Govt set to reopen 8 textile mills
Tuesday, 3 May 2011
Md Mazadul Hoque
The government is set to reopen eight closed mills under Bangladesh Textiles Mills Corporation (BTMC) at a cost of Tk 2.8 billion to bump up yarn production, said a high official of the corporation. Ahmed Bawany Textile Mills in Demra under Dhaka district and Chittaranjan Cotton Mills in Godnyle of Narayanganj will be reopened. The reopening of the two mills will cost Tk 400 million each. Chittagong-based Amin Textiles Limited-1, R.R Textile Mills, and Valika Woolen Mills will be run at the cost of Tk 300 million, Tk 500 million, and Tk 250 million respectively, the official said. The official said Bengal Textile Mills of Jessore district will also be reopened with a fresh investment of Tk 300 million, while Sylhet Textile Mills will need Tk 250 million for resuming production. Dinajpur Textile Mills, which was out of production for a long time, will also be run at a cost of Tk 400 million, the official said. The official said BTMC will set up Khulna Textile Polli on an area of 25.63 acre land and it will have a greater impact on creating mostly local employment. BTMC officials said the government has already reopened seven textile mills over the past six months at a cost of Tk2650 million where production is going on in full swing. However, chairman of BTMC Mahmood Ul Alam said the government is in a quandary over the resumption of its closed textiles units under public-private partnership (PPP) arrangement, amid disputes over their ownership status. The government considers resuming operation of closed mills aiming to create more employment and also to meet the domestic demand of fabrics, Mr Alam said. The chairman said aged machinery, bureaucratic problem and political unrest are responsible for the closure of state enterprises. Without replacing machinery, there is no possibility of running closed textile mills as equipment there have been out of order, the chairman said. He said the closed mills should be reopened as soon as possible given the fact those can meet the clothing demand of the nation. Mr. Alam said private sector people may be inducted to oversee the mills' management but the government shouldn't cede its control over the ownership. The BTMC chief said out of 18 textile mills, seven mills, which resumed operation recently, increased output by 66 per cent from a year earlier in February. Fabric production increased to 1402 bales from nine mills in February compared with only 468 bales in February last year. Employment also rose to 1950 in six months of current fiscal, from 590 a year earlier, Mr Alam said.
The government is set to reopen eight closed mills under Bangladesh Textiles Mills Corporation (BTMC) at a cost of Tk 2.8 billion to bump up yarn production, said a high official of the corporation. Ahmed Bawany Textile Mills in Demra under Dhaka district and Chittaranjan Cotton Mills in Godnyle of Narayanganj will be reopened. The reopening of the two mills will cost Tk 400 million each. Chittagong-based Amin Textiles Limited-1, R.R Textile Mills, and Valika Woolen Mills will be run at the cost of Tk 300 million, Tk 500 million, and Tk 250 million respectively, the official said. The official said Bengal Textile Mills of Jessore district will also be reopened with a fresh investment of Tk 300 million, while Sylhet Textile Mills will need Tk 250 million for resuming production. Dinajpur Textile Mills, which was out of production for a long time, will also be run at a cost of Tk 400 million, the official said. The official said BTMC will set up Khulna Textile Polli on an area of 25.63 acre land and it will have a greater impact on creating mostly local employment. BTMC officials said the government has already reopened seven textile mills over the past six months at a cost of Tk2650 million where production is going on in full swing. However, chairman of BTMC Mahmood Ul Alam said the government is in a quandary over the resumption of its closed textiles units under public-private partnership (PPP) arrangement, amid disputes over their ownership status. The government considers resuming operation of closed mills aiming to create more employment and also to meet the domestic demand of fabrics, Mr Alam said. The chairman said aged machinery, bureaucratic problem and political unrest are responsible for the closure of state enterprises. Without replacing machinery, there is no possibility of running closed textile mills as equipment there have been out of order, the chairman said. He said the closed mills should be reopened as soon as possible given the fact those can meet the clothing demand of the nation. Mr. Alam said private sector people may be inducted to oversee the mills' management but the government shouldn't cede its control over the ownership. The BTMC chief said out of 18 textile mills, seven mills, which resumed operation recently, increased output by 66 per cent from a year earlier in February. Fabric production increased to 1402 bales from nine mills in February compared with only 468 bales in February last year. Employment also rose to 1950 in six months of current fiscal, from 590 a year earlier, Mr Alam said.