Magura Textile Mills reopens next month under new terms

Spindles are being spruced up for reopening of Magura Textile Mills. PHOTO: STAR

Maintenance work is now going on with a target to reopen it in mid-August.

This time, trade union, which was the main reason for losses earlier, will not be allowed, the mill authorities told this correspondent during a recent visit to the mill. It will run profitably if trade union is not allowed and smooth power supply is ensured they said.

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It is being reopened after two years' closure from June 2002 with a total loss of about Tk 89.69 crore since its inception in 1985, they said.

Earlier, the mill was closed in 1999 also with a loss of Tk 67.14 crore.

The BTMC had decided to lay off the mill and kept it closed with a privatisation plan in the wake of continued loss.

"In such a situation, workers urged BTMC not to privatise the mill and agreed to comply with any condition to keep it running under government management," former secretary of MTM Workers Union Abdul Mannan said.

From March 2000 to May 2002, the mill had produced yarn for the Karnaphuli Traders of Pabna in exchange of 'service charge' under only a contract. But the mill failed to earn profit this time also and the mill was closed. The loss during the period was about Tk 22.54 crore, the official said.

BTMC then again decided to privatise the mill. But failing to privatise it due to pressure from different quarters and non-availability of suitable buyers, BTMC decided to reopen the mill.

It will produce yarn again and realise only 'service charge' under contract. Karnaphuli Traders will now supply raw materials and purchase the yarn.

Talking to this correspondent, the mill's Chief Executive Abdus Salam Kabir expressed his optimism that it would run profitably if workers perform their duties sincerely and smooth power supply is ensured.

When asked why he expects profit this time, he said the situation is different now and a good working atmosphere will prevail after reopening. The mill incurred loss earlier due to excess manpower and loadshedding. The problems have been minimised, he said.

The spinning mill with 25056 spindles was set up on 16 acres land at Bhaina area in Magura town at a cost of Tk 37.77 crore, the officials said.