By AKM Moinuddin
UNB Staff Writer
Dhaka, Aug 20 (UNB) – The government has reportedly received investment proposals worth US$1 billion (around Rs 4,600 crore) from various Indian companies and financial institutions recently.
Bangladesh attracted overall investments worth US$2 billion in the last two years, of which investments from India were around $400 million, or 20 percent of the total, said a source close to Indian investors.
The investment proposals came when a high-powered business delegation led by executive chairman of Board of Investment (BoI) SA Samad visited Chennai, the capital of South Indian State Tamil Nadu, on August 8-10.
The Bangladeshi business delegation also attended a seminar on “Strengthening Indo-Bangladesh investment and trade” in Chennai, which was organized by the Confederation of Indian Industry (CII).
The India-Bangladesh Chamber of Commerce and Industry (IBCCI) arranged the Bangladesh team's visit to Chennai.
A member of the business delegation, wishing anonymity, said Bangladesh has in hand proposals worth US$1 billion from India. This includes $250 million for power plants and $50 million from various banks, insurance companies and leasing companies.
Talking to UNB about the outcome of the recent visit to Chennai, the IBCCI president Abdul Matlub Ahmed said the visit was very successful.
“A number of letters of interest (LoI) were signed during the visit… it is a positive sign they’re interested to invest in Bangladesh even knowing we’ve gas and power crisis,” he said.
Among the interested firms and financial institutions, representatives of a Delhi-based logistic company, Central Bank of India, and a company interested to produce specialized cement will come to Bangladesh within this month and first week of September for further discussion on the investment proposals.
“Central Bank of India is keen to invest $ 50 million here to work on infrastructure development… the bank’s scouting team will soon visit Bangladesh,” said Matlub Ahmed, also the chairman of Nitol-Niloy Group.
Meanwhile, a Kolkata-based company is interested to invest in the shipbuilding industry. “A team of the company is already visiting Bangladesh.”
Sources said Bangladesh might ask the Tata Group to reconsider its earlier investment proposal of $3 billion, mainly for the power sector. The proposal was called off in 2008, when the previous government failed to guarantee natural gas for the project.
During the Chennai visit, Bangladesh business delegation offered a competitive business-friendly environment for the Indian investors.
They highlighted low labour cost, strategic location, regional connectivity and worldwide access as some of the advantages for the Indian investors.
The business team also attached due importance to enhanced economic ties with India, as it remained immune to recession that affected many countries worldwide.
Bangladesh listed some sectors that could lure Tamil Nadu entrepreneurs for investments under public private partnership, which include power, ports, telecom, highways and expressways, oil and gas, airports, tourism, industrial estates and property development.
Bangladesh High Commissioner in New Delhi Tariq Ahmad Karim, executive vice chairman of Tamil Nadu Industrial Guidance and Export Promotion Bureau M Velmurugan, and deputy chairman of CII southern region T T Ashok also attended the seminar.
Bangladesh is a strong business partner for India in South Asia. Indian exports to Bangladesh in 2008-09 stood at US$ 2497.84 million and imports from Bangladesh touched US$ 313.11 million.
END/UNB/AKM
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