PC\\\'s repeated moves to disinvest 12 state-owned jute, textile mills fail

The government's repeated moves to sell the state-owned textile and jute mills failed to lure private entrepreneurs due to frequent rise in liabilities of those mills over the years, officials said.
According to official figures, the cumulative liabilities of 12 governmnet-owned textile and jute mills have already hit Tk 9.0 billion.
Among them, the Kawmi Jute Mills Ltd has the highest amount of liability of Tk 2.54 billion followed by Ahmed Bawany Textile Mills Ltd Tk 1.55 billion, Chittaranjan Cotton Mills Ltd Tk 1.07 billion, Kaderia Textile Mills Ltd Tk 990 million, Daulatpur Jute Mills Ltd Tk 820 million, Sylhet Textile Mills Tk 820 million, Kurigram Textile Mills Ltd Tk 680 million, Darwani Textile Mills Ltd Tk 390 million, Valika Woolen Mills Ltd Tk 100 million.
Baghdad-Dhaka Carpet Factory, Dyeing and Printing unit of Chandanaish under Bangladesh Handloom Board and Service and Facilities Center of Brahmanbaria are the rest three factories awaiting privatisation.
 "Due to liabilities of the state-owned textiles and jute mills the Privatisation Commission (PC) under Prime Minister's office could not sell any of its mills over the years," Mirza Abdul Jalil, Chairman of PC told the FE.
He said the PC office floated tenders several times inviting interested bidders to take control of its 12 textile and jute mills but could not sell any of the units.
The PC chairman said as the state-owned 12 textile and jute mills under the Textile and Jute Ministry have liabilities of Tk 9.00 billion nobody is interested to take the mills.
He said "Most of the government textile and jute mills are now out of production, so the PC has taken a decision for selling some mills to private companies but could not proceed till now".
Mr Jalil said that according to the privatisation policy, the government would leave more industrial units to private sector gradually.
He said when the PC decided to sell the mills then many companies showed interest but none agreed to take the liabilities.
He said, "The ministry concerned does not agree to repay the liabilities and the PC does not have the ability. So tell me who will take charge of the mills".
But, officials and experts concerned said if the private entrepreneurs are not interested to buy the units in that case the government should reinvest in the projects and reopen the mills under its own management.
Managing Director of Argon Denims Anwar-ul-Alam Chowdhury Parvez told the FE that due to liabilities, unethical pricing and outdated machineries the PC hasn't got any response from private entrepreneurs and failed to implement its privatisation move.
He said many state-owned industries are now out of production so the PC wants to sell those. "But who will take the liabilities of the industries?" he posed a question.
Mr Parvez also president of BGMEA said for outdated machineries and mismanagement, the BTMC mills are now out of production despite having a huge demand for yarn and fabrics in the country.
Bangladesh Textile Mills Association (BTMA) president Jahangir Alamin told the FE "In absence of production in the mills the liability is being increased, so the PC could not sell any of the mills to any private entrepreneur".
He said as the mills lack minimum facilities the buyers will have to do some renovation work for smooth running, for this reason private companies are not coming forward.
Most of the factories, the PC wants to sell, don't have gas and electricity connections, the primary demand of an entrepreneur, he added.
BTMA data show presently, the country has over 1,158 cotton and textile mills, of which, the private sector owns 1,140 mills and the BTMC 18.
According to many officials at BJMC and BTMC, the total price of the 12 mills waiting to be privatised is approximately Tk 80 billion in the current market price.