PRAN-RFL Group set to revive 2 state-owned textile mills closed for nearly three decades

• Govt wants PPP for 16 of the 24 textile mills in the country
• 5 more mills are in the final stages of reopening
• 10 textile mills 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).

An agreement in this regard was signed between PRAN and the BTMC yesterday (27 October), aiming to restart the RR Textile Mill in Sitakunda, Chattogram and the Rajshahi Textile Mill under a 30-year contract. The mills have been rebranded as Chittagong RR Textiles Limited and Barendra Rajshahi Textiles Limited, respectively.

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

Adviser Sakhawat said, "So far, seven mills, including the two under PRAN-RFL, are in the final stages of reopening." 

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

Ahsan Khan Chowdhury, chairman of the Pran-RFL group said, "We have taken over these mills for 30 years and many employment opportunities will be created through these mills."

"We want to reopen these mills within 1 month," he added.

He said, "It will be a green factory. Not even one inch of space will be left empty. We build solar panels in vacant space besides the factories. We want to make a green factory."

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

Established in 1963 on 19.48 acres, the RR Textile Mill had been operational until its closure in 1997. 

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

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

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

Post-grace period, it will provide an annual fee of Tk 3.22 crore to BTMC, with the possibility of contract renewal if operations remain satisfactory.

Rajshahi Textile Mill, founded in 1975 on 26.34 acres, also ceased operations in 1997. Similar to 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 top bidder. 

The TEC again recommended a 30-year contract that includes a one-time payment of Tk6 crore  to the BTMC and an annual fee of Tk 1.715 crore after a three-year grace period. 

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

However, despite issuing international tenders three times for restarting Feni's Dost Textile and Magura Textile, no bidders have participated.

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

Additionally, 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 agreements, including Amin Textile, The Asiatic Textile, Jalil Textile, Bengal Textile, Sundarban Textile, Dinajpur Textile, and Tangail Textile.

The BTMC began its journey on 1 July 1972, with 74 textile mills that were nationalised by presidential order following independence.