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Across the country, the Bangladesh Small and Cottage Industries Corporation (BSCIC) currently manages 82 industrial estates. Among them, eight new estates were established post-COVID-19 pandemic. However, due to various challenges, the majority of plots in five of these industrial estates remain unallocated. Industry experts believe the ongoing economic crisis has discouraged entrepreneurs from investing in these estates.

BSCIC has a total of 12,311 industrial plots nationwide, of which 1,084 plots remain vacant. Of the unallocated plots, 73 percent, or 792 plots, were created between 2021 and 2023.

Following the COVID crisis, economic instability, a sharp rise in the dollar’s value, and limited credit flow to the private sector have affected the economy over the past few years. In the last year, political turmoil and unrest have further deterred investments in the small—and medium-sized enterprise (SME) sector, experts noted.

“We consistently establish industrial estates and allocate plots,” said Rabbani Talukder, General Manager of BSCIC’s Industrial Estate and Coordination Department, in an interview with Bonik Barta. “Over the past few years, we issued several notices for plot allocations in the newly established industrial estates. However, due to the overall situation in the country, we received limited response,” he added.

He noted that BSCIC recently issued another notice for plot allocation in vacant estates, explaining, “Some large entrepreneurs have applied for multiple plots at once, but BSCIC remains focused on allocating plots to small and medium-sized enterprises. We expect the number of vacant plots to decrease by the end of this year.”

BSCIC’s data shows that the most severe crisis is in the BSCIC Electrical Goods Manufacturing and Light Engineering Industrial Estate in Tongibari, Munshiganj. Of the 361 plots created in 2021, only 20 have been allocated, leaving 341 plots vacant. In contrast, 100 percent of the 82 plots in Munshiganj’s old BSCIC estate, established in 1996, are operational. Meanwhile, Rajshahi-2 BSCIC Industrial Estate, established in 2022, has managed to allocate only 45 plots, with 241 plots still vacant.

Gopalganj (Expansion) BSCIC Industrial Estate, established in 2021, also faces challenges. Only 38 of its 138 plots have been allocated. Two other estates established in 2021—Chuadanga BSCIC and Barguna BSCIC—have 25 and 18 unallocated plots out of 78 and 60, respectively. However, the BSCIC estates established in Bhairab (Kishoreganj) and Narsingdi (Expansion) in 2023 have been more successful, with 229 of Bhairab’s 234 plots and 147 of Narsingdi’s 157 plots already allocated. Their proximity to the capital has been a key factor in the faster allocation of plots.

BSCIC officials pointed out that while selecting districts for establishing industrial estates is crucial, it has not always been adhered to. In some cases, estates were set up in areas with low demand for plots due to political considerations, leading to an increase in vacant plots.

According to a BSCIC report published this July, its 82 industrial estates nationwide cover 2,515.8 acres of land and employ 632,189 people, including 331,284 men and 309,005 women. Officials believe that if the 1,084 vacant plots are utilized, an additional 100,000 jobs could be created.

The most recent allocation notice was issued on March 6, targeting 1,003 plots in 20 industrial estates nationwide. However, due to the ongoing crises, entrepreneurs’ response has been lower than expected.