The relocation of tanneries from Hazaribagh to Savar in Bangladesh has come to a halt as the tannery owners are reluctant to move, sources reported.

Bangladesh Small and Cottage Industries Corporation (BSCIC) has allocated 205 industrial plots to 155 tanneries in the 200-acre leather park at Hemayetpur, Savar. Roads, water treatment plants, gas, electricity and sewerage have already been set up at the tannery zone, but it is still waiting on a central effluent treatment plant (CETP).

Before they will agree to the move, it is believed tannery owners are calling for a CETP to be established, as well as the offer of easily accessible loans and compensation of 10.9 billion taka ($133.4 million).

According to the Bangladesh Tanners' Association, leather, leathergoods and footwear exports exceeded 62 billion taka in fiscal 2011-12.