BJMC invites pvt investors to visit closed state-owned jute mills

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The Bangladesh Jute Mills Corporation (BJMC) has invited the country’s private sector entrepreneurs to go to the closed state-owned jute mills by August 20 to start to see the status of the units’ machinery, assets and establishments in a bid to reopen the mills under private initiatives.

The BJMC on Tuesday issued a notification inviting entrepreneurs and investors from the private sector to choose field visits in order that they could get the true picture of the machinery and other assets of the mills and will give opinions on the types of reopening of the mills.

The organization took the initiative according to a decision made by the policymaking committee on preparation of work plan and strategy for best make use of closed jute mills and other assets of the BJMC and the suggestions from the private sector to inspire potential investors to come forward with investment in the sector.

The committee is reviewing public private partnership (PPP), joint venture, G2G and rental lease as possible models for the reopening of the mills.

It'll consider the investors’ opinions while finalising the model.

BJMC chairman Md Abdur Rouf on Wednesday told MODERN that the private sector businesses were invited to visit the mills and other infrastructure so that the entrepreneurs felt encouraged to get funds in reopening the mills.

‘Potential investors provides appropriate opinions on the models to ensure that the reopening model can ensure win-win situation for both government and the private sector investors,’ he said.

Rouf said, ‘Our stance up to now is that the ownership of land will maintain the government hand as the land will be utilized only for production of jute products.’

The BJMC sent the notification to the Federation of Bangladesh Chambers of Commerce and Industry, Bangladesh Diversified Jute Goods Producers and Exporters Association, Bangladesh Jute Mills Association and Bangladesh Jute Spinners Association.

Earlier the government closed the 25 state-owned jute mills under the corporation and stopped production from July 1, using losses every year as an excuse.

Jute and textiles ministry officials said that the federal government made a decision to reopen the mills immediately to save lots of the machinery from damages.

The policymaking committee headed by jute and textiles minister Golam Dastagir Gazi is currently attempting to identify the mills worth reopening within the shortest possible time, determine the techniques of reopening and recommend the very best usage of the mills, unused land of BJMC and other assets, they said.

The committee is examining the possible methods such as public private partnership (PPP), jv, G2G and rental lease for reopening of the mills, they said.

They, however, said that PPP, joint venture and G2G required an extended process while rental lease could take less time for reopening.

The committee in its first meeting held on July 23 decided that the land of the mills wouldn't normally be sold for any other purpose, except production of jute products.

At the next meeting held on August 5, the committee decided to invite potential investors to go to the mills.

Officials said that prime minister Sheikh Hasina instructed the committee to get ready their recommendations on the correct utilisation of the mills and other assets, modernisation and reopening of the mills within two months. 
Source: https://www.newagebd.net

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