A top government committee in Bangladesh is finalising a major plan to transfer control of the Savar Tannery Industrial Estate from the Bangladesh Small and Cottage Industries Corporation (BSCIC) to the Bangladesh Export Processing Zones Authority (BEPZA) according to Textile Today.
The move aims to restore environmental standards and strengthen the country’s position in the global leather market.
The committee, led by Major General (Retd) Md Nazrul Islam, Executive Member of the Bangladesh Economic Zones Authority (BEZA), is expected to submit its report to the Ministry of Industries within a month.
The proposal outlines regulatory, operational, legal and financial steps for the handover, signaling the government’s push to bring the estate under an agency with stronger industrial management experience.
Officials said the transfer is part of a broader effort to bring industrial operations under authorities with proven track records.
BEPZA is known for efficiently managing central effluent treatment plants (CETPs) in export zones, a capability that could help fix Savar’s long-standing waste management failures and improve compliance with international environmental norms.
The Savar estate has faced serious environmental and operational challenges for years.
According to the Bangladesh Investment Development Authority (BIDA), its non-functional CETP has stopped tanneries from obtaining Leather Working Group (LWG) certification.
This has forced many factories to rely on imported finished leather and sell products at lower prices in Asian markets instead of exporting directly to Europe or the US.
Despite over Tk1,000 crore (~USD 82 Million) invested since 2003, the estate still lacks a working chrome recovery unit and solid waste recycling system.
Bangladesh’s leather exports reached $1.15 billion in FY25, according to the Export Promotion Bureau. Industry experts believe that with better coordination and strict environmental compliance, exports could rise to $5 billion by 2030, making leather the country’s next big export success after apparel.
If approved, the transfer to BEPZA could mark a turning point for Bangladesh’s leather sector, bringing long-awaited environmental improvements and renewed global confidence in its products.
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