Thursday, May 26 2005 08:43 Hrs (IST) - World Time -

Dhaka: India's Tata group yesterday (May 25, 2005) started the first round of negotiations with Bangladesh on its planned $ 2.5 billion investment plan, official sources said in Dhaka.

Alan Rosling, executive director of the Tata Sons led his 18-member team, while the Bangladesh side was headed by Finance Secretary Zakir Ahmed Khan.

An official source said the two sides pointed out areas of their negotiations and it would continue for several days.

"These are serious negotiations and the two sides are looking at all aspects of the investment," the source said.

Tata group made no comment.

Tata has offered to invest $ 2.5 billion in basic steel plant, a fertiliser plant and a power plant with interest in coal mining to support the power project.

It signed an Expression of Interest with the State-run Board of Investment (BOI) and later in April this year submitted a pre-feasibility report to Bangladesh Government.

Top officials visited the Bangladesh capital earlier this month on the invitation of the Board of Investment.

The set target for sealing the agreement is November 30 and groundbreaking in December, according to Bangladeshi officials.

If the plan gets through, it would be the single largest foreign direct investment for Bangladesh.