India backs away from Bheramara economic zone project
India thinks it will not be convenient to invest in the project based on the feasibility study report
The Indian authorities have cancelled their plan to establish an economic zone at Bheramara in Kushtia.
They have already informed the Bangladesh government of their decision.
The Bangladesh Economic Zones Authority (Beza) and Economic Relations Division officials said, based on the feasibility study report, the Indian authorities think the economic zone in Bherama will not be convenient for investment.
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That is why they discarded the plan, officials said.
According to the minutes of the meeting held at the Prime Minister's Office in February this year, India is not interested in establishing the economic zone in Bheramara. Instead, it is interested in establishing a tourism park near the Naf River and constructing a cable car over the river.
Indian officials said, at the joint working group meeting held on August 21 last year, that they no longer wished to consider the Bheramara site, and requested that an alternative site be considered.
The project of establishing two economic zones in Mongla and Bheramara was taken under the Indian Second Line of Credit (LoC). India was supposed to lend $88 million to implement the project.
As the Bheramara project has been cancelled, Indian officials said the remaining funds of around $50 million will be used for a new project.
The project has not yet received final approval by the Indian authorities. That is why it has not yet been raised at the Executive Committee of the National Economic Council (Ecnec) meeting.
Officials said the Bheramara project was cancelled but India wants to establish the economic zone in Mongla.
Beza said the Mongla project proposal was sent to the Indian government and is currently being reviewed. A memorandum of understanding was signed in February last year between Beza and the Nidar Group to set up the zone.
Also, 110 acres of land was allocated for the Mongla project, but an additional $30-40 million will be needed to develop the zone as per India's requirements.
On the other hand, another project titled Bangabandhu Sheikh Mujib Shilpanagar in Chattogram's Mirsharai under the Second LoC is underway. It was approved by Ecnec in mid-2019, and is estimated to be finished by June next year.
India is providing Tk914.59 crore of the Tk919.85 crore project. Beza officials said Indian investors would be able to invest there by next year.
