EMRD will soon decide on pending FDI proposals
Tuesday, 30 October 2007
M Azizur Rahman
The Energy and Mineral Resources Division (EMRD) will soon take decisions on a number of foreign direct investment (FDI) proposals that remain pending due to its non-clearance over the last couple of years.
"As most of the FDI proposals are related to the coal sector, the EMRD is expected to adopt the country's first-ever national coal policy by the first week of next month before taking any decisions on the pending proposals," a senior EMRD official told the FE.
He said the EMRD decision will help the government as well as the Board of Investment (BoI) to dispose of the pending FDI proposals promptly.
The caretaker government has already made changes to several key positions of the EMRD last week to help expedite the process of decision-making on the investment proposals.
The new EMRD secretary Mohammad Mohsin has started working after the transfer of former EMRD secretary AMM Nasir Uddin.
An EMRD senior Assistant Secretary has also been made officer on special duty (OSD) while a few more EMRD officials are awaiting transfer from their offices as part of the government move to provide prompt decisions on the pending FDIs.
Currently FDI proposals worth around US$ 6.0 billion, of which a significant portion has been proposed for investment in the country's coal sector, are awaiting approval.
Among the FDI proposals awaiting approval, US$3.0 billion of the Indian business conglomerate Tata Group, $2.5 billion of the UK-based Asia Energy, $1.6 billion of US-based Global Vulcan Energy and $1.5 billion of the South Korean Luxon Global, are prominent.
The Asia Energy has proposed to develop Phulbari coal mine, Tata Group has submitted an investment proposal which include development of Barapukuria coal mine, the US-based Vulcan Energy has intended to develop Khalashpir coalmine and South Korean Luxon Global, for developing Jamalganj coalmine.
Besides, several local and international companies including state-owned Petrobangla, the UK-based Asia Energy, and Korean Luxon Global have recently sought approval for exploration and development of a new coalmine at Dighipara in Dinajpur in the country's mineral-rich northern region.
In October 2004 Tata had signed an expression of interest (EoI) with the BoI and proposed to invest $2.0 billion in Bangladesh. Their investment plan was later raised to $2.5 billion and subsequently in April 2006 to $3.0 billion.
Tata is interested to install one 2.4 million tonnes per annum capacity steel plant at Pabna, 6.0 million tonnes capacity open pit coal mine at Barapukuria of Dinajpur and 1.0 million tonnes capacity urea fertiliser plant in Chittagong.
The company also proposed to install a 250-megawatt (MW) - 300 MW coal-fired power plant at the Barapukuria coal mine-mouth and 475 MW power plant near the proposed steel manufacturing plant at Pabna.
A 116-MW gas-fired captive power plant was also proposed for installation at its steel plant premises at Pabna.
After conducting a feasibility study on Phulbari coal mine, the Asia Energy submitted its investment plan to the BoI in October 2005 which includes development of an open pit coalmine at Phulbari and installation of a coal-fired power plant at the mine mouth
The US-based Vulcan Energy signed a memorandum of understanding (MoU) with the BoI in May 2005 for installation of a gas-fired power plant, development of a coal mine and coal-fired power plant at the mine mouth and setting up of two organic fertiliser plants.
The South Korean Luxon Global placed its investment proposal and signed an MoU with the BoI in July 2005 intending to develop a coalmine, a coal-fired power plant at the mine mouth, a fertiliser factory and a liquefied natural gas (LNG) plant.
The previous elected government asked these foreign companies to wait regarding their investment proposals until the approval of the national coal policy.
The draft national coal policy was prepared more than a year ago but it is yet to be adopted.
The Energy and Mineral Resources Division (EMRD) will soon take decisions on a number of foreign direct investment (FDI) proposals that remain pending due to its non-clearance over the last couple of years.
"As most of the FDI proposals are related to the coal sector, the EMRD is expected to adopt the country's first-ever national coal policy by the first week of next month before taking any decisions on the pending proposals," a senior EMRD official told the FE.
He said the EMRD decision will help the government as well as the Board of Investment (BoI) to dispose of the pending FDI proposals promptly.
The caretaker government has already made changes to several key positions of the EMRD last week to help expedite the process of decision-making on the investment proposals.
The new EMRD secretary Mohammad Mohsin has started working after the transfer of former EMRD secretary AMM Nasir Uddin.
An EMRD senior Assistant Secretary has also been made officer on special duty (OSD) while a few more EMRD officials are awaiting transfer from their offices as part of the government move to provide prompt decisions on the pending FDIs.
Currently FDI proposals worth around US$ 6.0 billion, of which a significant portion has been proposed for investment in the country's coal sector, are awaiting approval.
Among the FDI proposals awaiting approval, US$3.0 billion of the Indian business conglomerate Tata Group, $2.5 billion of the UK-based Asia Energy, $1.6 billion of US-based Global Vulcan Energy and $1.5 billion of the South Korean Luxon Global, are prominent.
The Asia Energy has proposed to develop Phulbari coal mine, Tata Group has submitted an investment proposal which include development of Barapukuria coal mine, the US-based Vulcan Energy has intended to develop Khalashpir coalmine and South Korean Luxon Global, for developing Jamalganj coalmine.
Besides, several local and international companies including state-owned Petrobangla, the UK-based Asia Energy, and Korean Luxon Global have recently sought approval for exploration and development of a new coalmine at Dighipara in Dinajpur in the country's mineral-rich northern region.
In October 2004 Tata had signed an expression of interest (EoI) with the BoI and proposed to invest $2.0 billion in Bangladesh. Their investment plan was later raised to $2.5 billion and subsequently in April 2006 to $3.0 billion.
Tata is interested to install one 2.4 million tonnes per annum capacity steel plant at Pabna, 6.0 million tonnes capacity open pit coal mine at Barapukuria of Dinajpur and 1.0 million tonnes capacity urea fertiliser plant in Chittagong.
The company also proposed to install a 250-megawatt (MW) - 300 MW coal-fired power plant at the Barapukuria coal mine-mouth and 475 MW power plant near the proposed steel manufacturing plant at Pabna.
A 116-MW gas-fired captive power plant was also proposed for installation at its steel plant premises at Pabna.
After conducting a feasibility study on Phulbari coal mine, the Asia Energy submitted its investment plan to the BoI in October 2005 which includes development of an open pit coalmine at Phulbari and installation of a coal-fired power plant at the mine mouth
The US-based Vulcan Energy signed a memorandum of understanding (MoU) with the BoI in May 2005 for installation of a gas-fired power plant, development of a coal mine and coal-fired power plant at the mine mouth and setting up of two organic fertiliser plants.
The South Korean Luxon Global placed its investment proposal and signed an MoU with the BoI in July 2005 intending to develop a coalmine, a coal-fired power plant at the mine mouth, a fertiliser factory and a liquefied natural gas (LNG) plant.
The previous elected government asked these foreign companies to wait regarding their investment proposals until the approval of the national coal policy.
The draft national coal policy was prepared more than a year ago but it is yet to be adopted.