Mittal group plans $2.9 bln Bangladesh investment
By Serajul Islam Quadir
DHAKA (Reuters) - Companies from the Mittal group, a business conglomerate with extensive interests in India and overseas, plans to invest $2.9 billion in Bangladesh."This is our rough estimation, but it may increase or decrease after necessary evaluation," Vinod Mittal, managing director of Ispat Industries Limited (IIL), which is controlled by Mittal family members, told reporters on Monday.A Mittal Group delegation arrived late on Sunday to sign a memorandum of understanding (MOU) on the investments, which include $300 million for mine development, $100 million for oil exploration and production, $500 million for power plants, $1.5 billion for petrochemicals and $500 million for liquefied natural gas (LNG) and related projects."We received very encouraging words from the chief of the (Bangladeshi) caretaker government (former central bank chief Fakhruddin Ahmed) and are looking for exploring the investment potentials in Bangladesh," Vinod said. The MOU was signed between the state-run Board of Investment (BOI) and Global Oil & Energy Limited, UK, an offshore investment arm of IIL owned by Pramod and Vinod Mittal, relatives of steel magnate Lakshmi Mittal."As the principal investment promotion agency, we will facilitate all assistance in conducting feasibility on the proposed projects," said Nazrul Islam, executive chairman of BOI. "This is their preliminary proposal, which may later be increased substantially," he said earlier, after a meeting with Vinod and his team. "We have come here to see the opportunity and to sign a deal for investment in the power and energy sector," Vinod told reporters after arriving in Dhaka. The company plans to invest initially in gas exploration and in the liquefied petroleum gas sector, the BOI chief said. "The Group will invest another more than $1 billion after the successful completion of these projects," Nazrul said.Vinod said his firm was also interested in investing in the power, steel and coal-mining sectors."Very soon the feasibility study will start," Vinod said. "What is needed for attracting foreign investment is good governance, which is now prevailing in Bangladesh," he said.Bangladesh has since January been under a state of emergency imposed by the army-backed interim government, which has pledged to hold elections after dealing with political corruption and implementing electoral reforms.The Mittal Group has investments in 27 countries in Europe, Asia, Africa and America.Bangladesh has yet to finalise a $3 billion investment offer by India's Tata group, for energy, fertiliser and steel projects.
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