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Govt to divest stake in state-owned jute mills
04
Jul '11
Following the Finance Minister's approval, the Bangladesh Government is to soon divest at least 49 percent share in each of all the 26 state-run jute mills.

As per the provisions laid down by the Government, the process of offloading in the capital market must be concluded within a year. Presently, these mills are run by Bangladesh Jute Mills Corporation (BJMC).

As a part of its focus on improving working of these mills and to make them economically sound, the Government had appointed a Committee led by the Finance Secretary to carry out a comprehensive study of the condition of the jute mills.

The five-point recommendations tabled by the Committee included a suggestion of divesting 49 percent stake in each of the state-owned jute mills.

The Government has also resolved to convert BJMC into a 'holding company', in order to save these mills from incurring monetary losses.

Post-Independence, the Bangladesh Government nationalized 79 jute mills, but 52 of these mills were later sold out to private companies.

Official figures since nationalization up to June 30, 2009 reveal that the state-owned mills operating under the BJMC have jointly incurred losses to the tune of Tk 48.21 billion.

Fibre2fashion News Desk - India

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