The Tata Group has decided to scrap its $3 billion project in Bangladesh and handed over a letter to the Board of Investment, Government of Bangaldesh, to this effect.
A release sent out by the Tata Group said that it was clear that the government would not be in a position in the foreseeable future to grant the projects the natural gas commitment that it would require. “Consequently there is no prospect of taking these projects further,” said the release.
The Tata group first proposed four large projects including a 2.4 million tonne steel plant in Bangladesh in 2004 and had intensive discussions with the Bangladesh government until 2006. However, at that point, further work on the projects were suspended as agreement on key issues was not possible.
Subsequently frequent enquiries on the status of the projects and the prospects for reviving negotiations with the government were made.
