August 09, 2008

Dhaka to seek revised proposal from TATA Group - Report

The Daily Star newspaper reported that Bangladesh government is likely to inform TATA Group that they cannot spare gas supplies for its proposed projects under USD 3 billion investments and it should seek for alternate sources. This could further delay TATA Group’s investment plans in Bangladesh.

The report cited an official of Bangladesh’s energy ministry as saying that the government will ask TATA to submit revised proposals so that instead of gas it can use other raw materials in the projects.

TATA and the government are scheduled to resume talks on Sunday. The agenda for talks was set last week when Mr Manzer Hossain resident director of TATA met Mr Hossain Zillur Rahman commerce adviser and Mr Kamal Uddin Ahmed chief of board of investment.

In 2005, the TTATA group initially proposed setting up a 1,000 MW power plant, a steel mill with an annual production capacity of 420,000 tonnes and a 1 million tonne fertiliser unit in Bangladesh.