Privatization of jute mills

The Bangladesh Jute Mills Corporation (BJMC), world's biggest state owned manufacturing and exporting organization of Jute products, is facing huge losses, resulting shut downs leaving its workers jobless. As a result BJMC has decided upon privatization of mills and use the capital to pay its liabilities. Earlier, it had invited tenders to lease out 7 jute mills out of 18, but found only two tenders appropriate for giving the operational responsibilities. However, the Advisory Committee on Economic Affairs rejected the proposition of privatization of its two mills, Peoples Jute Mills and Qaumi Jute Mills.

BJMC received the proposal of Tk 6.13 crore annual fee for Peoples Jute Mills and Tk 4.81 crore for Qaumi Jute Mills from two local firms. According to sources, the leasing proposal was turned down as BJMC needs to review the policy further, due to certain obstructions in the procedure.