Meghna set to get 4th economic zone, highest among business groups

The Meghna Group of Industries will be getting the fourth economic zone (EZ) — the highest among local business groups.

The Bangladesh Economic Zones Authority (Beza) will sign a pre-qualification licence agreement with the Meghna Group to this effect in the capital today.

The Meghna Group expects a new investment of $3 billion in the new economic zone, named Titas Economic Zone (TEZ).

Currently there are three economic zones under the Meghna Group. Of them, domestic and foreign industries are producing products at Meghna Industrial Economic Zone (Miez) and Meghna Economic Zone (Mez) while Cumilla Economic Zone (CEZ) is ready for handover to investors.

Eight private economic zones with final certificates are currently engaged in commercial production under the Beza.

Products are being manufactured in two economic zones of the City Group, namely City Economic Zone and Hoshendi Economic Zone. Besides, Abdul Monem Ltd's Abdul Monem Economic Zone, Bay Group's Bay Economic Zone, Aman Group's Aman Economic Zone and Bashundhara Group's East-West Special Economic Zone are also engaged in product manufacturing.

Three other zones that obtained licences — Sirajganj Economic Zone, Kishoreganj Economic Zone, Karnaphuli Dry Dock Special Economic Zone (SEZ) — are ready for handover to investors.

BEZA Executive Chairman Shaikh Yusuf Harun told The Business Standard that after the pre-qualification licence is issued, certain conditions related to infrastructure development are stipulated. "Following a subsequent site visit, if it is observed that the conditions have been met, the request for final approval is submitted to the Beza Governing Board. Once approval is granted by the Beza Governing Board, final authorisation is given. Subsequently, investors can be allocated their respective spaces," he elaborated.

He said $4.5billion has already been invested in 12 private economic zones that have obtained final licences so far.

The TEZ has been established on approximately 400 acres of land on the bank of the Meghna River at Chalivanga under Meghna upazila of Cumilla. The first phase of development will focus on accommodating domestic and foreign industries on 161 acres, with expansion to the full 400 acres planned for the near future.

Meghna Group officials say TEZ enjoys a lucrative location with river facility and being close to the Dhaka–Chittagong Highway. The zone is 35km away from Dhaka zero point, 50 km from Hazrat Shahjalal International Airport, 210 km from Chittagong Sea Port and 32 km from Kamalapur Rail Station.

Meghna Group looks to $3 billion investments in TEZ

Suman Bhowmik, senior deputy general manager of the Meghna Group, told TBS, "Our group earlier received final approval for three economic zones. Now we're going to get a pre-qualification licence for TEZ, which is expected to have investment of more than $3 billion once the whole zone is occupied by industries. Approximately 60,000 employment opportunities will be created in this economic zone."

Terming the Meghna Group as one of the high-ranked corporate and industrial conglomerates of the country, he said it is going to develop and operate TEZ to generate employment, boost domestic and foreign investment with technology transfer to the country and develop infrastructure facilities.

Under the umbrella of the Meghna Group, TEZ is under intense planning to be an exemplary economic zone in the country, Suman Bhowmik said. "The Meghna Group has much relevant experience in setting up, developing and operating EZs and it is a pioneer in the area of EZs in Bangladesh."

TEZ will maintain international standards to provide uninterrupted supply of electricity, gas, water, and will be equipped with a power sub-station, CETP (common effluent treatment plant), CSTP (common safety training programme), fire services, etc, he said, adding that commercial banks, restaurants, investors' club, helipad facility, mosques, medical centre, etc, will be established for the benefit of investors.

Since TEZ has the advantage of a river close to it, it can go for some of the heavy industries, including but not limited to, in petrochemicals refinery, paper and board mills, pharmaceuticals, ICT products, PVC, power plant, LPG, garments and garments accessories, cosmetics, chemicals, agro-based, plastic & plastic-related products, equipment, packaging and steel-related products, etc, said Meghna Group officials.

Suman Bhowmik said, "Foreign investments are relatively higher In the MIEZ. Several foreign investments are in the pipeline. While there is interest in investing in our economic zones, the investors will make a final decision after the national elections."

10 more private economic zones awaiting licence

In the eight zones that are in operation, there are approximately 85 industrial units involved in production, manufacturing, and other activities. Furthermore, 10 private economic zones are awaiting final approval after already obtaining pre-qualification licences.

The Beza is working toward establishing 100 economic zones across the country by 2041 with the goal of generating employment for one crore people. The Beza also expects to produce and export products worth $40 billion annually in and from these economic zones.

Investors can avail of tax holidays, duty-free imports of raw materials and machinery, exemption from dividend tax, VAT-free electricity, gas and water and other fiscal facilities in the economic zones.

Besides, they enjoy some other non-fiscal advantages, such as bond facilities, One-Stop Service, repatriation of disinvestment, unlimited telephonic transfers and separate customs procedures.