Tata Steel to set up plant in Bangladesh by 2006
The Financial Express — September 30, 2005

Tata Steel, country's largest private sector integrated steel maker, will start work on one of its largest overseas investment project for setting up a greenfield steel plant in Bangladesh by the end of 2006. Talking to FE, Indronil Sengupta, chief of Bangladesh project of Tata Steel said that negotiations with government of Bangladesh were in final stages and the company expected to sign the final agreement for the deal early next year and begin work later in the year.

"We expect to the gas-based steel plant would go on stream in three years time (by 2010) from then start of work on the project. Acquisition of land for the steel project will be in the western side of Bangladesh. Few sites have been short listed, but not finalised and logistical arrangements are being worked out," Mr Sengupta said. The company has proposed to set up a 2.4 MT steel project in Bangladesh with an investment of about $1.3 billion. It will now also make an additional investment of $0.5 billion to develop a 6 MT coal mine.

While Tata Steel is currentlty looking at going solo on its steel venture in Bangladesh, sources said that government of Bangladesh may ask the Indian company to join hand with a local partner as joint venture partner. Mr Sengupta, however, said that these were matters that would be discussed at a later stage. The steel plant would be set up along with development of a 6 MT coal mine with an investment of $500 million. The coal would largely be for captive consumption of the proposed steel plant. However, a part of the production may also be supplied to other agencies in Bangladesh.