(BSS) - The government has taken an initiative to reopen the long-closed jute mills of the Bangladesh Jute Mills Corporation (BJMC) in phases.

Stakeholders said once the initiative is implemented, employment opportunities will be created for about 50,000 people across the country.

Production has already commenced in nine of the seventeen leased-out jute mills, creating jobs for around 9,500 people.

In line with the government`s election pledges to boost employment, attract investment, and ensure the effective use of idle assets, initiatives have been taken to resume different industries, including closed jute mills.

As part of this process, the leasing of three more BJMC-owned jute mills to the private sector is underway. These mills are MM Jute Mills in Sitakunda (Chattogram), KFD Limited in Rangunia, and Cooperative Jute Mills in Palash (Narsingdi).

Officials at the Ministry of Textiles and Jute said the government has recently signed lease agreements with two companies for three state-owned jute mills.

Among them, the PRAN-RFL Group has secured the lease for Jatiya Jute Mills Limited in Sirajganj and Star Jute Mills Limited in Khulna, while the HAMKO Group has got the lease for Platinum Jubilee Jute Mills Limited in Khulna.

Under the deals, these three long-closed mills will be reopened under private management. Once operational, these mills are expected to create employment opportunities for at least 11,629 people and attract investments totaling Taka 619 crore. The total annual revenue is projected to reach around Taka 1,175 crore.

In addition, there are plans to invest about Taka 157 crore in Jatiya Jute Mills at Raipur, Sirajganj. Upon reopening, this mill is expected to generate employment for 5,238 people and yield an estimated annual revenue of Taka 500 crore, the ministry officials said.

About Taka 250 crore will be invested in Star Jute Mills in Dighalia, Khulna. Once operational, the mill is expected to generate employment for 5,238 people and aims for an annual gross revenue of around Taka 500 crore.

Besides, there are plans to invest about Taka 212 crore in Platinum Jubilee Jute Mills in Khalishpur, Khulna. Upon reopening, the mill will create jobs for at least 1,153 people, with a projected annual gross revenue of about Taka 175 crore.

BJMC Chief Operating Officer Md Mamunur Rashid told BSS that the corporation currently owns 25 jute mills.

A decision was made to close these mills and lease those to the private sector due to persistent losses and an inability to compete with private enterprises, he said.

He said initiatives have been taken to lease 20 of the 25 mills to the private sector, while the lease agreements for 17 mills have already been finalised.

The process for leasing the remaining three is underway, Rashid said.

Of the remaining five mills, he said, Karim Jute Mills Limited and Latif Bawany Jute Mills Limited in Demra, Dhaka are in the process of being handed over to the Bangladesh Economic Zones Authority (BEZA), with plans to establish economic zones at these locations.

He said legal proceedings are ongoing regarding BDCF Baghdad-Dhaka Carpet Factory Limited in Chattogram and Alim Jute Mills Limited in Khulna. Additionally, Amin Jute Mills in Sitakunda has been recovered, and the lessee company is expected to commence production by next December.

When asked, State Minister for Textiles and Jute Md Shariful Alam said the then-government had shut down the BJMC jute mills in 2020.

After assuming office this year, the incumbent government took the initiative to reopen these closed mills under private management, he said.

He added that this initiative aims to create employment, boost the economy, and ensure the proper utilisation of unused assets.

Shariful Alam said the mills are being leased out through a transparent tendering process under the Public-Private Partnership (PPP) model to attract both local and foreign investors.

This initiative is expected to have a positive impact on the country`s economy, he said.

The state minister said the government is encouraging investors to increase the use of eco-friendly jute.

Necessary support, including credit facilities, is being provided to boost investment in the production of jute and jute-based products, he said.

Consequently, Shariful Alam said, domestic jute consumption will rise, employment opportunities will be created, and the use of environmentally harmful polythene and plastic will decrease.

Mentioning the role of the Jute Diversification Promotion Centre (JDPC) in expanding jute usage, he said alongside government incentives, support is being provided for organising exhibitions of jute products at home and abroad, training artisans, and expanding markets through Bangladesh missions abroad.

On July 1, 2020, during the tenure of the fallen Awami League government, 25 state-owned jute mills were shut down due to persistent losses. At that time, about 25,000 permanent workers received their dues through a "Golden Handshake" scheme. Subsequently, a decision was made to lease these mills to the private sector for long-term periods ranging from 5 to 20 years.

Stakeholders believe that if this initiative to reopen the jute mills is successfully implemented, it will revitalise the country`s industrial sector, boost employment, and open up new possibilities for the eco-friendly jute industry.