Dhaka, May 16 (IANS): Nitol-Niloy, the Bangladesh partner of Indian conglomerate Tata Group, plans to set up a 1,000MW power plant in a joint venture that will be the largest in the country.

"We will conduct a feasibility study and report to Tata management," said Abdul Matlub Ahmad, chairman of Nitol-Niloy Group.

Ahmad said he discussed the project with Shyamal Gupta, adviser to chairman of Tata Group Ratan Tata, when the latter visited here recently with a business delegation.

The Nitol-Niloy chairman told The Daily Star that coal for the project would come from outside Bangladesh.

Tata has a huge coal reserve in its Indonesia, Vietnam and Myanmar coalmines and Tata will use that coal for the power plant in Bangladesh.

The Indian industrial giant had earlier come up with a $3 billion investment proposal but it scrapped the plan in July 2008 mainly because of long delays by the government.

Nitol-Niloy Group has business in transport, aviation, financial institutions, manufacturing, and real state, with an annual turnover of Tk five billion ($72.1 million)

Nitol Motors, a part of the group, is the sole distributor of Tata vehicles in Bangladesh, and also assembles Tata commercial automobiles here.

Sushil Singhal, first secretary (economic and commercial) of the Indian High Commission in Dhaka, said the investment initiative and talks are going on at private level.

He said the Indian government will provide support for negotiations with the Indian businessmen to solve Bangladesh's power crisis.

Bangladesh is now reeling under a power deficit of around 1,500MW to 2,000MW as it can supply only 3,500MW to 4,000MW against the demand for 5,000MW to 5,500MW a day.