Asia’s first and India’s largest integrated private sector steel company, Tata Steel has ambitious plans to become a global steel player by setting up greenfield plants or acquiring capacities in India and overseas, which is in keeping with its long term vision and strategy.

Bangladesh Project Scope

Pursuant to the long term vision and strategy, Tata Steel is in discussion with the Government of Bangladesh for setting up a greenfield gas based 2.4 mtpa steel plant in the western part of Bangladesh and also development of a 6-7 mtpa coal mine in the Dinajpur district. The Steel plant will enable Bangladesh to become self-reliant in meeting its domestic requirement of hot rolled coils and the Coal mine will facilitate Bangladesh to reduce its overt dependence on Natural gas as its only source of energy.

Signing of Joint Expression of Interest

In this context, the chairman of Tata Group, Ratan N Tata, had visited Dhaka on 13th October 2004 to sign an EOI for this $3 billion investment in Bangladesh - the largest single investment in the country. At the occasion, Mr. Tata said Bangladesh offered good potential. "No one was investing in Bangladesh unless the infrastructure was there, and the infrastructure wouldn't be there without investment," said Mr. Tata. "We took the leap of faith."

Impact on the Bangladesh Economy

This investment along with the other investments planned by the group will add around 2% to the GDP of Bangladesh and create substantial employment opportunities for the people of Bangladesh. Apart from this, it will also help in saving and generating crucial foreign exchange for the country.