Fourteen local companies and industrial groups are interested in investing in closed and loss-making state-owned factories. These companies and industrial groups have submitted 86 investment proposals to the government. The Bangladesh Investment Development Authority (BIDA) is now reviewing the proposals.
The companies have shown interest in investing at the closed and loss-making state-owned factories in various sectors including agriculture and agro-processing, electric vehicle and motorcycle manufacturing, data centres and digital infrastructure, food and water processing, light engineering and renewable energy.
According to sources familiar with the matter, the government took an initiative in June to reopen closed and loss-making state-owned factories. That month, BIDA listed 44 factories that could potentially be handed over to the private sector.
The list included 13 enterprises under the Bangladesh Sugar and Food Industries Corporation (BSFIC), 12 under the Bangladesh Textile Mills Corporation (BTMC), 10 under the Bangladesh Chemical Industries Corporation (BCIC), five under the Bangladesh Jute Mills Corporation (BJMC) and four under the Bangladesh Steel and Engineering Corporation (BSEC).
BIDA later invited expressions of interest from private-sector companies, following which four companies and 10 industrial groups submitted 80 investment proposals.
A review of the investment proposals shows that several industrial groups have expressed interest in investing in the same factories. For example, Paragon and Kazi Farms Group have expressed interest in investing in Thakurgaon Sugar Mills. Nabil Group, BRAC Seed and Agro Enterprise and Milk Vita want to invest in Setabganj Sugar Mills.
A meeting was held at the Prime Minister’s Office on 4 July on reopening the closed and loss-making state-owned factories. Prime Minister Tarique Rahman directed officials to expedite the process of reopening unprofitable and closed state-owned factories through domestic and foreign investment.
The issue of closed state-owned factories had been left unresolved for a long time. The decision to hand them over to the private sector is a good one. However, it must be ensured that they remain industrial units even after being handed over to the private sector. If that happens, many people will find employment.Mustafizur Rahman, distinguished fellow, Centre for Policy Dialogue (CPD)
Later, a meeting on the issue was held at the Ministry of Industries on 8 July, chaired by Industries and Commerce Minister Khandaker Abdul Muktadir. The interested companies presented their views on their investment proposals at the meeting. It was decided to form an effective committee to scrutinise the investment proposals and determine the investment structure.
Asked about the matter, Industries Secretary Abdun Naser Khan told Prothom Alo last Sunday, “We have received investment proposals from various business organisations. The Invest Bangladesh Bill 2026 was passed last month. Once the rules are formulated under the law, it will be decided under which model the closed and unprofitable state-owned factories will be handed over to the private sector.” He said the entire process would be completed within a short period.
Who has what plans
PRAN-RFL Group has submitted 35 investment proposals to reopen closed and unprofitable state-owned factories. Akij Resource Group has submitted 12 proposals, TK Group 10, Kazi Farms four and Transcom Group has submitted three proposals.
Private sector’s Transcom Group has submitted three proposals for new investment in closed and unprofitable factories under four state-owned agencies. In addition, two companies under Akij Venture Group have submitted a total of 12 investment proposals.
Akij Agro and Livestock has submitted three proposals covering agriculture and agro-processing, solar power and cold storage facilities at three sugar mills, while Akij Electric and Electronics has submitted nine proposals in light engineering, furniture, rubber, electric vehicles, power and information technology.
Paragon Group has expressed interest in setting up agro-processing facilities and solar power plants at Thakurgaon Sugar Mills. Square Food and Beverage has expressed interest in agro-processing and setting up small-scale cold storage facilities.
Asked about the matter, Paragon Group Managing Director Moshiur Rahman told Prothom Alo, “We want to increase our investment in agriculture. If we can lease a state-owned factory on a long-term basis, we will set up a solar power plant as well as a factory to produce animal feed. We also plan to grow rice and maize on land currently used for sugarcane cultivation.”
We have received investment proposals from various business organisations. The Invest Bangladesh Bill 2026 was passed last month. Once the rules are formulated under the law, it will be decided under which model the closed and unprofitable state-owned factories will be handed over to the private sector.Abdun Naser Khan, industries secretary
PRAN-RFL Group has submitted 35 investment proposals for 16 state-owned factories. It has expressed interest in both solo and joint investments in various sectors, including automobile assembly, resorts, eco-tourism, agro-industry, construction materials, ready-mix plants, paper mills, solar power, footwear, furniture, poultry and dairy farming.
Asked about the matter, PRAN-RFL Group Director (Marketing) Kamruzzaman Kamal told Prothom Alo, “We have submitted preliminary expressions of interest to invest in closed industries. In the private sector, it generally takes three to five years to purchase land, develop it and build a factory. In contrast, having ready-to-use land allows production to begin within a shorter period. This saves both time and money. Moreover, if gas and electricity connections are already in place, production can begin quickly.”
PRAN-RFL Group has also reopened the long-closed state-owned Rajshahi Textile Mills and Rajshahi Jute Mills under a public-private partnership (PPP). So far, 3,500 people have been employed at the two factories. On Tuesday (11 August), the group was awarded leases for Star Jute Mills in Dighalia, Khulna, and National Jute Mills in Sirajganj.
Besides, BRAC Seed and Agro Enterprise has submitted nine investment proposals after expressing interest in taking Setabganj Sugar Mills on a long-term lease. Its proposals include research and development, fruit and vegetable processing, organic fertiliser production, seed potato multiplication, cold storage and solar power generation. Active Fine Chemicals has submitted a proposal for joint investment in APIs and biopharmaceuticals.
Kazi Farms Group has submitted four proposals expressing interest in investing in the closed state-owned factories. The industrial group wants to purchase or take long-term leases on land belonging to Khulna Newsprint Mills, Dhaka Leather, Pragati Industries, Thakurgaon Sugar Mills and Panchagarh Sugar Mills to invest in agro-processing, corn starch and food processing, and beverage production.
Nabil Group, one of the leading consumer goods companies, has submitted two proposals to invest in sugar beet, integrated agro-industry and agro-processing at Rajshahi Sugar Mills and Setabganj Sugar Mills.
Another leading consumer goods company, TK Group, has submitted 10 investment proposals. It is interested in taking long-term leases on closed state-owned factories to set up plants producing automobile components, electric vehicles, leather footwear, solar power glass and various other products.
We are surprised by the level of interest from the private sector. Within three weeks of the Prime Minister’s meeting on 4 July, we drafted a policy for handing over the government’s closed and loss-making industrial units to the private sector.Nahian Rahman, executive member, BIDA
Bengal Meat Processing Industry has also proposed investment in agro-foods. Meanwhile, Excellent Ceramics Group has submitted three investment proposals covering electric vehicle assembly, battery systems, engineering, and the production of tiles, sanitary ware and tableware.
Milk Vita wants to invest in setting up a modern refinery with a production capacity of 30,000 litres at Setabganj Sugar Mills. Gram Unnayan Karma (GUK) has submitted three proposals to invest in electric vehicles, agricultural machinery and sericulture.
Asked about the matter, BIDA Executive Member Nahian Rahman told Prothom Alo, “We are surprised by the level of interest from the private sector. Within three weeks of the Prime Minister’s meeting on 4 July, we drafted a policy for handing over the government’s closed and loss-making industrial units to the private sector.”
“We held a meeting with private-sector entrepreneurs on 28 July to discuss the draft policy. We hope the policy will be approved within a month. The closed and loss-making industrial units may be handed over to the private sector through leases, profit-sharing or another model,” added the official.
They must remain industrial units
Mustafizur Rahman, a distinguished fellow at the private research organisation Centre for Policy Dialogue (CPD), considers the government’s decision to hand over closed and loss-making industrial units to the private sector a positive move.
He said, “The issue of closed state-owned factories had been left unresolved for a long time. The decision to hand them over to the private sector is a good one. However, it must be ensured that they remain industrial units even after being handed over to the private sector. If that happens, many people will find employment.”
“We have often seen state-owned factories being leased and subsequently turned into housing projects. To prevent that, the government should select organisations with the necessary expertise and a good reputation,” he added.