal with BEZA on November 7, 2017, so they could build six factories in the Mirsarai Economic Zone (MEZ). The land is 250 acres and belongs to Ananta Group for 50 years. The business will put in about BDT 3,500 Crore and expects to hire 25,000 people.
Indian Special Economic Zone
A 900-acre special economic zone for Indian businesses is being developed in Chattogam’s Mirsharai, with significant financial contributions from the neighboring country accounting for Tk915 crore of the project’s total cost of Tk965 crore.
In Bangladesh’s other economic zones, numerous Indian businesses have already made investments.
Of them, Bangabandhu Sheikh Mujib Shilpa Nagar received investments from Asian Paints Ltd ($26 million), Ramky Enviro Pty Ltd ($10 million), and Marico Bangladesh Ltd ($26.72 million).
Companies That Have Started Their Production
As per the reports of several newspapers & official confirmation from BEZA at least five companies have started their production.
Asian Paints Bangladesh
Asian Paints Bangladesh presently operates a BSMSN production facility on 20 acres of land with investments totaling $26 million.
Bashundhara Industrial EZ Ltd
The country’s largest industrial group, Bashundhara Group, is building Bashundhara Industrial Park. They have agreed to buy 500 acres of land from the Bangladesh Economic Zones Authority (BEZA). Bashundhara Group will put in USD 500 million to set up Industries as part of the land lease deal. Among other things, the group plans to build a very modern wood, paper, and board mill that will create 10,000 jobs. Currently, a Bashundhara factory is producing industrial chemicals.
Nippon and McDonald Steel Building Products Ltd.
Nippon and McDonald Steel Building Products Ltd. have invested $59 million to build a 100-acre complex that produces prefabricated steel.
Marico Bangladesh
Marico Bangladesh is producing coconut oil in the zone with a $27 million investment.
TK Group
Two subsidiaries of Chattogram-based TK Group will use the BSMSN to manufacture import-substitute goods.
A sister concern of TK Group Samuda Construction Ltd. is producing PHC (Pretensioned Spun High Strength Concrete) piles with an investment of $34.70 million.
Modern Syntex Ltd., another plant of TK Group, will be set up at BSMSN to produce textile-grade PET chips to meet the demand of yarn-making mills.
Modern Syntax aims to begin commercial operations by March 2023 with an investment of $155 million.
We can expect yearly demand for PET chips and other items to be met to the tune of 38% once production begins.
According to a representative from TK Group, Modern Syntax can produce 460 metric tons of these materials per year, but the demand is 12,250 metric tons.
Companies Who Have Planned to Set Up Plant
The most fascinating factory under construction at the BSMSN is the country’s first electric vehicle (EV) manufacturing plant. Bangladesh Auto Industries Ltd. invested $99 million in three factories to develop EVs.
“Homegrown green cars are a demand of the time,” said Mannan Khan, head of the company. In three plants, we will manufacture two, three, and four-wheelers. We will sell an EV sedan for Tk 12 lakh and an SUV for Tk 20 lakh.”
Fakir Knitwear Limited has said it will invest about US $45.82 million to build a knit composite factory in Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai, Chattogram.
The following companies have made investments: Arman Haque Denims, $8.79 million; Berger Paints, $19.3 million; Healthcare Pharma, $26 million; Samuda Food Products, $205 million; Zhuzhou Jinyuan Chemical, $28 million; and Techno Electrical & Vicar Electricals, a sister company of SQ Group, $34.7 million.
“Our company is working on a plan to produce 150 km of electric cable per month,” stated Amal Kanti Barua, Project Development Director of SQ Cables.
ACI Group
ACI has access to 100 acres of land at the BSMSN to set up production units. M Anis Ud Dowla said that ACI is taking part in the zones because they have all the tools that businesses need.
Later, Dowla said that ACI would set up its plants as quickly as possible.
PHP Group
In the meantime, PHP, a Chattogram-based company involved in the shipbreaking, steel, and float glass industries, has a 500-acre land lease in the BSMSN & they plan to invest USD 4 billion to manufacture thirty lakh metric tonnes of steel annually.
Meghna PVC Ltd.
This includes Meghna PVC Ltd, the country’s biggest PVC plant, which will make petrochemical goods that Bangladesh currently gets from other countries.
The plant will make Polyvinyl Chloride (PVC) resin and Polyethylene Terephthalate (PET) resin (bottle grade) to sell to companies that make wires and cables, floor paving materials, fake leather, toys, shoes, and carbonated drinks and drinking water. “We are the first local company coming to the petrochemical industry,” said MGI Chairman and Managing Director Mostafa Kamal.
Tannery Village
The second Tannery Village in the nation will soon be established in Mirsarai, Chittagong, under the BSMSN “Industrial City” belt.
The projected Tannery Village will be located on almost 300 acres of property that BSMSN has allocated.
Adani Wilmar Limited (AWL)
Adani Wilmar Limited (AWL), a joint venture between the India-based Adani Group and Singapore-based Wilmar International Ltd., will invest Tk3,350 crore in Chittagong’s Bangabandhu Sheikh Mujib Industrial City (Mirsarai Economic Zone) to produce agro-based foods and related goods.
Berger Paints Bangladesh Limited
Berger Paints Bangladesh Limited, the top paint brand in the country, is to invest Tk 250 crore in Chattogram’s BSMSN (Mirsarai Economic Zone).
The Bangladesh Economic Zones Authority (BEZA) has granted Berger 30 acres of land. There are currently two plants in the nation owned by the UK-based firm.
HA TECH
The Australian biotechnology company HA TECH plans to invest up to Tk 700 crore, or up to $80 million, to build a large-scale active pharmaceutical ingredient (API) production plant in Bangladesh. This facility might help the nation satisfy the increasing demand for its products.
Unitex
Unitex Group is to invest roughly Tk 650 crore in the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Chattogram to establish manufacturing facilities for paint, steel, and chemicals.
BSRM
A cashew nut processing plant will be built at Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) with an investment of Tk 50 crore by Bangladesh Steel Re-Rolling Mills (BSRM). This will help the local economy and support farmers.
Akij Venture
A subsidiary of Akij Group called Akij Venture has said it plans to invest Tk 3,480 crore to build 18 factories in Chattogram’s Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN).
Four foreign and domestic firms invest USD 50 million
Four firms, including Campex (BD) Ltd of the United States, Fengqun Composite Material Company Ltd of China, Univogue Garments of Sri Lanka, and TexTrim Labels (Bd) Ltd of Bangladesh, signed lease agreements for land in Bepza on February 19, 2022, and would invest USD 50 million.
Others Group
The following domestic and foreign companies are among the investors in EZs: City Group, Bay Group, Aman Group, Abdul Monem Group, BEPZA, Asian Paints, Sumitomo Corporation, CCECC, Jeihong, Honda Motors, Miago, Huntsman, Siegwork, TIC, Sakata Inx, Sika Ltd., Jotun Paints, Singer, and so on.
BSMSN Overview
According to the BEZA, a local politician named Engineer Mosharraf Hossain MP advised Prime Minister Sheikh Hasina of the advantages of establishing an economic zone in Mirsarai in early 2011. BEZA’s first governing board meeting on April 14, 2012, voted to establish an economic zone in such an area.
BEZA first gained possession of 900 acres of land on March 31, 2015. BEZA purchased an additional 6,000 acres of property the following year. Land development began in 2015 as part of an infrastructural development project.
The building of the power supply line, super dike, gas connection, major road of the project, and PGCB grid line began in 2018.
The first industrial construction began at BSMSN (Jinyuan Chemical) that same year, but Asian Paints and McDonald Steel were the first to begin production.
