13 state-owned textile mills to be reopened soon

The government is going to overhaul, modernise and reopen 13 state-owned textile mills, now lying abandoned, under a public-private partnership (PPP) project soon. The mills are: RR Textile Mill, Amin Textile Mill and The Asiatic Cotton Mill in Chittagong; Dinajpur Textile Mill and Jalil Textile Mill in Dinajpur; Rangamati Textile Mill in Rangamati; Magura Textile Mill in Magura; Bengal Textile Mill in Jessore, Rajshahi Textile Mill in Rajshahi; Sundarban Textile Mill in Satkhira; Daruani Textile Mill in Neelphamary; Dusta Textile Mill in Feni; and Afsar Cotton Mill in Savar, Dhaka.  A proposal prepared by the textiles and jute ministry will be placed at the next meeting of the Cabinet Committee on Economic Affairs for its approval to reopen the mills.

According to the proposal, Tk 15,200 crore will be needed to reopen the 50-year-old mills under the PPP. Under the PPP, the government will lease each of the textile mills for 30 years to a private company. “The mills will operate under the Bangladesh Textile Mills Corporation (BTMC) and a private company will be selected following a tender,” the proposal says.

Faizur Rahman Chowdhury, secretary of the textiles and jute ministry, said the mills would be reopened and old machines replaced with modern equipment. The mills will be made operational in keeping with the decision of the Parliamentary Standing Committee on the Textiles and Jute Ministry, he added.

Currently, only six units of five textile mills, among a total of 18 owned by the BTMC, are operating under the service charge system and producing different counts of cotton yarn/viscose yarns.

Three more closed mills are under the process of being reopened under the service charge system and the balancing, modernisation, rehabilitation and expansion process.

The BTMC was set up under Article 10 of the Bangladesh Industrial Enterprises (Nationalisation) Order of March 26, 1972 (President’s Order No. 27 of 1972). It started functioning formally from July 1, 1972, with 74 nationalised mills to control, supervise and coordinate the operations of all nationalised textile mills placed under the corporation. Later, 12 more mills were established by the BTMC. Under the denationalisation and privatisation policy, 65 mills were handed over, sold and liquidated from 1977 to 2013. The Public Private Partnership Authority (PPPA) has listed a total of 45 projects so far.

13 state-owned textile mills to be reopened soon

The government is going to overhaul, modernise and reopen 13 state-owned textile mills, now lying abandoned, under a public-private partnership (PPP) project soon. The mills are: RR Textile Mill, Amin Textile Mill and The Asiatic Cotton Mill in Chittagong; Dinajpur Textile Mill and Jalil Textile Mill in Dinajpur; Rangamati Textile Mill in Rangamati; Magura Textile Mill in Magura; Bengal Textile Mill in Jessore, Rajshahi Textile Mill in Rajshahi; Sundarban Textile Mill in Satkhira; Daruani Textile Mill in Neelphamary; Dusta Textile Mill in Feni; and Afsar Cotton Mill in Savar, Dhaka. A proposal prepared by the textiles and jute ministry will be placed at the next meeting of the Cabinet Committee on Economic Affairs for its approval to reopen the mills. According to the proposal, Tk 15,200 crore will be needed to reopen the 50-year-old mills under the PPP. Under the PPP, the government will lease each of the textile mills for 30 years to a private company. The mills will operate under the Bangladesh Textile Mills Corporation (BTMC) and a private company will be selected following a tender, the proposal says. Faizur Rahman Chowdhury, secretary of the textiles and jute ministry, said the mills would be reopened and old machines replaced with modern equipment. The mills will be made operational in keeping with the decision of the Parliamentary Standing Committee on the Textiles and Jute Ministry, he added. Currently, only six units of five textile mills, among a total of 18 owned by the BTMC, are operating under the service charge system and producing different counts of cotton yarn/viscose yarns. Three more closed mills are under the process of being reopened under the service charge system and the balancing, modernisation, rehabilitation and expansion process. The BTMC was set up under Article 10 of the Bangladesh Industrial Enterprises (Nationalisation) Order of March 26, 1972 (Presidents Order No. 27 of 1972). It started functioning formally from July 1, 1972, with 74 nationalised mills to control, supervise and coordinate the operations of all nationalised textile mills placed under the corporation. Later, 12 more mills were established by the BTMC. Under the denationalisation and privatisation policy, 65 mills were handed over, sold and liquidated from 1977 to 2013. The Public Private Partnership Authority (PPPA) has listed a total of 45 projects so far.