The government
recently made a deal with Sahara India Parivar, allowing them to invest in the
real estate sector. The government has also given them 100 thousand acres of
land around Dhaka to develop a modern
satellite township. In usual state of affairs, local real estate companies have
protested this move. They have their grievances because the government had not
been able to provide them with adequate land and other amenities for years. Why
this sudden change in policy and that too for a foreign company?
Real Estate and
Housing Association of Bangladesh and Bangladesh Land Development Association
asked the government to hold a meeting with them to discuss this issue before
sealing the deal with Sahara India Parivar. They said that if the government
can provide them with the same civic amenities and the same amount of land,
they can make at least an equally good plan like Sahara India Parivar. Their
reasoning is simple – why head for an Indian company when the local players are
equally competent? It is somewhat outrageous because the local developers
believe that they have enough manpower, skill and resources to establish the
first satellite township in Bangladesh.
The REHAB and BLDA
think that if Sahara India Parivar is allowed to acquire the lands in the subsidized
rate than it will create a huge distinguish in the competition with the local
developers. This is because local developers have to pay a larger sum for land.
The anger of the local developers is justified, considering that the government
did not even bother to arrange a dialogue with them before agreeing to make the
deal with Sahara India Parivar.
Undeniably, after the garments
sector, real estate has the most potential to flourish. If properly nurtured by
the government, it can well become huge in near future. There is no reason why
the government can not realize this and take steps to complement local real
estate resources. Local players already showed that they are capable of putting
up a good show. In fact, thousands of apartments in Bangladesh are currently at ‘finished
stage’ but cannot be handed over to the owners because of lack of electricity
and gas.
Local companies have
been developing the real estate sector of Bangladesh for the last 25 years.
To local developers’ credit, Islam Group, one of the pioneer companies of the
country, has done many successful projects in the Middle
East in the 1980s. Another leading company of the country – Aftab
Group has gained reputation in New
York as they have completed over hundreds of
apartments and constructed dozens of buildings there. If the local companies
are gaining reputation in other countries and successfully completing projects
outside the country, why should they not be given a chance to do mega projects
in the country?
In line with the land
agreement with the government, Sahara India Parivar also packed a deal with the
BCB. They are now the sponsor of Bangladesh National Cricket team. This move was
taken only to earn trust of the common people it seems. The national cricket
team is probably the only thing remaining that every Bangladeshis love
unconditionally. Both the deals happening at the same time suggests something fishy.
Transparency
International Bangladesh has demanded the conditions of the agreement with
Sahara India Parivar to be made public. They believe that the government signed
the deal without doing proper risk benefit and cost benefit assessments.
The real estate sector
of the country must be strengthened rather than allowing foreign investors to
take over. The government should at least ensure a level-playing field so that
local developers and real estate firms can show what they are made of and fight
any evil shadow that tries to ruin the future of the country.
- Wasim Subhan Choudhury & Anim Hossain
Re-published (with slight changes) from The Business Bangladesh site.
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