DHAKA, 10 May 2005 — Bangladesh has agreed to sign a $2.5 billion investment deal with the Indian industrial giant Tata group by Nov. 30 under which the industrial giant will invest in the power, steel and fertilizer sectors.
A preparatory meeting between senior officials from Tata and the Bangladesh government here Sunday decided to start formal investment negotiation by May 23 and complete it by Aug. 31, sources said yesterday.
Tata intends to set up a 1,000MW power station, a steel mill with an annual capacity of 420,000 tons and a one million-ton fertilizer unit.
The proposed investment will be Bangladesh’s biggest deal. It will be the second largest overseas investment plan by the Tata Group after Singapore and comes after a six-month feasibility study.
Ratan Tata, chairman of the Indian conglomerate, visited Bangladesh in mid-October when the group signed an expression of interest agreement to set up gas-based industries in Bangladesh.
Before signing the agreement, the government had to identify Tata’s requirements with regard to gas, pipelines, site selection and land requirements, Minister of State for Energy and Mineral Resources A.K.M. Mosharraf Hossain said. According to Tata officials, the investment will help Bangladesh earn around $26.6 billion in net foreign exchange in 30 years that would go a long way in meeting the country’s balance of payment position.
They said the projects would also provide employment to 5,600 skilled and unskilled people and stimulate the country’s gas exploration and development, besides diversifying its energy basket.
