Private operators of govt jute mills make profit pledge | The Daily Star
12:00 AM, July 13, 2008 / LAST MODIFIED: 12:00 AM, July 13, 2008

Private operators of govt jute mills make profit pledge

Private operators of government jute mills yesterday said they will make the lose-making ventures into profitable factories with quality goods.
“If we ensure full productivity with guaranteed quality the mills will generate profits from the very beginning,” said Kazi Zahedul Hasan, managing director of Kazi Farms Limited that has taken over the management of Peoples Jute Mills.
“We can double the production to 150 tonnes per day from the previous 70 tonnes by introducing three shifts a day instead two shifts to make the mill more productive,” added Hasan, describing his business plan at a press briefing at the jute and textile ministry conference room in the Secretariat.
Textiles and Jute Adviser Md Anwarul Iqbal, Textiles and Jute Secretary Abdur Rashid Sarker, and Chairman of Bangladesh Jute Mills Corporation (BJMC) Md Atharul Islam also attended the briefing.
Speaking at the briefing, the adviser said BJMC for the first time in its history now can pay bank loans from its own fund.
The present caretaker government closed eight state-owned jute mills on July 31, 2007 to minimise soaring operation losses. Five out of the eight jute mills were later handed over to private operators under lease agreement.
Kazi Farms got lease of Peoples Jute Mills, Nature Back got lease of RR Jute Mills and MM Jute Mills, while Saad Musa Fabrics got lease of Kharnaphuli Jute Mills and FK Carpet Factory.
The government's bid to re-open other mills including Aleem Jute Mills under private management has run into troubles due to legal complications.
Chief Adviser Fakhruddin Ahmed is expected to hand over the operation of the Peoples Jute Mills to Kazi Farms Limited on July 15 in Khulna.
The government expects the operations of Peoples Jute Mills, Karnaphuli Jute Mills and FK Carpet Factory will resume this month under lease agreement.
According to the deal, the government will get a lease fee, apart from a share of profits if the private operators make the mills viable. The operators will bear all liabilities during the lease period. However, the government will have to shoulder the previous liabilities and loans.
Presently, there are 20 jute mills under the state-run BJMC.
The Council of Advisers' Committee on Economic Affairs approved the initiative last October to handover the loss making mills to private operators.

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