Tata Group to conclude Rs 2-billion deal with Bangladesh by year-end

Mumbai: Bangladesh expects to finalise negotiations for setting up of three gas-based industries by August 31, according to Bangladesh's newly appointed energy advisor Mahmudur Rahman. The final agreement is expected to be signed in November.

A team of executives from the Tata Group, headed by Alan Rosling, executive director, Tata Sons is currently in Bangladesh to finalise details with the finance ministry for setting up of three gas-based industries — a steel mill, a fertiliser factory and a power plant in Bangladesh at an investment of approximately $2bn.

According to reports in the Bangladesh media, the Tata team has accepted Bangladesh's offer in principle for allowing 1,800 acres of land near the Ruppur Nuclear Power Plant project in Iswardi for establishing steel and power plants.

The Bangladesh government has decided to appoint a foreign consultant to prepare a gas pricing formula on the Tata proposal. The consultant would suggest price of gas at par with the price in the international market, upon which gas price will be fixed for the deal.