The government will need to provide a subsidy of US$1.65 per unit of gas if the proposal is accepted, they said adding that Tata made the investment proposal only because it wants gas at a cheaper price, which it would not get from any other place in the world today.

Presently, the commercial price of a unit of gas in the global market is around $5 if it is supplied now, and it is being sold at a price of $12 per unit to be supplied after five years, the experts said. Tata's offer for a unit of gas falls far short of the current market price and also the projected price for five years after, that is why Tata is creating pressure on the government to take a decision hurriedly, they said.

The department of geology of Dhaka University organised the seminar on 'Investment Proposal of Tata and the National Interest: A Review' in its auditorium in Dhaka yesterday.

Dr Hossain Monsur, chairman of the department of geology of Dhaka University, presented the keynote speech with Rafidul Islam Khan, former additional secretary to the Planning Commission in the chair.

Speaking at the seminar, SK Abdullah, former chairman of Petrobangla, said Tata would not dare to put forward such a proposal if there was a government in power with accountability and transparency.

Any feasibility study done by the World Bank and Asian Development Bank should not be acceptable to the people as both the organisations would invest money in the proposed projects along with Tata, he said.

Professor Badrul Imam of Dhaka University said any proposal of foreign investment should be strongly prevented if it does not protect the interest of the country, and the investment proposal of Tata would not bring any good for the economy and the people.

The government would have to face penalty if it failed to provide Tata with uninterrupted gas supply, he said. "When local industries are not getting uninterrupted gas supply, how the government could give it to Tata. Bangladesh is not in a position to do so considering its energy reserve."

Nuruddin Mahmud Kamal, former chairman of Power Development Board, said the investment proposal of Tata has created a panic among the people. Tata's proposal should be outrightly rejected, as it is a threat to Bangladesh economy as well as to its energy security, he added.

In his keynote presentation, Dr Hossain Monsur, who is also a former chairman of Petrobangla, said there is no qualitative change in the revised proposal of Tata.

Tata in its revised proposal presented the issues of gas price and uninterrupted supply 'very cunningly', which had been more direct in its previous proposal, he said.

Tata proposed the gas price in British Thermal Unit (BTU). In the revised proposal it proposed $1.47 per BTU of gas, which is even three cent lower than the previously proposed rate of $ 1.5 per unit, Monsur explained.

Professor MM Akash of Dhaka University said Tata's proposal is not acceptable because it is not economically profitable for Bangladesh.

The subsidy the government would have to give to Tata is much higher than what would be the company's contribution. So, it is not economically profitable for Bangladesh, he argued adding that the country's energy security is also a very important issue that has to be taken into consideration.

Citing the example of Tata's investment proposal to the West Bengal government in India, Professor Samsul Alam of Chittagong University said the government there did not accept the proposal because Tata's proposal required a good amount of agricultural land.

Rafidul Islam urged the government to maintain transparency in the negotiation process so that the people can get a clear picture.