Bangladesh Approves 30-Year Lease Plan to Revive Magura Textile Mill

en.Wedoany.com Reported - On October 15, the Bangladeshi government planned to restore operations at the Magura Textile Mill through a public-private partnership model, with Charka Textile Limited, a subsidiary of the PRAN-RFL Group, undertaking the factory renovation and operation for a cooperation period of 30 years. The project received in-principle approval from the Cabinet Committee on Economic Affairs of Bangladesh on September 16, and plans to transform the shut-down state-owned textile mill into an industrial production facility employing modern technology.

The Magura Textile Mill is located in the Baina area of Magura city, Bangladesh, adjacent to the Magura-Jhenaidah highway, with a factory area of approximately 16 acres. The factory was built in fiscal year 1980–1981, began commercial operations in 1985, ended regular production in 1999, and subsequently operated intermittently on a processing service fee basis before fully ceasing production on August 17, 2008. The project assets are managed by the Bangladesh Textile Mills Corporation.

Under the approved cooperation plan, Charka Textile Limited must pay the Bangladesh Textile Mills Corporation a one-time signing fee of 47.5 million taka. After a three-year grace period, it shall pay an annual contract fee of 13 million taka, plus a development fee of 5 million taka to the public-private partnership authority, and provide a bank guarantee of 25 million taka. The investment required to restore factory operations shall be borne by the private partner, while the government participates in the project with the existing land assets.

The renovation plan includes upgrading the existing factory buildings and production facilities and building a factory that adopts modern technology and environmentally friendly production methods. Charka Textile Limited obtained the project operating qualification through a partner selection process. The Magura Textile Mill is one of 16 state-owned textile mills that the Bangladeshi government plans to restore operations at through the public-private partnership model.