The New Nation - Internet Edition

Staff Reporter

Visiting Indian State Minister for Commerce and Power Jairam Ramesh yesterday said Indian conglomerate Tata group did not totally abandon its plan to invest in Bangladesh.

Tata's stepping back from its billion dollar investment plan does not necessary mean pronouncement of "tin talak," or the last warning rather it is "Ek talak" or a first warning, the Indian minister told a press conference in Hotel Radisson in the city.

"We want to see Indians are investing in Bangladesh while Bangladeshis in India, as FDI from Bangladesh is no longer in negative list of his country," he said.

The Indian minister offered Bangladesh to buy electricity of around 1,000 megawatt as they have started a mega-plan to produce 30,000 MW in next 10 years in Nepal, Bhutan, Myanmar and Sri Lanka.

"We can have an agreement to export 1,000 MW power," he said.

He also proposed that Bangladesh could be their partner in constructing a 750 MW power project in Tripura and get 10-15 per cent share from it.

He also said that if they want, Bangladesh could buy electricity from the Tripura power plant as demand for power in the Indian state is only 250 MW.

The Indian Minister proposed it to his Bangladeshi counterpart Dr Hossain Zillur as the ministers had a discussion on boosting bilateral trade between the two close neighbours.

The Indian Minister also proposed Bangladesh to grant it transit permit for consignments for the 726.6 MW gas-based power project, from Haldia port in Kolkata to the project site here via Ashuganj in Bangladesh and Akhura Land Customs Station on the India-Bangladesh border in Tripura, it is learnt.

Jairam Ramesh in the press conference highlighted a number of steps taken by India unilaterally to facilitate Bangladesh narrow the trade gap.

He said during seven years from 2001 to 2008, India's export to Bangladesh went up three folds while Bangladesh's export to that country went up seven times.

Presently Bangladesh exports goods worth Tk 350 million to India against its import of 3.50 billion from the neighbouring country. In 2001 the export volume was only 50 million.

In April this year Indian parliament ratified an agreement allowing Bangladesh to export eight million pieces of garments without any duty or restriction. Though according to its trade policy, India put garment import in its negative list, the facility was offered especially for Bangladesh.

Recently Bangladesh proposed India to drop 101 items from its negative list of 744 products while importing from Bangladesh. India agreed to exclude 50 products from the list.

Bangladesh, along with the other lest developed countries (LDCs) in SAARC, will enjoy duty free export facility to India for all the exportable items, as the country would reduce its import duty for the SAARC LDCs to zero level under SAPTA agreement.

Replying to a question, Ramesh said right now India has a under construction project in Tripura to generate 750 MW while Indian companies have got permission to install power plants in Nepal to generate 1,400 MW power to import back to India.

Similarly, he said, India is now pursuing a plan to generate a total of 30,000 MW power in next 10 years in the countries surrounding Bangladesh like Nepal, Bhutan, Myanmar and Sri Lanka.

He said the power sector cooperation could take place through a South Asian power grid, but the real issue would be how that grid could be reached. A bilateral approach could take place faster.