Three long-shuttered state-owned jute mills are set to return to operation under private management, with the government expecting the revival to generate more than 11,600 jobs and mobilise substantial new investment as part of a broader drive to put idle public industrial assets back into production.
Bangladesh Jute Mills Corporation (BJMC) on Tuesday signed lease agreements with PRAN-RFL Group and Hamco Group for the three mills in the presence of Prime Minister Tarique Rahman, according to the Prime Minister’s Office.
Under the agreements, PRAN-RFL Group will operate Jatiya Jute Mills Limited in Sirajganj and Star Jute Mills Limited in Khulna, while Hamco Group will take over Platinum Jubilee Jute Mills Limited, Khulna.
The PMO said the three mills, which have remained closed for years, will now be reopened under private management.
The government said the projects are expected to create at least 11,629 jobs, while the PMO release put combined investment at around Tk619 crore and potential annual turnover at approximately Tk1,175 crore.
The move forms part of a wider government strategy to revive shuttered mills owned by BJMC through private-sector leases rather than keeping the industrial assets idle.
Of BJMC’s 25 mills, the government has decided to reopen 20 under private management.
Lease processes for 14 have already been completed and possession handed over to the lessees, with nine returning to production.
PRAN-RFL takes two mills for 30 years
PRAN-RFL Group has taken the two mills in Khulna and Sirajganj on 30-year leases.
The lease covers 37.97 acres belonging to Jatiya Jute Mills in Sirajganj and 45.99 acres of Star Jute Mills in Khulna.
At Jatiya Jute Mills, PRAN-RFL plans to invest around Tk500 crore to develop facilities for knitwear, woven garments, denim products, jackets, washing plants, handicrafts, bags, footwear and toys, alongside storage facilities for raw materials, packaging and finished products.
The Sirajganj project alone is expected to directly employ around 6,500 people and generate annual turnover of approximately Tk600 crore.
At Star Jute Mills, the group plans to invest another Tk250 crore to establish an environment-friendly industrial facility producing value-added jute products, furniture and medium-density fibre boards, among other products.
The Khulna project is expected to employ around 5,000 people and generate approximately Tk500 crore in annual turnover.
The investment and employment figures provided separately for PRAN-RFL’s two projects, Tk750 crore and 11,500 jobs, do not align with the PMO’s combined figures of Tk619 crore investment and 11,629 jobs for all three mills.
The discrepancy was not explained in the information provided.
Commerce, Industries and Textiles and Jute Minister Khandaker Abdul Muktadir, State Minister for Textiles and Jute Shariful Alam, Textiles and Jute Secretary Sharaf Uddin Ahmed Chowdhury and senior officials of BJMC and the lessee companies attended the signing ceremony.