What's Happening?
The relocation of plastic factories from Old Dhaka to a new industrial park in Munshiganj has faced significant delays, with the project now extended to December 2027. Originally approved in 2015, the project aimed to address health and environmental
concerns by moving factories to a modern facility. However, land acquisition issues and local resistance have stalled progress, with only 14-15% of the project completed. The Bangladesh Small and Cottage Industries Corporation (BSCIC) reports that the project's cost has surged from Tk133 crore to Tk509 crore due to expanded project scope and inflation. Despite recent land possession, the project has been delayed multiple times, impacting the plastic industry's growth and safety standards.
Why It's Important?
The delays in relocating plastic factories are significant for Bangladesh's economy and public safety. The plastic industry is a major economic contributor, with domestic sales and exports generating substantial revenue. However, the current location in Old Dhaka poses fire risks and health hazards to workers and residents. The stalled project affects the industry's potential to expand and attract investment, as well as Bangladesh's international reputation. The prolonged timeline also places financial and psychological stress on entrepreneurs, hindering the sector's ability to meet growing global demand.
What's Next?
The BSCIC plans to complete the Munshiganj project by December 2027, with construction set to begin in phases once land filling is finished. Industry leaders are urging swift completion to enhance safety and boost exports. The government may need to address logistical challenges, such as low river water levels affecting sand transportation, to meet the new deadline. The successful relocation could improve working conditions and environmental standards, potentially leading to increased foreign investment and economic growth.
