Tk619cr investment, 11,629 jobs expected as govt leases 3 jute mills

The government has leased three closed state-owned jute mills to two private companies for reopening them under private management.

The reopening of the mills is expected to create employment for at least 11,629 people, and attract an investment of around Tk619 crore. The mills are expected to have a combined annual turnover of around Tk1,175 crore.

An agreement to this effect was signed by the Bangladesh Jute Mills Corporation (BJMC), PRAN-RFL Group and HAMCO Group in the presence of Prime Minister Tarique Rahman on Tuesday.

Under the agreement, PRAN-RFL Group has taken National Jute Mills Ltd in Sirajganj and Star Jute Mills Ltd in Khulna on lease, while Platinum Jubilee Jute Mills Ltd in Khulna has been leased to HAMCO Group.

BJMC Chairman Brig Gen Md Kabir Uddin Sikder signed the agreement on behalf of the corporation. 

Company Secretary Aminur Rahman signed on behalf of PRAN-RFL Group, while HAMCO Managing Director ATM Mostafa signed on behalf of the company.

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According to the agreement, around Tk157 crore will be invested in National Jute Mills in Raipur, Sirajganj. The mill is expected to create employment for 5,238 people and generate an annual turnover of around Tk500 crore after reopening.

Around Tk250 crore will be invested in Star Jute Mills in Digholia, Khulna. The mill is expected to create jobs for 5,238 people and have an annual turnover target of around Tk500 crore.

Meanwhile, around Tk212 crore will be invested in Platinum Jubilee Jute Mills in Khalishpur, Khulna. The mill is expected to create employment for at least 1,153 people, with a projected annual turnover of around Tk175 crore.

The government has decided to reopen 20 of the 25 BJMC mills that have remained closed under private management through leasing arrangements. So far, leases for 14 mills have been completed and possession handed over to the lessees, with production already resumed at nine of them.

Commerce, Industries and Textiles and Jute Minister Khandakar Abdul Muktadir, State Minister for Textiles and Jute Md Shariful Alam, Textiles and Jute Secretary Sharf Uddin Ahmed Choudhury, and senior officials of BJMC and the lease-holding companies, among others, attended the signing ceremony.