Bangladesh government has decided to restart 16 textiles mills that were shutdown due to huge losses and run them under a public-private partnership (PP) initiative, according to a press release issued by the Ministry of Textiles and Jute.
The proposal of Bangladesh Textile Mills Corporation (BTMC), which works under the ministry, to restart the 16 mills of the 25 state-owned textile mills, placed before the Cabinet Committee on Economic Affairs and was accepted.
The government has plenty of resources and on the other hand, the private sector has skilled manpower. The government intends to combine the two sectors for further progress of the country’s textile industry.
The PPP has been recommended as a profitable project. The private party will implement, maintain and market products of the project.
According to the proposal, the PPP’s duration will be 30 years but could be renewed. Bangladesh Textile Mills Corporation will be the major partner of the PPP while rest of the shares will go to private parties.
BTMC has 636.38 acres of land across the country perfect for building industrial units. Utilization of these lands will put an impact on the growth of GDP and will create more chance of employment.
The government on 12 October 2014, Prime Minister Sheikh Hasina issued a directive for installing machinery at the mills those were closed down while visiting Ministry of jute mills.
Then the decision was taken to start the operation of associated by public-private partnership system.
The main objectives of a public-private partnership project are:
- The maximum utilization of manpower and resources
- Profit maximization
- Risk minimization
- Reduce cost in productivity and time balance in this competitive market
Of the 16 mills, Tanjina Bhawani Textile Ltd has already started its process to work under the PPP initiative. A signing ceremony between Bangladesh Textile Mills Corporation and Tanjina Bhawani Textile Ltd held at Demra on 25 June. For this agreement, Tanjina Bhawani Textile Ltd has been given Letter of Award (LOA) by the government.