Bangladesh Jute Mills Corporation’s (BJMC) yearly loss is more than above Tk600 crore for running these mills, according to the Ministry of Textiles and Jute.
The project is expected to help the sector diversify jute goods and increase export volume. Revival of the jute sector in the country and ensuring fair prices of the jute goods to cultivators can also help the rural economy get a boost.
The jute ministry is going to proposed China Textiles Industrial Corporation for Foreign Economic and Technical Corporation (CTEXIC) for the implementation of the project.
According to the ministry, most of the government-run jute mills are more than 60-year old and production capacity has declined by half.
As per the proposal, the dash board of expensive cars, cartel of windows and doors should be made by jute items. Besides, jute items will be used for manufacturing furniture, wall-mates, Leonel cloths, car seat covers and viscose.
The Chinese authorities concerned already signed memorandum of understanding (MoU) with Bangladesh’s jute ministry to supply credit at 1.5% interest for the BMRE project.
The loan amount would be refunded within 20 years. Total cost of the project will be estimated after six members of the Chinese firm completed inspection of the jute mills.
In the last nine years, the mills suffered losses every year, save for one, in fiscal year 2010-11, when a slight profit of Tk14 crore was made.