Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 390 Sat. July 02, 2005  
   
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Final round talks with Tata today


The final round of negotiations between Bangladesh government and Indian corporate giant Tata Group on its proposed $2.5 billion investment begins in Dhaka today at the finance ministry.

A 15-member Tata team led by Tata Bangladesh chapter head Manzer Hossain has already arrived in the capital to finalise the investment talks, sources said.

A government team headed by Finance Secretary Zakir Ahmed is also ready to go into the talks after the prime minster's approval of Bangladesh's strategy on the deal.

Dhaka had earlier sent an invitation to Tata Group for talks from July 2, deferring it from June 19.

"We will try to conclude negotiations this time, instead of prolonging the process," a senior government official said. Government high-ups also gave similar indications, he mentioned.

Three issues have been identified crucial to the negotiations -- fixing the price of gas, guarantee of uninterrupted gas supply to Tata's plants and the method of coal mining, if it is leased out, a top official noted.

Apart from demanding pricing at an 'agreed rate', Tata wants guarantee of uninterrupted gas supply for 30 years while the government is likely to offer guarantee of 20 years of gas supply.

Once an agreement is signed, Dhaka will hold talks with Delhi while Tata Group will negotiate with multilateral lending agencies for funding of projects.

Dhaka will also talk with the lending agencies for financing infrastructure projects required for the three Tata plants.

The government and Tata Group on May 9 agreed to kick off formal negotiations on May 25 and wind it up by August 31 to clear the way for signing the investment deal by November 30.

Tata on April 20 formally submitted a $2.5 billion investment proposal for setting up a 1,000 MW power station, a steel mill with an annual production capacity of 4.2 lakh tonnes and a one million-tonne fertiliser plant.