Magura textile mill incurs fresh loss of Tk 36.7 lakh

As a result, 23 officials and employees are not getting salaries for 12 months.

Earlier, the mill was closed twice in 1999 and 2002 with a total loss of Tk 89.69 crore. Mill authorities blamed the trade union for the losses.

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The mill was reopened on September 23 last year after two years' closure. Under the new system, the mill supplies yarn on orders from buyers and takes 'service charge'. Currently, it is producing yarn for Karnaphuli Traders in Pabna.

After reopening of the mill, the mill authorities on several occasions expressed their optimism and said that the mill would make profit if trade union is not formed and smooth power supply ensured, which is available now.

From September last year to August this year, the mill produced 2.93 lakh kilograms of yarn and earned Tk 1.01crore. It incurred a loss of Tk. 36.77 lakh, officials said.

The mill authorities now blame shortage of 'working capital' and old machinery for the losses.

Talking to The Daily Star its General Manager (GM) Abdus Salam Kabir claimed that the mill could not be run smoothly and profitably due to shortage of working capital and absence of workers.

"As the mill has been incurring loss, we can not arrange salaries from September last year".

The mill was closed in 1999 with a loss of Tk.67.14 crore since its inception, official said.

In the wake of continued loss, BTMC had decided to lay off the mill and keep it closed with a privatisation plan.

In such a situation, workers urged BTMC not of privatise the mill and agreed to comply with 'any condition' to keep it running under government management.

From March 2000 to May 2002 the mill produced yarn for Karnaphuli Traders in Pabna in exchange of 'service charge'. Workers worked on 'no work no pay' basis. But the mill failed to earn profit this time also and it 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 do so due to pressure from different quarters and non-availability of buyer, BTMC reopened the mill under new terms and conditions to produce yarn for Karnaphuli Traders in exchange of 'service charge'.