Even years after two deadly fires claimed around 200 lives in Old Dhaka, hazardous chemical warehouses and factories continue to operate in residential neighbourhoods, as initiatives to relocate them to industrial estates have faltered due to delays in project implementation.
Between 2016 and 2018, the government launched four projects, involving Tk 2,821 crore, to shift chemical, plastic, printing and light engineering and other manufacturing units from the capital’s residential areas — particularly Old Dhaka — to designated industrial zones in Munshiganj.
Only one project has been completed, while the rest are delayed by various obstacles, including difficulties in land acquisition.
Under the Bangladesh Environment Conservation Rules, 1997, industrial establishments dealing with hazardous chemicals are prohibited from operating in residential areas.
Amid a lack of monitoring and lax enforcement of the rules, numerous chemical factories and warehouses sprang up in Old Dhaka and other parts of the city over the years.
The Nimtali fire, which claimed 124 lives in 2010, exposed the dangers of storing hazardous chemicals in densely populated neighbourhoods, prompting Dhaka South City Corporation (DSCC) to stop issuing and renewing licences for chemical businesses in Old Dhaka. Chemical factories and warehouses, however, remained active in the area and elsewhere.
About nine years later, tragedy struck again as at least 71 people were killed in a deadly fire in Chawkbazar’s Churihatta area. This time, the authorities decided to expand restrictions on chemical businesses across the city.
But despite two fire disasters, government initiatives to relocate hazardous businesses from residential areas have not seen much progress.
Chemical traders argue that relocation cannot proceed unless the government fulfils its commitments under a 2017 memorandum of understanding (MoU), which promised resettlement facilities in designated industrial zones with proper infrastructure, including fire service stations.
Shamim Ahmed, president of Bangladesh Plastic Goods Manufacturers and Exporters Association, said efforts to establish industrial estates for chemical and plastic manufacturing units have continued for more than two decades.
“We will leave the [residential] areas only after receiving plots in designated zones.”
Shamim also expressed concern over the proposed land price of around Tk 12 lakh per decimal in the estates, describing it as a major challenge for entrepreneurs.
“We will discuss the issue with the authorities once the project is completed and plot handovers begin,” he added.
CHEMICAL INDUSTRIAL PARK
Bangladesh Small and Cottage Industries Corporation (BSCIC) took up the Tk 1,455 crore project in 2011 to accommodate over 1,500 chemical factories and warehouses in Munshiganj’s Sirajdikhan.
The 308-acre project was scheduled for completion by June 2022 but work was slowed down by the Covid-19 pandemic. The deadline was later extended to December 2025 and then pushed back again to December 2026.
Project Director Hafizur Rahman said 80 percent of work has been completed and that they are now constructing roads and setting up drainage systems.
“We expect to start handing over plots from January 2027. Around 1,500 chemical traders and stakeholders across the city have already signed an MoU with the authorities,” he added.
PLASTIC INDUSTRIAL ESTATE
BSCIC launched the Plastic Industrial Estate Project in 2015 to relocate around 391 plastic factories from the capital to a 95-acre site in Munshiganj’s Sirajdikhan upazila.
Originally scheduled for completion in 2020, the Tk 509 crore project has so far achieved barely 50 percent progress, primarily due to complications with land acquisition.
When asked, Project Director Anis Uddin said the deadline has now been extended to June 2027.
The authorities have started issuing plot allotment notices to businesses and also signed an MoU with Bangladesh Plastic Samity regarding relocation arrangements.
PRINTING INDUSTRIAL ESTATE
The implementation of the Printing Industrial Estate project, which was launched in 2016, has been slow. It features 357 plots, aimed at relocating printing and publishing businesses, especially from the city’s Fakirapool and parts of Old Dhaka.
The Tk 448 crore project in Munshiganj’s Sirajdikhan has so far achieved around 50 percent progress and is slated for completion by June 2027.
Project Director Md Rakibul Hasan said land acquisition was recently completed, and development work is underway.
ESTATE FOR LIGHT ENGINEERING UNITS
Built on 50 acres of land in Munshiganj’s Tongibari, the Light Engineering Industrial Estate with 361 plots is the only completed relocation project.
It was implemented to accommodate light engineering businesses currently operating in Old Dhaka and other parts of the city.
Mohammad Rashedur Rahman, general manager (in-charge) of the Project Division, BSCIC, said it took more than six years to complete the project launched in 2016.
The estate has not been able to attract entrepreneurs due to delays in the construction of Mollabazar Bridge in Sirajdikhan, which will reduce travel time by around half an hour, he said.
Rashedur said the demand for plots remains lower than expected, with only 32 plots allotted so far.
Many prospective investors have expressed interest in establishing factories and workshops in the estate but only after the construction of the bridge, which will significantly improve connectivity in the area, he added.
PROBLEMS WITH TEMPORARY WAREHOUSES
To encourage traders to move out of crowded areas in Old Dhaka, the authorities set up 54 temporary warehouses near the Postogola Bridge in Shyampur. However, the response from traders has been below expectations.
Several traders told this newspaper that they have to obtain fresh permits, fire safety clearance and other approvals from multiple government agencies, creating additional hurdles for them to relocate these facilities.
Nur Nabi, managing director and head of Estate Management at BSCIC, said 38 units have been rented out so far, while several applications for allotment are under review.
Though the rent has been reduced drastically to around Tk 15 from Tk 70 per square foot in these units, traders continue to opt for cheaper alternatives elsewhere, he added.