50 pc units at Nasirabad industrial belt closed

Thousands of workers and employees were thrown out of jobs following closure of the industries, sources said.

Nasirabad industrial belt was once known as the largest industrial hub in the port city.

Over 200 small, medium and heavy industries are located at Nasirabad where mills and factories started to be set up from 1964, sources said.

Nasirabad industrial belt was initially launched as Sholashahar light industrial area that later flourished as the main industrial hub with the set up of more factories.

This area once hummed with huge number of workers and employees.

Acting President of the Chittagong Chamber of Commerce and Industry (CCCI) Ershad Ullah said, "Introduction of free market economy backfired forcing closure of about 50 per cent of the industries at Nasirabad".

"Besides, wrong government policies, freestyle black market operation in the country, bad management and labour unrest caused a serious damage to this industrial belt," CCCI leader said.

This industrial belt had witnessed some changes immediately after independence as the units earlier owned by non-Bengali people, were nationalised under corporation system, Ershad said. Due to bad management and corruption by a section of officials, the nationalised mills and factories gradually became sick. But the corrupt officials of the nationalised mills became rich though the organisations fell sick, Ershad added.

Later, those sick industries were disinvested by the successive governments in a bid to reactivate them, Ershad said adding high production costs and inefficiency of management almost baffled the move to make those sick units profitable.

Some of the owners were even forced to close down factories due to frequent labour unrest, he said

Some owners of the sick and disinvested industries reportedly managed huge bank loans in the name of running capital and reforms.

But most of the loans reportedly were diverted to other business instead of pumping the money for better operation of the sick units, sources said.

Even some of them reportedly invested the loan money, taken against the sick industries, in smuggling to make quick bucks, sources added.

The bankers should be liable for such diverting of fund, Ershad said. The banker had connivance with those loan borrowers and as such it was not properly monitored to identify the lapses at the field level of investment, he added.

Former president of Nasirabad Industries Owners Association (NIOA) Monwar Ahmed said it was the market situation that led to the closure of about 50 per cent industries.

"Fall in demand of local products, high manufacturing costs and uneven competition with the goods of neighbouring countries compelled to close down those industries", Monwar said.