'Bangladesh unable to ensure gas to Tata'

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Saturday , May 10, 2008 at 1826 hrs Bangladesh is likely to inform Indian conglomerate Tata that Dhaka will be unable to guarantee the required gas supply for its proposed USD 3 billion investment projects as they resume talks on Sunday in the capital.

An official of Bangladesh Energy Ministry was quoted as saying by The Daily Star newspaper that the government will ask Tata to submit revised proposals so that instead of gas it can use other raw materials in the projects.

The caretaker government is to inform the Indian firm that Dhaka is unable to guarantee the required gas supply for its proposed investment in steel, fertiliser and power since Bangladesh faces shortage of gas, the daily quoted Energy Ministry sources as saying.

Ahead of the two-day talks on May 11, Tata's Country Director Manzer Hossain met Commerce Adviser Hossain Zillur Rahman and Board of Investment (BoI) chief Kamal Uddin Ahmed last week and discussed the issue. BoI sources said the government wants to wrap-up the much-talked investment proposals by the year end.

According to a Tata Group representatives in Bangladesh, the Indian conglomerate may agree to review some of the proposals submitted earlier. According to the report, the Tata representative said the Indian heavy industry giant requires the gas after four years into the signing of the final investment agreement.

M Tamim, Chief Advisor's Special Assistant for Power, Energy, and Mineral Resources, on Monday said the government will follow a ‘cautious’ policy in giving new industrial gas connections in and around Dhaka, but has decided not to provide any new gas connection in the Chittagong region.