Naogaon economic zone: Will it remain a pipe dream?

Highlights:

• Approved in 2019
• Only 6-7 acres acquired in four years
• Lack of 'khas' land blamed for the delay 
• Private land costs three times the market price 

Lack of land – "khas" land to be specific – has been the stumbling block in the way of setting up an economic zone in Naogaon since its in-principle approval in 2019, to the dismay of local businesses who have long aspired to grow and become linked to the mainstream economy.

Planned as part of the government efforts to set up economic zones in potential areas of the country to encourage rapid economic development through diversification of industries and employment creation, the economic zone could not progress beyond the acquisition of only 6-7 acres of land in the past four years. 

According to Bangladesh Economic Zone Authority (Beza) officials, a significant portion of the land in the proposed site for the Sapahar Economic Zone in the district is under private ownership. 

Also, Prime Minister Sheikh Hasina has directed prioritising the use of government-owned "khas" land for such projects. Typically, the acquisition of privately-owned land requires payment three times the market price, they say.

In January 2020, Beza granted approval for the acquisition of 250.63 acres of land for the economic zone, following its initial approval in September 2019.

In the same year, the district administration forwarded a letter to Beza requesting an allocation of around Tk71.82 crore for land acquisition. However, there have been no further developments regarding the establishment of the economic zone since then.

Milton Chandra Roy, additional deputy commissioner (revenue) of Naogaon, said, "We sent a letter to Beza in 2021, and a team from Beza visited the area in 2022. However, there have been no updates since then."

Beza Executive Chairman Sheikh Yusuf Harun told TBS, "Although there is an in-principle approval for establishing an economic zone in Sapahar, we cannot implement it at the moment. Only 6-7 acres of khas land are available, with the rest privately owned."

"There is a circular from the finance ministry stating that land acquisition cannot be pursued for the time being. As a result, we have scaled back our efforts on constructing the economic zone. However, they remain part of our long-term plans. We aim to establish economic zones in every district," he added.

Locals demand the economic zone

Traders and entrepreneurs in the district say the establishment of the economic zone would significantly enhance the region's economic development, providing numerous employment opportunities. 

They said the primary crops in the Sapahar region are mangoes, paddy, and wheat. Currently, farmers are showing a growing preference for mango cultivation over other crops. After Chapainawabganj, Naogaon now ranks as one of the largest commercial mango-producing regions in the country.

If the economic zone is set up here, the upazilas of Porsha, Niamatpur, Patnitala, Dhamirhat, Mahadevpur, as well as some upazilas in the Chapainawabganj district, will benefit greatly. They are also calling for the establishment of a land port in the district to facilitate export-import trade with neighbouring India.

Mango farmers emphasise that for lack of storage facilities, mangoes worth millions of taka are lost annually in the region. Entrepreneurs express their desire to establish mango juice factories if the economic zone is constructed here.

Sohel Rana, a mango farmer in Sapahar, said every year, thousands of maunds of mangoes are damaged due to natural calamities, with mangoes often spoiling even in intense heat due to the absence of storage facilities. He said a high-quality juice factory in the economic zone would greatly benefit the farmers of the region.

Iqbal Shahriar Russell, president of the Naogaon Chamber of Commerce and Industry, said there is an urgent need to establish an economic zone for the development of multipurpose factories to harness the district's mango production. He stressed the significance of economic zones and land ports due to the region's geographical location, stating that these initiatives offer a chance to overcome the economic crisis.

Shariful Islam, former principal of Naogaon Government College, said, "Our region faces significant economic challenges and requires the establishment of large-scale factories for advancement. Considering Naogaon's socio-economic context, the administration should expedite the process of building an economic zone."