Saturday, December 24 2005 14:16 Hrs (IST) - World Time -

Dhaka: Allowing investment by Tatas, one of India's most trusted private business groups, will prove to be destructive to Bangladesh's economy, participants at a discussion here opined yesterday (Dec 23, 2005).

The discussants, who included steel mill owners, urged the Bangladesh government not to clear Tatas' investment, saying that the private company had set conditions that were 'destructive' to the country's economy.

Compared with the purchase price of gas and the price proposed by Tatas, Bangladesh will have to provide a seven-fold subsidy if it accepts the condition of gas supply for 20 years to the Indian company, they pointed out.

They felt domestic investors could invest more than what Tatas' had proposed to park in the country, if they were provided with equal investment opportunities.

Another suggestion at the dialogue "Investment proposal of Tata and the future of Bangladesh economy" organized by Samaj Rupantar Adhyayan Kendra was that the Government should collect money, in case of any urgent need, through releasing bonds or shares in the market instead of accepting the multi-billion dollar investment proposal of Tatas.

Bangladesh Economics Association (BEA) general secretary Abul Barakat, economists Prof Abu Ahmed and Prof Anu Mohammad, former director of FBCCI Abdul Haque, Salimullah Khan, Tipu Biswas and Bangladesh Steel Mills Owners Association president Badiul Alam and general secretary Mahmudul Alam Masud were among those who participated in the discussion.