Tatas drops Bangladesh investment plan

Pune: Projects of the Tata Group with the Bangladesh Government have been called off as it says that there are no prospects of taking discussions held earlier any further. It had lined up investments of about $ 3 billion in steel, power, fertiliser and other infrastructure projects.

The Tata Group first proposed four large projects in Bangladesh in 2004 and had intensive discussions with the Government of Bangladesh up until 2006. At that point, the Group suspended further work on the projects, as agreement on key issues with the Government was not possible.

Since then the Tata Group has had frequent enquiries on the status of the projects and the prospects for reviving negotiations with the Government. It is clear, however, that the Government will not be in a position, in the foreseeable future, to grant the projects the natural gas commitment they would require. Consequently there is no prospect of taking these projects further.” A letter to this effect was handed over today to the Executive Chairman Board of Investment, Government of Bangladesh.

Saying that the Tata Group has been pleased with the support and courtesies extended by the Government of Bangladesh, particularly the Board of Investment, during the discussions, it adds, “The Group has other interests in Bangladesh, which it will continue to develop”.