15-10-04 Indian giant makes fresh proposal for coal-based power plants, holiday resort
The government pledged the Tata Group uninterrupted gas supply to its planned plants, while the Indian conglomerate has proposed afresh to set up coal-based power plants alongside gas-run ones to produce 2000 MW electricity.

The Indian industrial giant has also expressed interest in building a holiday resort in Cox's Bazar and set up an export-oriented pharmaceutical factory.
"We have told them that there would be no problem with gas supply to their plants in the next 25 years. Given the gas reserves we have in hand and considering our future gas exploration, we can meet both their immediate and future demands," State Minister for Energy and Mineral Resources A.K.M. Mosharraf Hossain told.

International oil companies (IOCs) have also shown renewed interest in gas extraction and exploration, the minister said.
"We're quite convinced that the availability of gas from Bangladesh is going to be there... we're quite satisfied," Tata Group Chairman Ratan N. Tata told after a meeting with Mosharraf at the Secretariat. He also met Industries Minister Motiur Rahman Nizami, State Minister for Power Iqbal Hassan Mahmood and Foreign Minister M. Morshed Khan in the afternoon.

Mahmood said the Indian conglomerate would conduct a feasibility study on both gas-fired and coal-based power plants. The Group may set up the power, steel and fertiliser plants at different locations to be decided by the Tata technical team.
The Tata Group will conduct a feasibility study on the proposed projects in six months, for which a technical team is likely to fly in Dhaka soon, according to its chairman's meetings with the state ministers for energy and power.

Ratan Tata said he expects the plants to go into production in three to four years on successful completion of the feasibility study and settlement of all issues on stake. About the gas pricing, he said they will come back after the feasibility study to discuss all the issues including the pricing of gas with the government.
Mosharraf briefed the Tata Group officials about the country's gas reserves including proven, probable, recoverable, remaining, possible and potential reserves and the gas consumption pattern.

The Tata officials inquired about the price rates at which gas is supplied to independent and state-run power plants and also to fertiliser plants including Kafco (Karnaphuli Fertiliser Company). The state minister told them that the government has a pricing policy and the Energy Regulatory Commission will fix the prices for gas supply to the proposed Tata plants taking into account all aspects including international fuel oil prices.
"Still the gas prices in Bangladesh are competitive, but we'll discuss the pricing issue after the feasibility study," Ratan told.

The Tata Group will need 200 mm cfpd gas per day in the initial stage, which will rise to 350 mm cfpd when the plants go into full operation. The conglomerate will invest $ 1.50 bn in the first phase and $ 0.50 bn in the next phase. The Group also sought export facilities that local export industries enjoy.
The Tata officials told Mahmood and Mosharraf that they will sell a portion of their production from the plants for local consumption and the rest will be exported to India and other countries.

Mahmood said the government needs to put a power export policy in place.
"They (Tata Group) are not here for charity, they are here to do business. Bangladesh has a huge demand for electricity and their study will see if selling power to local market or exporting it is more profitable."
The visiting Tata Group delegation met Board of Investment (BoI) Executive Chairman Mahmudur Rahman at his office and discussed their investment proposals. After the meeting, the BoI chairman said in addition to their previous proposal of investing in the power, steel and fertiliser sectors, the Indian industrial giant has also showed interest to invest in service and pharmaceutical sectors in Bangladesh.

The Tata Group, which owns the Taj Group of Hotels in India, wants to build a holiday resort in the prime sea beach town of Cox's Bazar. It is also interested to set up a pharmaceuticals factory for export of medicine to developed world.
Foreign Minister M. Morshed Khan, quoting the Tata Group chairman, told: "He (Ratan) told us that the misperceptions held outside (Bangladesh) do not match the realities on the ground."
"He said that he found no malice from the people of Bangladesh, that he saw Tata products being used widely and that a lot of people would not understand the potential of Bangladesh without coming here," Morshed told at his office after his meeting with Ratan Tata at the foreign ministry.
Emerging from the meeting, Ratan Tata told that he was "very, very impressed" with what he has seen in Dhaka and said, "I wish I had come earlier."

Meeting sources said the Indian business tycoon told Morshed that the Tata Group has come to Dhaka neither for charity, nor for exploitation, it is here to share the work towards development. He said although no deals were on the table, they were very upbeat about their future here and would be conducting a number of feasibility studies in Bangladesh.
During the meeting, the foreign minister said, both sides discussed greater potential in Bangladesh and natures of investment that would result in a “win-win” situation. Other sectors the two sides discussed were hotels, human resources development and healthcare, especially world-class hospitals.
Morshed quoted the Indian business tycoon as saying, "There is a tremendous potential for Bangladesh to multiply its export income and employment generation."
The Group has also expressed interest to expand scientific education in the social sectors of Bangladesh, meeting sources said.

Industries Minister Motiur Rahman Nizami assured the Tata Group of all government support to implement its $ 2 bn investment plan when the Tata Group chairman made a courtesy call on him at his office. He, however, cautioned that the Indian giant will not get any “undue” facility, which could harm local industries.
After the meeting, the minister said, "We welcome Tata's investment in Bangladesh. But the government will put national interests before everything in dealing with Tata." The Tata Group will have to comply with all rules and regulation of the land for setting up industries in Bangladesh, he said.
"Bangladesh needs foreign direct investment to generate employment and reduce poverty. But we must protect our local industries, too," he noted.