PRAN-RFL Group will revive two state-owned textile factories that have been closed for almost three decades

According to sources, the process of transferring Ahmed Bawany Textile Mills from Dhaka under PPP is in the final stages

TBS report

October 28, 2024, 12:50 AM

Last modified: October 28, 2024, 12:57 AM

PRAN and BTMC officials during an agreement signing ceremony on October 27. Photo: courtesy

“>

PRAN and BTMC officials during an agreement signing ceremony on October 27. Photo: courtesy

• The government wants PPP for 16 of the 24 textile factories in the country
• Another five mills are in the final phase of reopening
• 10 textile factories shortlisted for future PPP agreements

---

Pran-RFL Group is set to reopen two government-owned textile mills under a public-private partnership with Bangladesh Textile Mills Corporation (BTMC).

Yesterday (October 27), an agreement was signed between PRAN and the BTMC in this regard, seeking to restart the RR Textile Mill at Sitakunda, Chattogram and the Rajshahi Textile Mill under a 30-year contract. The factories have been renamed as Chittagong RR Textiles Limited and Barendra Rajshahi Textiles Limited respectively.

Jute and Textile Advisor Brigadier Sakhawat Hossain attended the signing ceremony as chief guest.

Advisor Sakhawat said, “So far, seven factories, including the two under PRAN-RFL, are in the final stages of reopening.”

Seventeen factories remain and efforts will be made to reopen them through both leasing and PPP arrangements, he added.

Ahsan Khan Chowdhury, chairman of Pran-RFL group said, “We have been taking over these factories for 30 years and many employment opportunities will be created by these factories.”

“We want to reopen these factories within one month,” he added.

He said: “It will be a green factory. Not an inch of space will be left empty. We will build solar panels on vacant space next to the factories. We want to make a green factory.”

He further said, “Barendra Rajshali Textile Mills will make its debut as the largest factory in North Bengal. People do not have to leave their homes and go to Dhaka. People from North Bengal will get an opportunity to work in their area .”

Established in 1963 on 19.48 hectares, the RR Textile Mill operated until its closure in 1997.

On December 20, 2017, the government decided at a cabinet meeting to reopen it under the PPP model, with the PRAN Consortium selected as a private partner through an international tender process.

Three companies participated in the tender, all of which were technically responsive. The Tender Evaluation Committee recommended the Pran Consortium after it achieved the highest score and proposed a 30-year agreement.

Under the agreement, the PRAN Consortium will make a one-time payment of Tk 10 crore to BTMC for the use of RR Textile’s land and in return it will receive a grace period of three years.

After the grace period, it will provide an annual compensation of Tk 3.22 crore to BTMC, with the possibility of contract extension if operations remain satisfactory.

Rajshahi Textile Mill, established in 1975 on 26.34 hectares, also ceased operations in 1997. Like RR Textile, the government approved its reopening through PPP at the same cabinet meeting in 2017. After an international tender process, PRAN’s subsidiary Charuka Textile emerged as the highest bidder.

The TEC again recommended a 30-year contract, including a one-time payment of Tk6 crore to the BTMC and an annual fee of Tk 1,715 crore after a grace period of three years.

According to BTMC, there are a total of 24 closed textile factories, of which the government has decided to operate 16 under PPP schemes. The organization is moving forward with plans to reopen the factories through both leasing and PPP agreements.

However, despite three international tenders for the restart of Feni’s Dost Textile and Magura Textile, no bidders participated.

According to sources, the process of transferring Ahmed Bawany Textile Mills from Dhaka under PPP is in the final stages. The land of Kaderia Textile Mills in Gazipur has already been transferred to Orion-Kaderia Textiles Limited.

Moreover, the government has approved the lease-based operation of Valika Woolen Mills in Chattogram, Sylhet Textile Mills and Kurigram Textile Mills.

According to BTMC sources, 10 more textile mills have been shortlisted for future PPP deals, including Amin Textile, The Asiatic Textile, Jalil Textile, Bengal Textile, Sundarban Textile, Dinajpur Textile and Tangail Textile.

The BTMC started its journey on July 1, 1972 with 74 textile factories that were nationalized on presidential orders after independence.