Tatas Bangla plan in limbo

New Delhi, March 21 | Updated: Mar 22 2006, 06:38am hrs
The $2.5 billion investment plans of the Tata Group in Bangladesh seems to have hit yet another roadblock. The authorities in the neighbouring country have asked the Indian industrial conglomerate to revise their investment proposal as the accord was eluding on several issues including embarassing gas price issue for the fertiliser unit.

Bumpy Road

Tata plans to set up 1000 mw coal fired power plant and a 4,20,000 tonne steel plant
Bangladesh have asked the Indian industrial conglomerate to revise their investment proposal

Speaking to reporters on the sidelines of a FICCI meeting here on Tuesday, Bangladesh minister of finance and planning Saifur Rahman said that though the government was studying the Tata proposals, the two sides differed on several issues where further negotiations would be required.

While Bangladesh has favoured Tata Group going ahead with plans for setting up 1000 mw coal fired power plant and a 4,20,000 tonne steel plant, it is reluctant to go ahead with Tatas proposed 1000 tonne fertliser unit. The company is belived to have sought gas supplies at embarrasing low price with a committed supply of 25 years, which has not found favour with the Bangladeshi authorities. "If the Tata deal has to go through around 23 agreements needs to be signed. It is a very complicated investment proposal where we have to ensure adequate water and coal supplies besides settle the land related issues, Mr Rahman said.