Badrul Ahsan :
The government and the tanners are now in a row over release of Tk 2.50 billion as compensation making relocation of the environmentally hazardous business activities from downtown Dhaka to Savar, sources said.
Tanners are now engaged in tough bargaining with the Ministry of Industries over relocation of their tannery units from Dhaka to Savar after expiry of a number of deadlines, they said.
According to them, the hide-tanning firms held a series of meetings in recent days with high-ups of the ministry where they demanded immediate release of the second installment of the government declared special fund.
On the other hand, the ministry officials, in the face of ongoing bargaining, assured the tannery owners of quick release of the money with
a verbal instruction for shifting the business activities from the city’s Hazaribagh area to under-construction Savar Tannery Estate by this month (March).
But a number of tannery owners said that they are not convinced with the government’s assurance as they experienced failure of execution of such commitments earlier.
Industries Minister Amir Hossain Amu on January 10 last issued a 72-hour ultimatum after extension of several deadlines for the tanners for relocating their units from the capital to Savar to avert tough official actions.
But the warning went in vein as no tannery unit was relocated there with full setup within the timeframe.
The Bangladesh Small and Cottage Industries Corporation (BSCIC) under the ministry, which is developing the special zone for the hide-tanning companies, sent legal notice to a number of tanners for their failure to comply with the ministry’s order.
Talking to The New Nation, Vice President of the Leather Goods and Footwear Exporters Association (BFLLGFEA) Abdul Awal said that they sat several times with the industries minister and requested him to extend the deadline as many of them face difficulties in shifting their infrastructures due to fund shortage.
“We’ve requested the minister for quick release of second installment of the government compensation and the minister assured us of taking necessary measures regarding the issue. We are waiting for execution of the commitment,” he said.
According to the Memorandum of Understanding (MoU) signed among the government, the Bangladesh Tanners Association and the BFLLGFEA in 2003, the government will provide Tk 2.50 billion to the tanners as compensation to help them shift their units.
The fund was supposed to be disbursed in three installments under 20:40:40 ratio and the first installment of the financial assistance was given to the tanners after a series of persuasion which made trust gape between the two parties over timely release of the second fund, industry insiders said.
About legal notice, Awal, also Chairman of Bhulua Tannery Ltd, said the errant tanners timely responded to the notice, stating that huge financial crisis, coupled with delayed construction activities of the CETP (Central Effluent Treatment Plant), led to the unexpected delay.
According to him, they have promised the authority concerned of starting wet blue process, which results in major pollution, from the Savar Tannery Estate from March if the money is released by the ministry by the time.
Owner of Helal Tannery (Pvt.) Ltd Alamgir Hossain, who got a 22,000-square feet plot on Savar site, said they would start building the rooftop on the first floor of the 6-storey industrial unit.
“I got Tk 13 million from the government as compensation for relocation purposes, but I already spent more than 20 million for finishing the foundation of the structure…it would take more than a year for us to go into operation in Savar,” he said.
When contacted, Project Director Abdul Qaiyum said the tanners assured them of starting their production from this month as they have already completed two modules of the treatment plant through which 12,500 cubic metres (12.50 million litres) of waste can be treated a day before releasing it into the nearby river.
“We don’t accept anymore excuse. We just follow tanners’ progress regarding their relocation. If they fail, we have no other option but to cancel their plots,” he added.
The government and the tanners are now in a row over release of Tk 2.50 billion as compensation making relocation of the environmentally hazardous business activities from downtown Dhaka to Savar, sources said.
Tanners are now engaged in tough bargaining with the Ministry of Industries over relocation of their tannery units from Dhaka to Savar after expiry of a number of deadlines, they said.
According to them, the hide-tanning firms held a series of meetings in recent days with high-ups of the ministry where they demanded immediate release of the second installment of the government declared special fund.
On the other hand, the ministry officials, in the face of ongoing bargaining, assured the tannery owners of quick release of the money with
a verbal instruction for shifting the business activities from the city’s Hazaribagh area to under-construction Savar Tannery Estate by this month (March).
But a number of tannery owners said that they are not convinced with the government’s assurance as they experienced failure of execution of such commitments earlier.
Industries Minister Amir Hossain Amu on January 10 last issued a 72-hour ultimatum after extension of several deadlines for the tanners for relocating their units from the capital to Savar to avert tough official actions.
But the warning went in vein as no tannery unit was relocated there with full setup within the timeframe.
The Bangladesh Small and Cottage Industries Corporation (BSCIC) under the ministry, which is developing the special zone for the hide-tanning companies, sent legal notice to a number of tanners for their failure to comply with the ministry’s order.
Talking to The New Nation, Vice President of the Leather Goods and Footwear Exporters Association (BFLLGFEA) Abdul Awal said that they sat several times with the industries minister and requested him to extend the deadline as many of them face difficulties in shifting their infrastructures due to fund shortage.
“We’ve requested the minister for quick release of second installment of the government compensation and the minister assured us of taking necessary measures regarding the issue. We are waiting for execution of the commitment,” he said.
According to the Memorandum of Understanding (MoU) signed among the government, the Bangladesh Tanners Association and the BFLLGFEA in 2003, the government will provide Tk 2.50 billion to the tanners as compensation to help them shift their units.
The fund was supposed to be disbursed in three installments under 20:40:40 ratio and the first installment of the financial assistance was given to the tanners after a series of persuasion which made trust gape between the two parties over timely release of the second fund, industry insiders said.
About legal notice, Awal, also Chairman of Bhulua Tannery Ltd, said the errant tanners timely responded to the notice, stating that huge financial crisis, coupled with delayed construction activities of the CETP (Central Effluent Treatment Plant), led to the unexpected delay.
According to him, they have promised the authority concerned of starting wet blue process, which results in major pollution, from the Savar Tannery Estate from March if the money is released by the ministry by the time.
Owner of Helal Tannery (Pvt.) Ltd Alamgir Hossain, who got a 22,000-square feet plot on Savar site, said they would start building the rooftop on the first floor of the 6-storey industrial unit.
“I got Tk 13 million from the government as compensation for relocation purposes, but I already spent more than 20 million for finishing the foundation of the structure…it would take more than a year for us to go into operation in Savar,” he said.
When contacted, Project Director Abdul Qaiyum said the tanners assured them of starting their production from this month as they have already completed two modules of the treatment plant through which 12,500 cubic metres (12.50 million litres) of waste can be treated a day before releasing it into the nearby river.
“We don’t accept anymore excuse. We just follow tanners’ progress regarding their relocation. If they fail, we have no other option but to cancel their plots,” he added.
