Tata scraps $3 bn Bangladesh investment plan

Written by Reuters | Mumbai, July 31: | Updated: Jul 31 2008, 20:58pm hrs
India's Tata Group said on Thursday it saw no prospect of taking forward proposed investments of $3 billion in fertiliser, steel, power and infrastructure projects in Bangladesh.

"It is clear that the (Bangladesh) government will not be in a position, in the foreseeable future, to grant the projects the natural gas commitment they would require," a Tata spokesman said in a statement.

"Consequently there is no prospect of taking these projects further."

The Tata Group first proposed four large projects in Bangladesh in 2004, and had intensive discussions with the government until 2006 when further work was suspended over a failure to agree on key issues.

The Tata Group said it has other interests in Bangladesh which it will continue to develop.