BGMEA demands uniform facilities for EPZ non-EPZ RMG factories

Garment factories situated outside the Export Processing Zones (EPZs) are getting unequal facilities compared to those located inside the EPZs, resulting them to face various challenges, BGMEA sources said.
Factories inside the EPZ, which exports 100 per cent of its production, are enjoying 10-year tax holiday and duty free machineries import facilities. The apex garment body in its budget proposal has urged the government to ensure the facilities for factories situated outside the EPZs.
Stakeholders said, in recent days factories outside the EPZs are facing acute gas and power crisis resulting in low production and less competitiveness. On the other hand factories inside the EPZs are getting uninterrupted gas and power supply, which make them more competitive. In this situation the demand of similar facilities for both the factories become more plausible.
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Abdus Salam Murshedy told The New Nation yesterday that 100 per cent export oriented factories situated outside the EPZs are entitled to enjoy same facility to factories inside EPZs under section 14 of industrial policy 2005.
But the factories are no enjoying same facilities, which make them less competitive than factories inside EPZs. As a result factories inside the EPZs could place low price offer to buyers, which the other factories can’t, he said.
Dhaka EPZ’s General Manager AZM Azizur Rahman recently said that the area gets uninterrupted gas and power supply which results more production in the factories. The rules of supplying gas, power and water is being followed strictly. On the other hand no labour unrest occurred there in the last two years.
He said, factories inside the EPZ pay wages to the workers and employees on time.
Shafiul Islam (Mohiuddin), second Vice President of the BGMEA and Managing Director of Onus Garments Ltd termed it as a great discrimination. He said factories outside the EPZs are struggling to survive as power and gas cut become very frequent in the recent days.
On the other hand, he said, factories inside EPZs are enjoying uninterrupted power and gas supply and also various tax and duty related facilities. He said, the government should encourage local entrepreneurs providing similar facilities to factories outside the special zones.
BGMEA Director and Managing Director of Classic Fashion Concept Ltd Shahidullah Azim said establishment cost of a factory outside the EPZs is 70 to 80 higher than factories inside the EPZs. As a result production cost become much higher which make them less competitive.
He said the recent frequent gas and power cut have become a great concern for factory owners. It is unfair that the government will ensure uninterrupted gas and power supply to EPZ factories and outside factories will suffer, he said.
Sources said at present 283 industrial units are situated inside the eight EPZs in the country while 3,789 readymade garment factories are situated outside the special zones.
Of the 283 industrial units 104 are situated in Chittagong EPZ, 96 in Dhaka EPZ, 18 in Comilla EPZ, 12 in Mongla EPZ, 5 in Uttara EPZ, 3 in Isshwardi EPZ, 5 in Adamjee EPZ and 4 in Karnafuli EPZ.

Courtesy of The New Nation