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China interested to take over shut jute mills


Published : 17 Mar 2021 09:51 PM | Updated : 18 Mar 2021 12:48 AM

The Chinese government has shown interest in taking over the state-owned jute mills, which have been declared shut by the government, on lease, said sources in the government.

According to sources, China showed their interests in this regard following invitations by the Bangladesh government.

It should be mentioned that in a bid to avoid losing the skilled manpower who had been  working in the laid off jute mills, the government decided to invite the private companies to continue running the jute mills and offer employment opportunities to those laid off labourers.

The Ministry of Textiles and Jute has taken such a decision on the basis of a recommendation of the committee formed by the government to examine the proposals received for reopening of the jute mills under private management.

The Ministry is now finalising the leasing process to bring the unemployed workers back to work by increasing production through re-launching the mills. The Prime Minister has also agreed to provide job opportunities to the skilled and experienced among the retired workers on priority basis.

According to sources, China so far has shown its interests to take lease of the largest two among all the state-owned shut jute mills -- Crescent Jute Mills and Platinum Jute Mills. A Chinese delegation has already visited Bangladesh and inspected those two mills.

According to the Ministry of Jute and Textiles, with the dream of a golden fiber enriched-economy, Bangabandhu Sheikh Mujibur Rahman established the Jute Mills Corporation (BJMC) in 1972.

At the time of its establishment, there were more than 70 jute mills under the BJMC. But, unfortunately, the number of mills has come down now to only 25 due to continuous losses. 

However, this government has taken an initiative of restarting those shut jute mills under four separate categories -- public-private partnership (PPP), joint venture, government-to-government (GTG) and leasing.

According to sources, the government is considering to introduce lease system as the best way of re-launching the jute mills on three conditions. 

As part of the government plans, the leased factories will be run under the management of the BJMC. There will be no profit-loss system in the partnerships. BJMC will monitor whether the lease holder is fulfilling the conditions of the government. Besides, the lease holder will be obliged to hire the dismissed workers on priority basis.

Mohammad Abul Kalam, Additional Secretary of the Ministry of Textiles and Jute, said, “The leasing process would begin within this (March) month. International tenders may be invited in the last week of this month. Leases will be given to those whose proposal will be considered beneficial for the country.”

Textiles and Jute Minister Golam Dastagir Gazi earlier on June 28 last year at a press conference had informed that after the government took the decision of shutting down all the state-owned jute mills, the total laid off workers in 25 jute mills was 24,886 workers. They were given ‘Golden Hand-shakes’. 

He also mentioned that the jute mills will be managed by the private sector as it is not possible for the government to bear such losses of jute mills year after year. 

Meanwhile, the ‘Pat-Suta o Bostrokol Shramik-Karmochari Songram Parishad’ at a recent press conference, has demanded for modernisation of the jute mills before their re-launching.