Probe into irregularities in Tk 518cr Jute mill project ordered

A jute mill file photo. UNB

By Fahad Ferdous Dhaka, Oct 10 — The Planning Commission has ordered the authorities concerned to take punitive measures as it moves to close a controversial jute mill project plagued by irregularities, unauthorised spending and unapproved land development.

The project, now renamed “Jamuna Specialized Jute and Textile Mill (1st Revised),” seeks to wrap up with an estimated cost of Tk 398.28 crore and revised implementation period from July 2018 to December 2025.

But the Commission flagged unauthorised land development, deviation from the approved Development Project Proposal (DPP) and minimal actual progress.

As part of the closure process, it has placed three strict conditions including fixing responsibility for unapproved expenditures and ensuring no misuse of public resources.

"The Commission’s stance sends a clear message — deviations from approved plans will no longer be tolerated,” a senior Planning Commission official told UNB requesting anonymity.

Launched in July 2018 with a 2020 completion target, the project aimed to produce export-quality jute-cotton blended yarn, denim, and garments — with the broader goal of boosting foreign earnings and supporting sustainable development goals.

Planning Adviser Dr Wahiduddin Mahmud criticised the implementation, noting that “barely 2% of the approved cost was used properly and most of the expenditure went into unauthorised land acquisition not included in the original plan.”

“It was an innovative idea with significant export potential, but nothing tangible has been achieved over the years,” he said.

He said the Implementation Monitoring and Evaluation Division (IMED) has been tasked with investigating the irregularities and identifying those responsible.

The Ministry of Textiles and Jute sought approval to rename the project as “Jamuna Specialized Jute and Textile Mill (1st revised for termination)” and close it with an expenditure of Tk 39.82 crore, down from the original approved cost of Tk 518.85 crore.

This marks a massive cost reduction of Tk 479.02 crore, or 92.32 percent of the original allocation, as only land development and a few ancillary works were completed before the project was halted.

The Objectives of the project were, according to the official document, to increase additional export earnings by producing and selling yarn, cloth and ready-made garments (especially denim pants, jackets, shirts) etc. at affordable prices using jute and cotton blend.

It also aimed to produce environment-friendly blended yarn and cloth in order to avail three-tier GSP benefits for the garment industry, produce various household textiles and goods using excess yarn after denim production to increase export earnings; and directly and indirectly create employment opportunities and assist the government in achieving the 8th Five Year Plan and sustainable development targets by producing and exporting versatile products.

There is an opportunity to earn foreign exchange by exporting versatile jute products to the domestic and foreign markets. In view of this, the project under discussion was taken up in a meeting held by ECNEC in July 2018 with the aim of setting up a separate unit for the production of versatile jute products in the jute mills under the control of BJMC.

Following the closure of 25 jute mills under BJMC in 2020, the Ministry of Textiles and Jute decided to halt all project activities.

A revised proposal (RDPP) was submitted in January 2023, seeking to close the project by June 2026, leaving many components incomplete.

But the Planning Commission, dissatisfied with the irregularities, shortened the timeline to December 2025 and demanded that the Ministry act per government development project guidelines.

The Implementation Monitoring and Evaluation Division (IMED) has been tasked with investigating the project’s mismanagement.

A five-member inspection team, following a PEC meeting in May 2025, verified that land development was carried out on 34 acres through soil filling of 548,968.25 cubic meters — but without prior approval.

Following the Delegated Procurement of the project, the EIC of Bangladesh Army was given to complete the soil filling, construction and procurement work.

As per the proposal of the Ministry of Textiles and Jute, work worth Tk 28.28 crore has been done in the project in question in addition to the project resources approved by the Land Development Department. - UNB