Tuesday, March 29 2005 20:06 Hrs (IST) - World Time -

Dhaka: Bangladesh will sell natural gas to India's giant conglomerate Tata at market price when it sets up plants in the country, Industries Minister Matiur Rahman Nizami said in Dhaka.

"When Tata finally invests it would get natural gas at the market rate," Nizami said in Dhaka.

All decisions would be taken in the interest of the country, he was quoted as saying by NTV Network.

Tata is likely to sign a final agreement with Bangladesh's State-run Board of Investment for its $ 2 billion dollar investment next month, media reports said.

The conglomerate has set up a office here to carry out its Bangladesh operations.

Tata group chairman Ratan Tata visited Bangladesh last year to participate in a high-profile signing of 'Expression of Interest' for setting up three plants in Bangladesh based on natural gas supply.

If the plan gets through, it would be the largest single foreign investment ever in Bangladesh.

Tatas has proposed to set up a $ 700 million in basic steel industry and an equal amount in a 1000-megawatt power plant, while another $ 600 million for a fertilizer factory.

The three plants would initially need 200-mmcft natural gas daily and it was likely to go upto 350 mmcft when in full operation.

The Dhaka Government has sought funding from the international donors for pipeline project to provide natural gas and electricity in the country's western region for the Tata plan.