Govt agrees to relocate garment factories from capital
19 Feb '07
1 min read
Yesterday, an agreement to relocate garment factories from Dhaka was signed between Bangladesh Small and Cottage Industries Corporation, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and a body of the industries ministry.
Government also gave approval to textile industry leaders to go ahead with the plan.
The plan to relocate factories from Dhaka would cost about US $45 million. Out of total cost, World Bank would invest 60 percent and rest will be sourced by the Government.
This step is taken mainly to reduce political interference and shutdowns.
These factories would be relocated to a new textile plant which is to be set-up on 300 acre land at Baushia.
In first phase, some 1,000 factories out of 3,000 factories situated in and around capital will be relocated to Textile Park in three year.
As per the planning, construction of the park would be completed in five years.
According to estimates, revenue generated from exports of clothing would double to about $15 billion by 2010.
In January to June 2006, clothing exports of the industry reached about $8 billion.
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