I want to execute the makefile by passing the argument as package .After executing the make command, output along with standard error will be stored in bld_out file
What shell are you using? Not all shells understand the |& pipe. And as far as I know, this one only redirects stderr to the next command, not both stdout and stderr.
I guess, stdout would be redirect to the next command anyways (in addition to stderr, if |& used )
I think |& is introduced in bash4.
If you are using any other version or shell (which seems sh from the error msg) , you could try