The government is accelerating efforts to bring state-owned textile and jute mills back into operation through public-private partnerships (PPPs), leasing arrangements and industrial development projects as part of its election manifesto commitments.
Textiles and Jute Minister Khandakar Abdul Muktadir announced the latest progress while responding to a starred question from BNP lawmaker Mst Farida Yeasmin in Parliament on Monday.
The minister said, “15 of the 25 state-owned textile mills managed by the Bangladesh Textile Mills Corporation (BTMC) have been selected for operation under the PPP model.”
According to him, agreements have already been signed with private investors for four of those mills, and the transfer process has been completed. Two of the factories have resumed production, while work continues to prepare the remaining two for commercial operations.
He added that two additional BTMC mills have been leased to private operators, with the handover process completed following the signing of lease agreements.
The government is also seeking to attract fresh investment through a textile industrial hub in Narayanganj.
Of the 22 industrial plots developed within the Textile Village at Chittaranjan Cotton Mills, 10 have already been allocated to investors.
The minister said again, "One investor has established a modern knitting and garments factory on an allocated plot and has already started production.”
Further plans are also underway to reopen Darowani Textile Mills Ltd in Nilphamari and Magura Textile Mills Ltd in Magura under the PPP framework.
Turning to the jute sector, Muktadir stated, "Production at 25 state-owned mills operated by the Bangladesh Jute Mills Corporation (BJMC) was suspended in 2020 following a government decision.”
He stated again, "The current administration has since launched initiatives to restart the closed factories in line with its election commitments.”
So far, 14 jute mills have been leased to private operators, with nine already returning to production.
The minister added, "The leasing process for another five mills is nearing completion, with the government expecting them to become operational under private management by December 2026. Work is also continuing to lease the remaining six mills.”
Five mills have been excluded from the leasing programme. Among them, Latif Bawany Jute Mills Ltd and Karim Jute Mills Ltd, both located within the Dhaka South City Corporation area, are being processed for designation as industrial zones through the Bangladesh Economic Zones Authority (BEZA).
The government believes that greater private sector participation will help restore production at previously closed state-owned mills, attract new investment and create additional industrial activity across the country’s textile and jute sectors.
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