BTMC seeks to reopen 13 textile mills under PPP

The government has initiated a move to reopen 13 closed state-owned textile mills under public private partnership (PPP), reports UNB.

The mills are currently owned by Bangladesh Textile Mills Corporation (BTMC).

Official sources said the Ministry of Textile and Jute has taken the move following an administrative order of Prime Minister Sheikh Hasina.

They said the 13 mills have a total of 380.47 acres of land worth Tk 15.92 billion and they need an estimated amount of Tk 152 billion in PPP implementation cost to resume their operation.

Eight of the mills are RR Textile Mills in Chittagong (estimated PPP cost Tk 6.0 billion and 18.95 acres of land worth Tk 0.30 billion), Amin Textile Mills, Chittagong (PPP cost Tk 12 billion and 23.49 acres of land worth Tk 3.10 billion), Rangamati Textile Mills, Rangamati (PPP cost Tk 12 billion and 26.24 acres of land worth Tk 0.20 billion), Magura Textile Mills, Magura (PPP cost Tk 12 billion and 16.17 acres of land worth Tk 3.10 billion), Bengal Textile Mills, Noawapara, Jessore (PPP cost Tk 6.0 billion, and 15.92 acres of land worth Tk 0.28 billion), Rajshahi Textile Mills at Sapura, Rajshahi (PPP cost Tk 12 billion and 26.53 acres of land worth Tk 0.73 billion), Sundarban Textile Mills, Satkhira (PPP cost Tk 12 billion, and 29.47 acre of land worth Tk 0.30 billion), and Dinajpur Textile Mills, Dinajpur (PPP cost Tk 20 billion, and 35.45 acres of land worth Tk 0.30 billion).

The five other mills are Jalil Textile Mills at Sadarpur, Dinajpur (PPP cost Tk 20 billion, and 68 acres of land worth Tk 3.65 billion), Daroani Textile Mills, Nilphamari (PPP cost Tk 20 billion, and 68.30 acres of land worth Tk 0.20 billion), Dost Textile Mills, Ranir Haat, Feni (PPP cost Tk 12 billion, and 21.47 acres of land worth Tk 0.30 billion, Afsar Cotton Mills at Savar, Dhaka, (PPP cost Tk 2.0 billion, and 5.52 acres of land worth Tk 0.91 billion) and The Asiatic Cotton Mills, Chittagong (PPP cost Tk 12 billion, and 24.96 acres of land worth Tk 2.55 billion).

According to the ministry's proposal, the land of the mills will be considered as capital of the BTMC in the PPP patch-up while the interested private parties will have to implement the relevant projects, carry out maintenance, processing and marketing of products in addition to operations.

The shares of the BTMC and private parties will be distributed on ratio-basis or through negotiations.

Initially, the partnership between BTMC and the private parties will be for 30 years and the contract could be renewed or a new party could be reappointed for the PPP after the expiry of the PPP deal.