Decision on Tata's investment proposal by next month

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Naim-Ul-Karim
The government will take decision on Indian business conglomerate Tata's $3.0 billion investment proposal in steel, coal, fertiliser and power plant by next month.
"The decision on all projects of Tata will be taken by end of July once the coal policy is finalised," Nazrul Islam, executive chairman of the Board of Investment (BoI), said Monday.
Talking to the FE exclusively, he said the coal policy is expected to be finalised by July also.
Regarding fixation of the gas price, a BoI source said there will be both constant and variable prices.
Meanwhile, he mentioned that Tata might be offered a 10-year guarantee for gas supply.
Tata revised its investment proposal to $3.0 billion in April 2006 from its initial investment plan worth $ 2.0 billion in October 2004 to install a steel manufacturing plant, a fertiliser factory, an open pit coalmine at Barapukuria, a coal-fired power plant at the mine mouth and a captive power plant for its industrial units.
Answering a question, BoI executive chairman said complicacy in the proposal of Tata is one of the reasons for the delay in reaching a decision.
Sources said the immediate past government held several meetings to discuss on Tata's investment proposals and formed several committees to review the same including the issue of gas pricing but failed to reach any as the proposal was complicated.
Besides, an official source said there are some other potential investment offers which are also pending with BoI for the government's decision.
Requesting anonymity, he said the foreign investment proposals, 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. The government is now likely to restart discussion on the investment proposals, which are beneficial for the country, after completing evaluation by the top policy makers, a BoI source said.
He said the government is planning to execute the potential investment proposals considering the interest of creating more employment opportunity and gear up the economy.
A number foreign companies and even local companies, who earlier were observing the situation, is now showing keen interest to invest in Bangladesh, he said.
Another source said BoI, mainly due to absence of necessary guidelines and expertise in handling such multisectoral investment, failed to proceed with the investment proposals.
When asked, BoI executive chairman said they have taken steps for capacity building of the officials of the BoI to render prompt service to the investors.