No more public funds, govt plans private revival of shuttered, unprofitable factories
Potential investors from China, India, Saudi Arabia will be invited at a roadshow on 20 June
The government has decided not to spend public funds to sustain closed and loss-making state-owned industrial units, opting instead to attract domestic and foreign investment to revive the factories.
To this end, the Prime Minister's Office will organise a roadshow on 20 June to showcase investment opportunities in shuttered and struggling state-owned enterprises.
Alongside local entrepreneurs, senior executives from potential investor companies from countries including China, India and Saudi Arabia will be invited to participate.
Keep updated, follow The Business Standard's Google news channel
The event will feature presentations and video displays highlighting the current condition and potential of the factories, with the aim of attracting private and foreign investment.
The decision was taken at a meeting on the state of factories under the industries ministry, chaired by Prime Minister Tarique Rahman at the Cabinet Division yesterday.
Prime minister's Deputy Press Secretary Mostafa Zulfiquar Hasan told TBS that relevant authorities had been instructed to complete preparations for the roadshow.
He said senior officials from organisations under the industries ministry presented reports on the condition, challenges, prospects and required actions concerning the factories.
The prime minister directed authorities to identify effective ways to restart closed factories and turn loss-making units into profitable enterprises. He also placed special emphasis on attracting both domestic and foreign investment.
Officials at the meeting said recommendations from an expert committee were being considered to facilitate the revival of closed factories and improve the performance of loss-making enterprises.
Factories in shambles
According to sources, a presentation at the meeting showed that the Bangladesh Chemical Industries Corporation (BCIC) currently operates 11 factories, including five urea fertiliser plants, one DAP fertiliser plant, one TSP fertiliser plant, one paper mill, one cement factory, one glass-sheet factory and one sanitaryware and insulator factory.
Of its 97 factories, the corporation has withdrawn investment from 65. Seven factories were returned to former owners, while another seven were transferred to the Muktijoddha Kalyan Trust. Five factories were shut down and employees paid off. Eight factories have remained fully closed since 2002 under the government's privatisation policy.
Factories under the BCIC incurred losses of Tk203 crore in the fiscal 2023-24.
Meanwhile, six of the 15 mills operated by the Bangladesh Sugar and Food Industries Corporation remain closed. Of the nine operational mills, all except Carew & Co reported substantial losses. Total losses at the sugar mills reached Tk508 crore in FY24.
An official present at the meeting said the prime minister made it clear that the government would not inject further funds into closed and loss-making state-owned factories.
Instead, the factories would be revived through private or foreign investment under arrangements such as public-private partnerships, leasing, rental agreements, outright sale or other suitable mechanisms.
