Thursday, February 9 2006 14:23 Hrs (IST) - World Time -

Dhaka: Talks between the Bangladesh Government and Indian industrial giant Tata on its proposed 2.5 billion dollar investment in the country have failed to make any headway and the company now plans to send a revised investment proposal within 15 days to break the deadlock.

Officials familiar with the negotiations said Tata representatives sought two weeks to give their opinion on the fate of the proposed investment while government negotiators left the matter to policymakers as the two sides could not agree on crucial issues of gas pricing, sovereign guarantee for gas supply and committing certain gas fields for Tata.

Talks have been going on between the two sides from the last six months on the Indian company's proposal to install steel, power and fertiliser plansts in Bangladesh.

However, The Daily Star newspaper quoting unidentified sources, said "a lack of political will in the negotiations" and not differences on gas pricing or sovereign guarantee issue led to the apparent setback.

"The top tier of the Government is unwilling to accept Tata's gas price offer of less than one dollar per thousand cubic feet and a 20-year sovereign guarantee for gas supply,"it said quoting a government 'policymaker'.

The only consensus reached at the negotiation was that the Government has agreed to provide gas field reserve certificate to Tata.

Tata Sons Executive Director Alan Rosling said in the light of the differences in the past six months of negotiations, they would send a revised proposal package to the Government in the next 15 days.

Energy adviser Mahmudur Rahman said the revised proposals would be sent to the policymakers. "Finally, it will be up to the policymakers to decide on the matter."