Govt Leases 3 Closed Jute Mills with Tk 750cr Private Investment

The government has handed over three state-owned industrial units to private operators under long-term leases, paving the way for Tk 750 crore in fresh investment and thousands of new jobs.

In a major push to revive closed industries and restore their economic viability, the government Tuesday leased two mills to PRAN-RFL Group and another to Abdullah Battery Company (Pvt) Ltd, a concern of HAMCO Group, under 30-year agreements. 

The lease agreements were signed in the presence of Prime Minister Tarique Rahman. 

Bangladesh Jute Mills Corporation (BJMC) Chairman Brigadier General Kabir Uddin Sikder signed the agreements on behalf of BJMC, while PRAN-RFL Company Secretary Aminur Rahman and HAMCO Group Managing Director A.T.M. Mostofa signed for their respective organisations.

Commerce, Industries and Textiles and Jute Minister Khondkar Abdul Muktadir, Textiles and Jute State Minister Shariful Alam, Textiles and Jute Secretary Sharaf Uddin Ahmed Chowdhury, PRAN-RFL Group Chairman and CEO Ahsan Khan Chowdhury, and senior officials of BJMC and the lease recipients attended the signing ceremony.

The two mills leased to PRAN-RFL are Star Jute Mills Ltd at Chandanimahal in Dighalia, Khulna, and National Jute Mills Ltd at Raipur in Sirajganj. The group plans to invest around Tk 750 crore in the two units, creating direct employment for approximately 11,500 people. Together, the factories are projected to generate annual turnover of around Tk 1,100 crore.

Meanwhile, HAMCO Group has taken a 30-year lease of Platinum Jubilee Jute Mill in Khalishpur, Khulna, marking another step towards bringing idle state-owned industrial assets back into production.

Speaking to journalists, State Minister Shariful Alam said the reopening of the industries had begun in line with the government’s election pledge, signalling a broader drive to bring the country’s shuttered industrial assets back to life.

The government is also moving to transfer more closed industrial units to private operators, with lease notices already issued and evaluation processes under way for several mills, he said.

The scale of the investment planned by PRAN-RFL underlines the potential of the dormant factories to become engines of production and employment rather than remain a drain on public resources.

National Jute Mills, spread over 37.97 acres, will receive around Tk 500 crore in investment from PRAN-RFL. The group plans to transform the facility into a diversified manufacturing hub producing knitwear, woven garments, denim products, jackets, handicrafts, bags, footwear and toys.

The mill will also house a washing plant and facilities for modern raw materials, packaging and warehousing. The project is expected to create around 6,500 direct jobs and generate annual turnover of approximately Tk 600 crore.

At Star Jute Mills, covering 45.99 acres, PRAN-RFL will invest around Tk 250 crore to establish an environment-friendly modern industrial complex producing value-added jute goods, furniture and medium-density fibre (MDF) boards, among other products.

The project is expected to create around 5,000 direct jobs and generate annual turnover of about Tk 500 crore.

The move is part of a wider government strategy to revive the country’s struggling state-owned industrial sector by bringing private capital, technology and management expertise into previously underutilised assets.

BJMC currently has 25 jute mills under its control, of which 20 have been selected for leasing to private operators. So far, 14 mills have been leased out, with seven already resuming production and the remaining seven undergoing preparations for reopening.

The government’s latest initiative also builds on PRAN-RFL’s previous experience in reviving a state-owned industrial unit. Its concern, Banga Building Materials Ltd, has already resumed production at Rajshahi Jute Mills under an earlier lease agreement.

The Rajshahi facility currently employs around 1,300 people and produces approximately 5,000 pairs of shoes, 1,300 umbrellas and 400 tents a day, demonstrating how abandoned industrial infrastructure can be repurposed for modern manufacturing.

PRAN-RFL plans to follow a similar model at the two newly leased mills, converting their existing infrastructure into modern, production-driven industrial facilities. The group intends to cater to growing domestic demand while targeting international markets, potentially giving a fresh boost to Bangladesh’s exports.

The government hopes the leasing programme will not only bring shuttered mills back into operation but also reduce the burden on the public sector, attract private investment and create sustainable employment.

For the workers and communities that have watched these industrial giants fall silent, the latest deals could mark the beginning of a long-awaited transformation�"from abandoned factories to bustling centres of production once again.