Sunday, October 2 2005 19:28 Hrs (IST) - World Time -

Dhaka: Gas security and electricity purchase tariff for Tata group are among issues to be discussed in the crucial final round of talks beginning today (Oct 2, 2005) between the conglomerate and Bangladesh Government on it's proposed US$ 2.5 billion investment in the country, officials said.

Tata Group will set up a fertiliser factory, a steel plant and a 1000-megawatt coal-fired power plant in the country. The development of a coal mine is also included in their investment plan.

A 20-member negotiation team of Tata, led by Alan Rosling, Managing Director of Tata Sons, is leading his side, while Bangladesh Communications Secretary Shafiqul Islam is heading his team for the last round which began here today.

Sources in the Board of Investment (BoI) said this would be the final round of negotiation which might be a lengthy one as both sides would like to reach a decision on Tata's proposed investment.

"The fate of the proposed investment will also be determined during this round of talks as to whether the proposed project will be viable for the country or not," said a top-level source in the Government was quoted as saying by the media.

He said both sides would make all-out efforts to settle all the critical issues about the proposed investment. Four critical issues would dominate the final round, fiscal incentive to Tata investment, gas security and gas price, tariff for purchase of electricity from Tata's proposed power plant and the methodology of coal mining in Barapukuria.

The two sides held talks on the plan thrice in Dhaka since May. If the plan gets through it would be the single largest direct foreign investment for Bangladesh ever.