ID :
14518
Fri, 08/01/2008 - 07:51
Auther :
Shortlink :
http://m.oananews.org//node/14518
The shortlink copeid
Tata scraps USD 3 bn Bangladesh investment plan scraps USD 3 bn Bangladesh investment plan
New Delhi, July 31 (PTI) India's Tata Group Thursday scrapped its ambitious 3 billion dollar investment plans in Bangladesh that included a steel mill and power plant, after four exhaustive years of trying to get requisiteinfrastructure support.
"...the (Bangladesh) government will not be in a position, in the foreseeable future, to grant the projects the natural gas commitment they would require," Tata Group said in astatement here.
Stating that there was no prospect of taking its proposed projects in that country further, Tatas said that it has communicated its decision to Bangladesh government and theBoard of Investment.
Tatas, however, clarified that the group has other interests in Bangladesh and that it would continue to developthem.
The Group had first proposed to invest USD 2 billion in the country in 2004 and had struck a provisional 15-year gasand coal supply agreement with the government.
Tatas, in April 2005, formally submitted a USD 2.5 billion investment proposal and then revised it to around USD 3 billion to set up a 1,000 MW power plant, a steel mill and afertiliser unit.
In its statement Thursday, the group said that it had "first proposed four large projects in Bangladesh in 2004 and had intensive discussions with the Government of Bangladesh upuntil 2006.
"At that point the group suspended further work on the projects, as an agreement on key issues with the government was not possible." The proposed investments by Tata was said to be the largest FDI inflow into Bangladesh since its independence in1971.
Since the suspension of project, Tatas have had frequent inquiries on the status of the projects and the prospects for reviving negotiations with the government, but now it has emerged that the projects cannot be taken further, the Groupsaid.
"...the (Bangladesh) government will not be in a position, in the foreseeable future, to grant the projects the natural gas commitment they would require," Tata Group said in astatement here.
Stating that there was no prospect of taking its proposed projects in that country further, Tatas said that it has communicated its decision to Bangladesh government and theBoard of Investment.
Tatas, however, clarified that the group has other interests in Bangladesh and that it would continue to developthem.
The Group had first proposed to invest USD 2 billion in the country in 2004 and had struck a provisional 15-year gasand coal supply agreement with the government.
Tatas, in April 2005, formally submitted a USD 2.5 billion investment proposal and then revised it to around USD 3 billion to set up a 1,000 MW power plant, a steel mill and afertiliser unit.
In its statement Thursday, the group said that it had "first proposed four large projects in Bangladesh in 2004 and had intensive discussions with the Government of Bangladesh upuntil 2006.
"At that point the group suspended further work on the projects, as an agreement on key issues with the government was not possible." The proposed investments by Tata was said to be the largest FDI inflow into Bangladesh since its independence in1971.
Since the suspension of project, Tatas have had frequent inquiries on the status of the projects and the prospects for reviving negotiations with the government, but now it has emerged that the projects cannot be taken further, the Groupsaid.
