Tata Group scraps $3 bn Bangladesh investment plan

July 31st, 2008 - 11:11 pm ICT by IANS  

New Delhi, July 31 (IANS) The Tata Group Thursday announced that it has abandoned its $3 billion investment plan for Bangladesh after it failed to win commitments from the Bangladesh government for natural gas supply to the four projects it proposed to build. “It is clear that the government will not be in a position, in the foreseeable future, to grant the projects the natural gas commitment they would require. Consequently, there is no prospect of taking these projects further,” the group said in a statement posted on its website.

The group has already sent a letter in this regard to the executive chairman of the Bangladesh government’s Board of Investment.

The Tata Group first proposed the projects in 2004 and held intensive discussions with the Bangladesh government up until 2006. “At that point the group suspended further work on the projects, as agreement on key issues with the government was not possible,” the release said.

It added that the group made subsequent efforts to revive negotiations with the authorities, but the government did not give any commitment on gas supply.

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