Cabinet Approves PPP Handover of Closed Textile Mills and Imports
The Cabinet Committee on Economic Affairs has approved the handover of closed textile mills in Nilphamari and Magura under a public-private partnership framework. Additionally, the committee cleared several procurement proposals for liquefied natural gas, fertilizers, and refined palm olein.
Dhaka: In a significant move to revive dormant state assets, the Cabinet Committee on Economic Affairs (CCEA) granted policy approval today, Wednesday, for the final contract handing over the closed Darwani Textile Mill and Magura Textile Mill through the public-private partnership (PPP) method. The decision follows the removal of legal barriers after the new 'Invest Bangladesh Act, 2026' was issued in the form of a gazette.
Under the approved arrangements, the Darwani Textile Mill will be operated by Classical Handmade Products BD Limited, while the Magura Textile Mill will be managed by Charka Textile Limited. Both agreements involve separate 30-year contracts. The Darwani mill, established on 37.86 acres of land in Nilphamari, will see an investment of approximately 200 crore taka and is expected to generate employment for three thousand people. Classical Handmade Products will pay 9.5 crore taka in signing money, a monthly contract fee of 12 lakh 91 thousand 667 taka, a development fee of 75 lakh taka, and provide a bank guarantee of 2.5 crore taka. Tawhid bin Abdus Salam, Managing Director of Classical Handmade, stated that they will bring investments from a Netherlands-based company, establish an eco-friendly factory to develop the area, and commence work promptly following the government's decision.
Similarly, the Magura Textile Mill, established on 16 acres of land, will be taken over by Charka Textile Limited under financial terms that include 4.75 crore taka in signing money, an annual contract fee of 1.3 crore taka, a development fee of 50 lakh taka, and a 2.5 crore taka bank guarantee. These two projects are part of a broader plan by the Bangladesh Textile Mills Corporation (BTMC) to revive 16 mills out of 25 through the PPP method, with four mills having already been handed over to private partners previously.
Alongside the industrial handovers, the cabinet committee approved several major procurement proposals for essential commodities and energy supplies. For energy needs, the committee greenlit the purchase of one cargo of liquefied natural gas (LNG) from Aramco Trading Singapore Pte Ltd at a price of 23.93 US dollars per MMBtu.
The meeting also authorized the import of 115,000 tonnes of MOP fertilizer, comprising 80,000 tonnes from Canada and 35,000 tonnes from Russia, sourced through the Canadian Commercial Corporation and JSC Foreign Economic Corporation at a rate of 377.63 US dollars per tonne. Furthermore, the committee approved the procurement of urea fertilizer from SABIC Agri-Nutrients Company at 430 US dollars per tonne, involving an expenditure exceeding 213.19 crore taka. Finally, to meet domestic edible oil demands, the purchase of 2 crore litres, or 20,000 tonnes, of refined palm olein from Shabnam Vegetable Oil Industries was approved at a cost of 368 crore taka, translating to 184 taka per litre.
