BJMC needs Tk1,265cr more to pay employees
Asif Showkat Kallol || BusinessInsider
As part of the government’s privatisation plan, it has shut down 2 out of 25 jute mills operated by the state-owned Bangladesh Jute Mills Corporation (BJMC) burdened with heavy losses
As part of the government’s privatisation plan, it has shut down 2 out of 25 jute mills operated by the state-owned Bangladesh Jute Mills Corporation (BJMC) burdened with heavy losses.
In line with the plan to send the existing workers of 25 jute mills into retirement through a golden handshake, the government released 92.95% or Tk 3,521.88 crore of the total fund required to pay officials and workers’ salaries and allowances of the laid-off mills until March 31. A fund of Tk 5,000 crore was allocated for implementing the plan in the 2020-21 fiscal year.
Some officials and employees who are getting payments for nearly a year are still waiting for the golden handshake. To pay the salaries and allowances of the remaining workers, some Tk 1,265 crore are needed in the next fiscal year’s budget, according to the Textile and Jute Ministry.
The BJMC’s liabilities would be much higher if bank loans are included, said an official.
It owed over Tk 975.6 crore to the four state-owned banks—Sonali, Janata, Agrani, and Rupali, according to him.
“BJMC needs the fund to pay salaries and allowances of its remaining employees,” said Secretary Lokman Hossain Miah, who has recently been transferred to the Health Ministry from the Textile and Jute Ministry, in a letter to the Finance Ministry.
Though 24 mills have been laid off, some 3,000 officials and workers are still with the BJMC, he said.
The textile and jute secretary said the choice to go for a G2G agreement, PPP, or other forms of investment are still there. “If we don’t get a proper response in this [leasing] process, we might consider these options,” he said.
The government had decided to close all state-run jute mills on July 1 last year due to heavy losses and excessive production costs, laying off more than 50,000 workers in three categories—permanent, temporary, and substitute.
However, the ruling Awami League promised to make the jute industry profitable in its election manifesto in 2009. The BJMC holds only 6% of the market share of the jute sector.
