The government is going to set up a "textile village” on 28 acres of land belonging to Tangail Cotton Mills under Bangladesh Textile Mills Corporation (BTMC) through a public-private partnership (PPP) initiative.
Ramisa Group has proposed to develop the village at Mirzapur in Tangail at an estimated cost of about Tk 1,200 crore.
The cabinet committee on economic affairs recently approved in principle Ramisa's proposal as an unsolicited bidder.
An official of the textiles and jute ministry said the approval does not mean that the company has got the final nod.
Now the ministry will invite competitive bidding and Ramisa will have to participate, said the official, adding that the group would, however, get some bonus points for the approval.
He said the PPP authority scrutinised Ramisa's proposal and it has been sent from the cabinet committee on that basis.
The official said the prime minister issued a directive for installing modern machinery at the mills that were closed down.
He said the Tangail mill's land was being grabbed as it had remained closed.
The existing land is valued at Tk 219 crore. Those who get the job of setting up the composite mill will have to make an annual payment to the BTMC for the latter being the landowner.
Ramisa, in its proposal, said the village would create employment for about 10,000 people while about $14 million could be annually earned through exporting knit and woven garments.
Of the estimated Tk 1,200 crore cost, Ramisa plans to bring in foreign investors and take bank loans.
Ramisa said it would completely be a green project with most of the unusable construction being dismantled and others being constructed as required while keeping provisions for landscaping and providing other facilities.
It said the project was envisaged to be a composite textile mill having facilities for production of yarn, spinning, dyeing, sizing, weaving, washing, finishing and garments making.