RANCON Lubricants to invest $19.65m in special EZ

RANCON Lubricants Ltd plans to invest $19.65 million to set up an industrial unit at the National Special Economic Zone (SEZ) in Mirsharai, Chattogram.

The company yesterday signed a 50-year land lease agreement with Invest Bangladesh Authority, the apex government agency responsible for promoting and facilitating investment, for 6.5 acres of developed land for the project.

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The planned investment is expected to create over 250 jobs.

Nahian Rahman Rochi, member (investment development) of BIDA, and Imran Zaman Khan, managing director of RANCON Lubricants, signed the agreement on behalf of their respective organisations.

“This is the first land lease agreement signed by Invest Bangladesh following the merger of three investment promotion agencies,” Nahian said.

Invest Bangladesh was formed by merging the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA) and Public-Private Partnership Authority (PPPA) under the Invest Bangladesh Act, 2026. It began operations on August 23 as the country’s apex investment promotion agency under the Prime Minister’s Office.

Nahian said the commitment from a leading investor such as RANCON reflects confidence in the new institution and could encourage other investors to come forward.

The lease will remain valid for 50 years from the date the land is handed over and may be renewed subject to terms set by Invest Bangladesh.

Invest Bangladesh is expected to hand over the land within 90 days of signing the agreement. RANCON Lubricants will begin construction within 120 days of receiving the land and bring the unit into production within 36 months of the handover.

Invest Bangladesh will assist the company in securing utility connections and accessing government-announced incentives on customs duties, VAT and taxes.

RANCON Lubricants will obtain the required approvals and comply with environmental, labour and safety regulations.

It will also install waste and sewage treatment facilities and connect them to the zone’s common effluent treatment and waste management systems.

The agreement provides for performance and compliance monitoring and allows a specified period to rectify breaches before termination.

It also provides for disputes to be resolved through arbitration under the Arbitration Act, 2001.