Govt moves to revive two Khulna jute mills thru pvt leasing

KHULNA, June 12: The government has advanced efforts to revive two state-owned jute mills in Khulna through long-term leasing arrangements after nearly six years of closure.

Officials concerned said Platinum Jubilee Jute Mills is in the final stage of being leased to RFL Group, while Crescent Jute Mills has already been handed over to Mahabub Group under a 30-year lease agreement.

Bangladesh Jute Mills Corporation (BJMC) Chairman Brigadier General Kabir Uddin Sikder informed this during a visit to the closed mills in the Khalishpur industrial area on Wednesday.

Sources said production at the state-owned mills was suspended on July 1, 2020, due to mounting losses.
Declining the global demand, labour unrest, shortages of raw jute and frequent power disruptions contributed to the financial difficulties faced by the mills.

Regarding Crescent Jute Mills, BJMC Chairman Brig Gen Kabir Uddin Sikder and Mahabub Group Managing Director Mahbubur Rahman signed the lease agreement on behalf of their respective organisations.

Under the agreement, the leaseholder has deposited Tk 18 crore as security with the state treasury. The mill’s old looms and iron equipment, installed since its establishment 74 years ago, have already been sold to 10 firms for about Tk 26.96 crore. The mill is expected to be formally handed over to the leaseholder by the middle of next month.

Crescent Jute Mills General Manager Khan Mohammad Kamrul Islam, quoting the leaseholder, said the project could generate employment opportunities for around 15,000 people annually.

“Before its closure, around 6,000 workers were directly involved in the mill’s production activities. After the removal of unused materials by successful bidders, the mill will be handed over to the leaseholder,” he said.

The company plans to invest primarily in fish feed production and aims to start production within the next two to three months, he said.