KNM machines getting rusty, theft of materials goes on
Once famous mill now dying for lack of decision

CLOCKWISE FROM LEFT: Pictures of unprotected main gate, shabby structure, unused ship, watch tower without security man, unused jetty and sheds and submerged launch say it all about the present condition of the once renowned Khulna Newsprint Mills. Photo: STAR
Once famous Khulna Newsprint Mill has become a faded glory as no effective step was taken to reopen it during the last nine years. Established in 1957 on the Bhairab River at Khalishpur, Khulna Newsprint Mill (KNM) was shut down on November 30 in 2002 on grounds of serious financial crisis, throwing over 3,000 workers and employees out of jobs. On February 8 in 2005, the Privatisation Board decided to denationalise the mill. On November 16 of the same year, the BNP-led four-party alliance government made an attempt to set up an industrial park there and Bangladesh Chemical Industries Corporation issued an official order to authorities concerned to hand over all movable and immovable properties of the mill to Bangladesh Small Industries Corporation. But the attempt failed due to a strong movement launched by Khulna Newsprint Mill Protection Committee. On December 31 in 2007, Privatisation Board estimated total movable and immovable properties of the mill at Tk 433.87 crore. On the other hand, the mill was heavily burdened with financial liabilities including bank loans of Tk 488.37 crore. The Privatisation Board, however, invited tenders on March 2 in 2008 and the highest bidder quoted Tk 127.27 crore only for running the mill at the private level. The Board did not get any response from any party when tender was invited for this purpose the second time on May 13 the same year. On August 28 the same year, the Privatisation Board sent a proposal to the Ministry of Industries to devise ways and means on how to run the closed newsprint mill. Meanwhile, most of the machines of the mill are getting rusted and eventually losing the capacity to function. Besides, theft of important materials is often reported although there are 45 security guards still in service. Twelve cargo launches owned by the mill have been totally damaged as none took care of them during last nine years. A residential area within the jurisdiction of the mill is being used as headquarters of Rapid Action Battalion-6. Warehouses of the mill are now being used for keeping fertilisers imported by Bangladesh Agriculture Development Corporation. "It is not possible for me to say when the closed newsprint mill will reopen. It entirely depends on the government," said Kazi Ruhul Amin, managing director of the mill. The State Minister for Labour and Employment Begum Mannujan Sufian said bureaucratic tangle is the cause for delay in reopening the mill. However, she said, "The Prime Minister is very much sincere about this matter. The government on May 28 in 2009 formed a special team to make a report on requirements to reopen the mill. The team submitted its report on September 13 the same year with necessary recommendations in this regard."
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