Defence economic zone to be set up instead of Indian economic zone in Chattogram's Mirsharai

The government will establish a Defence Economic Zone at the proposed site of the cancelled Indian economic zone in Mirsharai, Chattogram, to enhance capacity in the military and defence industries.

A policy decision in this regard was taken today, Monday, at a meeting of the governing board of the Bangladesh Economic Zones Authority (BEZA) with Chief Adviser of the interim government, Professor Muhammad Yunus, in the chair.

Later, BEZA Executive Chairman Ashik Chowdhury shared these details at a press conference held at the Foreign Service Academy on Bailey Road in the capital. The Chief Adviser’s Press Secretary, Shafiqul Alam, was also present.

Ashik Chowdhury said that discussions on the production of weapons and other equipment in the military industry have been ongoing for a long time. There is global demand for such products, and Bangladesh also needs to develop its own capabilities. In this regard, the Armed Forces Division, BEZA, the Ministry of Defence, and the Chief Adviser’s Office had been working together. Finally, today the proposal received policy-level approval from BEZA’s governing board.

He further said, “Within the National Special Economic Zone (NSEZ) in Mirsharai, we have identified around 850 acres of vacant land. Until June last year, this land was proposed as an Indian economic zone, which was later cancelled. This area will now be included in BEZA’s master plan as a defense economic zone.”

Replying to queries on product manufacturing and potential investors in the defense economic zone, Ashik Chowdhury said discussions are ongoing with several countries that maintain friendly relations with Bangladesh.

He added that it is not possible at this moment to specify which military equipment will be produced, as this will be determined based on demand.

The BEZA governing board meeting also granted policy approval to several other issues. One of the key decisions was to establish a Free Trade Zone.

The BIDA Executive Chairman said that Bangladesh currently does not have a functional free trade zone concept. Initially, there are plans to develop a free trade zone on approximately 600 to 650 acres of land in Anwara, Chattogram. Policy approval for this has been granted today.

If everything proceeds according to plan, it will be possible to reach an initial implementation stage by the end of this year, he added.

The governing board has also given policy approval to link the Kushtia Sugar Mill with BEZA and develop the area into an industrial park.

Ashik Chowdhury said the approximately 200-acre sugar mill site already has gas, electricity, roads, and infrastructure facilities. As a result, many of the initial challenges for investors have already been addressed, and the land can be utilized easily.

Under existing laws, BEZA cannot acquire land within municipal areas to establish economic zones. Policy approval has now been given to allow economic zones to be developed within municipal areas as well.

Regarding this, Ashik Chowdhury said there are around 331 municipalities in the country. Establishing economic zones outside municipalities often requires the use of agricultural land. Therefore, initiatives have been taken to introduce some changes to the existing regulations.

Currently, many closed industrial factories are located within municipal areas, and under the new rules, opportunities will be created to increase economic activities at those sites, he added.