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          The Tata Group may float primary shares of its proposed plants in Bangladesh if those finally come to fruition.
"The Indian conglomerate has agreed in principle to offer certain amount of shares of its proposed plants in the local stock markets before starting commercial operation," said a high government official.
The government official, who is part of the secretary-level committee negotiating with the Tata, told the FE that the group had also decided naming its plants as the Tata Fertiliser Bangladesh, the Tata Power Bangladesh and the Tata Steel Bangladesh.
A Tata official also confirmed it.
On condition of anonymity, the Tata official told the FE that his group had agreed to off-load shares of their proposed plants with a view to gaining confidence of the people of Bangladesh.
He, however, could not say how much money his group would be raising from the local stock market.
"The initial public offerings (IPOs) will be floated before the group's proposed plants going into full-fledged production within 32-month time," he added.
The listing of Tata plants, if happens, would give a huge impetus to the local capital market that has been longing for good and quality shares for a long period, said a Securities and Exchange Commission (SEC) official.
Late last year the SEC urged the Board of Investment (BoI) and the finance ministry to pursue the Tata Group to off-load a part of its share soon after the group signed a memorandum of understanding with the BoI.
The Tata Group is now in the midst of the third round negotiation with the Bangladesh authorities.
On Sunday, the Tata officials met with Power Development Board and Industries Ministry officials.
Tata has planned to set up 1000 megawatt coal based power plant in the northern region. It will sell 550 mw to the government and the rest to be utilised in its steel plant.
It will produce 1.0 million metric tonnes of urea fertiliser annually using natural gas.
The group has agreed to fulfill county's demand first before exporting the rest during a talk with the industry ministry on the day, sources said.
The Tata officials will meet the Bangladesh officials concerned again today (Monday) to discuss the finalisation of the power purchase agreement and price of fertiliser.
BSS adds: In Sunday's meeting at PDB, both sides discussed issues like the possible power tariff rate, the scope for the government to buy the excess power that TATA will generate and if the capacity of the national power grid able to absorb the excess electricity.
The meeting sources said the talks will continue for two more days and a clear picture will emerge following the wrap-up of the talks.
Both sides have engaged a consultant firm to make recommendations on the tariff rates and other issues, which will be part of a comprehensive power purchase agreement between the two sides.
The firm will present its recommendations in 30 days from Sunday, PDB member (generation) M A Matin told the news agency.
On a simultaneous track, another TATA delegation met officials of the ministry of industries and discussed the tariff rate for fertiliser and government off-take position-- its buying position of fertiliser from the TATA-run factories.
The sources said the government will be given the first option to buy the output and in case of its decline, TATA will be exporting fertiliser. They said the talks will continue.
The negotiations on land acquisition are moving on a different track. The sources said the TATA have demanded 2,000 acres for the steel and power plants while the government is offering 1,400 acres.
The TATA sources said they have explained why they need more land, adding the conglomerate is also planning to set up a medical centre on the premises of its steel plant. The possible two locations include Bheramara in Kushtia district and Moladhuli in Ishwardi district, he said.
A final choice may be made taking into consideration all other issues, he said.
The size of the land will depend on whether the steel plant and the power plant will be located at the same place. If the power plant is going to be coal-based, it will be located in the coal-mine area. On the other hand, if it is going to be gas-based, it may be in the same venue where the steel plant will be set up, the sources said.