Both parties will propose names tomorrow to select the consultant.

"The pricing of gas and power and extension of tax incentive to such a heavyweight industrial conglomerate needs suggestions from an internationally experienced consultant," said a top-level official who attended negotiations, preferring anonymity.

The Indian corporate giant intends to buy 2 TCF (trillion cubic feet) gas from the government, which plans to buy 500-megawatt electricity from Tata's proposed 1000-megawatt coal-based power plant.

Two sides also discussed the government proposal on the land for the proposed Tata steel plant, with the government wanting to allocate wetland at Ruppur in Ishwardi to Tata. But Tata has asked for land in a densely populated area adjacent to Ruppur.

The opening session of the third-round negotiations finalised the agenda and schedule of the complex negotiations to run through July 7.

The government side led by Finance Secretary Zakir Ahmed Khan and Tata Group led by Tata Bangladesh Chapter Head Manzer Hussain identified the core issues of the investment during the meeting.

The finance secretary told journalists that the negotiations are going ahead well.

"Both parties are advancing in a positive mood to make the deal a success," the secretary said after the meeting.

Tata Group will sit in a series of meetings with the power, communications, gas and coal and land sub-committees tomorrow.

The Tata representatives will hold the wrap-up meeting of the negotiations with a secretary-level committee led by the finance secretary on July 7.

The government and the Tata Group on May 9 agreed to kick off formal negotiations on May 25 and wind it up by August 31 to clear the way for signing of the investment agreement before November 30.

Tata on April 20 formally submitted a $2.5 billion investment proposal for setting up a 1000 MW power station, a steel mill with an annual production capacity of 420,000 tons and a one million-ton fertiliser unit.