Tuesday, July 4 2006 18:32 Hrs (IST) - World Time -

Dhaka: Tata Group's plan to invest three billion dollars in Bangladesh steel, power, coal and fertiliser units is on hold until after national elections in January, a junior minister said today (July 4, 2006).

Mahmudur Rahman, junior minister for energy and head of the country's investment promotion board, said it would be too difficult for any party in power to take such a decision just three months before handing over power.

"I hope Tata will understand the situation and have patience for six more months because I believe the next government in January will take a decision on the investment proposal promptly," Rahman told sources.

The comment came in response to a report in an Indian newspaper that Tata Group plans to withdraw the offer after Bangladesh failed to meet a June deadline on responding to the deal.

"Despite the lapse of the June-end deadline, we haven't heard from the Bangladesh government. We are disappointed," Alan Rosling, executive director of group company Tata Sons said, according to the report.

"We are now going to discuss with the company's board, as well as our associates in the four proposed projects in that country, our next course of action," said Rosling, according to the report.

"We may even look at going into Bangladesh with a bare minimum investment, although we would have wanted to see the deal through," he said.

Rahman said, "I appreciate the disappointment."

"Officially we haven't heard anything from Tata about its latest decision but their executive director Alan Rosling will meet us on July 10 in Dhaka to discuss the situation," he added.