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The Southern India Mills’ Association

Committed to Foster the Growth of the Textile Industry

Two state jute mills to be made textile units

The government has decided to convert two state-run jute mills into textile factories under public private partnership.
The cabinet committee on economic affairs yesterday in a meeting approved the proposal of the textiles and jute ministry.
Ahmed Bawani Jute Mills in Demra and Kaderia Jute Mills in Tongi will be developed under the PPP initiative, said Nasima Begum, additional secretary to the cabinet division, after the meeting.
She said the committee has given the final approval to the PPP contract document.
Private sector operators will run the mills under design-build-operate-maintain-transfer method for 30 years. The mill in Demra has been awarded to a consortium of Tanzia Fashions Ltd, which will pay a contract fee of Tk 2.5 crore annually.
The mill in Tongi has been given to a consortium of Orion Ltd, which will give the government Tk 5.20 crore annually as contract fee.
The cabinet committee also approved a proposal for signing a contract with Belgium-based JAN-DNUAL for dredging of the Payra port. It will be implemented through a PPP initiative.
After the economic affairs committee meeting, another meeting of the cabinet committee on purchase was held where 22 proposals were approved.
After the meeting, Finance Minister AMA Muhith told reporters that there would be no meeting of the committees before the next national elections, scheduled to be held on December 30.
Muhith said if there was any emergency proposal for purchases, the ministry concerned would send it to him and it would be okayed later on getting the prime minister’s approval.
The purchase committee also approved a proposal for the import of 7 lakh tonnes of fertilisers.
Of the amount, Singapore-based M/S Wilsons Trading Private Ltd will supply 25,000 tonnes of urea at a rate of $379.87 per tonne while another 25,000 tonnes will be supplied by Abu Dhabi-based Zen Trade at a rate of $378.70 per tonne.
Proton Traders Ltd will supply 25,000 tonnes of urea at $362.21 per tonne and another 25,000 tonnes at $361.91 per tonne.
One lakh tonnes of diammonium phosphate fertiliser will be imported from Morocco at a rate of $545.75 per tonne alongside 2.5 lakh tonnes of triple super phosphate (TSP) fertiliser at a cost of $452.25 per tonne.
Besides, 2.5 lakh tonnes of TSP fertiliser will be imported from Tunisia at $458.25 per tonne.
The committee approved a proposal making Saif Powertech Ltd a terminal operator for container and cargo handing in the Chittagong port for six years. The port authority would give it Tk 310.30 crore.
The committee also approved the Bangladesh University of Engineering and Technology (Buet) into becoming a consultant for preparing a detailed master plan of Payra sea port at a cost of Tk 124 crore. The university will carry out the task with the assistance of Royal Tuscany of Netherlands.
The committee gave a nod to a proposal to buy 40 diesel locomotives for Bangladesh Railway. M/S Progress Rail of the USA will supply the locomotives at a cost of Tk 1,123 crore.
Besides, the committee approved a proposal for increasing the contract value for Larsen & Toubro to set up a rail line from Khulna to Mongla port with Indian finance.
Initially the contract value was Tk 1,076.44 crore. Now it has been increased to Tk 1,367.66 crore.