The Bangladesh government has put on hold the proposed $3 billion investment by Indian conglomerate Tatas due to upcoming general elections in the country.It was decided at an official meeting that the investment proposal, the largest ever foreign direct investment, would be considered after a new government comes to power following the January 2007 polls."I hope the government which is formed after the elections can take a decision," Mahmudur Rahman, Chief of the state-run Board of Investment, said after the meeting.Tatas had suspended work on their proposed projects in Bangladesh in July this year citing uncertainties on government approval to its plans to invest in energy, steel and fertiliser sectors.The group had carried out negotiations with Dhaka for nearly two years and later dropped hints that it would move elsewhere if the government took too long to arrive at a decision.Prime Minister Khaleda Zia, who ends her five-year term on October 28, is expected to deliver her goodbye speech Tuesday before travelling to Saudi Arabia on a pilgrimage, sources said.According to sources, a Committee of Secretaries headed by Communication secretary Shafiqul Islam is believed to have submitted a report to Bangladesh's Finance Minister on the proposed investments in the country.Tatas' plan presumably included a steel plant with an annual production capacity of 2.4 million tonne, a urea factory with a 1 million tonne capacity, a 500 MW coal-fired station and a 1,000 MW gas-fired power plant. Update at 1930hrs: A high-level committee of secretaries is understood to have suggested to the Bangladesh government to go ahead with the project proposed by the Tatas with an estimated investment of about $3 billion.The committee of secretaries, headed by communication secretary Shafiqul Islam, is believed to have submitted a report to Bangladesh's Finance Minister Nizami and said that the proposed project by Tatas can be given the go ahead.Tatas had recently decided to indefinitely suspend work on its investment plan in Bangladesh citing frustrating delays in getting government approval for its investment plans.Tatas' plan presumably included a steel plant with an annual production capacity of 2.4 million tonne, an urea factory with a one million tonne capacity, a 500 MW coal-fired station and a 1,000 MW gas-fired power plant. If approved, it would be the largest-ever FDI in the country, sources said.They also said that the Bangladesh bovernment was not able to give nod to Tatas' project as elections were due in January next year.Tata Motors hikes CV prices by 2%Tata Motors today announced 1-2% hike in prices of commercial vehicles with effect from October 1 to cover hike in raw material costs."We have increased prices by one to two per cent in commercial vehicle category. The price hike was on account of the increase in input costs like steel and tyres, which have been rising throughout the year," a Tata Motors spokesperson said here today.
