Exporters of finished leather, leather goods and footwear sought Tuesday Tk 55.00 billion fund from the government for setting up their industries at Savar Leather Estate. Leaders of Bangladesh Finished Leather, Leather Goods and Footwear Exporters’ Association (BFLLFEA) made the demand when they met with Finance Minister AMA Muhith at his secretariat office. They also demanded “blocked account” loan facilities for all outstanding loans without any interest with 8-year repayment facilities. The new funds, according to BFLLFEA leaders, will include Tk 35 billion fresh investment for the construction of multi-storey building and Tk 20 billion for the purchase of new machinery. They wanted the funds at 3 per cent interest rate for a 15-20 year term. BFLLFEA president Engineer M. Abu Taher, who led the delegation, also handed over a memorandum to the finance minister for taking their demands into consideration, which they said, are essential to give the new leather estate an international standard. “There is a 240-billion world market for leather and leather goods including footwear and Bangladesh can easily grab at least 10-20 per cent of the market if entrepreneurs are provided with proper help and patronisation,” said the BFLLFEA president. Leather exporters seek Tk 55b fund for tanneries relocation According to the exporters, the sector is passing through a crucial juncture as exports from the sector fell drastically over the years due to meltdown of the world economy, devaluation of euro and fall in export orders. Export from the sector declined by 20 per cent in last fiscal year 2014-15. Besides, political unrest during the last two years also greatly hampered procurement of rawhides and skin, production as well as export of leather and leather goods. Withdrawal of cash incentives on export of crust and finished leather also made the situation worse. To overcome crisis, they demanded reinstatement of cash incentives on export of crust and finished leather and introduction of the benefit on export of footwear made of synthetics. The move came as the tanners were facing serious pressure to relocate their industries to Savar Leather Estate which, they said, needs huge investments. Many companies are constructing their industries at the leather estate, taking the environmental issues into account and hoping to boost exports, but most of them are facing fund crisis. The Ministry of Industries allocated plots on the 200-acre leather estate to 155 tannery owners through Bangladesh Small and Cottage Industries Corporation, a wing of the ministry implementing the project. A total of 148 tannery owners have submitted their factory layout plans, of which 112 plans got approval. The tannery owners were given Tk 2.50 billion as compensation along with other facilities to relocate their tanneries from Hazaribagh to new industrial estate.
