Private entrepreneurs have been given the approval to take over eight of the state owned jute mills, of which four have already been shut down, while the rest are currently bearing loss. The lease was sanctioned on October 11 by the advisory committee on economic affairs and the tender will be passed very soon by the Government.
The four operating mills to be leased out to private owners are Alim Jute Mills in Khulna, Baghdad-Dhaka Carpet Factory, RR Jute Mills and MM Jute Mills in Chittagong. Although, there were 77 state-owned jute mills, the number deteriorated after the commencement of privatization in 1983.
Government, however, has asked interested people and companies to adhere to certain conditions like keeping the existing employees of the operating mills and reestablishing the laid off workers from the closed factories. This extra human resource will help the mills to cut down on labor cost.
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