The government has been forced to take liability of around Tk 800 crore in the next budget to complete relocation of tanneries outside the capital after
the businessmen denied to bear any relocation cost.
Officials said the government’s liability will be borne for the construction cost of the central effluent treatment plant (CETP) at the new tannery park in Savar at a cost of around Tk 550 crore and Tk 250 crore as compensation fees.
An inter-ministerial meeting chaired by finance minister Abul Maal Abdul Muhith on May 14 took the decision although the leather businessmen had agreed to meet the major portion of the liability.
Successive governments have long been trying to relocate the leather industries outside the capital for reviving the moribund river Buriganga that received about 21 thousand cubic meters of untreated effluent each day from tanneries at Hazaribagh.
A project was taken in this connection in 2003 to relocate the tanneries in Savar under which a central treatment effluent plant was to be constructed to treat toxic wastes other than developing lands at the new site.
The tanners, according to a memorandum of understanding they signed with the government in 2007, had agreed to payback the construction cost of CETP in installments in 15 years.
But they showed reluctance to comply with the MoU which caused delay in construction of CETP and overall relocation process of around 200 ternaries.
Industry minister Dilip Barua said they could not start construction of the CETP in time due to non-cooperation by the businessmen.
He said selection of a contractor was done almost one year ago.
But construction process has been held up as the businessmen showed no interest in signing necessary loan agreements with the ministry on CETP, he said.
The inter-ministerial meeting asked the industry ministry to begin the construction of the CETP without further delay. It also decided that a company will be formed by the participation of the leather industries to look after the CETP in future.
Bangladesh finished leather, leather goods and footwear association chairman Belayet Hossain said the government decisions to pay the CETP cost and Tk 250 crore as compensation will help relocation of the tanneries.
He, however, did not make any comment on their failure to comply with the MoU. He said there were still unresolved issues including incentive and waiving of bank interest.
Industry ministry officials said the delay has already pushed up project costs by manifolds. Initial cost of around Tk 175 crore has now swelled to Tk 825 crore.
They said more than 205 plots on 200 acres of land have already been allocated to 156 entrepreneurs through Bangladesh Small and Cottage Industries Corporation.
-With New Age input
