Closed jute mills may be leased out to pvt sector
Wednesday, 29 August 2007
S M Jahangir
The government is considering leasing out its closed jute mills to the private sector to help resume their production under efficient private entrepreneurs.
"A move to lease out the operations of the recently closed state-run jute mills to private entrepreneurs is underway," a senior official of the Textile and Jute Ministry said.
The government recently shut down four jute mills under the sate-run Bangladesh Jute Mills Corporations as part of its three-year reform programme to revive the country's jute sector.
The mills are: People Jute Mills in Khulna, Karnaphuli Jute Mills and Forat-Karnaphuli Carpet Factory in Chittagong, and Kaomi Jute Mills in Sirajganj.
According to sources, about 6,000 officials and workers have become unemployed due to the closure.
A ministry official said the authorities are working out the guidelines for leasing out the closed mills to the private operators.
The official further said operations of the said jute mills will be handed over to private entrepreneurs through tenders.
However, the private jute mills have already requested the government to set criterion so that the local jute-mill operators get priority in this regard, the sector insiders said.
Under the move, the government has planned to adjust the liabilities of the closed jute mills with their leased money, sources mentioned.
They also said the authorities have already advised the concerned banks to stop levying interest on the outstanding loans that the closed jute mills owed them.
Initially, those mills are expected to be leased out for short terms, sources said, adding such arrangement can be extended if the programme becomes successful.
The current move aims to help revive the country's jute industry under private sector.
"The government has planned to lease out such closed jute mills to make them operationally sound and commercially viable'.
Another important objective of the initiative is to create room for the large number of unemployed workers under new managements.
The government had earlier announced that all workers and employees of the recently closed mills would get their dues according to the existing rules.
Meanwhile, the government had shut down the four jute mills in order to reduce the overall losses, faced by the state-run jute units.
Official figures showed that the accumulated losses of the BJMC mills stood Tk 47.70 billion in 2006.
With the closure of four units, the number of jute mills under the BJMC has now reached 18, sources said.
The government has also plans to handout its loss-making jute mills to the private sector in phases.
The government is considering leasing out its closed jute mills to the private sector to help resume their production under efficient private entrepreneurs.
"A move to lease out the operations of the recently closed state-run jute mills to private entrepreneurs is underway," a senior official of the Textile and Jute Ministry said.
The government recently shut down four jute mills under the sate-run Bangladesh Jute Mills Corporations as part of its three-year reform programme to revive the country's jute sector.
The mills are: People Jute Mills in Khulna, Karnaphuli Jute Mills and Forat-Karnaphuli Carpet Factory in Chittagong, and Kaomi Jute Mills in Sirajganj.
According to sources, about 6,000 officials and workers have become unemployed due to the closure.
A ministry official said the authorities are working out the guidelines for leasing out the closed mills to the private operators.
The official further said operations of the said jute mills will be handed over to private entrepreneurs through tenders.
However, the private jute mills have already requested the government to set criterion so that the local jute-mill operators get priority in this regard, the sector insiders said.
Under the move, the government has planned to adjust the liabilities of the closed jute mills with their leased money, sources mentioned.
They also said the authorities have already advised the concerned banks to stop levying interest on the outstanding loans that the closed jute mills owed them.
Initially, those mills are expected to be leased out for short terms, sources said, adding such arrangement can be extended if the programme becomes successful.
The current move aims to help revive the country's jute industry under private sector.
"The government has planned to lease out such closed jute mills to make them operationally sound and commercially viable'.
Another important objective of the initiative is to create room for the large number of unemployed workers under new managements.
The government had earlier announced that all workers and employees of the recently closed mills would get their dues according to the existing rules.
Meanwhile, the government had shut down the four jute mills in order to reduce the overall losses, faced by the state-run jute units.
Official figures showed that the accumulated losses of the BJMC mills stood Tk 47.70 billion in 2006.
With the closure of four units, the number of jute mills under the BJMC has now reached 18, sources said.
The government has also plans to handout its loss-making jute mills to the private sector in phases.