The Tata Group on Thursday said that they see ?no prospect? in going ahead with their planned $3 billion investment in Bangladesh and have informed government of that country of the decision. ?It is clear….that the government (of Bangladesh) 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,? a statement from the Tata Group said.
Tatas? Bangladesh plan originally envisaged a 2.4 million tonne steel plant, two power plants, an open pit coal mine and a one million-tonne capacity urea plant. In the revised proposal, Tatas hiked the proposed investment to $3 billion , offered
the Bangladesh government 10% stake across all its projects, in addition to agreeing to buy gas from Petrobangla at $3.10 per tcf, substantially higher than the $1.10 per tcf prices it proposed originally.