| The Tata group has suspended work on its $3-billion investment plan in Bangladesh because of "frustrating" delays by the Bangladeshi government in approving the proposal. |
| The government has put on hold its decision to permit the Indian business conglomerate to operate in the country by another six months, as its tenure ends in October this year, and will be followed by parliamentary elections. |
| "We are firm believers in the economic development of Bangladesh, and will continue to monitor opportunities in the country closely. However, if indeed we are facing such a delay from the government, we have no option but to suspend further work on these projects," Tata Sons Executive Director Alan Rosling said here today. |
| A letter of intent was first signed between the two parties in October 2004. The group has already sweetened its proposal to build a 2.4-million-tonne-per-annum steel plant, power stations, and an MTPA fertiliser plant, doubling the price it would pay for gas supplies, upping the investment from $2 billion to $3 billion, and offering the government an equity stake. |
| But it has yet to secure an agreement on what would be Bangladesh's biggest inward investment. |
| "Now, we are frustrated and disappointed as we have spent huge money, time and efforts (on the plans)," Rosling told reporters, after weekend meetings in Dhaka with senior ministers and key officials, including Mahmudur Rahman, Bangladesh's energy adviser and executive chairman of the Board of Investment. |
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