Naim-Ul-Karim
The government, ending a long wait of fourteen months, is going to announce this week the fate of Indian business conglomerate Tata's $3.0 billion revised investment proposals excepting the one involving the Barapukuria coalmine.
"We will let them know our decision on investment proposals on steel, fertiliser and power plants next week," Nazrul Islam, executive chairman of the Board of Investment (BoI), told the FE Thursday.
Talking to the FE exclusively, he said the decision on investment proposal relating to Barapukuria coalmine will be taken after the finalisation of the coal policy.
Islam, however, said the coal policy is expected to be finalised by this month.
When asked whether the government will resume negotiations with Tata, he said, "Tata submitted its revised proposals, now we will let them know our decision. If they find our decision acceptable they will proceed on with their investment proposals."
Tata revised its investment proposal to $3.0 billion in April 2006 from its initial investment plan worth $ 2.0 billion submitted in October 2004 to install a steel manufacturing plant, a fertiliser factory, an open pit coalmine extraction project at Barapukuria, a coal-fired power plant at the mine mouth and a captive power plant for its industrial units.
Sources said the immediate past government held several meetings to discuss Tata's investment proposals and formed several committees to review the same, including the issue of gas pricing, but failed to reach any final decision as the proposals were considered complicated.
When asked, BoI executive chairman said the government is also considering giving decisions soon on other investment proposals, which are beneficial for the country.
Sources said the foreign investment proposals, currently lying with the BoI, include those of $2.5 billion from the UK-based Asia Energy, $ 1.6 billion from US-based Vulcan Energy, $1.5 billion from South Korean Luxon Global and around $ 1.0 billion from Saudi Arabian Kingdom group.
They said many investors are now watching the internal situation of Bangladesh.
"It is true to say that over the last few months none of the investors came forward to materialize their proposals that they submitted for some medium and large scale investment here," sources said
Another high official said investors would like to see a stable situation in the country.
Decision on Tata's proposals sans coalmine likely this week
FE Team | Published: July 14, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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