Business & Economy
Tatas plan to invest
$2.5 b in Bangladesh
What is India News Service, Thursday, 21 April 2005, 1600 hrs IST

India\92s largest hotels chain, biggest software servives provider and leading truck maker has proposed a $2.5 bn investment in Bangladesh, that is is five times the total FDI there in 2004 and assumes even greater significance as the total Bangladesh FDI since 1972 was $3 billion.

The industrial giant has made the formal proposal to invest $2.5 billion, $500 million more than previously envisaged, a senior official said on Wednesday.

The Tata Group chairman, Ratan N. Tata, signed a deal with Bangladesh's state-run Board of Investment (BoI) last year to invest $2 billion in the power, steel and fertilizer sectors, the biggest single investment proposal in Bangladesh.

"Today, we have received a formal $2.5 billion investment proposal from the Tata group," Mahmudur Rahman, executive chairman of the BoI said.

S. Manzur Hossain, resident representative for Tata, handed over the proposal to the BoI chief on completion of a feasibility study which started in December last year.

During his visit to Bangladesh last October, Ratan Tata said, "We are satisfied as the energy minister assured us about smooth availability of natural gas to run the plants over next 20 to 25 years."

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