Friday, July 14 2006 12:26 Hrs (IST) - World Time -

Dhaka: The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has been joined by the Asian Development Bank (ADB) in expressing concern that the Tata Group's proposed $3 billion investment in Bangladesh has not been cleared so far.

FBCCI criticised the Khaleda Zia government for the 'inordinate delay' in clearing the Indian business house's investment offer for which even the ADB had expressed concern.

"If the government had taken an early decision (on the Tata proposal), it would have been a good signal for the overall investment scenario in the country," FBCCI president Mir Nasir Hossain told UNB news agency.

"Any inordinate delay usually discourages the business people," he said.

"The government has taken 18 months for the proposal, which should have been cleared within eight months. The FBCCI chief said no investor would wait for such a long period, but would rather go to other destinations that offer equal opportunities," he said.

"We've always been saying that the Tata's investment proposal is a positive sign for the country. We have also been urging the government to ensure a level playing field for the local entrepreneurs," he said.

After several months of negotiations, the Bangladesh government earlier this week conveyed to the Indian firm that it was not in a position to clear the proposal because of the political climate due to the parliamentary elections likely early next year.

Meanwhile, the ADB, which organised a media briefing about its plans in Bangladesh, found the proceedings dominated by the Tata proposal, the Bangladesh Observer newspaper said.

"Tata's investment will help improve Bangladesh's economy. It will have wide-ranging impact in areas other than economy," Kunio Senga, director general, South Asia department, ADB, told reporters at a press conference.

"I hope both parties would come to an agreement for the sake of the economy," said Kunio over a deadlock in the negotiations.