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Bangladesh Army Bangladesh Army to get 55 acres for ordnance factory in Ctg

Isa Khan

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A proposal has been submitted to the committee of the council of advisers on economic affairs, seeking approval for the handover of around 55 acres of land of closed Jalil Textile Mills in Chattogram to the Bangladesh Army for establishing an ordnance factory.

The Bangladesh Textile Mills Corporation, which, after coming into existence in 1972, acquired many mills, including Jalil Textile Mills Ltd, submitted the proposal to the council of advisers’ committee on July 15, officials said on Monday.

The Bangladesh Army has been looking for land since 2024 to establish a plant under the Bangladesh Ordnance Factories at Bhatirai in the port city for its important geo-political location close to the Indian state of Tripura, said officials.

Bangladesh Ordnance Factories is currently located in Gazipur Cantonment.

Supplying arms, ammunition and equipment to the army, the ordnance factory produces a range of products, including firearms, artillery, fuses, detonators and explosives, often under licence from international manufacturers.

Officials said that the overall price of the land of the mill was calculated at Tk 111.44 crore against its liability of Tk 17.04 crore to the government, accumulated from utility bills, land bills and bank loans.

They said that the BTMC had agreed to hand over the land at a token price of Tk 17.04 crore.

During the Bangladesh Investment Summit 2025 in April, Bangladesh Investment Development Authority executive chairman Chowdhury Ashik Mahmud Bin Harun said that Bangladesh was planning to attract foreign direct investment in production of defence hardware.

Side by side, foreign investors will be allowed to export defence hardware, he added while responding to a question whether the BIDA had plans to open the door of the defence industry to foreign investment.

FDI in defence hardware is not permitted in Bangladesh.

He said that the government was talking with the army, the navy and the air force about the FDI in defence hardware manufacturing since the country’s existing ordnance factory was operated by the army.

 

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The government has turned down a proposal of the Bangladesh Army to hand over 54.99 acres of land of closed Jalil Textile Mills for expanding Bangladesh Ordnance Factory at a token price.

“We will hand over the land, but not in lieu of a token price,” Finance Adviser Dr Salehuddin Ahmed said emerging from the Advisers Council Committee on Government Purchase and Advisers Council Committee on Economic Affairs held at the Bangladesh Secretariat.

He said the Bangladesh Army wanted to take the land of Jalil Textile Mills. “We proposed that we will not give that land for token money; from now on we will avoid such token price,” Dr Salehuddin said.

Those who wanted to take government land have to pay the market price, he said, adding, “Those who wanted to take land with a token price usually do not want to utilise the land properly.”

In this connection, the Adviser also mentioned that if anyone needs 10 acres of land, when it is at token price the demand will be for 100 acres. “Surely, we will give the land, let the proposal come first,” Dr Salehuddin said.

The textile mill under the control of Bangladesh Textile Mills is located in Faujdarhat area of Chattogram district.

Bangladesh Ordnance Factory of Bangladesh Army is supposed to give the money to Bangladesh Textile Mills Corporation (BTMC).

 

Isa Khan

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The government has turned down a proposal of the Bangladesh Army to hand over 54.99 acres of land of closed Jalil Textile Mills for expanding Bangladesh Ordnance Factory at a token price.

“We will hand over the land, but not in lieu of a token price,” Finance Adviser Dr Salehuddin Ahmed said emerging from the Advisers Council Committee on Government Purchase and Advisers Council Committee on Economic Affairs held at the Bangladesh Secretariat.

He said the Bangladesh Army wanted to take the land of Jalil Textile Mills. “We proposed that we will not give that land for token money; from now on we will avoid such token price,” Dr Salehuddin said.

Those who wanted to take government land have to pay the market price, he said, adding, “Those who wanted to take land with a token price usually do not want to utilise the land properly.”

In this connection, the Adviser also mentioned that if anyone needs 10 acres of land, when it is at token price the demand will be for 100 acres. “Surely, we will give the land, let the proposal come first,” Dr Salehuddin said.

The textile mill under the control of Bangladesh Textile Mills is located in Faujdarhat area of Chattogram district.

Bangladesh Ordnance Factory of Bangladesh Army is supposed to give the money to Bangladesh Textile Mills Corporation (BTMC).


Army gets money from govt. So the govt is asking army to buy the govt land with govt's money? :unsure:
 

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Army gets money from govt. So the govt is asking army to buy the govt land with govt's money? :unsure:

Regardless, I think it is a good thing. @Flextape talked about long time ago that there will be a new BOF facility in CHt to produce all type of ammo. I think initially it is to set up the new automated 105/155mm artillery round production line that was bought form Repkon in 2021. Apperantly, they don't have any expansion capacity left in Gazipur from what I read previously.
 

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Regardless, I think it is a good thing. @Flextape talked about long time ago that there will be a new BOF facility in CHt to produce all type of ammo. I think initially it is to set up the new automated 105/155mm artillery round production line that was bought form Repkon in 2021. Apperantly, they don't have any expansion capacity left in Gazipur from what I read previously.

Also army will probably manufacture/assemble the ATGM, AGL, RPG, 122mm rocket etc in new factory.
 

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The cabinet committee on economic affairs in a meeting on Wednesday agreed in principle for the handover of a piece of jute ministry land to the Bangladesh Army for a token price.

The Ministry Of Jute And Textile brought the fresh proposal to hand over around 55 acres of land of the closed Jalil Textile Mills at Bhatiari in Chattogram to the army at a token price of Tk 1,001, ministry officials said.

The army has been demanding the land owned by the Bangladesh Textile Mills Corporation for some time to establish an ordnance factory in addition to its present one—The Bangladesh Ordnance Factories—at the Gazipur Cantonment.

Finance and planning minister Amir Khosru Mahmud Chowdhury at the meeting held at Bangladesh Secretariat approved the fresh proposal, annulling a previous decision of the same committee.

On October 28 past year, a cabinet committee meeting on economic affairs chaired by the then finance adviser agreed in principle to hand over the land to the army, but declined to do so for a token price.

The committee at the time decided to hand over the land at market price.

 
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