The government has taken an initiative to reopen long-closed jute mills of the Bangladesh Jute Mills Corporation (BJMC) in phases, with stakeholders expecting the move to create jobs for around 50,000 people across the country.
Production has already resumed at nine of the 17 BJMC-owned mills leased to private operators, creating employment for around 9,500 people.
The initiative is part of the government’s plans to boost employment, attract investment and ensure the productive use of idle state-owned assets.
The leasing process for three more BJMC mills is currently underway. They are MM Jute Mills in Sitakunda, Chattogram, KFD Limited in Rangunia and Cooperative Jute Mills in Palash, Narsingdi.
The Ministry of Textiles and Jute said the government has recently signed lease agreements with two private companies for three state-owned jute mills.
PRAN-RFL Group has secured leases for Jatiya Jute Mills in Sirajganj and Star Jute Mills in Khulna, while HAMKO Group has secured the lease for Platinum Jubilee Jute Mills in Khulna.
The three mills are expected to create at least 11,629 jobs and attract investment of Tk619 crore after reopening. Their combined annual revenue is projected at around Tk1,175 crore.
Jatiya Jute Mills in Raipur, Sirajganj is expected to receive an investment of around Tk157 crore and create 5,238 jobs, with projected annual revenue of Tk500 crore.
Star Jute Mills in Dighalia, Khulna is expected to receive around Tk250 crore in investment and generate 5,238 jobs, with projected annual gross revenue of Tk500 crore.
Platinum Jubilee Jute Mills in Khalishpur, Khulna is expected to receive around Tk212 crore in investment and create at least 1,153 jobs, with projected annual gross revenue of Tk175 crore.
BJMC Chief Operating Officer Md Mamunur Rashid said the corporation currently owns 25 jute mills.
He said the decision to close the mills and lease them to the private sector was taken because of persistent losses and their inability to compete with private enterprises.
According to Rashid, the government has decided to lease 20 of the 25 mills to private operators, with lease agreements for 17 mills already finalised. The process for the remaining three is underway.
Of the five mills outside the leasing programme, Karim Jute Mills and Latif Bawany Jute Mills in Demra, Dhaka are being handed over to the Bangladesh Economic Zones Authority for establishing economic zones.
Legal proceedings are ongoing over BDCF Baghdad-Dhaka Carpet Factory in Chattogram and Alim Jute Mills in Khulna. Amin Jute Mills in Sitakunda has been recovered, and its lessee is expected to resume production by December.
State Minister for Textiles and Jute Md Shariful Alam said the previous government shut down the 25 BJMC mills in 2020 and the current government took the initiative to reopen them under private management after assuming office.
He said the move aims to create employment, boost economic activity and ensure proper utilisation of unused assets.
Shariful Alam said the mills are being leased through a transparent tender process under the Public-Private Partnership model to attract both local and foreign investment.
The government is also encouraging greater use of environmentally friendly jute and providing support, including credit facilities, to increase investment in jute and jute-based products.
The state minister said higher domestic consumption of jute would create jobs and help reduce the use of environmentally harmful polythene and plastic.
He also highlighted the role of the Jute Diversification Promotion Centre in expanding the use of jute products through exhibitions, artisan training and market development with the support of Bangladesh missions abroad.
On July 1, 2020, the previous government shut down 25 state-owned jute mills citing persistent losses. Around 25,000 permanent workers received their dues under a “Golden Handshake” scheme, after which the government decided to lease the mills to private operators for periods ranging from five to 20 years.
Stakeholders expect the reopening initiative to revive industrial activity, create employment and expand opportunities for Bangladesh’s environmentally friendly jute industry.
