As per the government moves to privatize the country’s jute mills, it is expected that jute mills will be handed over to the eligible applicants within this year.
According to the Ministry of Textiles and Jute, on April 27, Bangladesh Jute Mills Corporation (BJMC) has invited international applications from interested parties for leasing 17 jute mills. Till the last day (June 17) for submission of applications, 51 applications were received for 14 jute mills. However, no application was received for the remaining three jute mills.
Now the Ministry of Textiles and Jute wants to start the next process of leasing these 14 jute mills to the proper applicants. Based on the Prime Minister's directive, the ministry has taken initiative to leave the government jute mills to the private sector to ensure employment of jute mill workers.
When connected regarding the leasing process, Textiles and Jute Ministry Additional Secretary Mohammad Abul Kalam said, “Earlier we formed an ‘Opening Committee’ to receive the applications. This has already been done. Now we are about to form Evaluation Committee under a BJMC director for checking and selecting the right applicant. At the same time, the committee will look into whether the applications for leasing of government jute mills are correct as per the government's Terms of Reference (TOR).”
“If everything goes well, the applicants will be asked to submit a specific proposal within a specified time. After considering the proposals and reviewing, if the government chooses, the government jute mills will be handed over to the applicant organization or person,” added Abdul Kalam.
BJMC chairman Abdul Rauf told Bangladesh Post that, “We have received interests from a good number of local and foreign companies for investment in our jute mills. There are companies from England, India while there are some joint ventures too. As our evaluation committee is now performing their task, soon they will give us the shortlist of the applicants.”
Asked whether the stagnated situation of Covid-19 can create any obstacle, he explained, “Certainly there will be some adverse effects of this pandemic. If we are stuck for a certain period of time, definitely we will fall behind. However, after getting the proposals we will do our best to expedite the process so that we can hand over the mills by end of this year.”
meanwhile, the Textile and Jute Minister Golam Dastogir Gazi earlier at a virtual conference earlier had also hinted the same thing. He said, “Effective measures have been taken to reopen BJMC’s closed jute mills under private management or lease basis as soon as possible. International tenders have been invited for this where foreign direct investment will be given priority. ”
In order to manage losses and create a competitive environment, 25 state-owned jute mills under the control of BJMC were declared closed from July 1, 2020.
Out of the 25 jute mills that stopped production, workers arrears of 4 jute mills (Jatiya, Khalishpur, Daulatpur and KFD) were paid last August, according to the ministry.
It has been decided to pay the dues of 34,757 retired and retired permanent workers above Tk 200,000, half in cash and half in three months through profit-based savings certificates.
As per the decision, the finance department has so far received Tk 1769.41 crore for a cash payment of all 21 jute mills. Around Tk 1662.17 crore has been paid through the bank transfer of 31,656 workers, which is about 93.94 percent of the allocation.
Md Rashedul Karim Munna, managing director of Creation Private Limited, a jute goods manufacturer, while talking to Bangladesh Post said, “The government seems to be sincere in developing the jute mills. We are hopeful that soon we will be able to see some visible progress. However, the government should impose some criteria that those jute mills should develop such products that are dominating the export market.”
