The Bangladesh government has agreed to construct the pipeline from the city gate at Chittagong to the proposed site of the fertilizer factory at Bashkhali in the district, a Tata Group official was quoted as saying. The ADB will finance the proposed gas pipeline project, whose cost is yet to be determined. Earlier, Tata had expressed dissatisfaction over the Bangladesh government’s response, and said it would be forced to look for investment opportunities elsewhere if Dhaka does not come out with favourable contracts.
According to Tata sources, the government was also positive about implementing another gas pipeline project to ensure supply of gas to a proposed steel plant of the Group, the report said. The steel plant site is yet to be finalized: the Tata Group submitted the investment proposal worth $3 billion in April this year, and has been negotiating fiscal incentives on the investment, gas security, gas price and tariff for purchase of power produced by the company’s plant.
