Bangladesh scouts for Indian investors; wants Tatas to return

[Gabbar]

Bangladesh scouts for Indian investors; wants Tatas to return​

Shine Jacob / Kolkata December 31, 2010, 1:15 IST

Three years after Tata Group called off its $3-billion investment plan in Bangladesh, the government in Dhaka is now wooing the Indian conglomerate to reconsider the project, citing better political and business climate.
“We did not have a elected government when the Tatas came. The ruling regime was unstable and was anti-India. It considered the investment to be an Indian one, rather than an investment for common good. We want the company to reconsider the project here,” said Muhammad Faruk Khan, commerce minister of Bangladesh.

Tata had signed a memorandum of understanding with Bangladesh in 2004 for one of the largest foreign direct investments (FDI) in that country. It included setting up of a 2.4-million tonne steel mill, a 1-million tonnes fertiliser factory and 1,000-Mw gas-fired and 500- Mw coal-fired power plants. However, due to political instability and lack of availability of natural resources, the Tatas were forced to move out of the neighbouring country in 2007.

“Tatas are one of the most reputed groups in the world, and if they come back, it would be beneficial for Bangladesh as well as the company. Moreover, we want Indian firms to explore gas here. Since we have huge coal deposits, companies can invest in the power sector, too ,” he added.He assured that the political climate had changed in the country and the process would be smoother for foreign investors. Meanwhile, the Tata group didn’t respond to a mail sent by Business Standard.

Khan expressed hope that in the coming financial year, more Indian companies would enter Bangladesh. “This is a very good opportunity for both nations to improve trade relationships, and governments on both sides have the political will to do it. The investment from Indian firms is expected to touch $1 billion next fiscal,” he said. Bangladesh attracted overall investments worth $2 billion in the last two years, of which investments from India were around $400 million.“There are a lot of opportunities for Indian firms in power, infrastructure and textile sector. In October, we signed MoUs with five companies and this month we have signed a deal with an Indian firm,” he added.Bangladesh industry leaders, too, seemed optimistic about Indian investments. “There is a vast opportunity for Indian firms to invest in Bangladesh. We are open minded regarding this. But regarding imports from Bangladesh, we demand further concessions and removal on non-tariff barriers from the Indian government,” said Mir Shahabuddin Mohammad, secretary of the Federation of Bangladesh Chambers of Commerce and Industry.

Bangladesh scouts for Indian investors; wants Tatas to return

 

[fallstuff]

Bangladesh scouts for Indian investors; wants Tatas to return​

Shine Jacob / Kolkata December 31, 2010, 1:15 IST

Three years after Tata Group called off its $3-billion investment plan in Bangladesh, the government in Dhaka is now wooing the Indian conglomerate to reconsider the project, citing better political and business climate.
“We did not have a elected government when the Tatas came. The ruling regime was unstable and was anti-India. It considered the investment to be an Indian one, rather than an investment for common good. We want the company to reconsider the project here,” said Muhammad Faruk Khan, commerce minister of Bangladesh.

Tata had signed a memorandum of understanding with Bangladesh in 2004 for one of the largest foreign direct investments (FDI) in that country. It included setting up of a 2.4-million tonne steel mill, a 1-million tonnes fertiliser factory and 1,000-Mw gas-fired and 500- Mw coal-fired power plants. However, due to political instability and lack of availability of natural resources, the Tatas were forced to move out of the neighbouring country in 2007.

“Tatas are one of the most reputed groups in the world, and if they come back, it would be beneficial for Bangladesh as well as the company. Moreover, we want Indian firms to explore gas here. Since we have huge coal deposits, companies can invest in the power sector, too ,” he added.He assured that the political climate had changed in the country and the process would be smoother for foreign investors. Meanwhile, the Tata group didn’t respond to a mail sent by Business Standard.

Khan expressed hope that in the coming financial year, more Indian companies would enter Bangladesh. “This is a very good opportunity for both nations to improve trade relationships, and governments on both sides have the political will to do it. The investment from Indian firms is expected to touch $1 billion next fiscal,” he said. Bangladesh attracted overall investments worth $2 billion in the last two years, of which investments from India were around $400 million.“There are a lot of opportunities for Indian firms in power, infrastructure and textile sector. In October, we signed MoUs with five companies and this month we have signed a deal with an Indian firm,” he added.Bangladesh industry leaders, too, seemed optimistic about Indian investments. “There is a vast opportunity for Indian firms to invest in Bangladesh. We are open minded regarding this. But regarding imports from Bangladesh, we demand further concessions and removal on non-tariff barriers from the Indian government,” said Mir Shahabuddin Mohammad, secretary of the Federation of Bangladesh Chambers of Commerce and Industry.

Bangladesh scouts for Indian investors; wants Tatas to return

The old deal was a non-starter to begin with. BNP, Caretaking Gov, and AL rejected it. Gas is already in short supply.

But I would welcome if Tata wants to something else besides gas powered projects. There is just not enough gas to go around.

 

[Gabbar]

61 products up for duty waiver from India

Bangladesh is likely to get duty-waiver for exports of the proposed 61 products to India, during the visit of Indian Prime Minister Manmohan Singh to Bangladesh early next year.
The government placed a proposal to India seeking duty waiver for the products, including 54 readymade garments, in a bid to narrow the trade gap between the two countries.

Commerce Minister Faruk Khan during his visit to India in October also pushed for the waiver.

Khan said the announcement of the duty waiver might come either during the visit of the Indian prime minister or anytime next year. “The possibility of a waiver is high, as during my visit to India in October both the countries agreed on the move,” Khan said.
"The Indian government is actively considering duty waiver for the 61 products, because the move will benefit both countries. It is a win-win game,” Khan said.

Bangladesh enjoys duty-free facility in exporting eight million pieces of garment to India under an agreement signed in 2007.
During her visit to India in January, Prime Minister Sheikh Hasina proposed a broader duty-free facility for the Bangladeshi RMG products to the neighbour. Also, Bangladesh is pressing India to remove non-tariff barriers such as hidden taxes on apparel.

Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the quota of eight million pieces of garments for duty-free export to India already finished in the middle of this year.

“On completion of the quota of eight million pieces, we exported a lot of garment items with duty until the end of the year, as demand for Bangladeshi garment items in India is on the rise.

Of the total quota, affiliated members of BGMEA get a 70 percent share, while the rest goes to the members Bangladesh Knitwear Manufacturers and Exporters Association. The trade deficit with India recently crossed the $3-billion level.

61 products up for duty waiver from India

 

[saleen_s7]

Airtel and now TATA. Our country's being used for doing business by the large corporations. Pretty much what we were expecting. Anyways, the news report is full of BS. Political instability was not the main reason behind Tatas failure to enter the market. We had better deals

 

[Gabbar]

Airtel and now TATA. Our country's being used for doing business by the large corporations. Pretty much what we were expecting. Anyways, the news report is full of BS. Political instability was not the main reason behind Tatas failure to enter the market. We had better deals

Can you support your theory by some evidence or sources?

 

[saleen_s7]

Can you support your theory by some evidence or sources?

BNP has been more pro business than awami league. Awami league's only pro business only when it comes to India. Politically we were pretty stable back then. Our HDI were pretty strong, and we didn't need Tata. are you telling me by setting up Tata, we won't have any negative effects?
I dont get awami league most of the time. Just the other day, sheikh hasina was talking about making 2011 about climate changing, now she sets up an industry by a foreign country which will pollute our air.

 

[eastwatch]

AL is not Bangladesh. People of Bangladesh are not willing to accept TATA conditions to set up a steel plant because this plant is essentially a smelting plant, and not an integrated steel mill. TATA wanted to burn our gas in order to heat its smelting furnace, and then export the steel ingots to India.

But Bangladesh needs a steel mill that produces the secondary and tertiary products to be sold in BD market itself. Unless these products, in the form of rods, plates, angles and the similar, are not produced and sold in BD, but, instead, only the steel ingots are produced for export to India, then it has no benefits to BD economy.

It is also a kind of stealing our natural gas that will be used to process the iron ores. All the more, TATA wants this gas at a concessional rate. It is a kind of 'Mamar Barir Abdar.' I do not know why AL govt is again calling this Indian TATA again. It will ruin the BD economy by fulfiling its promised export of steel ingots and fertilizer to India instead of selling these items in the BD market.

 

[Gabbar]

BNP has been more pro business than awami league. Awami league's only pro business only when it comes to India. Politically we were pretty stable back then. Our HDI were pretty strong, and we didn't need Tata. are you telling me by setting up Tata, we won't have any negative effects?
I dont get awami league most of the time. Just the other day, sheikh hasina was talking about making 2011 about climate changing, now she sets up an industry by a foreign country which will pollute our air.

I see no sources in your response. The bold part in your statement: So you dont want industry in BD? Both can be achieved if done properly.

 

[Gabbar]

AL is not Bangladesh. People of Bangladesh are not willing to accept TATA conditions to set up a steel plant because this plant is essentially a smelting plant, and not an integrated steel mill. TATA wanted to burn our gas in order to heat its smelting furnace, and then export the steel ingots to India.

But they are your elected represetatives. But fair respose and I see why TATA's bid failed at the first time.

But Bangladesh needs a steel mill that produces the secondary and tertiary products to be sold in BD market itself. Unless these products, in the form of rods, plates, angles and the similar, are not produced and sold in BD, but, instead, only the steel ingots are produced for export to India, then it has no benefits to BD economy.

But export is good for BD economy, infact for any economy. That's how you build forex reserves, currency value etc.

It is also a kind of stealing our natural gas that will be used to process the iron ores. All the more, TATA wants this gas at a concessional rate.

Fair enough but can't it be done taking a middle ground?

It is a kind of 'Mamar Barir Abdar.' I do not know why AL govt is again calling this Indian TATA again. It will ruin the BD economy by fulfiling its promised export of steel ingots and fertilizer to India instead of selling these items in the BD market.

I dont think BD economy is big enough take all the production from these units? is it?

 

[saleen_s7]

I see no sources in your response. The bold part in your statement: So you dont want industry in BD? Both can be achieved if done properly.

For the source, 5-points against Tata Projects in Bangladesh Capitalist Vampires

and yes we want industries in Bangladesh, but something more green.

 

[idune]

No one can expect any better statement from a minister of a indian stooge regime. But Tata’s did not come with investment proposal but with plundering scheme.

Here is what Tata asked for and people should judge themselves:

1) Tata wanted 20 years guarantees for supply of gas, which Bangladesh does not have
2) Tata wanted Bangladesh to provide gas at fractional rate than intl market
3) Tata wanted gas subsidy from Bangladesh
4) Tata wanted 10 years tax holiday which Bangladesh own industry do not enjoy
5) Tata did not want to pay any income tax on its employees which Bangladeshis don’t enjoy
6) Tata wanted huge tract of land without any cost which local industry spend huge amount of money for
7) Tata wanted to import sponge steel from and drive all local steel mill investment (over billion dollars) out of business.

.........

 

[Gabbar]

For the source, 5-points against Tata Projects in Bangladesh Capitalist Vampires

and yes we want industries in Bangladesh, but something more green.

This is a BLOG!!

Dont use BLOGS as credible sources. 35 year old college looser, sitting in his mom's basement can write blogs. Credible and neutral sources are the way to go.

 

[Gabbar]

No one can expect any better statement from a minister of a indian stooge regime. But Tata’s did not come with investment proposal but with plundering scheme.

Here is what Tata asked for and people should judge themselves:

1) Tata wanted 20 years guarantees for supply of gas, which Bangladesh does not have
2) Tata wanted Bangladesh to provide gas at fractional rate than intl market
3) Tata wanted gas subsidy from Bangladesh
4) Tata wanted 10 years tax holiday which Bangladesh own industry do not enjoy
5) Tata did not want to pay any income tax on its employees which Bangladeshis don’t enjoy
6) Tata wanted huge tract of land without any cost which local industry spend huge amount of money for
7) Tata wanted to import sponge steel from and drive all local steel mill investment (over billion dollars) out of business.

.........

Sources Idune...Sources...dude !!!

I am not saying I dont trust you but.........

 

[saleen_s7]

this is pretty old news.. sources are a bit difficult to find but here's one http://newsfrombangladesh.net/view.php?hidRecord=83462

 

[idune]

Since tata left, local investors set up steel mills one of the largest in south asia. In Bangladesh if there is enough power supply we have enough local investors to do virtually anything we want. Dont need plundering scheme for tata or anyone like that.

Largest steel co goes into operation today

Jasim Uddin Haroon

BSRM Steel Limited, the country's largest -- 375000-tonne capacity -- steel plant, will go into commercial operation today (Saturday).

The new steel company, a subsidiary of BSRM Group, has been set up at Fouzdarhat in Chittagong at a cost of around Tk 4.7 billion with technical assistance of Danieli, an Italian company.

"We will formally commission the new plant Saturday. It is designed to produce superior quality mild steel (MS) rod that will help save construction cost by at least 15 per cent," said Chairman of the BSRM Group, Alihussain Akberali.

Commerce Adviser Hossain Zillur Rahman is likely to formally launch the operation of the plant today (Saturday).

This is one of the largest steel plants in south Asia, as only Tata and Essar of India have plants exceeding the production capacity of the plant.

MS rod will be produced at the steel plant using 'quenched thermal mechanical' method, first ever in Bangladesh. It is 15 per cent superior to the existing 60 grade mild steel (MS) rod, the company claimed.

"The technology in use at the plant is better than many plants in the world. India's Tata has established a similar plant recently," said the BSRM chairman.

It will reduce the per square foot construction cost by Tk 54, he claimed.

He said the rod will be produced using imported billet.

Sources at the BSRM said the superior quality MS rod might get market in Middle Eastern countries.

"The product has tremendous export potentialities in the Middle East. But we want to fulfill its demand in the country first," Mr. Akberali said.

BSRM chairman said BSRM Steel Limited, a public limited company, will go public through offloading shares in the stock market.

"We are proceeding to launch initial public offering (IPO) once we get clearance from the securities and Exchange Commission," he added.

The new steel product has been priced at Tk 72,000 per tonne for the local market.

The annual demand for MS rod is around 2.0 million tonnes in the country. The company will meet around one fifth of the country's demand for the product.

The BSRM Group, involved in steel sector since 1930 in the region, has annual turnover over Tk 9.0 billion.

Source: financial express bd