| Bangladesh has agreed in principle to guarantee gas supply for 20 years for a power plant, a fertiliser factory and a steel unit to be built by the Tata group in what will be the largest foreign investment in the country. The guarantee came after the Bangladesh government studied the Tata proposal to invest $2 billion in the country earlier this month. "They have proposed to invest $2 billion in the steel, power and fertiliser sectors," Bangladesh's Minister for Energy and Mineral Resources AKM Mosharraf Hossain said today."They want a guarantee for the smooth supply of gas for at least 20 years and we have agreed, but many things still have to be addressed, such as the price of gas," he said. A Tata group spokesperson said, "The group is in preliminary a stage of talks with the Bangladesh government," adding that nothing had been concluded. The proposed 1-million tonne fertiliser unit and the 1,000 Mw power plant will use natural gas as raw material, while the 2.4 million tonne steel plant will be gas-powered. Bangladesh has 15.33 trillion cubic feet of proven gas reserves. But it has no domestic iron ore, and faces a growing demand for power and fertilisers. Tata Sons executives are in Dhaka for talks with the government, which has set up a five-member panel to study the proposal. The panel is scheduled to meet on Sunday. Tata Chairman Ratan Tata is expected to visit the Bangladeshi capital early next month for further talks with the government. At a recent Tata Power annual general meeting, Tata had said the company was eyeing South Africa and Bangladesh for opportunities. "We believe that there are opportunities in South Africa and Bangladesh," Tata said. |
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