Jute Ministry seeks Tk 1.36b to re-open three jute mills
Tuesday, 8 September 2009
The Ministry of Jute and Textiles has sought a special allocation of Tk 1.36 billion (136 crore) from the Finance Ministry to reopen three nationalised jute mills within the current fiscal, reports BSS.
"We would like to reopen the jute mills soon, especially three mills, by this year. But we need money to reopen it so we are making our plea to the finance ministry to settle some issues including the liabilities of the banks. Hopefully, we'll be able to reopen the mills soon," Abdul Latif Siddiqui, the minister for Jute and Textiles told BSS Monday.
Examining the overall situation of the closed jute mills, the ministry has identified People's, Qaumi and Doulatpur jute mills as being in a position to reopen by this year. Earlier, the government announced it would reopen 13 closed jute mills within the next two years to rejuvenate the ailing sector.
According to ministry sources these amounts would be paid to realise the claims of raw jute sellers, purchase raw jute for the mills and take care of the liabilities of banks.
"Whatever, we will purchase raw jute for these three mills as we are determined to reopen the mills soon," the minister said.
Earlier, the finance ministry allocated Tk 2.0 billion (200 crore) (as fresh loan) to Bangladesh Jute Mills Corporation (BJMC) for buying raw jute for 17 nationalised jute mills, which is a part of a two-year programme for the nationalised mills to participate in the jute goods business and to reschedule the previous year's liabilities of banks.
The outstanding claims of raw jute sellers amount to Tk 1.25 billion (125 crore) since 1972.
The Jute Ministry apprehended that due to the huge demand for jute in the global market, the growers are getting more support to invest in this sector. According to the BJMC, the price of per maund jute at the grower level is now between Tk 1100 to 1400 depending on the grade.
"We would like to reopen the jute mills soon, especially three mills, by this year. But we need money to reopen it so we are making our plea to the finance ministry to settle some issues including the liabilities of the banks. Hopefully, we'll be able to reopen the mills soon," Abdul Latif Siddiqui, the minister for Jute and Textiles told BSS Monday.
Examining the overall situation of the closed jute mills, the ministry has identified People's, Qaumi and Doulatpur jute mills as being in a position to reopen by this year. Earlier, the government announced it would reopen 13 closed jute mills within the next two years to rejuvenate the ailing sector.
According to ministry sources these amounts would be paid to realise the claims of raw jute sellers, purchase raw jute for the mills and take care of the liabilities of banks.
"Whatever, we will purchase raw jute for these three mills as we are determined to reopen the mills soon," the minister said.
Earlier, the finance ministry allocated Tk 2.0 billion (200 crore) (as fresh loan) to Bangladesh Jute Mills Corporation (BJMC) for buying raw jute for 17 nationalised jute mills, which is a part of a two-year programme for the nationalised mills to participate in the jute goods business and to reschedule the previous year's liabilities of banks.
The outstanding claims of raw jute sellers amount to Tk 1.25 billion (125 crore) since 1972.
The Jute Ministry apprehended that due to the huge demand for jute in the global market, the growers are getting more support to invest in this sector. According to the BJMC, the price of per maund jute at the grower level is now between Tk 1100 to 1400 depending on the grade.