The Indian conglomerate had submitted their proposal on gas prices but the government team did not accept the prices saying that those are much lower than the government's expectation.

A government high official who participated in the meeting said the prices proposed by the Tata Group are three to four times lower than what the government is demanding.

Tata Sons Executive Director Alan Rosling said the government officials have sought imaginary prices for gas, which are unrealistic. "I think Petrobangla's expectation is different from the reality. There is a wide gap between the two parties," he said after the meeting.

Replying to a question about their next plan, he said, "I think nothing is finished yet."

Tata Group Resident Director Manzer Hussain said they will wait for further reaction from the government.

"We have placed a separate set of prices for gas for our steel, fertilizer and electricity projects which are much higher than the prices practiced internationally."

Now it depends on the government whether it really wants to sign the investment agreement, Manzer said.

During the daylong meeting, issues including lease agreement on Barapukuria coal mine, sovereign guarantee for gas supplies, gas field reserves data and joint venture investment were also discussed.

Earlier in the morning the Tata Group representatives called on Energy Ministry Adviser Mahmudur Rahman to brief him on the development of the negotiation.

Mahmudur Rahman said if the Tata Group remains rigid on its 'unrealistic' demands the government will not be able to reach an agreement with it.

He said the final decision will come from government high-ups. "It needs a political decision to sign such an agreement. We will send a summary of the negotiation to the ministry committee headed by the industries minister."

Rahman said in India and the USA, investors buy per thousand cubic feet of gas at a rate of US$3.0 to $3.5 from the governments.

Tata will again sit with the main negotiation committee headed by Communications Secretary Shafiqul Islam in his office today.

On April 20 last year, Tata submitted its $2.5 billion investment proposal for setting up a 1,000 MW power station, a steel mill with an annual production capacity of 420,000 tonnes and a one million-tonne fertiliser unit.

Later on May 9, the government and Tata agreed to begin negotiations from May 25, to conclude it by August 31 and to sign the agreements before November 30 the same year.