"Some of the direct economic benefits from the proposed projects are increased GDP, improvements in the balance of payments and employment creation in less developed areas of Bangladesh," said an ADB report.

The economic impact assessment, conducted at the request of Bangladesh government, focussed on economic impacts as well as on the strategic and policy issues associated with the proposed investments, said a statement.

"However, the wider economic impacts may be even more significant," it said, stressing the critical need for enhancing performance as an investment destination in achieving more rapid economic growth and meeting objectives for poverty reduction.

The ADB observed that the proposed projects are by far the largest inward investments ever proposed in Bangladesh, and have the potential to accelerate private sector led economic growth and to transform the country's image with other foreign investors.

Key issues in the ongoing negotiations between the government and Tata are investment incentives, gas supplies and prices, power purchase, railway investment and operations and mining leases.

The ADB report offers recommendations to the government on its approach to both the overall negotiations and on the factors it should consider in each of the key areas.

It also pinpointed the strategic issues associated with the proposed Tata investments in order to ensure an equitable distribution of the benefits of the projects between Bangladesh and Tata.

"These projects have great promise for furthering the industrialisation of Bangladesh," ADB country director Hua Du said, cautioning the challenges of complex negotiation as well as ensuring and monitoring the implementation of the projects. "But these challenges can be met," she added.