The decision on the bailout move was taken yesterday at an inter-ministerial meeting on sick industries with Textile Minister Shahjahan Siraj presiding.

Officials said the meeting also made a decision to send proposals to the finance ministry for its permission to allow the sick textile units to pay back their default loans within next ten years through a provision of half-yearly instalment.

The meeting widely discussed the present state of the sick textile mills run by the Bangladesh Specialised Textile Mills and Power Loom Industries Association (BSTMPLIA) that are heaving under their accumulated bank loans and interests.

The relevant banks were asked by the meeting to take measures to carry out feasibility study on 24 textile mills, out of 72, for their overhauling.

Shahjahan Siraj observed in the meeting that the demand for the local textiles increased following the phasing out of the global quota regime. "So, it becomes need of the time to modernise the existing textile mills in order to meet the demand," he said.

Representatives of finance ministry, commerce ministry, Bangladesh Bank, Sonali Bank, Janata Bank, Krishi Bank, Rajshahi Krishi Unnayan Bank and BSTMPLIA attended the meeting.