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Daroani Textile Mill in Nilphamari and Magura Textile Mill.
In a concerted move to revive defunct industrial units, stimulate regional economies, and spur large-scale employment, the government has finalized the transfer of two long-shuttered textile mills to prominent private conglomerates under a Public-Private Partnership (PPP) framework.
The Cabinet Committee on Economic Affairs (CCEA), during its meeting on Wednesday, granted in-principle approval to award the operation and revival of Nilphamari's Daroani Textile Mill and Magura Textile Mill to Classical Handmade Products BD Limited and PRAN-RFL Group respectively under 30-year lease agreements.
Both industrial units operate under the administrative umbrella of the Bangladesh Textile Mills Corporation (BTMC). The initiative operates without direct state expenditure, generating state revenues through land lease fees and operational royalties under the Design, Build, Finance, Operate, Maintain, and Transfer (DBFMT) model.
Daroani Textile Mill Revamp Established on 37.86 acres, the Daroani Textile Mill operated from 1980 until its closure in 1997. Following a competitive bidding process, Classical Handmade Products BD Limited secured the 30-year operational lease. The company will inject approximately BDT 200 crore to construct an eco-friendly yarn and fabric manufacturing plant, creating an estimated 3,000 direct jobs in Nilphamari.
Under the contractual terms, the private entity will pay BTMC a one-off signing fee of BDT 9.50 crore, followed by a monthly operational fee of BDT 12.91 lakh after a three-year grace period. It will also provide a BDT 2.50 crore bank guarantee and pay BDT 75 lakh in development fees to the PPP Authority.
Classical Handmade Managing Director Touhid Bin Abdus Salam noted that the enterprise has secured backing from a Netherlands-based investment partner to establish modern, green industrial facilities on site.
PRAN-RFL Takes Over Magura Mill The 16-acre Magura Textile Mill, defunct since 1999, has been awarded to Charka Textile Limited, a subsidiary of PRAN-RFL Group. The handover had faced previous administrative delays until legal barriers were cleared by the gazette notification of the Invest Bangladesh Act 2026 on July 16.
Charka Textile will deposit a one-off signing fee of BDT 4.75 crore, followed by annual contract fees of BDT 1.30 crore after a three-year grace period, alongside a BDT 2.50 crore bank guarantee and BDT 50 lakh in development fees to establish modern manufacturing operations.
The Ministry of Textiles and Jute aims to revive 16 out of 25 closed or non-viable BTMC mills via the PPP route, with the latest approvals raising the total handed-over mills to six.
Additional Cabinet Committee Approvals The CCEA also cleared several key national procurement proposals on Wednesday:
LNG Imports: Approved spot purchases of one LNG cargo from Aramco Trading Singapore Pte Ltd at $23.93 per MMBTU, alongside in-principle clearance to procure 14 spot cargoes from seven registered firms under direct purchase methods.
Fertilizer Procurement: Sanctioned the import of 1.15 lakh metric tons of MOP fertilizer (80,000 MT from Canada's CCC and 35,000 MT from Russia's Foreign Economic Corporation) at $377.63 per metric ton, alongside urea procurement from Saudi Arabia's SABIC Agri-Nutrients at $430 per ton.
Edible Oil: Approved the local open-tender procurement of 20,000 metric tons (2 crore liters) of refined palm olein from Shabnam Vegetable Oil Industries at BDT 184 per liter, totaling BDT 368 crore.
