Tata may go to Vietnam if Dhaka says 'no'
Thursday, 26 July 2007
FE Report
Indian industrial conglomerate Tata is planning to divert its fund to Vietnam if the Bangladesh government responds in the negative to their US 3.0 billion investment proposal.
"We are now focusing on Vietnam. We are hoping the government will either say 'yes' or 'no' to our proposal. If the government says 'no', we will go to Vietnam," Manzer Hossain, Tata's resident director told the FE Wednesday.
The government earlier assured Tata of giving a decision on their proposal within July 15 but it now seems that nothing is on the cards until the end of this month.
But, sources said the government might decide on the issue after adopting the coal policy.
Tata sources claimed that a Memorandum of Cooperation (MoC) had been signed with Vietnam when its premier visited India recently.
They also claimed that the feasibility study on the proposed investment plan in Vietnam is in progress.
Tata made a $ 3.0 billion investment proposal to Bangladesh in the fields of steel, coal, fertiliser and power in 2004.
An expert committee headed by eminent economist Dr Wahid Uddin Mahmud, formed to study the proposal, submitted its report to the government.
However, the Board of Investment (BoI) sources said it is yet to receive any formal letter from Tata on their ultimatum.
BoI director Mahmud Hossain Alamgir said it has not received any formal letter from Tata in this connection.
Indian industrial conglomerate Tata is planning to divert its fund to Vietnam if the Bangladesh government responds in the negative to their US 3.0 billion investment proposal.
"We are now focusing on Vietnam. We are hoping the government will either say 'yes' or 'no' to our proposal. If the government says 'no', we will go to Vietnam," Manzer Hossain, Tata's resident director told the FE Wednesday.
The government earlier assured Tata of giving a decision on their proposal within July 15 but it now seems that nothing is on the cards until the end of this month.
But, sources said the government might decide on the issue after adopting the coal policy.
Tata sources claimed that a Memorandum of Cooperation (MoC) had been signed with Vietnam when its premier visited India recently.
They also claimed that the feasibility study on the proposed investment plan in Vietnam is in progress.
Tata made a $ 3.0 billion investment proposal to Bangladesh in the fields of steel, coal, fertiliser and power in 2004.
An expert committee headed by eminent economist Dr Wahid Uddin Mahmud, formed to study the proposal, submitted its report to the government.
However, the Board of Investment (BoI) sources said it is yet to receive any formal letter from Tata on their ultimatum.
BoI director Mahmud Hossain Alamgir said it has not received any formal letter from Tata in this connection.