India's Tata group is withdrawing its 3 bln usd investment proposal for Bangladesh, which included a 2.4-mln usd tonne steel plant, two power plants, an open-pit coal mine and a one-million-tonne urea plant, India's Financial Express reported on its website.

It said the decision follows a lack of positive response from the Bangladesh government.

'Despite the lapse of the June-end deadline, we havent heard from the Bangladesh government. We are disappointed,' the paper quoted Alan Rosling, executive director of Tata Sons, the Tata group's holding company as saying.

We are now going to discuss with the companys board, as well as our associates in the four proposed projects in that country, on our next course of action. We may even look at going into Bangladesh with a bare minimum investment, although we would have wanted to see the deal through,' Rosling said.

The newspaper said that impending elections in Bangladesh and pressure from domestic business lobby groups may have prompted Dhaka to develop cold feet over the Tata proposal.