For several years there have been efforts to restart state-owned jute mills, closed after they could no longer carry their losses, by leasing them to the private sector. Since taking office, the current BNP-led government has stepped up efforts to hand over these factories quickly. In line with its election pledge, it is pushing hard to reopen jute and textile mills alongside other closed industries.

As part of this, three closed jute mills will be leased to the private sector on Tuesday, 11 August. Of these mills under the state-owned Bangladesh Jute Mills Corporation (BJMC), two will go to PRAN-RFL Group and one to Hamko Group. The lease agreements will be signed at the Prime Minister's Office that day, according to sources at the Ministry of Textiles and Jute.

PRAN-RFL Group will get the lease of Jatiya Jute Mills Limited at Raipur in Sirajganj and Star Jute Mills Limited at Dighalia in Khulna. Hamko Group will lease Platinum Jubilee Jute Mills Limited at Khalishpur in Khulna.

According to sources, the corporation has 25 mills in total, of which 20 closed mills were selected for leasing. So far 14 have been leased to the private sector, and three more are now to follow. Only half of those leased, seven, have started operating so far; the other seven are in the process of starting.

Of the five mills outside the corporation's leasing programme, two within the Khulna City Corporation area have been declared economic zones through the Bangladesh Economic Zones Authority (BEZA). A proposal to add one more to the leasing list is under consideration, and two cannot be leased because of litigation.

According to the Ministry of Textiles and Jute, of the 14 mills leased earlier, the seven now operating are producing various goods. Four make jute products, while the other three produce sweaters, shoes, umbrellas, tents and spare parts. A total of 9,520 workers and staff now work in these factories.

The four mills producing only jute goods turn out 160 tonnes a day, currently earning 70 to 75 million dollars a year, according to sources. They are Bangladesh Jute Mills, run by the private company Jute Alliance Limited; Akij Jute's Jessore Jute Industries Limited; Regal Jute Limited's Carpeting Jute Mills; and Atlantic Jute Limited's Eastern Jute Mills.

Private company Best Sweater Limited has leased UMC Jute Mills in Narsingdi and converted it into a garment factory, where it is producing sweaters on a trial basis. About 300 workers have started work there.

Bengal Building Materials Limited, a PRAN-RFL Group company, has leased Rajshahi Jute Mills, where 1,300 people work. It produces about 5,000 pairs of shoes, 1,300 umbrellas and about 400 tents a day.

In addition, a company named Shafi Motors Limited has leased Gulfra Habib Limited in Chattogram and is producing 140 kg of spare parts a day there on a trial basis.

On the three new leases, BJMC chief operating officer Mamnur Rashid said all leasing procedures had been completed, and the agreements would be signed at the Prime Minister's Office on Tuesday.

On the remaining mills, he said: "Work is under way to lease the remaining three leasable mills quickly. It is hoped that leasing of all the mills will be completed within this year. The mills that have been leased are also in the process of starting operations quickly under private initiative."

Source: Jagonews24. First published in Bengali on The Agro News.