Tata decision unlikely to affect FDI flow: Mirza Aziz
Saturday, 2 August 2008
Finance Adviser Dr Mirza Azizul Islam Friday said Tata Group's decision not to go ahead with their US$ 3.0 billion (300 crore) investment plan in Bangladesh is unlikely to affect foreign direct investment (FDI) in other sectors of the country, reports UNB.
'I hope, there'll be no adverse impact on the investment,' he told reporters after a function at the National Museum. 'The Tata decision would have an adverse impact if it was due to any wrong decision by us,' he said. Tata sought guaranteed gas supply to its planned projects for a
20-year period from Bangladesh, which has also been facing a supply constraint since last year due to a sharp rise in the domestic demand. The Finance Adviser said the Tata Group stepped aside from their investment plan in absence of a gas supply guarantee, which the country could not ensure when the country's power plants are not getting enough gas.
"I think, there's no relation between a gas-based project that could affect investment in other sectors like telecommunications," he said. The Indian industrial giant Thursday said it would not pursue its long-awaited US$ 3 billion investment plan in Bangladesh, as the country would not be in a position, in the foreseeable future, to grant the projects the commitment on gas.
The much-publicised Tata investment offer has been caught in a tangle since the Group signed an Expression of Interest with Board of Investment (BoI) in 2004.
Tata suspended the investment proposal in 2006 following a decision by the then BNP government that the next elected government should take the final decision.
'I hope, there'll be no adverse impact on the investment,' he told reporters after a function at the National Museum. 'The Tata decision would have an adverse impact if it was due to any wrong decision by us,' he said. Tata sought guaranteed gas supply to its planned projects for a
20-year period from Bangladesh, which has also been facing a supply constraint since last year due to a sharp rise in the domestic demand. The Finance Adviser said the Tata Group stepped aside from their investment plan in absence of a gas supply guarantee, which the country could not ensure when the country's power plants are not getting enough gas.
"I think, there's no relation between a gas-based project that could affect investment in other sectors like telecommunications," he said. The Indian industrial giant Thursday said it would not pursue its long-awaited US$ 3 billion investment plan in Bangladesh, as the country would not be in a position, in the foreseeable future, to grant the projects the commitment on gas.
The much-publicised Tata investment offer has been caught in a tangle since the Group signed an Expression of Interest with Board of Investment (BoI) in 2004.
Tata suspended the investment proposal in 2006 following a decision by the then BNP government that the next elected government should take the final decision.