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Tatas may put Bangladesh projects on hold
By agencies
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Wednesday, 14 December 2005, 20:30 IST
KOLKOTA: IndiaÂ’s largest industrial conglomerate Tata Group is likely to put on hold its proposed $2 billion investment in Bangladesh following concerns over the pricing of gas.
J.J. Irani, Director of the Mumbai based Tata Group said that there is no raw material available in Bangladesh other than gas and the Bangladesh government is reportedly not willing to give gas at a concessional rate to the Tata group. "If Tata does not get the required concession from the Bangladesh government, there is hardly any chance to materialize the investment plan," Irani said.
The Tata Group had earlier this year signed an expression of interest with Bangladesh for putting up three gas-based projects.
This comprised a 2.4 million ton steel plant, the 1,000 MW power project and the one million ton fertilizer plant, making it the biggest foreign direct investment (FDI) in Bangladesh from India.
Besides pricing, it is said Tata group is also facing political opposition from certain groups in Bangladesh.