Vinod Mittal, younger brother of steel tycoon Lakshmi Mittal, made the agreement on behalf of Global Oil & Energy Ltd UK, the offshore investment wing of Ispat Industries.

The company expressed its interest to invest $1.5 billion in the petrochemical sector, $500 million in power plants, $500 million in NGL/LNG production, $300 million in coal mine development and $100 million in oil exploration and production.

Mittal said this figure of investment plan is based on a rough estimate and the total investment plan may increase or decrease after getting details of the feasibility study.

After signing the MoU, Vinod Mittal said they are expecting to start the feasibility study within the next three months.

"We are first considering exploration in coal and gas as Bangladesh has a good reserve of the two natural resources. Then we will start our other operations," he added.

About the experience of Tata Group's investment in Bangladesh, Mittal said, "I do not want to compare our project with Tata's. We are working on the potentials. We are exploring with our own ways, style and culture."

The group wants to start investment activity on a fast track, he said.

Asked whether the company feels any hesitation to make the huge investment plan during the interim government's tenure, he said the company is working with the BoI that is providing full support for it.

When asked whether the BoI is capable of handling such a multi-billion dollar investment proposal, Executive Chairman of BoI Md Nazrul Islam said this proposal is not as complex as it was in the Tata's investment proposal.

"We hope the BoI is capable of handling the investment proposal with its current capacity," Nazrul Islam said.

The group's local agent GRH Bangladesh Limited arranged the programme.