Tata's Dhaka dreams on hold till polls
Bangladesh's largest ever FDI, would be considered after a new government comes to power.
By PTI |
DHAKA: The Bangladesh government has put on hold the proposed three billion dollar investment by Indian conglomerate Tatas due to upcoming general elections in the country.
It was decided at an official meeting that the investment proposal, the largest ever foreign direct investment, would be considered after a new government comes to power following the January 2007 polls.
"I hope the government which is formed after the elections can take a decision," Mahmudur Rahman, Chief of the state-run Board of Investment, told reporters after the meeting.
Tatas had suspended work on their proposed projects in Bangladesh in July this year citing uncertainties on government approval to its plans to invest in energy, steel and fertiliser sectors.
The Group had carried out negotiations with Dhaka for nearly two years and later dropped hints that it would move elsewhere if the government took too long to arrive at a decision.
Prime Minister Khaleda Zia, who ends her five-year term on October 28, was expected to deliver her goodbye speech Tuesday before travelling to Saudi Arabia on a pilgrimage, sources said.
According to sources, a Committee of Secretaries headed by Communication secretary Shafiqul Islam is believed to have submitted a report to Bangladesh's Finance Minister on the proposed investments in the country.
Tatas' plan presumably included a steel plant with an annual production capacity of 2.4 million tonnes, an urea factory with a one million tonne capacity, a 500 MW coal-fired station and a 1,000 MW gas-fired power plant.
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