According to the new price model, Tata offered $3.10 for per thousand cubic feet (MCF) gas for its fertiliser project and $2.60 per MCF for its proposed steel plant if it trades in today's international rates.

The gas price, however, may vary from $2 to $4 for per MCF while the floor price will be $1.5 for per MCF at the initial period (first 5/6 years).

Tata proposed a flat price of $1.10 for per unit gas in its first offer.

The company also proposed a ten percent equity stake for the Bangladesh government in each of its four projects and would sell shares to the public on the local stock market from the very early stage of operation.

Terming the revised proposal "the deal of a century", Tata group has asked Bangladesh to approve the revised proposal by the end of June.

Under the new proposal, Tata would build a power plant, a fertiliser plant and a 2.4 million tonne capacity steel mill as well as develop a coalfield in western Bangladesh, executives said.

"We think the deal we proposed is an extremely good one. This is the deal of a century for us and Bangladesh," Alan Rosling, executive director of Tata group, told reporters after submitting the proposals.

"The three billion-dollar investment in four projects will employ thousands of people and generate billions of dollars of foreign exchange for Bangladesh," Rosling said.

Revising its previous stance on gas security issue, the company sought security as long as it has to pay return finance to the lenders of the projects.

It was, however, rigid about the requirement of 2.14 trillion cubic feet (TCF) gas during the entire period of the project.

The company was also firm in their stance favouring international arbitration in settling dispute.

Board of Investment (BoI) Executive Chairman Mahmudur Rahman said the new proposal was more in line with the country's terms.

"I think the government will react positively to the proposals," said Rahman, also the Energy Ministry Adviser.

The BoI will send the proposal to the negotiation committee headed by Communications Secretary Shafiqul Islam and the negotiation committee will examine it before submitting to the ministerial committee headed by Motiur Rahman Nizami.

"These are really win-win proposals which any government should accept with alacrity, speed and grace," Alan Rosling said.

The group wants the government to say "yes or no" to the proposals by June 31 and set August 31 as the deadline to sign a full agreement.

The team comprising Tata's Executive Director Alan Rosling, Bangladesh Project Director Manzer Hossain, directors Sukran Sing, Makarand D Desai, Alok Tyagi also met Finance Minister M Saifur Rahman, Prime Minister's Principal Secretary Kamal Uddin Siddiqui and Communications Secretary Shafiqul Islam.

They presented details of their proposal at an evening meeting at a city hotel.

The Tata group had signed an "expression of interest" on a two billion dollar investment proposal with the Bangladesh government in October 2004 but negotiations over the proposals fell through over natural gas pricing.

Tata had sought gas for its plants at a rate cheaper than the Bangladesh domestic market rates, prompting the government to reject their initial proposals.

The Tata deal is worth five times Bangladesh's total foreign direct investment last fiscal year.

Tata on April 20 last year formally submitted the $2.5 billion investment proposal for setting up a 1,000MW power plant, a steel mill with an annual production capacity of 420,000 tonne and a one million tonne capacity fertiliser unit in Bangladesh.

On May 9, they agreed to start 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, 2005. But they had to review their set dateline due to complications in the process.

Our Staff Correspondent adds: Finance Minister M Saifur Rahman said the government will have to analyse the rising oil price in the international market when it decides about the proposed gas price in Tata's revised proposal.

"We will have to examine their proposal taking all the related matters into consideration," Saifur told the journalists after a Tata team led by Alan Rosling met him at his secretariat office and presented him a copy of the revised proposal yesterday.

Asked who will approve Tata's proposal, Saifur said, "After discussion in the cabinet, senior ministers and the committee concerned will discuss it. Only after getting their recommendation, the prime minister will take the final decision."

Saifur Rahman is going to Hyderabad, India to join an Asian Development Bank conference tomorrow.