The government has initiated steps to revive closed state-owned textile and jute mills through public-private partnerships (PPP) and private leasing as part of its election manifesto, Textiles and Jute Minister Khandakar Abdul Muktadir told Parliament on Monday.
Replying to a starred question from Jamaat MP Mohammad Moslehuddin Farid (Jashore-2), the minister said Bangladesh currently has 25 state-owned textile mills under the Bangladesh Textile Mills Corporation (BTMC), while the private sector has around 1,780 spinning, weaving and dyeing-finishing mills affiliated with the Bangladesh Textile Mills Association (BTMA).
He also said there are 266 licensed jute mills across the country, including 25 state-owned mills under the Bangladesh Jute Mills Corporation (BJMC). Of these, 193 are operational and 73 remain closed.
The minister said, in line with the government's pledge to reopen shuttered industries, 15 of BTMC's 25 state-owned textile mills have been selected for operation under the PPP model.
"So far, agreements have been signed with selected private partners for four textile mills and their handover has been completed. Production has already begun at two of these mills," he said.
Work is underway to hand over another 11 closed textile mills to private entrepreneurs under the PPP initiative, he added.
Abdul Muktadir said production at all 25 BJMC-run state-owned jute mills was suspended in 2020 following a decision of the then Awami League-led government. However, the present government has taken initiatives to restart the mills in line with its election commitments.
According to the minister, 14 jute mills have so far been leased to private operators, of which nine have already resumed production.
The remaining mills are being leased out in phases, and production at those facilities is expected to begin by December 2026 under private management, he said.
The minister also outlined several other initiatives involving former BJMC mills.
He said plans have been taken to establish an Inland Container Depot (ICD) at MM Jute Mills Ltd under BJMC management.
Two mills—Latif Bawany Jute Mills Ltd and Karim Jute Mills Ltd—which fall within the jurisdiction of Dhaka South City Corporation are being processed for declaration as industrial zones through the Bangladesh Economic Zones Authority (BEZA), he said.
Among the three mills that remain outside the leasing process, Amin Jute Mill has been excluded because it falls within a city corporation area, while two others remain outside the programme due to pending legal cases.
The minister said the government is committed to strengthening the jute sector by increasing production, diversifying jute products, expanding exports and encouraging private investment