Tata keen to invest in tourism sector in Bangladesh

DHAKA — Indian industrial giant Tata Group has shown its keen interest in investing in Bangladesh’s potential tourism sector, particularly in hotels and tourist resorts.

By From A Correspondent

Published: Mon 15 Aug 2005, 10:28 AM

Last updated: Thu 25 Jul 2024, 4:25 PM

The plan was disclosed when Country Representative of the Tata company S. Manzer Hossain met with State Minister for Civil Aviation and Tourism Mir M. Nasir at his Secretariat office in Dhaka yesterday. Focusing on the bright prospect of tourism industry in the country, the State Minister welcomed the proposed investment and assured them “all cooperation” from the government.

The Indian conglomerate hit the headlines of the press when it signed a deal for a planned US$2.5 billion investment in Bangladesh — the biggest single investment in the country.

The Tata group and Bangladesh's state-run Board of Investment signed a letter of intent (LoI) in Dhaka, confirming Tata's decision to invest and Bangladesh's formal go ahead to the plan.

The Chairman of Tata Group, Ratan N. Tata, along with senior group executives, met Bangladesh Finance Minister M. Saifur Rahman and members of the Foreign Investors' Chamber of Commerce and Industry (FICCI) in Dhaka.

Tata said Bangladesh — despite its poverty, bouts of political turmoil and natural disasters — offered good potential.

"We are here to invest in Bangladesh where we see opportunities for doing business," he said.

Tata plans to build a power plant, steel mill and fertilizer factory as part of the $2.5 billion investment package.

Under the planned deal, Bangladesh has agreed in principle to guarantee a 20-year supply of natural gas for the Tata projects, which comprise a 1,000 megawatt power plant with $700 million investment, a one million-tonne per-year fertiliser plant with $600 million investment and a 2.4 million-tonne steel mill with $700 million investment.

To run all three plants, Tata would require up to 600 million cubic feet of gas per day. Bangladesh has 15.33 trillion cubic feet of proven and recoverable gas reserves, according to energy ministry estimates.

The Tata investment is five times the total foreign direct investment (FDI) in Bangladesh last year. Total Bangladesh FDI since 1972 has amounted to $3 billion.

Tata Group includes 80 business entities in services, materials, engineering, energy, consumer products, chemicals, communications and information systems. It also runs India's largest hotel chain, biggest software services exporter and leading truck maker, as well as having interests in the power, telecoms and auto sectors.