Monday May 12, 08:25 AM
Dhaka says not enough gas for major Tata project
DHAKA (AFP) - Talks between Indian conglomerate Tata and the Bangladesh government on a three-billion dollar investment were stalled Monday after the two sides failed to make a breakthrough, an executive said.
Bangladesh's view that there was not enough gas for the project appeared to be behind the failure of the weekend talks.
"The government has not said no to us. Equally they have not said we can dedicate two trillion cubic feet (of) gas to you," said Alan Rosling, Tata group's executive director, after meetings with top bureaucrats of the country's military-backed government.
"Clearly, the basis of steel and chemical plants we proposed was gas-based," added Rosling, the group's executive director.
"And we always said: it is simple. If gas is available we can discuss, if gas is not available then there are other places in the world which do have gas."
The Indian salt-to-telecoms giant offered to build a steel plant, two power plants, a fertiliser plant and a coal mine back in 2006, after upgrading a 2004 plan.
But negotiations on what would become the country's biggest investment were frozen after the previous government said political sensitivities just ahead of polls made it difficult to reach a decision.
Bangladesh's investment board chief Kamaluddin Ahmed said they have appraised the group about the "resource position" adding the country does not have enough gas to ensure dedicated supply to Tata.
Energy secretary Mohammad Mohsin who attended the meeting said "there is little chance to supply gas to Tata."
The talks were the first between the authorities and the company after the military-backed government took power in January last year following the imposition of emergency rule.
The government has promised to "take up all necessary projects" to promote long-term economic growth and vowed to clean up corruption before restoring democracy and holding elections before the end of 2008.
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