The report prepared by Tata-commissioned Economist Intelligence Unit also said half the power to be generated by the Tata power plant will feed the national grid, adding to the "generating base", the total power generated by the country's power plants. It will also increase the GDP growth further by 0.2 percent.

The report was submitted to the Board of Investment (BoI) during the recent third round talks with the government for its examination.

The Tata steel plant will be located in the poor western region, initiating wider economic activity in the area, the report said.

Tata's role as an anchor investor could triple the inflow of foreign direct investment (FDI) by 2009 in fixed assets such as factories and equipment, which will also underpin wider growth, the report added.

BoI sources said an analysis of the Tata report will be made by Prof Wahiduddin Mahmud before the Tata executives and the government's negotiating committees and sub-committees sit for the next round of talks after Eid and the Saarc Summit.

Meanwhile, a member of the negotiation committee, which reviewed the overall progress after the third round of talks with Tata at a meeting on October 27 in Dhaka, said 60 percent of the work has been done for reaching an agreement for commissioning Tata's planned plants.

Committee sources said some issues might be referred to the highest level of the government for settlement with political considerations in mind.

Sources close to the Tata Group said it will not wait beyond December for concluding the talks and signing an agreement since, they believe, any dilly-dally will hamper the prospect of the projects in various ways.

However, at the current stage of bargaining between the two sides, the BoI has decided to engage the country's leading economists to evaluate the costs and benefits of the four Tata projects for the country.

A consultant of the Asian Development Bank will also prepare an independent report styled "Economic Impact Assessment Study" on behalf of the Bangladesh side.