Bangladesh gets 86 proposals to revive closed state-owned factories
Bangladesh has received 86 investment proposals from 14 major companies to revive closed and loss-making state-owned factories. Sugar mills have attracted strong interest, with investors proposing agro-processing, dairy, sugar beet, renewable energy and integrated farming projects. The government is preparing a framework for private participation and long-term leases.
Dhaka: Fourteen major Bangladeshi companies and industrial groups have submitted 86 investment proposals to revive closed and loss-making state-owned factories, as the government moves to bring private investment into idle industrial assets.
The Bangladesh Investment Development Authority (BIDA) is currently reviewing the proposals, its Public Relations Officer Md Abu Hanif said on Thursday, United News of Bangladesh reported.
The proposals cover sectors including agro-processing, electric vehicles, motorcycles, data centres, food processing, light engineering and renewable energy.
The government initially identified 44 state-owned factories for possible transfer to private management. These include 13 units under the Bangladesh Sugar and Food Industries Corporation (BSFIC), 12 under the Bangladesh Textile Mills Corporation, 10 under the Bangladesh Chemical Industries Corporation, five under the Bangladesh Jute Mills Corporation and four under the Bangladesh Steel and Engineering Corporation.
Sugar mills attract strong interest
Sugar mills have emerged as a major focus of private investors.
Paragon Group and Kazi Farms Group have submitted proposals for Thakurgaon Sugar Mills, while Nabil Group, BRAC Seed & Agro Enterprise and Milk Vita have expressed interest in Setabganj Sugar Mills.
BRAC Seed & Agro Enterprise has proposed a long-term lease of Setabganj Sugar Mills for projects including fruit and vegetable processing, organic fertiliser, seed-potato multiplication, cold storage and solar power.
Milk Vita has proposed setting up a modern dairy refinery at the site with a capacity of 30,000 litres a day.
Nabil Group has proposed sugar beet cultivation, integrated farming and agro-processing at Rajshahi and Setabganj sugar mills.
Paragon has proposed agro-processing, animal feed production, solar power generation and rice and maize cultivation on sugar mill land.
PRAN-RFL leads proposals
PRAN-RFL Group has submitted the largest number of proposals, with 35 proposals covering 16 state-owned factories.
Its plans include automobile assembly, agro-industry, construction materials, paper, solar power, footwear, furniture, poultry and dairy projects.
The group has already revived Rajshahi Textile Mill and Rajshahi Jute Mill under public-private partnerships, creating around 3,500 jobs.
Akij Resource Group submitted 12 proposals, while TK Group submitted 10. Other companies showing interest include Kazi Farms, Transcom, Square Food & Beverage, Gram Unnayan Karma, Active Fine Chemicals, Excellent Ceramics and Bengal Meat.
New framework for private takeover
Industries Secretary Abdun Naser Khan said the government would finalise the mechanism for transferring closed state-owned factories after guidelines under the Invest Bangladesh Act 2026 are completed.
The options could include long-term leases, profit-sharing arrangements and other forms of private participation.
The initiative gained momentum after Prime Minister Tarique Rahman directed authorities on July 4 to accelerate the reopening of loss-making state-owned factories through domestic and foreign investment.
BIDA Executive Member Nahian Rahman said a draft policy was prepared within three weeks of the Prime Minister’s directive. Consultations with private investors were held on July 28, with the final framework expected to be approved within a month.
The government hopes private investment will help bring idle factories back into production, create jobs and generate new economic activity.
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Source : ChiniMandi
