The government has initiated the process of allocating unused land of state-owned jute mills to small entrepreneurs to produce diversified jute goods.
To this effect, the Bangladesh Jute Mills Corporation (BJMC) has drafted a policy which is now awaiting final approval from the cabinet, officials concerned said.
After getting the cabinet's approval, the process of allotting unutilised land will start shortly, they said.
Some 80.13 acres of land under the BJMC remain unused currently. Of the total, primarily more than 25 acres will be distributed among the entrepreneurs.
"The rest of the land will be allotted gradually," BJMC chairman Mahmudul Hasan told the FE.
The entrepreneurs must use at least 50 per cent of jute materials in their diversified products to be eligible for allocation of BJMC lands. Women entrepreneurs will get the top priority, he said.
"We will start the process of allocating land immediately after receiving the cabinet nod for the policy," the BJMC chief said.
"We hope we will get approval within a short time," he said. The production of diversified jute goods will increase notably in the wake of this move.
Besides, a market will be set up for the state-run jute mills as entrepreneurs can purchase raw materials from the BJMC.
Replying to a query, he said entrepreneurs can purchase jute materials from anywhere.
The BJMC has 29 mills, of which 25 are now in operation.
However, a recent meeting presided over by acting secretary of Prime Minister's Office Sajjadul Hassan decided to provide information on the BJMC's unused land.
The Ministry of Textiles and Jute will send the information to the PMO, the meeting also said.
When contacted, Rashedul Karim Munna, convener of Bangladesh Diversified Jute Products Manufacturers and Exporters Association (BDJPMEA), hailed the government's move and said it is a good initiative.
He said if small entrepreneurs get land with necessary facilities, the production of diversified jute products will increase significantly.
But terms and conditions and other support should be business-friendly, said Mr Munna who is also the founder and CEO of Creation Private Ltd.
He said if the BJMC allocates its land for a long time like that of Bangladesh Small and Cottage Industries Corporation (BSCIC), industrialists can avail of bank loan facilities easily, he said.
Infrastructure and gas and electricity supplies should be industry-friendly. Otherwise entrepreneurs will not feel encouraged to invest in the BJMC projects, Mr Munna said.
He also stressed a fair selection process in distributing the land among entrepreneurs.
Many times real entrepreneurs are not given such land. For this reason, such a project can't help genuine investors, he said.
According to the Jute Diversification Promotion Centre (JDPC) official website, a total of 133 jute-made diversified products are being manufactured in the country.
About 200 entrepreneurs are producing diversified jute products in the country. Of them, 80 per cent are in the small category, the BDJPMEA said.
