Bangladesh to revive 13 textiles mills under PPP mode

21 Dec '17

2 min read

Bangladesh will restart 13 textiles mills, shut down 25 years ago due to losses, and run them under a public-private partnership (PPP) initiative. The cabinet committee on economic affairs has approved a proposal from the Bangladesh Textile Mills Corporation (BTMC) in this regard. The private party will implement, maintain and market products of the project.

BDT 15,200 crore will be allocated to purchase new machinery to replace the existing ones and run these mills as part of the textile sector’s largest project till now, according to Bangladesh media reports.

According to the proposal, the 30-year-tenure PPP, in which the Bangladesh Jute Mills Corporation will be the major partner, can be renewed. The project will also ensure proper use of 380.47 acres of land allocated for the sector.

The 13 mills up for overhaul are RR Textile Mill, Amin Jute and Textile Mills and The Asiatic Cotton Mill in Chittagong; Rangamati Textile Mill at Ghagra, Rangamati; Magura Textile Mill in Magura; Bengal Textile Mill at Noapara, Jessore; Rajshahi Textile Mill at Sapura, Rajshahi; Sundarban Textile Mill in Satkhira; Dinajpur Textile Mill and Jalil Textile Mill in Dinajpur; Darwani Textile Mill in Nipharmari; Dost Textile Mill at Ranirhat, Feni; and Afsar Cotton Mill at Savar, Dhaka.

Of the 86 state-owned textile mills, BTMC handed over 60 mills to the Privatisation Commission between 1977 and 2013, and runs 24 factories across the country at present.

The jute mills have been incurring losses for several years now. Their losses amounted to BDT 588 crore in fiscal 2015-16. (DS)

Fibre2Fashion News Desk – India

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