Unavailability of fuel major obstacle to industrialisation in Khulna region

Khulna Chamber of Commerce and Industry Director Md Mofidul Islam Tutul talks to Anindya Haque of The Business Standard about various prospects of industrialisation in the south-western region of the country. Here are some excerpts from the interview.

What are the potential industries that can flourish in Khulna? To what extent could the local entrepreneurs utilise the potential?

There is a good potential for the development of small and medium industries in Khulna. But the local entrepreneurs could not utilise the opportunity due to various reasons. The major obstacle to setting up industries in the region is unavailability of fuel. Lack of gas supply facility at a reasonable cost has upset the entrepreneurs of the 21 districts of Khulna and Barisal divisions and greater Faridpur region. Once the construction of the Padma Bridge is completed and gas supply is ensured, there is possibility of developing various new agricultural industries and garment sector. Besides, a tourism industry can be developed centring the world heritage site Sundarbans through a proper planning.

Which industry-friendly elements and assets (manpower, raw material, infrastructure, gas, power, roads, port, local market demand etc.) are available in this region?

Khulna is not that much backward in terms of infrastructure. The road communication with Dhaka will be easier once the construction of the Padma Bridge is completed. Rail communication is being established along with road and naval communication. Mongla, the second largest seaport in Bangladesh, along with Benapole, Bhomra and Darshana land ports are located in the south-western region. There is a lack of supply of fuel, but land and manpower are relatively cheap. However, the manpower needs to be trained for employment.

What are the barriers to business investment? What do you advise to overcome those?

The biggest obstacle to business and investment is mentality. The region lacks entrepreneurs for large investments and there is bureaucratic complexity also. In order to build an industrial organisation, an entrepreneur has to establish communication and working relations with many organisations, but often he does not get proper cooperation from them. In fact, the people in our government offices need to be more business-friendly or entrepreneur-friendly. It should be ensured that instead of being harassed, an entrepreneur gets the support he needs after going to an office. However, it is sad but true that entrepreneurs are often harassed. It should be assured that they are not harassed.

A recent study by Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) has shown that Dhaka is the worst among all the divisions of the country for investment. Various benefits including tax holidays are provided for industries outside Dhaka. Industrialisation is needed in all regions of the country for balanced development, employment and poverty alleviation. Does Khulna division have adequate industrialisation? If not, what are the reasons?

Despite having potential, our region has not undergone adequate industrialisation. Jute industry developed in Khulna as jute production was high in the region. After the closure of the public jute mills for various reasons, jute industry is developing in the private sector. There is an opportunity for the jute industry to revive here. Industrialisation is being hampered due to lack of gas facilities. There is no airport in the divisional city of Khulna.

Due to the lack of proper development of Mongla seaport and Benapole and Bhomra land ports, foreign investors are discouraged from coming to Khulna region. Even local investors have set up factories in Dhaka due to lack of adequate facilities here.

Besides the construction of Padma Bridge, the present Prime Minister Sheikh Hasina has implemented many projects in the region for the development of Mongla Port and uninterrupted power supply. Moreover, various infrastructural developments, including rail connectivity between Benapole and Mongla ports and development of road communication system, are being done. We hope that once the gas connection is established through pipeline, local and foreign investors will build new industries in the region.

The government has announced the construction of 100 economic zones. Which industries in the region do you think need specialised economic zones?

The prime minister is constructing 100 economic zones in Bangladesh. Economic zones will be constructed at Rupsha and Batiaghata upazilas of Khulna. I hope work will start soon and factories will be set up in the economic zone.

The Khulna region has the potential for the development of various industries including jute, exportable shrimp, leather, salt, shipping, cement, rod, LNG, betel nut, coconut, vegetable, agro products, and marine fish and dried fish industries. Above all, a number of tourism industries can be developed centring the world heritage site Sundarbans, the biggest mangrove forest in the world.

Small and medium industries are the lifeblood of economy. The number of employments is also the highest here. What is the role of Bangladesh Small and Cottage Industries Corporation (BSCIC) in the development of such industries? What kind of help is needed?

The BSCIC is failing to play an effective role. The support the BSCIC provided to small and medium entrepreneurs is very little. But they could play an effective role. The small entrepreneurs would be able to do better if they are trained and adequately funded. It will create more employments and the country will move forward economically.

Although there is a lot of manpower in the country, there is a lack of skilled manpower. The productivity of workers is also lower in Bangladesh than in other countries. What kind of skilled manpower do you think Bangladesh may need in future? What kind of skills development is needed in your region?

Bangladesh is a densely populated country. The people of this country are our wealth. To create skilled manpower proper technical training is needed. Compulsory technical training should be arranged for elderly unemployed youths, and allowances should be provided to the trainees. Diploma schools and colleges need to be set up for training in different parts of the country under government management. In Khulna region, agricultural products are produced in salt water. Training can be arranged keeping this in mind. Manpower can be utilised setting up eco-friendly brick factories.

Conflict between environment and industrialisation is increasing. The pressure on setting up environmentally friendly industries, from the export market, is also increasing. What are the reasons behind environmental disasters in the region? What is your advice on industrialisation without harming the environment?

Industrialisation always had a hostile relationship with the environment, but now it has multiplied. The river-dams, waterlogging, natural disasters, lack of fresh drinking water etc. are the main environmental problems in the south-western part of the country. As a coastal area, salinity in water is a problem here. So, extra caution is required while setting up industries and mills in this region. If modern eco-friendly industries are built, I think, the environment will be protected.