The Planning Commission has ordered an investigation into irregularities in a controversial jute mill project, signaling its intent to close the initiative due to unauthorised spending, land development without approval, and minimal progress.
The project, now renamed the “Jamuna Specialised Jute and Textile Mill (1st Revised),” is estimated to cost Tk 398.28 crore with a revised implementation timeline stretching from July 2018 to December 2025, reports UNB.
The Planning Commission has raised concerns over unapproved land development, deviations from the original Development Project Proposal (DPP), and the lack of meaningful progress. As part of its closure plan, the Commission has set out three strict conditions: identifying those responsible for unauthorised expenditures, ensuring no further misuse of public funds, and holding accountable those involved in mismanagement.
“This move by the Commission sends a strong message deviations from approved plans will no longer be tolerated,” a senior Planning Commission official said.
Launched in July 2018 with an initial completion target for 2020, the project was meant to produce export-quality jute-cotton blended yarn, denim, and garments, contributing to foreign earnings and sustainable development goals.
However, according to Planning Adviser Dr Wahiduddin Mahmud, the project has failed to deliver, with only 2% of the approved budget being used effectively. Most of the funds were spent on unauthorised land acquisition, which was not part of the original plan.
“It was an innovative idea with significant export potential, but it has not yielded any tangible results,” Dr Mahmud added. He confirmed that the Implementation Monitoring and Evaluation Division (IMED) has been tasked with investigating the irregularities and pinpointing those responsible.
The Ministry of Textiles and Jute has proposed renaming the project to “Jamuna Specialised Jute and Textile Mill (1st revised for termination)” and closing it with an expenditure of Tk 39.82 crore, significantly reduced from the original cost of Tk 518.85 crore. This marks a drastic cut of 92.32%, with only land development and some ancillary works completed before the project was halted.
The original objectives of the project included increasing export earnings by producing and selling yarn, cloth, and ready-made garments, particularly denim, using a blend of jute and cotton. It was also designed to produce eco-friendly yarn and cloth to benefit from three-tier GSP benefits for the garment industry, and to create employment opportunities while contributing to the country’s sustainable development goals.
However, following the closure of 25 jute mills under the Bangladesh Jute Mills Corporation (BJMC) in 2020, all project activities were halted by the Ministry of Textiles and Jute. In January 2023, a revised proposal (RDPP) was submitted, suggesting the project’s closure by June 2026, but the Planning Commission, dissatisfied with the mismanagement, shortened the timeline to December 2025 and directed the Ministry to follow proper government development project guidelines.
A five-member inspection team, following a PEC meeting in May 2025, confirmed that 34 acres of land had been developed through soil filling of 548,968.25 cubic meters — a process that occurred without prior approval.
The Bangladesh Army was tasked with completing the soil filling, construction, and procurement work under the Delegated Procurement of the project. The Ministry of Textiles and Jute reported that work worth Tk 28.28 crore was completed, in addition to the land development approved by the Land Development Department.
The IMED has now been assigned to investigate the mismanagement of the project, ensuring accountability and adherence to project guidelines.
