AKM Mosharraf Hossain, the state minister, said this to journalists after a meeting with Tata Group officials yesterday.

On the terms and conditions for providing gas, coal and other mineral resources to Tata Group, he said, "We may follow the policy that we have pursued in previous investment contacts with some other overseas companies, including AES and Lafarge Surma Cement."

Foreign investors presently buy gas at a rate of $ 2.4 per thousand cubic feet, sources said. In the case of petroleum, they get tariff exemptions while coal is not exported now, they added.

Alan Roselong, executive director of Tata Holdings, Sukran Singh, executive assistant to Tata Group Chairman Ratan Tata, and Manzer Hossain, Tata Bangladesh project head, met the minister yesterday at his office to discuss the technical sides of the proposal.

The government has formed a two-member team with Petrobangla Director (Planning) Major Muktadir Ali and Deputy Director of HydroCarbon Unit Zobaer Siddiq for technical negotiations with Tata.

After the Tata officials expressed their interest to use coal from Barapukuria and the Phulbari coal mines, the ministry asked Petrobangla to give their opinion within the shortest possible time, sources said.

Tata also proposed the export of coal to India, which will be carried by the wagons used for bringing raw materials for their steel plant in Chittagong.

The Tata team told the minister they would finalise their site selection after getting assurance about availability and the supply of gas and coal for their projects.

The Tata officials are scheduled to meet the industries minister, the state minister for power, the prime minister's principal secretary and the executive chairman of the Board of Investment today.

After its feasibility study, the Tata Group has showed interest to invest a total of US$ 2.5 billion for a million ton capacity urea fertiliser factory in Chittagong, a 1,000mw power plant in Sirajganj and a 2.4 million ton steel mill in Ishwardi.