Bangladesh Diesel Plant Limited was an enterprise of Bangladesh Steel & Engineering Corporation (BSEC) under the Ministry of Industries. The then Pakistan Government started its construction work in 1967 with technical assistance from Klockner Humboldt Deutz (KHD) and financial assistance from Germany. The aim was to manufacture Deutz brand diesel engines of different capacities. After liberation Bangladesh Government completed the construction of the plant and was commissioned for commercial production on 25 June 1980. The company was then incorporated as public limited company with RJSC on 11 Nov 1981. The plant could not be made commercially viable because of many reasons. Ultimately after 22 years of operation, BDP Ltd was closed down on 31 Dec 2002 with an accumulated loss of Tk. 74 Crore.
On 30 May 2007, this organization was handed over to Bangladesh Army with the recommendation of Privatization Commission through Ministry of Defence.