Closed Magura Textile Mills counting loss
State-run Magura Textile Mills incurs a loss of about Tk 3 crore a year although it is officially shut down.
“Though the mill is kept closed, it suffers the loss due to maintenance costs that include taxes, salaries, electricity bills and machinery depreciation,” said Jamir Hossain, assistant accounts officer of the mill.
The factory that failed to make profit since its inception in 1985 was shut down for four times in 1999, 2002, 2005 and August last year and incurred an accumulated loss of Tk 115.82 crore, official record says.
The mill under Bangladesh Textile Mills Corporation (BTMC) with an accumulated loss of Tk 106.14 crore was reopened for the fourth time in September 2006 with new management.
Under the new management, the mill earned Tk 6,000 per bale for producing yarn for Ali Traders of Magura on the basis of payment of 'service charge'. But due to unwillingness of Ali traders to renew contract, the authorities were compelled to lay off the mill that time with a loss of around Tk 9.68 crore, officials said.
The factory failed to give salaries to its employees in the last 41 months because of facing repeated closure. In the meantime, a total of 150 employees were compelled to go into voluntary retirement.
Five permanent employees, including Abu Hanif, assistant manager (Labour) and present acting chief executive, and Jamir Hossain are still on their services, while twelve employees are working on temporary basis.
About 350 workers who had been working on a no-work-no-pay basis are now jobless.
After reopening in 2006, the authorities on several occasions expressed optimism that the mill would make profit if trade union was not allowed and smooth power supply was ensured.
The mill authorities now blame shortage of 'running capital' and old machinery for the recent losses. According to them, production was interrupted as many old spindles ground to a halt. "These needed repair but that could not be done due to a lack of spares,” Hanif said.
But most of the officials and employees said the mill would be able to make profit only under private ownership.
Local businesspeople also support privatisation of the mill.
“As the mill failed to make profit in the last 24 years under government management, it would be better to privatise it,” said Akhter Hossain, president of Magura Chamber of Commerce & Industry.
The mill with 25,056 spindles was set up on 16 acres of land at Vitasair in Magura town at a cost of Tk 37.77 crore.
The mill was closed in 1999 with a loss of Tk 67.14 crore. In the wake of continued loss, BTMC decided to lay off the mill.
In such a situation, the workers urged BTMC not to privatise the mill and agreed under government management on 'any condition'.
From March 2000 to January 2002, the mill produced yarn for Karnaphuli Traders in exchange of service charge. Workers were on a no-work-no-pay basis. But the mill failed to make profit and was closed again. The loss during the period was about 18.47 crore, officials said.
BTMC then again decided to privatise the mill. But failing to do so due to pressure from different quarters and non-availability of buyer, BTMC reopened the mill on September 23, 2004 under new terms and condition for workers and started producing yarn for Karnaphuli Traders in exchange of 'service charge'.
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