Two BTMC mills to reopen under public-private partnership

The cabinet committee on economic affairs on Monday approved two proposals to pick partners for running two closed mills of the Bangladesh Textile Mills Corporation under public-private partnership modality.
The committee gave approval of the proposals aiming to restart operation of the mills -- RR Textile Mills in Chattogram and Rajshahi Textile Mills.
With this approval made at a meeting at the secretariat, chaired by finance minister Abul Hassan Mahmood Ali, the BTMC will sign deals with the partners to run the mills.
Briefing the media after the meeting, cabinet division secretary (coordination and reform) Md Mahmudul Hossain Khan said the RR Textile Mills was established in 1963 in 19.48 acres of land and was operational until 1997.
In 2017, the committee gave its seal of approval to reopen the mills under PPP. Later, an international tender was floated.
The tender evaluation committee then selected Pran Consortium from three proposals and suggested signing a 30-year deal with the company.
Pran will provide Tk 100 million as an upfront premium to the BTMC for using the land of the mills.
After a three-year grace period, Pran will provide the BTMC with Tk 32.2 million annually until the deal is over.
The Rajshahi Textile Mills was established in 1975 on 26.34 acres of land and remained operative until 1997.
An international tender was floated where one company namely Chorka Textile Mills Ltd submitted proposal and found responsive.
The tender evaluation committee recommended signing a 30-year deal with the company.
Chorka will provide the BTMC with Tk 60 million as upfront premium and once a three-year grace period is over, it will provide Tk 17.15 million each year to the corporation for using the land of the mills.
The BTMC began its journey in July 1972 with 74 mills acquired through nationalisation under a presidential order.
Later, 12 new mills were set up, bringing the total to 86.
Currently, 25 mills are under the BTMC's control. Eight of them are being operated on a rental basis, while production at eight others has been temporarily suspended.
Two mills are being converted into textile villages and the BTMC has reacquired seven others.
Nine mills have also been handed over to workers and employees, while 12 other sold through tenders under the arrangement of industries ministry and the now-defunct privatisation commission.
Between 1977 and 1987, the BTMC also handed over 30 mills to their previous owners. It also sold seven mills through a liquidation cell.
Three other mills exist only on paper, with no physical assets, according to BTMC officials.
Data shows the BTMC-controlled textile mills earned Tk 61.92 million in fiscal year 2022-23 than Tk 68.76 million in fiscal year 2021-22.
Monday's meeting also approved a proposal to buy services from the state-owned Bangladesh Power Equipment Manufacturing Company Ltd which aims to bring all customers of the Bangladesh Power Development Board under the prepaid meter system by 2025-2026.
Meanwhile, the finance minister also chaired a meeting of the cabinet committee on government purchase the same day and approved 17 proposals, including procurement of lentil, soybean oil and DAP fertiliser.
Under a proposal the Bangladesh Agricultural Development Corporation has been okayed to buy 40,000 tonnes of DAP from Morocco under a state-level agreement at Tk 2.10 billion.
It also allowed the Trading Corporation of Bangladesh (TCB) to import 10,000 tonnes of lentil through an open-tender method from Swapna Vegetable Oil Industries at Tk 101.3 per kilogram.
The TCB has also been given the go-ahead to buy 5.0-million litres of soybean oil from Sonargaon Seed Crushing Mills Ltd at Tk 151.45 per litre.
Also, it will buy 13-million litres of refined palm oil from Shun Shing Edible Oil Ltd at Tk 143 per litre.
The meeting also approved a proposal of Bangladesh Bridges Division to appoint a contractor for "Replacing (Supplying, Installation, Testing and Commissioning) of Pot Bearing and Shock Transmission Device/Seismic Device" for 4.8-kilometre Bangabandhu Bridge work.
The CCCC Second Harbor Engineering Company Limited and the China Road and Bridge Corporation will jointly implement it at Tk 1.284 billion.
Also, a proposal was approved to buy electricity at Tk 7.04 per kilowatt hour from Shahjibazar Power Co Ltd for a five-year extended period on a 'no electricity no payment' basis from the 86 megawatt gas-based rental power plant at Madhabpur in Habiganj.

[email protected]