Over 430 BSCIC Units Face Financial Distress or Closure

Published On September 30, 2024
3:40 pm

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Economic Tag: SME

A total of 434 industrial units under the Bangladesh Small and Cottage Industries Corporation (BSCIC) are either financially distressed or shut down, with some not operating at full capacity and others completely idle. Key issues include financial difficulties, loan defaults, operational costs, and legal disputes, including inheritance-related conflicts.

Estates like the Jamdani Industrial Estate and Tongi Industrial Estate have the most idle plots. The COVID-19 pandemic worsened the situation for many entrepreneurs. Although BSCIC reallocates around 100 plots annually and has amended policies to address these challenges, some old issues persist.

The BSCIC report suggests offering loans or recommending bank loans to help entrepreneurs revive their businesses. Out of 12,311 industrial plots managed by BSCIC, 6,132 have active industrial units, contributing significantly to Bangladesh’s economy, with 30% of import-substitute products and 11% of annual exports. The organization has also created jobs for over 6.7 million people since its inception.

Source for more details:

The Daily Star

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