Kolkata, Dec 10 (BDNEWS) - Tata Group, the leading business conglomerate in India, may drop its proposed US$ 2.5 billion investment venture in Bangladesh over difference on the availability and pricing of gas.
"If we do not get gas at a price which we are looking for, there is no point of doing business there," said Tata Sons director J J Irani in Kolkata Friday.
"This is simply because Bangladesh does not have iron ore. So, only advantage there is gas," he told reporters.
Tata Group, which is one of the largest business entities in India, signed an expression of interest earlier this year for investing US$ 2.5 billion in steel, power and fertiliser sectors.
Already Tata officials and Bangladesh government had a series of negotiations to finalise the investment agreement. But, both sides failed to come to a consensus over gas supply and its pricing.
JJ Irani told reporters in Kolkata that the proposed projects of Tata Steel and Tata Chemicals critically depend on the availability and pricing of gas in Bangladesh.
"Bangladesh government is reportedly not willing to give gas at a concessional rate to Tata group," he noted.
"If Tata does not get the required concession from the Bangladesh government, there is hardly any chance to realise the investment plan.
BDNEWS/1800 hrs
