Joint venture plant to be set up to produce spare parts for jute mills
DHAKA, Nov 24 (BSS) – A state-owned Bangladeshi enterprise will set up a joint venture plant upgrading the existing facility with an Indian company to produce spare parts for jute mills, officials said here today.
“We hope the proposed joint venture plant will export machinery and spare parts after meeting the needs of jute mills in the country,” Textiles Minister Latif Siddiqui told newsmen at his ministry.
He said the draft of a memorandum of understanding (MoU) on the proposed venture between the state-owned Galfra-Habib Limited and Indian Lagan Engineering Company Limited (LECL) was finalized today at an inter- ministerial meeting as the deal is expected to be inked next week.
Earlier briefing newsmen on the proposed venture, secretary of the ministry Mohammad Ashraful Moqbul said the proposed venture would cost Taka 6 crore of which the Bangladesh Jute Mills Corporation (BJMC) would provide half of the amount while the Indian company would bear the rest.
Moqbul said the Chittagong-based Galfra-Habib Limited, an affiliate of the BJMC, was so far producing tools and spare parts for jute mills but under the JVC it would now be upgraded and modernized.
Moqbul said that Lagan would install modern manufacturing machine and provide technical assistance to the joint vsture plant.
Bangladesh currently needs to import spare parts at high price but the proposed venture could supply them at a much cheaper price, he said.
“After signing the MoU an operational agreement will be signed for final production,” the secretary said.
Earlier, the draft was approved after vetting from the Law and Parliamentary Affairs Ministry.
Minister for Textiles & Jute Abdul Latif Siddique who presided over the meeting said the government has taken the initiative to make Galfra-Habib Limited a modern and profitable tools factory in the country.
“Awami League led government as well as Prime Minister Sheikh Hasina has consented to reopen jute mills, which were closed during the last BNP-Jamaat regime, said Abdul Latif Siddique. He said the government reopened two jute mills and two more will be reopened in March 2012.
Among others, secretary of the ministry Md Ashraful Moqbul, Chairman of Bangladesh Jute Mills Corporation (BJMC), director Foreign Affairs Ministry Md Harun Al-Rashid, Dr Narayan Chandra Singh, financial analyst of Finance Ministry, joint secretary of Law and Parliamentary Affairs Ministry Abu Ahmed Jamadar and deputy secretary of Commerce Ministry Md Sadar Ali Biswas, Finance and Law and Parliamentary Affairs were present at the meeting.