The FBCCI said the price should be on the basis of international prices of the petroleum products.

The FBCCI said compared to the international market tariff, the price offered by Tata in the revised proposal still seems to be much lower. "So, the price should be on the basis of international prices of petroleum products," FBCCI President Mir Nasir Hossain told reporters after a meeting with high officials of Tata on its revised proposal submitted to the government Sunday.

According to the new proposal, the gas price may vary from $2 to $4 per MCF while the floor price will be $1.5 for per MCF at the initial period of five to six years.

"The floor price of gas at an average of $ 1.5 per MCF looks very poor compared to the market price," he said.

A two-member delegation led by Manzer Hussain, resident director of Tata, yesterday met the FBCCI leaders to apprise them of their revised proposal. On Sunday, the Tata group proposed higher gas price and some new package benefits in its revised proposal for investment of $3 billion in Bangladesh.

Mir Nasir also stressed the need for a proper assessment of the country's gas reserves -- whether it could be able to meet Tata's requirements after meeting the domestic demand.

"The government should go ahead with the Tata's multi-billion investment proposal cautiously so that the country does not lose anything substantially during implementation of the projects," he said.

Development of infrastructure is also vital for implementation of the Tata's investment plan, otherwise the country may have to compensate in some cases, the FBCCI chief noted.

But, there is no clause in the revised proposal on the compensation mechanism in case of government's failure to develop infrastructure facilities, he pointed out.

"It is also very important that how the government will purchase fertiliser and power from Tata," he added.

The FBCCI leaders also sought a full version of the revised proposal instead of the brief version so that they can make comments or recommendations after analysing the proposal.

Manzer Hussain briefed the FBCCI leaders about the revised proposal. According to the proposal, Tata offered $3.10 per MCF gas for its fertiliser project and $2.60 per MCF for its proposed steel plant.

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

The company also proposed a 10 percent equity stake for the Bangladesh government in each of its four projects. Tata will also sell shares on local stock markets.