Adani kicks off land development for Indian SEZ
Although most of Bangladesh's major construction projects were put on hold amid the ongoing coronavirus pandemic, Adani Ports and Special Economic Zone (Adani Ports & SEZ), began land development at the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai, Chattogram during the recent nationwide lockdown.
"Adani Ports & SEZ brought all the necessary equipment for land development work at the BSMSN during the pandemic," said Paban Chowdhury, executive chairman of the Bangladesh Economic Zones Authority (BEZA).
As an international firm, Adani Ports & SEZ is following all the health guidelines for its workers while working on the zone, he added.
Adani Ports & SEZ, India's largest private multi-port operator, will develop 450 acres of land at the BSMSN, where Star Allied Venture and other foreign companies will set up their factories. Once completed, the industrial hub will span a total of 30,000 acres.
BEZA appointed Adani Ports & SEZ, an experienced and efficient company, to ensure that the development project meets a certain standard that would attract foreign investment, according to a BEZA official.
The project is set to be complete in 12 months. However, the Indian company has set a personal target to finish development works within only five months.
BEZA expects that the industrial hub will generate more than 15 lakh opportunities for direct employment and 35 lakh for indirect employment with about $30 billion in investments from home and abroad by 2030.
According to the BEZA executive chairman, Adani Group, an integrated infrastructure corporation and parent company of Adani Ports & SEZ, will likely begin site development work on the India Special Economic Zone (ISEZ), which is expected to bring in billions of dollars of investment from the neighbouring nation, after completing the current project.
Site selection for the ISEZ has already been completed. It will be constructed on more than 1,000 acres of land at the BSMSN and will be exclusively reserved for Indian investors.
Currently, negotiations are ongoing on whether the BEZA should be involved in the industrial hub's equity.
Bangladesh Prime Minister Sheikh Hasina also approved the Ahmedabad-based Adani Group to develop the ISEZ, said Chowdhury.
If successfully implemented, the ISEZ would eventually reduce the trade imbalance between the two countries, which currently favours India.
In fiscal 2018-19, Bangladesh's exports to India crossed the $1 billion-mark for the first time to reach $1.24 billion, according to data from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
During the same period, the value of goods Bangladesh imported from India stood at $7.64 billion, while it was $8.61 billion the previous year.
A representative of Adani Group, whose concerns include energy, resources, logistics, agribusiness, real estate, financial services, defence and aerospace, visited the proposed ISEZ site at the BSMSN in February earlier this year for a final assessment.
The group has taken a special interest in developing the ISEZ as the project is supported by the Indian government.
The Indian government will provide Bangladesh with $278 million in financial support for the ISEZ under its third Line of Credit (LoC), which has a total value of $4.5 billion. However, the funds are yet to be disbursed even though the agreement was made in 2017.
Adani Group, whose annual turnover exceeds $13 billion, also plans to invest a further $350 million in Bangladesh to establish an industrial park at the BSMSN in a joint venture with Singapore-based Wilmar, a manufacturer of agro-based foods and allied products.
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