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Isa Khan

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Isa Khan

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India has terminated the transhipment facility that allowed Bangladesh to export cargo to third countries through its land borders.

The Central Board of Indirect Taxes and Customs (CBIC) issued a circular yesterday (8 April) regarding the withdrawal of the facility.

"It has been decided to rescind... circular...dated June 29, 2020, as amended with immediate effect. Cargo already entered into India may be allowed to exit the Indian territory as per the procedure given in that circular," reads the CBIC circular.

The previous circular had allowed transhipment of export cargo from Bangladesh to third countries using Indian Land Customs Stations (LCSs) en route to Indian ports and airports.

Indian think tank Global Trade Research Initiative (GTRI) said with the new circular, the transhipment arrangement has been terminated with immediate effect.

However, cargo that has already entered Indian territory under the earlier system will be allowed to exit as per existing procedures, according to the circular.

According to Indian Express, the move followed Bangladesh's advocacy for extending the Chinese economy into the strategically important Northeast India region.

During his recent China visit, Chief Adviser Muhammad Yunus urged China to establish an economic base Bangladesh and insisted that Bangladesh was the "only guardians of the ocean" for the region.

"The seven states of India…eastern part of India — are called the Seven Sisters. They are a landlocked region of India. They have no way to reach out to the ocean. We are the only guardians of the ocean for this region. So this opens up a huge possibility. So this could be an extension of the Chinese economy…" Yunus said, inviting Chinese investors to Bangladesh.

A number of Indian leaders and scholars including Assam Chief Minister Himanta Biswa Sarma reacted to the chief adviser's comment.

They labeled the statement as "offensive, strongly condemnable and provocative."

"Bangladesh's plans to establish a strategic base near the Chicken's Neck area with China's assistance may have prompted this action. Bangladesh has invited Chinese investment to revitalise the airbase at Lalmonirhat, near India's Siliguri Corridor," Indian Express quoted Ajay Srivastava, former trade officer and head of GTRI.


The National Board of Revenue (NBR) has restricted the import of yarn through land ports to protect the local textile and spinning sector, according to a notification with immediate effect.

The decision comes just over two weeks after the commerce ministry recommended limiting such imports, citing that an influx of raw materials for the apparel industry had led to significant losses for domestic textile millers.

Local manufacturers are unable to compete with imported yarn, as importers often declare lower values for shipments brought in through land ports compared to those arriving via Chattogram port, the ministry said.

The recommendation followed pleas from local textile millers.

In the notification issued on April 13, the revenue board blocked yarn imports through the Benapole, Bhomra, Banglabandha, Burimari and Sonamasjid land ports. The restriction takes immediate effect.

The government had allowed yarn imports through these ports in January 2023 to meet an abrupt surge in demand following the Covid-19 pandemic.

Meanwhile, India last week revoked the transshipment facility for Bangladesh's export cargo destined for third countries via its land borders to Indian airports and seaports.

However, the neighbouring country claimed that the move would not affect Dhaka's trade with Nepal and Bhutan through Indian territory.

The measure is expected to increase costs for Bangladesh's apparel exporters, many of whom ship orders to Western markets through Indian airports, particularly Indira Gandhi International Airport in New Delhi.

Previously, exporters transported goods overland through the Benapole–Petrapole border en route to Indian airports, including those in Kolkata and Delhi, for onward air shipment to global destinations.

 

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The August 2024 overthrow of the Sheikh Hasina government in Bangladesh fundamentally changed India’s calculations regarding the Kaladan project. Due to its strong backing for Hasina’s regime, New Delhi has a difficult relationship with the interim government currently in power in Dhaka. It cannot be certain that the interim government, or a future Bangladeshi administration, will continue to facilitate tariff-free movement of goods through Chattogram.

A renewed sense of urgency has thus emerged in New Delhi about the Kaladan project. But moving forward with Kaladan required strengthening relations with the Arakan Army. Kaladan was not the only rationale for such overtures, given the other concerns about border security and China noted above, but it shifted a slowly evolving policy into higher gear.

The Indian government began to expand contacts with the Arakan Army, as well as Chin armed groups, in both New Delhi and in Aizawl, the capital of Mizoram. There was, however, significant mutual mistrust to overcome in forging a meaningful relationship.

 

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AbuShalehRumi

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Trying to intimidate us?
 

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The internet regulator is abandoning its plan to allow Bangladesh to be the transit point for bandwidth supply to India's northeastern states on concerns that it could weaken the country's potential to become a regional internet hub.

Last year, the Bangladesh Telecommunication Regulatory Commission (BTRC) sought the telecom ministry's permission after Summit Communications and Fiber@Home applied to supply bandwidth from Singapore via the Akhaura border to the northeastern region of India through Bharti Airtel.

Summit Communications's chairman is Muhammad Farid Khan, the younger brother of Awami League presidium member Faruk Khan, also a five-time member of parliament from the Gopalganj-1. Farid is also a close friend of Sajeeb Wazed Joy, the son and ICT affairs adviser of ousted prime minister Sheikh Hasina.

Fiber@Home was a major beneficiary during the AL regime from 2009 to 2024, ranking second to Summit Communications in terms of major government contracts and licences won.

Before the two international terrestrial cable operators sought the BTRC's approval, Bharti Airtel applied to the foreign ministry the previous year for permission to connect Agartala through Akhaura to Bangladesh's submarine cable landing stations in Cox's Bazar and Kuakata to reach Singapore.

Under this arrangement, Bangladesh would serve as the transit route -- enabling faster internet connection for India's northeastern states of Tripura, Arunachal Pradesh, Assam, Mizoram, Manipur, Meghalaya and Nagaland.

At present, the states, popularly known as the Seven Sisters of India, are connected to Singapore through submarine cables in Chennai using the neighbouring country's domestic fibre optic network.

The landing station in Chennai is about 5,500 kilometres away from the northeastern part -- a considerable distance that compromises the internet speed.

Due to the mountainous nature of the region, the maintenance of fibre optic networks and the installation of new networks are relatively difficult.

"The guidelines do not permit such 'transit' arrangements," Md Emdad ul Bari, chairman of BTRC, told The Daily Star on Thursday.

Subsequently, the internet regulator wrote to the telecom ministry last week to recall its earlier application.

The transit arrangement will also strengthen India's position as a dominant internet hub and weaken Bangladesh's potential to become a regional hub, according to a BTRC document.

It would also hinder the potential for Bangladesh to become a Point of Presence (PoP) for content delivery network (CDN) providers such as Meta, Google, Akamai and Amazon.

A PoP is a physical location, facility or data centre that acts as an interconnection point for various networks. It facilitates the exchange of data traffic between different network providers, internet service providers and CDNs. In short, it is a central hub where data highways from different regions converge.

Currently, CDNs such as Meta, Google, Akamai and Amazon have their PoPs in Indian cities such as Kolkata, Chennai and Mumbai. Through transit connectivity provided by Summit and Fiber@Home, the Indian telecom operators would easily be able to offer internet services to the Seven Sisters.

Besides, the arrangement would obstruct Bangladesh's ability to provide internet services to parts of Myanmar and northwestern China through its own infrastructure.

Approximately 60 percent of the international bandwidth in Bangladesh is supplied by the seven ITCs like Summit Communications and Fiber@Home, while the remaining 40 percent is provided by Bangladesh Submarine Cables (BSC).

Despite BSC's bandwidth capacity of 7,217 Gbps, only 2,343 Gbps is currently being utilised.

Granting such connections to ITC operators despite BSC's adequate capacity and redundant cables would further increase ITC operators' bandwidth usage, undermining efforts to utilise BSC's unused bandwidth effectively.

"This arrangement would not harm Bangladesh," said Sumon Ahmed Sabir, chief technology officer at Fiber@Home, while acknowledging that the Seven Sisters region would undoubtedly benefit more.

Bangladesh, however, would also gain by earning foreign currency, while BSC, ITC and Nationwide Telecommunication Transmission Network (NTTN) operators would share in the profits, he added.

Summit Communications did not respond to The Daily Star's request for comment.

"Ultimately, the bandwidth from India will end up in India, reducing Bangladesh to merely a transit point," said Aminul Hakim, president of the Bangladesh Internet Governance Forum.

At first glance, it may seem that Bangladesh would earn foreign currency from this arrangement.

However, since the two local ITC providers facilitating the transit already import bandwidth from Indian companies, there is a significant likelihood of service exchange, depriving the government of revenue, Hakim added.


Trying to intimidate us?

Looks like the plan for Panagarh is old but plan for Lengpui is new. Hostility is nothing new but obviously it increased after 5th August. I don't think we need any further intimidation from them since they have more fire power than us and our deterrence is still weak.

 
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Isa Khan

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India's state-run railway engineering company RITES limited has received an order from Bangladesh to supply 200 railway coaches worth 900 crore rupees.

With this order, Rites wants to double the share of revenue and ensure one overseas order each quarter, the Mint reported quoting Chief Managing Director (CMD) of the company Rahul Mithal.

"After a four-year hiatus, we now seeing high-value exports of rolling stock returning to RITES. In each of the quarters stating from last quarter of previous fiscal year, we have been bagging one export order and we intend to main this run rate bagging one exporter order in each quarter going ahead," Mithal said.

Rites had bagged Rs 900 crore order from Bangladesh for supply of 200 rail coaches of nine different designs, Rs 300 crore order for supply of 10 diesel locomotives to Mozambique and two orders of Rs 90 crore for supplying cape gauge in-service diesel locomotives, which still have 15-20 years of life left, to South Africa.

He said the company will start generating revenue from exports of rolling stock with supply of passenger coaches to Bangladesh starting from second half of next year while locos are getting delivered to Mozambique early next year.

"Subject to design approvals by railways operators in South Africa, diesel locos may also start getting delivered and generating revenue from next fiscal," the chairman and managing director said.

The South African order will test the use of these diesel locos on cape gauge networks., Accordingly RITES sees huge potential coming from it from other African countries and even Indonesia that has trains running on this gauge.

He said the company will start generating revenue from exports of rolling stock with supply of passenger coaches to Bangladesh starting from second half of next year while locos are getting delivered to Mozambique early next year.

"Subject to design approvals by railways operators in South Africa, diesel locos may also start getting delivered and generating revenue from next fiscal," the chairman and managing director said.

The South African order will test the use of these diesel locos on cape gauge networks., Accordingly RITES sees huge potential coming from it from other African countries and even Indonesia that has trains running on this gauge.

"Securing more than 110 orders of more than Rs 1,900 crore in just one quarter (Q3), which is nearly equal to the orders received in the entire FY24, underscores our strategy to aggressively march ahead, leveraging our multi-sectoral strength and maintaining our USP of being a '1 order a day' company," Mithal said.

RITES is also looking at expanding its inspection business that has now moved out from the exclusive fold of the railways. The company has already bagged one order on testing in Sri Lanka and is expecting more orders in this line of business from both domestic and overseas clients.

"Our export orders will start generating revenue from next fiscal and we hope that along with implementation of other orders, we will see at least a 20% growth in our tooling and double digit growth in our bottom line in FY26," Mithal said.

RITES, which is the export arm of Indian Railways, saw operating revenue (consolidated), excluding other income, stand at Rs 576 crore in Q3FY25 as against Rs 683 crore in Q3FY24, a 15.7% dip. Total revenue in the quarter also fell to Rs 614 crore rupees as against Rs 700 crore rupees in Q3FY24. Accordingly, RITES also saw its revenue and net profit declining in the nine-month period ending 31 December.

The overseas business of RITES would also see it expanding its footprint in consultancy opportunities in Latin America, Africa, South East Asia and West Asia while moving beyond neighbouring countries such as Sri Lanka for its inspection business that involves certifying product and processes of various infrastructure projects.

"We are now focusing our energy on improved execution of orders in hand. This should arrest the slide in top line and bottom line by the end if current fiscal and give us positive growth in the coming year," Mithal said.

 

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