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Mittal to invest $2.9b in Bangladesh

<font face="Arial" size="2">DHAKA: Shrugging off stagnation in the $3 billion investment move by India’s Tata Group, yet another </font><font face="Arial" size="2">Indian-origin company Global Oil and Energy Limited considers an investment of $2.9 billion in </font><font face="Arial" size="2">Bangladesh’s energy sector.<br>The company, based in the United Kingdom, on Monday signed a memorandum of understanding with Board of </font><font face="Arial" size="2">Investment for studying the investment options ranging from gas and coal exploration to setting up </font><font face="Arial" size="2">petrochemical plant.</font>

<font face="Arial" size="2">‘We are comparable with Tata’s investment move… We have hereby signed MoU and see the prospect of </font><font face="Arial" size="2">making investment after carrying out feasibility studies,’ the company’s managing director, Vinod K </font><font face="Arial" size="2">Mittal, told reporters after the signing ceremony at the Pan Pacific Sonargaon Hotel.<br>Global Oil and Energy Limited is an offshore investment arm of India’s Ispat Industries, the Mittals’ </font><font face="Arial" size="2">original family business founded by Mohan Mittal— father of Vinod and London-based steel tycoon Lakshmi </font><font face="Arial" size="2">N Mittal.<br>Vinod Mittal said his company was primarily focussed on exploration of gas and coal and would work with </font><font face="Arial" size="2">the investment board on how to commission projects. ‘The estimated amount may change in course of time </font><font face="Arial" size="2">whenever we make feasibility study,’ he said.<br><br>Officials said the company hopes to begin the feasibility study within three months targeting two major </font><font face="Arial" size="2">sectors — oil and gas exploration and coalmine development — apart from its interests in investing in </font><font face="Arial" size="2">petrochemicals, power generation and infrastructure development.<br><br>The proposed $2.9 billion investment package, as mentioned in the MoU, includes $300 million investment </font><font face="Arial" size="2">in coalmine development involving, $100 million in oil exploration and production, $500 million in </font><font face="Arial" size="2">electricity generation, $1.5 billion in petrochemicals and $500 million in NGL/LNG production.<br>The investment proposal made by India’s industrial giant Tata Group remained stalled even after </font><font face="Arial" size="2">finalisation of the negotiation and evaluation on a revised proposal on critical issues. The immediate</font><font face="Arial" size="2">-past political government left the deal undecided and the current interim government also seemed to be </font><font face="Arial" size="2">shy about resuming the talks with Tata authorities.</font>

<font face="Arial" size="2">Asked how the investment board would go ahead with a new multi-billion dollar investment move given the </font><font face="Arial" size="2">state of Tata’s proposed investment, the board’s acting executive chairman, Nazrul Islam, said the </font><font face="Arial" size="2">proposal made by the Mittal family was not as complex as that of Tata. ‘So, we will be able to move </font><font face="Arial" size="2">ahead with our current capacity to handle it,’ he added.<br>He claimed that the atmosphere in the country at present was investment-friendly.</font>

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