The government on Tuesday signed lease agreements with two private business groups to reopen three long-closed state-owned jute mills with around BDT 6.19 billion in investment, creating at least 11,629 jobs and generating an estimated annual turnover of BDT 11.75 billion.

The agreements were signed in the presence of Prime Minister Tarique Rahman at the Cabinet Division meeting room at Bangladesh Secretariat between Bangladesh Jute Mills Corporation (BJMC) and PRAN-RFL Group and HAMCO Group, said Prime Minister’s Deputy Press Secretary Hasan Shiplu.

Under the agreements, PRAN-RFL Group has officially secured the lease for National Jute Mills Ltd in Sirajganj and Star Jute Mills Ltd in Khulna, while HAMCO Group has taken over the lease for Platinum Jubilee Jute Mills Ltd in Khulna.

BJMC Chairman Brigadier General Md Kabir Uddin Sikder signed the agreements on behalf of BJMC, while PRAN-RFL Group Company Secretary Aminur Rahman and HAMCO Group Managing Director ATM Mostafa signed on behalf of their respective companies.

Hasan said the three mills, which have remained closed for a long time, will be reopened under private management. Once operational, they are expected to generate at least 11,629 jobs, attract around BDT 6.19 billion in investment and achieve a combined annual turnover of about BDT 11.75 billion.

According to the agreements, around BDT 1.57 billion will be invested in National Jute Mills at Raipur in Sirajganj. The reopened mill is expected to create 5,238 jobs and generate an annual turnover of around BDT 5 billion.

Star Jute Mills in Digholia, Khulna, will receive an investment of around BDT 2.5 billion, expecting to create 5,238 jobs, with a targeted annual turnover of around BDT 5 billion.

Meanwhile, around BDT 2.12 billion will be invested in Platinum Jubilee Jute Mills in Khalishpur, Khulna. The mill is expected to create at least 1,153 jobs and generate an annual turnover of around BDT 1.75 billion.

The government has decided to reopen 20 of the 25 BJMC mills that have remained closed under private management through leasing arrangements. So far, leases for 14 mills have been completed and possession handed over to the lessees, with production already resumed at nine of them.

Commerce, Industries and Textiles and Jute Minister Khandakar Abdul Muktadir, State Minister for Textiles and Jute Md Shariful Alam, Textiles and Jute Secretary Sharaf Uddin Ahmed Chowdhury and senior officials of BJMC and the lease-holding companies, among others, attended the signing ceremony.