Relocation of RMG units a challenge

Gas-power links absent: Housing crisis for workers

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Anisul Islam Noor :
At least 34 per cent readymade garment factories need to be relocated from the capital as most of them were set up in ‘shared buildings’ with defective condition, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) sources said.
“Most of the owners of these factories housed in shared buildings want to relocate their units from the capital, but they are worried about getting connections of the utility services like gas and electricity,” BGMEA Vice President Shahidullah Azim told The New Nation yesterday.
The entrepreneurs are seeking clear declaration about gas and electricity connections in the relocated factories, as the government has no specific policy to transfer their existing gas connections to the new industrial units, the BGMEA leader said.
Meanwhile, a team of BGMEA met the Prime Minister’s Power and Energy Adviser Dr Tawfiq-e-Elahi Chowdhury recently with a call to adopt a policy in this regard so that the sector can contribute more to the country’s export earnings, Azim said.
The apex trade body has already signed a memorandum of understanding with China to establish a garments “palli” in Munshiganj for relocating the RMG units, sources said.
The BGMEA leader also urged the government to provide easy-term loans for relocation, adding that the vulnerable factories would be shifted first, followed by units located in rented commercial or residential buildings, and finally, those share industrial buildings. “At present, most of the owners are busy in making their factories compliant and that is why the process of relocation is taking time,” said Abdus Salam Murshedy, President of Exporters Association of Bangladesh (EAB).
Lack of suitable space, access to workers, gas and power connectivity are the major obstacles in relocating the RMG units, he added.
As per the government’s existing gas supply policy, if any industrial unit is shifted or relocated, it will have to take fresh gas connection as the industry will not avail itself of the previous gas connection. As a result, the garment factories, which are relocating from the city to the outskirts, are facing problems and their operation remains stalled.
Factory relocation issue has turned a crucial phenomenon into the country’s RMG sector. The sector, which emerged in the late 1980s in Dhaka, now appears a huge problems as the city has been overpopulated because of the RMG factories, industry insiders said.
To ensure a congenial environment at workplace, the government is also perusing the RMG owners to shift their factories. In addition, it is also putting pressure on them to shift their industrial units to Bawsia Garments Palli in Munshiganj.
As it is now necessary to shift the factories from inside the city for ensuring workers’ safety and a smooth city life, the factory owners are eager to shift their industrial units, said Shahidullah Azim. According to an estimate, around 1,027 RMG units employing nearly five lakh workers are located in the capital, while there are 533 factories with about 3.48 lakh workers in Savar and Ashulia
Relocating over one thousand factories from Dhaka to outlying areas may help ease some of the severe problems faced by the city dwellers, including chronic traffic jams and environmental pollution.
If such a plan were to be implemented, at least 15 lakh people, mostly RMG workers and their dependents, would be forced to move out of the city, according to a data of the Department of Inspection for Factories and Establishments.
While talking to some RMG workers, this reporter came to know that on an average each worker lives with at least three other family members. The highest number of workers live in Mirpur area, where there are about 274 factories, employing over 1.26 lakh people. Kafrul comes in second with 43,241 workers, followed by Tejgaon industrial area with 33,172 workers. Besides, Uttara, including Uttarkhan and Dakhhinkhan, has nearly 74,000 workers.
In the latest national budget, the government has offered 20 per cent tax rebate from the next fiscal for relocation of industrial units from Dhaka and other major cities to reduce overcrowding and congestion.
Entrepreneurs who venture to set up factories in least developed areas of the country between July 2014 and June 30, 2019 would enjoy tax rebate for 10 years.
Meanwhile, buyers have also been putting pressure on owners to relocate factories from shared buildings, citing safety concerns. Some foreign buyers have stopped placing orders in such factories, industry insiders said.

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