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Bscic

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BSCIC: AN OVERVIEW

4.1 Historical Background

Bangladesh Small and Cottage Industries Corporation (BSCIC) is a public sector enterprise with autonomous character entrusted with entire task of promotion and development of small and cottage industries in Bangladesh. It is the successor organization to the former East Pakistan Small industries Corporation (EPSIC) which was established by an Act of the parliament in 1957. Main role has been to assist the promotion of small manufacturing enterprises by- (a) developing infra-structural facilities for industry, (b) providing technical assistance and counseling services, (c) financing industries in the private sector and (d) setting up industries for which private investors were reluctant. Under the direct or indirect initiative of BSCIC a plenty of entrepreneurs has been created and enterprises has been set up in the country. But the influence of globalization and the free economy impacts upon the traditional manufacturing enterprises. This situation for marketing of small and cottage industries products is a major constraints facing by the sector. BSCIC is to provide facilities to the existing and new entrepreneurs to expand and develop their markets and to stay and sustain in the competitive environment.

The definition of small-scale industry has undergone a considerable change in Bangladesh from time to time under government industrial policies. During the period 1957-65, small scale industry in Bangladesh (the then East Pakistan) stood for an industrial establishment or unit run mainly with hired labor not exceeding 50 workers when power was used; and whose investment in land, building and machinery’s did not exceed Tk. 0.25 million in value, in either case. In the Third Five Year Plan of Pakistan (1965-70), small scale industries were defined as those industrial units which employed manual labor but did not use any motive power or as industries which used motive power and used fixed assets, other than land, valued a not more than Tk. 0.25 million. In 1970, Government changed the definition of small scale industry by raising the fixed investment ceiling in a unit to Tk. 1.0 million excluding the cost of land and working capital. In the post-liberation Industrial Policy of 1972-73, small scale industry was defined as a unit with not more than Tk. 2.5 million in fixed assets including the value of land. Bangladesh Small and Cottage Industries Corporation (BCSIC), the main promotional institution for small industry development in Bangladesh, has adopted this definition. The definition of small scale industry under the Factories Act refers to any industrial unit which is defined as a factory under the Factories Act, 1965. The department of industries has defined small scale industry as a unit having fixed costs up to Tk. 1.0 million excluding cost of land. For the purpose of this study, small scale industry has been defined as “industrial unit having fixed assets, including land and buildings up to Tk. 2.5 million”.

Growth of industries at accelerated pace is an important aspect of development effort for rapid economic progress. The traditional pattern of industrialization adopted by the Western Countries in the beginning was based upon the large scale industries. Large scale production was accepted by almost all the emerging nations owing to certain initial advantages.

In under-developed areas, development of large-scale industries has been slow, inadequate and ineffective in tackling the unemployment problems due to of invest able resources. Large scale industries are essentially capital intensive and they require more investment for providing employment to one person as compared to small scale industries. For instance, in Bangladesh, the employment ratio to investment in case of small industry is Tk. 45,000 per person as against Tk. 150,000 per person in case of large scale industries. Again, the capital/output ratio in case of small industry is 0.583 as against 1.734 in case of large industries. Thus, the small scale industries provide employment to more persons and lead to the economy of capital.

The prospects of development of small industries are very great in Bangladesh in view of the fact that the country is substantially endowed with raw materials for various types of small scale industries, cheap supply of labor and a vast domestic market. There was an amendment of BSCIC ACT in 1990. Through this amendment BSCIC has been given more authority to undertake activities for the development of small and cottage industries. As per the amendment BSCIC has been vested with the responsibilities for the registration of small scale industries, fixing up of the import entitlement of raw and packing materials, insurance of import pass book and allotment of land in its own industrial estates and for providing assistance to all other related matters. BSCIC also provides financial and credit facilities in case of some special types of small and cottage industries.

The organization set up of BSCIC underwent several over the passage of time. Initially, a part-time Board of Directors nominated by Government from different institutions managed BSCIC. The Chairman as the Chief Executive of the Board of Director was responsible for the overall operational management of the cooperation, In mid-1970 three full time directors were appointed to head the major functional decisions within the cooperation. In 1974 BSIC was bifurcated into two organizations-Bangladesh Small Industries Corporation (BSCIC) and Bangladesh Cottage Industries Corporation (BCIC). But, in view of the difficulties faced in operating the two organizations separately, and also on the basis of the recommendations made by different international bodies for amalgamating the two corporations into one. Government decided to merge them into one corporation in january1976. As a result the new corporation, BSCIC Came into being and started operation from March 16, 1977. Basic has four regional offices located at divisional headquarters. The functions of these four officers are mostly to coordinate the activities of local administrations I. undertaking overall programs for SCI’s of different regions.

BSCIC is financed mainly by government grants. However, to provide financial support to private enterprises, it receives financial resources from different international agencies like IDA, SIDA, Ford Foundation and others.

4.2 Key Management at Present:

BSCIC Broad of Directors

|Serial No. |Name |Designation |Telephone No. |
|1 |Shyam Sunder Sikder |Chairman |9565612 |
|2 |-- |Director(Promotion and |9557917 |
| | |Extension) | |
|3 |Md. Munsar Reza Choudhury |Director(Finance) |9565613 |
|4 |Patit Pabon Baidya |Director(Project) |9553466 |
|5 |Nurul Islam |Director(Marketing) |9553487 |
|6 |Rama Rani Roy |Director(Planning and |9553485 |
| | |Development) | |
|7 |Abu Thaher Khan |Director(Technology) |9553714 |
|8 |Tahsinur Rahman |Secretary |9553490 |

Source: www.bscic.gov.bd

4.3 BSCIC Provides: • Pre-investment counseling • Post-investment extension services • Technical information • Design and prototype of handicrafts • Industrial profiles and fact sheets • Marketing information • Infrastructural facilities • Skill development training • Entrepreneurship development training • In-plant advisory services • Credit facilities etc.

4.4 Main Objectives of BSCIC:
• Increase of industrial production and productivity in the SCI sector;
• Creation of employment opportunities;
• Poverty alleviation;
• Balanced regional growth;
• Ensure optimum utilization of economic and human resources;
• Accelerate overall economic growth of the country through SCI;

4.5 INDUSTRY PROFILE
|List of Profile: |
|Sl.no. |Name of project profile |Sl.no. |Name of project profile |
|01. |Soya Milk |06. |Collar & Cuff |
|02. |Mass Room |07. |Waste Cotton |
|03. |Pop Corn |08. |Tannery |
|04. |Yarn Dyeing |09. |Novelty Leather Craft |
|05. |Hosiery Fabrics |10. |Leather Garments |

Source: www.bscic.gov.bd

4.6 List of Industrial State:
BSCIC provides infrastructural facilities by establishing industrial estates throughout the country. The name of the industrial estates already established are given bellow:

|Barisal |
| |
|4 Industrial Estates up to Sep, 2014 |
| |
|Barisal | |
|Bhola | |
|Patuakhali | |
|Swarupkanthi | |

|Chittagong |
| |
|16 Industrial Estates up to Sep, 2014 |
| |
|B. Baria | |
|Begumgonj | |
|Chandpur | |
|Chouddagram | |
|Comilla | |
|Cox's Bazar | |
|Feni | |
|Foujdarhat | |
|Kalurghat | |
|Kalurghat (Ext) | |
|Khagrachari | |
|Laxmipur | |
|Noakhali | |
|Patia | |
|Rangamati | |
|Sholoshahar | |

|Dhaka |
| |
|26 Industrial Estates up to Sep, 2014 |
| |
|Dhaka | |
|Dhamrai | |
|Electronics | |
|Faridpur | |
|Gopalgonj | |
|Hosiery | |
|Jamalpur | |
|Jamdani | |
|Joydevpur | |
|Keranigonj | |
|Kishoregonj | |
|Madaripur | |
|Manikgonj | |
|Munsigonj | |
|Mymensing (Extension) | |
|Mymensingh | |
|Narayangonj | |
|Narsingdi | |
|Netrokona | |
|Nijkunjara | |
|Rajbari | |
|Shariatpur | |
|Sherpur | |
|Tangail | |
|Tannery | |
|Tongi | |

|Khulna |
| |
|11 Industrial Estates up to Sep, 2014 |
| |
|Bagerhat | |
|Barishal | |
|Bhola | |
|Jessore | |
|Jhinaidah | |
|Khulna | |
|Kushtia | |
|Meherpur | |
|Patuakhali | |
|Satkhira | |
|Swarupkathi | |

|Rajshahi |
| |
|17 Industrial Estates up to Sep, 2014 |
| |
|Bogra | |
|Bogra (Ext.) | |
|Dinajpur | |
|Gaibandha | |
|Joypurhat | |
|Kurigram | |
|Lalmonirhat | |
|Natore | |
|Nawabgonj | |
|Noagaon | |
|Pabna | |
|Panchagarh | |
|Rajshahi | |
|Rangpur | |
|Sayedpur | |
|Sirajgonj | |
|Thakurgaon | |

|Sylhet |
| |
|5 Industrial Estates up to Sep, 2014 |
| |
|Hobigonj | |
|Moulavibazar | |
|Sunamgonj | |
|Sylhet | |
|Sylhet (Ext) | |
|Source: ww.bscic.gov.bd | |

4.7 Activities of BSCIC:
At present BSCIC is basically/generally conducting two kinds of activities aiming for extension of small and cottage industries. a. Extension, promotion & regulatory function under revenue budget. b. Long-term development oriented activities under annual development program.

4.7.1 Extension & Promotional Activities: ← To provide technical and other assistance for setting up at industrial units production of goods, quality improvement etc. ← Creation and supply of improved design. ← Collection and distribution of appropriate technology. ← Entrepreneurship development. ← Allotment of developed plot with metallic road, water supply, electricity, gas supply etc. ← To provide credit facilities through BSCIC own program and other financial institutions. ← Preparation of project proposal and objects appraisal. ← To conduct study and survey regarding industrial extension. ← To provide necessary pre and post investment counseling for setting up establishment of industry.

4.7.2 Regulatory activities: ← Registration of small and cottage industries. ← Recommendations for work permit for foreign citizens. ← In order to provide the above services BSCIC Head Office in Dhaka and four Regional offices located in Dhaka, Chittagong, Khulna and Rajshahi and 64 ISC’s located in 64 districts are in operation. These offices are managed by Manager, Subject Matter Specialists, Extension Officer, Promotion Officer, Financial Analysts, Marketing analysts & Survey and Evaluation Officer etc. In some are as BSCIC activities have been expanded up to Upzilla level and in many remote areas through various development projects aimed at over all socio-economic development of the country. ← Recommendation for exemption of tax and fees. ← Recommendation of priority assessment for importing of industrial raw materials and packaging materials.
4.8 Credit Programme:
For the promotion and extension of small & cottage industries BSCIC arranges credit facilities with the help of banks and other financial institutions .
On the other hand BSCIC has some credit programmes .These are: • Development of rural industries • Poverty Alleviation Through Income Generation Programme • Self-employment through small & cottage industries • Women Entrepreneurship Development Programme • Revitalization Of Rural Economy Through Development of rural industries

4.9 Infrastructure development: Infrastructural facilities provide strong base for the development of industry and economy. Services such as roads, bridge, port airports, housing etc. Constitute infra-structural facilities to private sector entrepreneurs for the development of small and cottage industries initiated ‘Industrial Estates Program” in the later part of sixty’s Industrial estate is a planned development is with provision for infra-structural facilities to accommodate industrial units. William Bredo (1962) defined an industrial estate as a tract of land developed and sub-divided into plots according to a comprehensive plan with provision for streets and roads, transportation facilities, installation of utilities, and sometimes with or without pre-build factory buildings for the use of a community of industrial enterprises. Industrial estates serve the purpose of providing long terms financial assistance to small-scale entrepreneurs. Staley and Morse (1965) regarded the provision of suitable factory premises on rental or hire purchase basis as good as a loan. During the fifties Bangladeshi entrepreneurs were experiencing severe difficulties in finding suitable land area to house their enterprises.

Recognizing this problem as a serious constraint in the development of small industries, the government made efforts to provide working premises to the small entrepreneurs through the development of industrial estates in different parts of the country. Accordingly it was envisaged in the Second Five Year Plan (1990-95) to develop 20 industrial estates, one in each district, to provide infra-structural facilities like metalloid road, electricity, water supply, and drainage. The main purpose of this program was not only to provide working premises to the small entrepreneurs but also to ensure dispersal of industries, balanced Reginald development, generation of employment opportunities, promoting local entrepreneur’s etc.
The program was expected to be amplitude by the end of third Five Year Plan of Pakistan in 1970. But, due to limitation of resources allocations from the government and absence of adequate response from the private sector entrepreneurs the development of 20 industrial estates was delayed.
During the second Five Year Plan of Bangladesh BSCIC took up a project for establishing 9 industrial estates for development of 1348 industrial pots. Resources constraints and non-receipt of land in time made the execution by June, 1990. Because of government policy of decentralization and balanced industrial growth BSCIC took up a project for establishing 9 industrial estates from development of 1348 industrial plots. Resources constraints and non-receipt of land in time made the execution of the project delayed and consequently it was rescheduled for completion by June 1990. Because of government policy of decentralization and balanced industrial growth BSCIC took up a program for setting up 21 more industrial estates during the Third Five Year Plan period and decided to rehabilitate 20 old industrial estates established during the early part of 1960. Recognizing the demand for establishment of industrial estates and in considerations of the requirement of giving a total coverage of all districts. BSCIC again planned to establish 24 industrial estates under the “District Based 24 Industrial Estates Program” during the Fourth and fifth years plan.

District Based 24 Industrial Estates Program
| | | | | | |Status of industrial Units |
| | | |
| | | |
| | | |

Contribution of Industry Sector to GDP (in %)
|Type |Fy07-08 |Fy08-09 |Fy09- 10 |Fy10-11 |Fy11-12 |Fy12-13 |Fy 13-14 |
|Industry* |29.45 | |29.93 |30.33 |31.26 |32.36 |38.9 |
|Med. & large Ind. |12.63 |12.71 |12.68 |13.12 |13.75 |14.28 |15.93 |
|Small & Cottage Ind. |5.14 |5.18 |5.26 |5.29 |5.26 |5.27 |3.52 |
|Total Industry (Mfd.) |17.77 |17.90 |17.94 |18.41 |19.01 |19.54 |19. |
|Nation |100.0 |100.0 |100.0 |100.0 |100.0 |100.0 |100 |

(*Industry Included minerals; Industries (mfd.) ; electric, gas & water resource, construction)

Source: Bangladesh Economic Review -2014

Growth of Industry Sector to (in %)

|Type |Fy07-08 |Fy08-09 |Fy09- 10 |Fy10-11 |Fy11-12 |Fy12-13 |Fy13-14 |
|Med. & large Ind. |7.26 |6.58 |5.98 |10.94 |10.78 |10.32 |9.16 |
|Small & Cottage Ind. |7.10 |6.90 |7.77 |5.84 |7.18 |6.76 |6.6 |
|National |6.19 |5.74 |6.07 |6.66 |6.32 |6.03 |6.01 |

Source: Bangladesh Economic Review -2014

3.11 BSCIC’s Vision-2025: Bangladesh Small & Cottage Industries Corporation (BSCIC) was established in recognition of the need for a specialized agency to promote the development of Small, Medium & Cottage Industries (SMCIs) in the manufacturing sector through the provision of advisory services, fiscal and financial assistance, infrastructural facilities, market access and other support programme. BSCIC strives to create resilient and efficient SMCIs, able to compete in a liberalized market environment. SMCIs have to be efficient and knowledge-driven, including using ICT to be globally ‘connected’ and accessible. The Corporation will promote SMCIs to be an integral part of the country’s industrial development capable of producing high value-added manufacturing product & services. BSCIC will serve as the national focal point for the over all development of SMCIs in the country. The principal goal of the Bangladesh Govt. economic policy is to reduce poverty which is coherent with the MDGs. For achieving the above goal, economic growth policy is adopted by the Govt. in the macro-economic policy. In view of the above the BSCIC Vision, Mission, Goal, Strategy, Initiative, Challenges, Needs, Objectives, Services, Function and Programs are fixed.

3.12 Publications of BSCIC:
Handicrafts or cottage level products are national asset & heritage. These also carry the cultural heredity of the nation. Design Centre's collection & research on rare type of crafts for development of different products are enriching the culture and tradition.
Handicrafts or cottage level products are national asset & heritage. These also carry the cultural heredity of the nation. Design Centre's collection & research on rare type of crafts for development of different products are enriching the culture and tradition.

1.Title:BipananBishleshon-Vol-12 Year:2011 Price:100
2. Title:ShilpajatPonyerman-niyontransachetanata Year:1984
Subject: Quality Control
3. Title:- Man Niyontron - Normal Salt
Subject: Quality Control
Year: 1990
4. Title: Bipanan Bishleshon- 10 khudra shilpa panya-1
Subject: Marketing
5. Title: Man Niyontron-Electrical Goods (Plug and Socket)
Subject: Quality Control
Year: 1990
Source: www.bscic.gov.bd

3.13Present condition of BSCIC in Bangladesh: [pic]

Source: www.bscic.gov.bd

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CHAPTER FOUR

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34…...

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