As per the new strategy of Bangladesh Textile Mills Corporation (BTMC), they will revitalize three dormant textile mills situated in Chittagong, Kurigram, and Sylhet by proposing leasing arrangements.
Among them, Kurigram Textile Mills possesses 12,528 spindles, Chittagong Valika Woollen Mills has 3,200 spindles, and Sylhet Textile Mills boasts 25,056 spindles.
Figure: Bangladesh Textile Mills Corporation (BTMC) will revitalize three dormant textile mills situated in Chittagong, Kurigram, and Sylhet by proposing leasing arrangements.
Brigadier General Md Ziaul Hoque, the Chairman of BTMC, announced, “We have identified three textile mills for leasing purposes.”
According to recently outlined terms of reference by BTMC, companies acquiring the mills through leasing must uphold their original purpose and continue producing the same products as before.
Chairman Haque revealed that international tenders would be issued to attract investors and bring these mills back into operation.
The previous attempt to operate some mills through the public-private partnership (PPP) model was unsuccessful, with no mills successfully resuming production.
“Given the lack of success with the PPP model, we are now exploring the lease system,” mentioned the BTMC Chairman, citing the failure of the PPP model in revitalizing production lines.
In identifying obstacles to production resumption, BTMC highlighted the absence of project loans and incentives comparable to those offered in economic zones.
The BTMC, established in July 1972 with 74 mills acquired through nationalization, expanded to 86 mills with the addition of 12 new mills.
Currently, 25 mills are under BTMC’s control. Eight operate on a rental basis, eight have temporarily suspended production, two are being transformed into textile villages, and seven have been reacquired.
Additionally, nine mills were handed over to workers and employees, while 12 were sold through tenders. Between 1977 and 1987, 30 mills were returned to their previous owners, and seven were sold through liquidation. Three mills exist only on paper with no physical assets, according to BTMC officials.
Financial data reveals that BTMC-controlled textile mills generated Tk 61.92 million in the fiscal year 2022-23, compared to Tk 68.76 million in the fiscal year 2021-22.
