Tata plans to invest $18m

Tata International Ltd will invest $18 million in footwear and bicycle industries in Bangladesh within the next one year, said a business delegation of the Indian conglomerate yesterday.
Tata has earmarked $10 million for footwear and $8 million for bicycle industry, said Matlub Ahmed, president of India-Bangladesh Chamber of Commerce and Industry, after the chamber and the delegation met Commerce Minister Faruk Khan at the latter's secretariat.
"Tata will start preliminary works for setting up the shoe factory within the next six months and for the bicycle plant within the next one year," Matlub said.
He also said the Indian side has already signed a memorandum of understanding (MoU) with his Nitol-Niloy Group in this regard.
"Tata may invest in coal-based power plant in near future," said an official of the chamber, requesting anonymity.
Also, Indian jeans brand Arvind will invest $90 million, Matlub said, but could not confirm when.
He said Indian Ravi Motors has signed an MoU with local GMG Group to set up a satellite town in Dhaka.
Syamal Gupta, a special adviser to Tata International, is leading the Indian business team.
After the meeting with the commerce minister, Gupta said Tata has shifted the focus of its investment plans in Bangladesh. "It now plans to invest in footwear, bicycle and IT sectors."
The commerce minister said almost all tariff and non-tariff barriers in the bilateral trade will be removed within June-July as both India and Bangladesh have already identified the barriers.
He said the secretary-level meeting of the countries will be held on May 7 to help resolve the issues of tariff and non-tariff barriers.
A minister-level meeting will follow the recommendations of the secretary-level meeting and make sure that the barriers will go, Faruk Khan said.