India's Prime Minister Narendra Modi emphasised the need for initiating operations fast at two special economic zones (SEZs) meant for Indian companies on meeting with his Bangladeshi counterpart Sheikh Hasina in Delhi on June 22.

However, the Adani Ports and Special Economic Zone (APSEZ), the company contracted to develop one of them in Mirsharai, has taken a go-slow policy due to global economic crisis.

Bangladesh Economic Zones Authority (Beza) signed a memorandum of understanding with APSEZ in October 2019 for the SEZ's development on 900 acres of land inside Bangabandhu Sheikh Mujib Shilpa Nagar in Chattogram's Mirsharai.

In April 2022, they signed another deal on the terms of forming a joint venture (JV) for the purpose.

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"We sent a draft (on how the JV would be run) to the APSEZ. But we are yet to receive final feedback from them," said Shaikh Yusuf Harun, executive chairman of Beza.

Besides, two Indian companies selected by the Indian government to place bids for the SEZ's earth filling project informed of their withdrawal just a day before the February 29 tender submission deadline this year, he said.

As such, Beza wrote to the Exim Bank of India and Indian authorities to allow Bangladeshi firms to participate in the bidding process, an option unavailable under an Indian line of credit (LoC) for implementing the project, he said.

Another condition stipulates that 65 percent of components must be purchased from India during the implementation of any project under the Indian LoC, which is another obstacle to implementing the Indian SEZ, he noted.

Against this backdrop, the progress of the Indian SEZs has stagnated over the past two years, the Beza executive chairman said.

However, officials of APSEZ, preferring anonymity, told The Daily Star that they were following a go-slow strategy due to the ongoing global economic crises.

"If APSEZ was to implement the project at this moment, there is no possibility of getting investment from Indian companies due to the impacts of the ongoing global economic crises," an official said.

The official added that they would stick to their plans even though they were being delayed by present realities.

Harun said they are ready to implement the project at Mirsharai as they have already received approval for $115 million in financing support under a third Indian LoC, amounting to $4.5 billion.

He added that Beza was ready to hand over the land to APSEZ so that it could begin relevant construction work.

In February 2019, the Executive Committee of the National Economic Council approved a project worth Tk 845 crore, including the acquisition of 1,000 acres of land in Chattogram's Mirsarai for Indian investors.

The implementation of the SEZ would bring down the trade gap between Bangladesh and India, which is currently heavily tilted towards the latter, Harun said.

The purpose of this project is to establish a separate zone to attract Indian investors.

The main work of this project is to complete land development and establish connecting roads, administrative buildings, security systems, water supply systems, telecom network equipment, water treatment plants and other investment-friendly facilities.

The Beza executive chairman added that there was a slight development regarding the other Indian SEZ at Mongla as the process to form a JV and start implementation of the project has begun.

Beza has already acquired 100 acres of land in Mongla for the Indian SEZ, with ARTELIA Consulting set to work on implementing the project.

"All negotiations have been completed. We are just waiting for approval from the Prime Minister's Office to form the JV," Harun said.