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Bangladesh mulls taking back privatised textile mills
05 Jan '12
2 min read
A Standing Committee of the Bangladesh Ministry of Textiles and Jute (MoTJ) and a Standing Committee in Parliament are studying the case of few textile mills in the country that have changed their business character since they were handed over to private owners around three decades ago.
Among other things, these Committees are also considering whether the Government should take back the ownership of these mills that it had handed over to private players about 30 years back.
Brig. Gen. Mahmud Ul Alam, Chairman, Bangladesh Textile Mills Corporation (BTMC) told fibre2fashion, “When Privatisation started in late 1970s, the Government handed over several textile mills to Bangladeshi citizens who had a share of more than 30 percent, along with all liabilities and debts.”
“A total of 35 textile mills were handed over to the Bangladeshi owners with an understanding that they would run them efficiently. But, today, after a span of 30 years, we find that most of them failed to keep up their commitments. They did not pay the scheduled bank dues and failed to perform other responsibilities. Worst of all, few of them have even changed the character of the mills altogether and are using it for other commercial purposes – some changed the character 100 percent, while some changed it by 70-80 percent,” he informs.
“So now, the Standing Committee in the Parliament and the Standing Committee of the MoTJ have taken note of this matter. They will review the situation both on ground and on paper. They are yet to take any decision on the Government taking back these mills,” he reveals.
Mr. Alam further adds, “The Government's decision is expected to be based on several factors, including the contribution of these textile mills to the economy of the country as a whole, the affect on employment and other aspects.”
Among other things, these Committees are also considering whether the Government should take back the ownership of these mills that it had handed over to private players about 30 years back.
Brig. Gen. Mahmud Ul Alam, Chairman, Bangladesh Textile Mills Corporation (BTMC) told fibre2fashion, “When Privatisation started in late 1970s, the Government handed over several textile mills to Bangladeshi citizens who had a share of more than 30 percent, along with all liabilities and debts.”
“A total of 35 textile mills were handed over to the Bangladeshi owners with an understanding that they would run them efficiently. But, today, after a span of 30 years, we find that most of them failed to keep up their commitments. They did not pay the scheduled bank dues and failed to perform other responsibilities. Worst of all, few of them have even changed the character of the mills altogether and are using it for other commercial purposes – some changed the character 100 percent, while some changed it by 70-80 percent,” he informs.
“So now, the Standing Committee in the Parliament and the Standing Committee of the MoTJ have taken note of this matter. They will review the situation both on ground and on paper. They are yet to take any decision on the Government taking back these mills,” he reveals.
Mr. Alam further adds, “The Government's decision is expected to be based on several factors, including the contribution of these textile mills to the economy of the country as a whole, the affect on employment and other aspects.”
Fibre2fashion News Desk - India
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