Savar leather industrial park to come under Bepza control
Committee to submit proposal to industries ministry within a month
A high-level committee is working on a roadmap to transfer the Savar Tannery Industrial Estate from the Bangladesh Small and Cottage Industries Corporation (BSCIC) to the control of the Bangladesh Export Processing Zones Authority (Bepza).
The committee is expected to submit its detailed recommendations to the industries ministry within a month.
A meeting on the issue was held today (6 November) at the Bida headquarters in Agargaon, Dhaka, attended by members of the committee. The discussion focused on how the industrial estate could be handed over to Bepza, according to meeting sources.
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Officials said the move is part of a broader goal to unify the investment framework, strengthen environmental compliance, and enhance institutional capacity. With Bepza's proven track record in managing central effluent treatment plants (CETPs) across zones in Dhaka, Cumilla, and Chattogram, the transition aims to remove fragmentation, improve environmental management, and boost export competitiveness.
The committee's head and Beza Executive Member Major General (Retd) Md Nazrul Islam told The Business Standard, "A feasibility committee is being formed to comprehensively assess the pros and cons of bringing the Savar Tannery Industrial Estate under Bepza's authority. We're focusing on four pillars — regulatory, operational, administrative, legal, and financial aspects."
He added, "The committee's report will be sent to the industries ministry. After that, the final decision on which agency will oversee the estate will be made. The government is positive about giving this responsibility to Bepza. If implemented effectively, it could help revive the country's leather sector."
Nazrul Islam said this was their fifth meeting, noting that progress was well underway and that recommendations would be submitted to the ministry within this month. The committee includes representatives from BSCIC, Bepza, and industry stakeholders.
A Bangladesh Investment Development Authority (Bida) study found that leather and footwear manufacturers often avoid sourcing raw materials from local companies due to the absence of a functional CETP at the Savar estate. As a result, Bangladesh is unable to fully utilise its export potential while spending large amounts of foreign currency to import raw materials.
Before this, about two months ago, a follow-up meeting was held at the industries ministry to determine the roadmap for the transfer from BSCIC to Bepza. Chaired by industries ministry Adviser Adilur Rahman Khan and attended by Bida Executive Chairman Ashik Chowdhury, the meeting stressed the need to run the CETP efficiently to meet Leather Working Group (LWG) certification requirements – essential for expanding leather exports.
"This is not about turf – it's about delivery. The CETP must be operated by the agency best equipped to deliver, for the sake of our exporters and our national interest," Bida chief Ashik Chowdhury told the meeting.
This move aligns with the government's broader agenda to unify investment promotion and strengthen institutional efficiency for a future-ready economy.
According to the Export Promotion Bureau, Bangladesh's leather sector exports reached $1,145.07 million in FY25.
Citing data from Fortune Business Insights, the global leather goods market was valued at $440.64 billion in 2022, projected to grow to $738.61 billion by 2030.
Industry insiders say that with coordinated policy support, the sector could achieve $5 billion in annual exports by 2030.
Bida finds serious flaws in Savar CETP
To prevent environmental pollution, the industries ministry's BSCIC launched a project in 2003 to build a scientifically managed tannery estate at Savar, complete with Sewage Treatment Plants (STPs), CETPs, and dumping yards. The project was to be completed by 2005.
However, the project's deadline was extended 12 times, and the cost rose from Tk175 crore to Tk1,015 crore. The project was officially declared complete in 2021.
Despite the huge spending, the common chrome recovery unit remains unfinished, and the solid waste resource recovery system was never established. As a result, the estate failed to obtain environmental clearance from the Department of Environment (DoE), which in turn prevents tanneries from obtaining LWG certification.
According to Bida's 2023 study, because most local tannery companies lack DoE clearance and LWG certification, they are forced to import finished leather instead of using locally produced raw hides.
Out of 162 tanneries allocated to the estate, 140 are in operation, producing wet blue, crust, and finished leather.
Bida's report noted that the absence of certification prevents these tanneries from exporting to Europe or the US or selling to international brands. Consequently, they are compelled to sell to buyers in China and other countries at 50–60% lower prices than in Western markets.
According to the LWG website, only eight companies in Bangladesh have obtained certification, including Apex Footwear, one of the country's leading brands. The others are ABC Leather, Riff Leather, SAF Industries, Pioneer Simon Tanning BD Ltd, Superex Leather Ltd, Song Shin Leather (BD) Co Ltd, and Austin Ltd.
