Barishal BSCIC: No gas and power cuts stifle its growth

Tk70 lakh in 12 months – not in profit but in losses. Bismillah Polymer and Packaging inside Bangladesh Small and Cottage Industry (BSCIC) in Barishal incurred the loss as a result of hampered production and increased power bills amid frequent power cuts and no gas supply.

Nazmun Nahar Rina, owner of the company, believes she would have been able to increase production and efficiency if these issues were not present; most owners have to operate with higher costs, leaving them no choice but to survive on limited income.

Gas supply and uninterrupted electricity are some of the basic necessities inside an industrial zone. However, even after six decades of establishment (starting in 1961), Barishal BSCIC has yet to become suitable for setting up factories.

After the opening of Padma Bridge, the potential of Barishal BSCIC to become an important business centre increased. Units that were closed are now operational again. New entrepreneurs are showing interest in setting up factories.

According to the BSCIC office, there are currently 470 plots inside the area out of which 377 have been allotted in favour of 177 persons. Currently, 126 industrial units are operating.

However, factory owners and experts in the sector say these issues are bound to hold back any development of an industrial area.

Owner of Bismillah Polymer and Packaging Nazmun Nahar Rina said, "Machines in my factory take up to four hours to properly heat up. However, if there is a power cut, it's another long wait, hampering the production efficiency." She further said owners of production-oriented factories inside BSCIC are suffering the most as they can neither keep the factories open properly nor can they shut them down.

Jamal Hossain, owner of another factory, said, "As there is no gas, the cost of producing goods is higher for us…I have gone to ministers several times to place our demand for gas but despite their efforts, we are not getting gas."

On the issue, Barishal University's economics department Head Rifat Ferdous said, "Though investments at Barishal BSCIC have increased after the opening of Padma Bridge, it lacks a working environment.

"There are several international standard manufacturing facilities here [inside Barishal BSCIC] and it becomes frustrating for them to not have the basic support to run operations smoothly."

Mentioning the gas found in Bhola, he said, "If that gas is supplied to Barishal, then production at these factories will increase and as a result, the prices of products will decrease." Training of workers and workplace safety should also be ensured, he added.

There is also no planned drainage system, no health centre for workers, no fire service stations and no police outpost for security in Barishal BSCIC.

Voicing similar concerns, economic analyst Professor Panna Lal Ray emphasised the importance of production-oriented factories to maintain economic momentum.

"It is not just about prioritising these factories [inside Barishal BSCIC], but ensuring that production-oriented factories can operate efficiently with appropriate infrastructure and uninterrupted power supply," he said.

When inquired about the persisting issues and the state of the factories, Barishal BSCIC Deputy General Manager Nazrul Islam acknowledged the issues and said, "Factories as large as Bengal Biscuit in Barishal BSCIC require a considerable amount of gas for production. If gas was available, their production costs would decrease significantly. So, currently, it has become a challenge for these large-scale production plants to survive with no gas supply.

"Moreover, many entrepreneurs who intended to establish garment factories are now not willing to go into production due to the lack of gas."

Regarding fire services, the DGM mentioned that setting up a fire station requires at least 1 acre of land, which is currently unavailable within Barishal BSCIC, adding that he does not see the possibility of having separate fire stations within the vicinity of BSCIC.

"And in case of emergencies related to law and order, the nearby Kawnia Police Station can promptly respond. So, there is no need for a police outpost inside," Nazrul Islam said.

Talking about developments in BSCIC, he said in 2018, a budget of Tk74 crore was allocated for development of the area. "Most of the work like construction of boundary walls and land filling around the area is already completed, with only drainage and culvert work remaining. Once these tasks are completed, numerous job opportunities will be available for the locals."

Dr Shyamal Krishna Mondal, Barishal division health director, emphasised the importance of ensuring healthcare services for workers in Barishal BSCIC. "However, as BSCIC falls under the jurisdiction of Barishal City Corporation (BCC), it is their responsibility to establish a medical centre there. However, we are ready to assist if the city corporation requires any support to establish one."

BCC Chief Executive Officer Md Israel Hossain, could not be reached for comments on the issue  despite several attempts over the phone and text messages.

Regarding the construction of a power substation, Manjurul Islam, the chief executive engineer of Barishal West Zone Power Distribution Company 2, said, "We have already built a substation with a capacity of 40 megawatts near the BSCIC area. However, it is yet to be operational as necessary manpower has not been appointed."

"We hope to start operations within the next two months," he added.

Barishal district administrator Shahidul Islam said, "All-out support is being given to BSCIC to make it self-sufficient and powerful from an economic perspective. Notices have already been issued to inactive institutions. Additionally, coordinated efforts are underway to address existing problems.

The construction work for Barishal BSCIC began in 1961 on 130.61 acres of land. Later plans were made to expand the total area to 230 acres, aiming to establish the largest industrial city in the country.