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India wants to use Bangladesh territory to transport fuel oil and gas from Meghalaya to Tripura as adverse weather conditions have disrupted vehicular movement in north-eastern India.
The Indian High Commission sought the transit movement facility in a note verbale to the Ministry of Foreign Affairs on 19 May.
The Ministry of Road Transport and Bridges has agreed to provide the facility at a fee of Tk1.85 per tonne of goods per kilometre. India was given the opportunity to transport fuel oil and LPG to Tripura using Bangladesh's roads at the same rate in 2016.
The Indian High Commission in Dhaka sought permission to send goods to Tripura through the Guwahati-Jowai-Dawki / Tamabil-Chatlapur / Kailashahar route pointing out that transportation has been disrupted due to extreme weather conditions this year.
Under the circumstances, India has sought the round trip transit movement of petroleum and LPG vehicles using the roads of Bangladesh and necessary clearances including visa, immigration, customs and route permit facilities.
In 2016, due to adverse weather conditions, India used the transit movement facility to transport emergency goods through Bangladesh. A Memorandum of Understanding was signed between the Oil Corporation of India and the Roads and Highways Department of Bangladesh at the time, paving the way for transporting fuel oil and LPG through Bangladesh.
With the latest request for a transit movement facility, India has also sent a draft of a new memorandum of understanding for the transportation of the said goods.
The two countries signed a memorandum of understanding (MoU) in 2015 that allowed the movement of goods to and from India using Chattogram and Mongla ports.
At a meeting of the joint working group of customs last March, India requested Bangladesh to allow the transhipment of Indian goods with regular port use keeping these fees and charges unchanged. Raising the fees could not be a precondition for the implementation of the agreement, they argued, adding the issue of raising fees can be discussed later in the appropriate forum.
The Bangladesh side, however, told the meeting, "The experience of the first trial run and the inputs from the internal consultation demonstrate that the issue of comprehensive customs procedure, detailing of fees and charges, appointment of transit operator, infrastructure, and technical readiness of land customs stations at both sides are essential for the notification of a regular Standing Order."
Despite having provisions of monetary guarantee in the General Agreement on Tariffs and Trade (GATT) and Trade Facilitation Agreement (TFA), Bangladesh has facilitated the Agreement on the Use of Chattogram and Mongla Port against the undertaking.
"However, the escort charge mentioned in the temporary standing order is much lower than the charge that is applicable for a domestic escort charge and is much more favourable than national treatment, which needs to be aligned with Article V(3) of GATT and Article 11(2) of TFA," the Bangladesh side added.
The number of days required, the halt time, the required customs procedures, and other important aspects of transit through the agreed routes are not known as there were no train services in operation on those routes, pointed out the Bangladeshi delegation.
"Therefore, at least one trial run to and from India is required for each of the approved routes and the findings of those trial runs will be accommodated in the permanent standing order. The information will also be helpful for the ASYCUDA-based transit module in the future," added the Bangladesh delegation.
www.tbsnews.net
India has withdrawn its line of credit (LoC) funding for a portion of a project that it has been entrusted with to build power transmission infrastructure for evacuating electricity from the country's maiden Nuclear Power Plant at Rooppur in Pabna.
Under the package-6 the project titled "Construction of Power Evacuation Facilities of Rooppur Nuclear Plant", a 20-kilometre crossing over Jamuna and Padma rivers was supposed to be implemented by an Indian contractor with LoC finance.
But the neighbouring country has now delisted the package from the LoC-3 as the Power Grid Company of Bangladesh (PGCB) has failed to comply with funding conditions for it.
QM Shafiqul Islam, project director at the PGCB, told The Business Standard, "India has backtracked on LoC funding for the portion of the project even after an Indian contractor has been selected through an open bidding as tender conditions do not match with their financing conditions."
Earlier, the Power Grid Company of Bangladesh floated an international tender for implementing the package-6 as Indian contractors shortlisted by Exim Bank of India made much higher price proposals than the estimated cost for the work.
The power grid company is looking for an alternative source of financing to implement the work.
MdYeakubElahi Chowdhury, executive (Director Planning & Development and Finance) at PGCB, told TBS, "We are looking for alternative finance to implement the project. And, we have processed further to select a contractor for the package," he said.
The country's first nuclear power plant at Ishwardi in Pabna will have two units – each having 1,200 megawatts of capacity – and the first unit is scheduled to be ready by the first half of 2023.
To evacuate the electricity from this power plant, the PGCB took up the project that includes five integrated packages of different transmission lines – 464km 400kV transmission lines including 13km river crossing, 205km 230kV transmission Lines including 7km river crossing, 400 kV four bay extensions, 230 kV five bay extensions and the frequency control and frequency drop protection, protection system, emergency control system and other associated tasks for qualitative upgradation of Bangladesh Power System.
From this scope of work, the PGCB separated the river-crossing work to package-6 due to some complexities.
For implementing the project, the government inked a $1.06 billion loan agreement under LoC-3 with India in 2017 and India conditioned Bangladesh to award the contracts only to Indian firms.
Appointment of Contractors for the other packages has already been completed and work on landlines is running.
The project was scheduled to end within 2022 to transmit power from the 1,200MW RNPP Unit-1, which is expected to be ready by the first half of 2023.
But the power evaluation from the nuclear plant in the stipulated time has become uncertain as the contractor appointment for the package-6, which is a critical component of the transmission line, has not been done yet.
MdYeakubElahi Chowdhury, however, said they are doing everything to construct the transmission line within the given time.
"If foreign finance is not found, we will implement the component with our local fund," he also said.
The estimated cost of this part is around Tk4, 000 crore, said PGCB sources.
www.tbsnews.net
The Indian High Commission sought the transit movement facility in a note verbale to the Ministry of Foreign Affairs on 19 May.
The Ministry of Road Transport and Bridges has agreed to provide the facility at a fee of Tk1.85 per tonne of goods per kilometre. India was given the opportunity to transport fuel oil and LPG to Tripura using Bangladesh's roads at the same rate in 2016.
The Indian High Commission in Dhaka sought permission to send goods to Tripura through the Guwahati-Jowai-Dawki / Tamabil-Chatlapur / Kailashahar route pointing out that transportation has been disrupted due to extreme weather conditions this year.
Under the circumstances, India has sought the round trip transit movement of petroleum and LPG vehicles using the roads of Bangladesh and necessary clearances including visa, immigration, customs and route permit facilities.
In 2016, due to adverse weather conditions, India used the transit movement facility to transport emergency goods through Bangladesh. A Memorandum of Understanding was signed between the Oil Corporation of India and the Roads and Highways Department of Bangladesh at the time, paving the way for transporting fuel oil and LPG through Bangladesh.
With the latest request for a transit movement facility, India has also sent a draft of a new memorandum of understanding for the transportation of the said goods.
The two countries signed a memorandum of understanding (MoU) in 2015 that allowed the movement of goods to and from India using Chattogram and Mongla ports.
At a meeting of the joint working group of customs last March, India requested Bangladesh to allow the transhipment of Indian goods with regular port use keeping these fees and charges unchanged. Raising the fees could not be a precondition for the implementation of the agreement, they argued, adding the issue of raising fees can be discussed later in the appropriate forum.
The Bangladesh side, however, told the meeting, "The experience of the first trial run and the inputs from the internal consultation demonstrate that the issue of comprehensive customs procedure, detailing of fees and charges, appointment of transit operator, infrastructure, and technical readiness of land customs stations at both sides are essential for the notification of a regular Standing Order."
Despite having provisions of monetary guarantee in the General Agreement on Tariffs and Trade (GATT) and Trade Facilitation Agreement (TFA), Bangladesh has facilitated the Agreement on the Use of Chattogram and Mongla Port against the undertaking.
"However, the escort charge mentioned in the temporary standing order is much lower than the charge that is applicable for a domestic escort charge and is much more favourable than national treatment, which needs to be aligned with Article V(3) of GATT and Article 11(2) of TFA," the Bangladesh side added.
The number of days required, the halt time, the required customs procedures, and other important aspects of transit through the agreed routes are not known as there were no train services in operation on those routes, pointed out the Bangladeshi delegation.
"Therefore, at least one trial run to and from India is required for each of the approved routes and the findings of those trial runs will be accommodated in the permanent standing order. The information will also be helpful for the ASYCUDA-based transit module in the future," added the Bangladesh delegation.
India wants to move oil, gas to Tripura thru Bangladesh due to bad weather
The Indian High Commission sought the facility in a note verbale to the foreign ministry on 19 May
India has withdrawn its line of credit (LoC) funding for a portion of a project that it has been entrusted with to build power transmission infrastructure for evacuating electricity from the country's maiden Nuclear Power Plant at Rooppur in Pabna.
Under the package-6 the project titled "Construction of Power Evacuation Facilities of Rooppur Nuclear Plant", a 20-kilometre crossing over Jamuna and Padma rivers was supposed to be implemented by an Indian contractor with LoC finance.
But the neighbouring country has now delisted the package from the LoC-3 as the Power Grid Company of Bangladesh (PGCB) has failed to comply with funding conditions for it.
QM Shafiqul Islam, project director at the PGCB, told The Business Standard, "India has backtracked on LoC funding for the portion of the project even after an Indian contractor has been selected through an open bidding as tender conditions do not match with their financing conditions."
Earlier, the Power Grid Company of Bangladesh floated an international tender for implementing the package-6 as Indian contractors shortlisted by Exim Bank of India made much higher price proposals than the estimated cost for the work.
The power grid company is looking for an alternative source of financing to implement the work.
MdYeakubElahi Chowdhury, executive (Director Planning & Development and Finance) at PGCB, told TBS, "We are looking for alternative finance to implement the project. And, we have processed further to select a contractor for the package," he said.
The country's first nuclear power plant at Ishwardi in Pabna will have two units – each having 1,200 megawatts of capacity – and the first unit is scheduled to be ready by the first half of 2023.
To evacuate the electricity from this power plant, the PGCB took up the project that includes five integrated packages of different transmission lines – 464km 400kV transmission lines including 13km river crossing, 205km 230kV transmission Lines including 7km river crossing, 400 kV four bay extensions, 230 kV five bay extensions and the frequency control and frequency drop protection, protection system, emergency control system and other associated tasks for qualitative upgradation of Bangladesh Power System.
From this scope of work, the PGCB separated the river-crossing work to package-6 due to some complexities.
For implementing the project, the government inked a $1.06 billion loan agreement under LoC-3 with India in 2017 and India conditioned Bangladesh to award the contracts only to Indian firms.
Appointment of Contractors for the other packages has already been completed and work on landlines is running.
The project was scheduled to end within 2022 to transmit power from the 1,200MW RNPP Unit-1, which is expected to be ready by the first half of 2023.
But the power evaluation from the nuclear plant in the stipulated time has become uncertain as the contractor appointment for the package-6, which is a critical component of the transmission line, has not been done yet.
MdYeakubElahi Chowdhury, however, said they are doing everything to construct the transmission line within the given time.
"If foreign finance is not found, we will implement the component with our local fund," he also said.
The estimated cost of this part is around Tk4, 000 crore, said PGCB sources.
India pulls out of LoC funding for part of Rooppur power transmission work
Bangladesh now looks for alternative finance
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The Rupsha Rail Bridge as part of the Khulna-Mongla Port Rail Line Project has been completed under the Indian Line of Credit extended to the Bangladesh government.
On June 25, Indian EPC Contractor L&T completed the construction of 5.13-km broad-gauge single-track railway bridge that connected Khulna with the Mongla port city via a rail line, a press release issued by Indian High Commission said on Sunday.
The bridge has been constructed over the Rupsha tidal river that was a challenging engineering feat as it required specialized base grouting technology for piling work, the release said.
A total of 856 pile foundations were constructed on viaduct sections and 72 pile foundations were constructed for the steel bridge section with an average pile length of 72-meter, it added.
The bridge has also additional features such as navigation fenders piles upstream and downstream of the pier, for ensuring navigation safety in the river.
The navigational clearance for the main bridge is more than 18-meter from Standard High-Water Level.
The construction materials for the steel bridge superstructure were imported from India using road, sea and inland rivers.
The Rupsha railway bridge and the Khulna-Mongla port rail line will greatly facilitate transportation of goods and the enhanced connectivity and accessibility to the Mongla Port, said the high commission.
Besides, the bridge will improve market access for local businesses including for agricultural produce by the farmers in the region.
It is also expected to positively impact tourism to prominent spots in the south-western part of Bangladesh.
Government of India has extended four LOCs to Bangladesh government worth 7.862 billion US dollars.
So far, 42 projects have been taken up under the LOCs, of which, 14 projects have been completed and the rest are at various stages of implementation, according to the Indian mission.
Disbursements under these LOCs touched the milestone of one billion US dollars as on the closing of the Indian financial year in March 2022 while it is set to reach 1,155 million US dollars as on the close of the Bangladeshi financial year on June 30, 2022.
Rupsha Rail Bridge in Khulna completed under India’s LOC
The Rupsha Rail Bridge as part of the Khulna-Mongla Port Rail Line Project has been completed under the Indian Line of Credit extended to the Bangladesh government....
www.newagebd.net
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Indian High Commissioner to Bangladesh Vikram Kumar Doraiswami has proposed to run a fourth inter-country train between Dhaka and Kolkata.
During a courtesy call with Railways Minister Nurul Islam Sujan Monday (18 July), Doraiswami discussed ongoing projects in Bangladesh with Indian funding and the projects that are to be undertaken in future, said a press release.
"Currently Maitree, Bandhan and Mitali Express trains are running between Bangladesh and India. Considering the passenger demand, one more train can be run on the Dhaka-Kolkata route via Darshana," said the Indian High Commissioner.
Minister Nurul Islam Sujan expressed his interest in importing high quality tourist coaches from India to run from Dhaka to Cox's Bazar.
He also mentioned purchasing these coaches as well as engines and baggage vans under line of credit (LC).
The Railways Minister also emphasised enhancing connectivity with Nepal and Bhutan.
Discussing the construction of a new railway line from Panchagarh to Banglabandha, Sujan highlighted that the connection point with India has not been decided yet. He urged India to expedite the matter.
India proposes fourth transnational train route with Bangladesh
Indian High Commissioner to Bangladesh Vikram Kumar Doraiswami has proposed to run a fourth inter-country train between Dhaka and Kolkata. During a courtesy call with Railways Minister Nurul Islam Sujan Monday (18 July), Doraiswami discussed ongoing projects in Bangladesh with Indian funding and...
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The maiden shipment of 25 lakh litres of crude oil imported from India reached the country on Saturday, aiming to tackle the ongoing fuel crisis.
The representatives of Bangladesh and India formally released the crude oil at Aqua Refinery jetty in Gorashal of Narsingdi in the morning.
Private company Aqua Refinery Limited imported Naphtha (crude oil) from Indian Oil Corporation Limited through Indo-Bangladesh Inland Waterways Protocol Route.
Bangladesh Inland Water Transport Authority director Rafiqul Islam, Indian Oil Corporation Limited Bangladesh country manager Mazhar Alam, Aqua Refinery Limited director operation Ershad Hossain, Shanghai ship owner Masudur Rahman, Aqua Refinery deputy
managing director Sajedul Siraj, general manager GM Jahangir Alam, among others, were present at that time.
After the refining process by Aqua Refinery, Bangladesh Petroleum Corporation will buy the crude oil and provide it to the consumer level within one week.
Amid the unprecedented situation due to fuel crisis, the government recently announced suspension of production in diesel-run power plants. It resorted to one-hour area based load shedding across the country to save energy.
The government has also taken some austerity measures including reducing consumption of power at government offices to save power and energy.
www.newagebd.net
The representatives of Bangladesh and India formally released the crude oil at Aqua Refinery jetty in Gorashal of Narsingdi in the morning.
Private company Aqua Refinery Limited imported Naphtha (crude oil) from Indian Oil Corporation Limited through Indo-Bangladesh Inland Waterways Protocol Route.
Bangladesh Inland Water Transport Authority director Rafiqul Islam, Indian Oil Corporation Limited Bangladesh country manager Mazhar Alam, Aqua Refinery Limited director operation Ershad Hossain, Shanghai ship owner Masudur Rahman, Aqua Refinery deputy
managing director Sajedul Siraj, general manager GM Jahangir Alam, among others, were present at that time.
After the refining process by Aqua Refinery, Bangladesh Petroleum Corporation will buy the crude oil and provide it to the consumer level within one week.
Amid the unprecedented situation due to fuel crisis, the government recently announced suspension of production in diesel-run power plants. It resorted to one-hour area based load shedding across the country to save energy.
The government has also taken some austerity measures including reducing consumption of power at government offices to save power and energy.
Indian crude oil reaches Narsingdi
The maiden shipment of 25 lakh litres of crude oil imported from India reached the country on Saturday, aiming to tackle the ongoing fuel crisis....
www.newagebd.net
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India and Bangladesh are preparing for comprehensive trial runs for trans-shipment of cargo to the northeastern states using Chattogram and Mongla ports as part of efforts to further boost connectivity between the two sides.
The move comes more than three years after the two sides signed an agreement in October 2018 for using Chattogram and Mongla ports for movement of goods to and from India via Bangladeshi territory. The trial runs were initially slated for July though dates are yet to be finalised, people familiar with the matter said.
India carried out a trial trans-shipment of goods from Kolkata to Tripura via Chattogram port in southeastern Bangladesh in July 2020. A shipment of iron rods and pulses was shipped from Haldia port to Chattogram port and then transported via land to Tripura, marking the revival of a route that had not been used for decades. Further trials could not be conducted due to disruptions caused by the Covid-19 pandemic.
The two sides are now preparing for at least four trial runs to the two ports in Bangladesh with the intention of ironing out any rough spots and to align the immigration and customs set-ups in both countries.
They are also looking at several land routes leading to the northeastern states of Meghalaya and Tripura for the movement of goods, they added.
On the Bangladeshi side, a meeting was held earlier this month to discuss the trial runs.
The meeting was attended by representatives of the ministries of shipping, foreign affairs, home affairs and commerce, the National Board of Revenue, and the port authorities of Chattogram and Mongla.
The land route between Kolkata and key cities in northeast states is more than 1,200km and the use of Chattogram and Mongal ports for trans-shipment will cut the distance to almost half.
The trans-shipment arrangement will facilitate the movement of heavier cargo at a lower cost and also boost business services and the logistics sector in Bangladesh, they added.
Bangladesh Prime Minister Sheikh Hasina had reiterated her country's offer to use Chattogram port for trans-shipment of goods to India's northeastern states and to increase connectivity at a meeting with external affairs minister S Jaishankar in Dhaka on April 28. Jaishankar had handed over to Hasina an invitation to visit India, and the trip has been scheduled for September.
The proposal for using Chattogram and Mongla ports for trans-shipment of goods to India's northeastern states dates back to a joint communiqué issued during Bangladesh prime minister's visit to India in January 2010. The agreement on the use of Chattogram and Mongla Ports for movement of goods to and from India of October 2018 envisages the trans-shipment of goods via four land routes.
These routes are Agartala via Akhaura, Dawki via Tamabil, Sutarkandi via Sheola, and Srimantapur via Bibirbazar. Transportation within Bangladesh will be done by Bangladeshi vehicles or vessels till the Bangladesh-Bhutan-India-Nepal (BBIN) motor vehicles agreement is finalised.
www.tbsnews.net
The senior officials of different ministries concerned today agreed to sign the Comprehensive Economic Partnership Agreement (CEPA) with India to expand trade and investment with the neighbouring country.
The inter-ministerial meeting on CEPA was attended by the officials of some important ministries, including foreign, labour, commerce, home affairs, along with different departments of agencies of the government at the commerce ministry in Dhaka.
Tapan Kanti Ghosh, senior commerce secretary, chaired the meeting.
"In the inter-ministerial meeting, all the senior officials of the ministries concerned agreed that the negotiation with India for signing the CEPA can be started," Abdur Rahim Khan, additional secretary to the commerce ministry, told The Daily Star over phone.
The negotiation of the CEPA with India is a part of the government's massive initiatives to sign trade deals with major trading partners to retain the duty benefit after the country's graduation to a developing nation in 2026.
However, CEPA is not only a Free Trade Agreement (FTA) or a Preferential Trade Agreement (PTA), it is also a broader kind of trade deal that covers issues like investment and employment.
Recently the parliament also adopted a law on signing the FTA, PTA and CEPA with the potential and major trading partners as the country will need to retain the duty benefit after its LDC graduation.
In a visit to India in April this year, Commerce Minister Tipu Munshi said Bangladesh is keen to clinch the CEPA with India in a year.
Both Bangladesh and India had agreed to sign the CEPA in 2018.
www.thedailystar.net
The move comes more than three years after the two sides signed an agreement in October 2018 for using Chattogram and Mongla ports for movement of goods to and from India via Bangladeshi territory. The trial runs were initially slated for July though dates are yet to be finalised, people familiar with the matter said.
India carried out a trial trans-shipment of goods from Kolkata to Tripura via Chattogram port in southeastern Bangladesh in July 2020. A shipment of iron rods and pulses was shipped from Haldia port to Chattogram port and then transported via land to Tripura, marking the revival of a route that had not been used for decades. Further trials could not be conducted due to disruptions caused by the Covid-19 pandemic.
The two sides are now preparing for at least four trial runs to the two ports in Bangladesh with the intention of ironing out any rough spots and to align the immigration and customs set-ups in both countries.
They are also looking at several land routes leading to the northeastern states of Meghalaya and Tripura for the movement of goods, they added.
On the Bangladeshi side, a meeting was held earlier this month to discuss the trial runs.
The meeting was attended by representatives of the ministries of shipping, foreign affairs, home affairs and commerce, the National Board of Revenue, and the port authorities of Chattogram and Mongla.
The land route between Kolkata and key cities in northeast states is more than 1,200km and the use of Chattogram and Mongal ports for trans-shipment will cut the distance to almost half.
The trans-shipment arrangement will facilitate the movement of heavier cargo at a lower cost and also boost business services and the logistics sector in Bangladesh, they added.
Bangladesh Prime Minister Sheikh Hasina had reiterated her country's offer to use Chattogram port for trans-shipment of goods to India's northeastern states and to increase connectivity at a meeting with external affairs minister S Jaishankar in Dhaka on April 28. Jaishankar had handed over to Hasina an invitation to visit India, and the trip has been scheduled for September.
The proposal for using Chattogram and Mongla ports for trans-shipment of goods to India's northeastern states dates back to a joint communiqué issued during Bangladesh prime minister's visit to India in January 2010. The agreement on the use of Chattogram and Mongla Ports for movement of goods to and from India of October 2018 envisages the trans-shipment of goods via four land routes.
These routes are Agartala via Akhaura, Dawki via Tamabil, Sutarkandi via Sheola, and Srimantapur via Bibirbazar. Transportation within Bangladesh will be done by Bangladeshi vehicles or vessels till the Bangladesh-Bhutan-India-Nepal (BBIN) motor vehicles agreement is finalised.
India, Bangladesh prepare for trial runs to use Chattogram, Mongla ports
India and Bangladesh are preparing for comprehensive trial runs for trans-shipment of cargo to the northeastern states using Chattogram and Mongla ports as part of efforts to further boost connectivity between the two sides. The move comes more than three years after the two sides signed an...
The senior officials of different ministries concerned today agreed to sign the Comprehensive Economic Partnership Agreement (CEPA) with India to expand trade and investment with the neighbouring country.
The inter-ministerial meeting on CEPA was attended by the officials of some important ministries, including foreign, labour, commerce, home affairs, along with different departments of agencies of the government at the commerce ministry in Dhaka.
Tapan Kanti Ghosh, senior commerce secretary, chaired the meeting.
"In the inter-ministerial meeting, all the senior officials of the ministries concerned agreed that the negotiation with India for signing the CEPA can be started," Abdur Rahim Khan, additional secretary to the commerce ministry, told The Daily Star over phone.
The negotiation of the CEPA with India is a part of the government's massive initiatives to sign trade deals with major trading partners to retain the duty benefit after the country's graduation to a developing nation in 2026.
However, CEPA is not only a Free Trade Agreement (FTA) or a Preferential Trade Agreement (PTA), it is also a broader kind of trade deal that covers issues like investment and employment.
Recently the parliament also adopted a law on signing the FTA, PTA and CEPA with the potential and major trading partners as the country will need to retain the duty benefit after its LDC graduation.
In a visit to India in April this year, Commerce Minister Tipu Munshi said Bangladesh is keen to clinch the CEPA with India in a year.
Both Bangladesh and India had agreed to sign the CEPA in 2018.
Govt one step closer to sign CEPA with India
The inter-ministerial meeting on CEPA was attended by the officials of some important ministries, including foreign, labour, commerce, home affairs, along with different departments of agencies of the government at the commerce ministry in Dhaka.
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A training delegation of five officers from #BangladeshNavy headed by Commodore Abu Mohammad Sazzad Hossain called on #COS, #SNC on 26 July 2022. As part of the visit, the delegation visited #SFNA, #ASW, #WSTF, #CELABS, #INSDronacharya, #NIAT and Damage Control Training facility.
Focus has always been on #MutualCooperation and association on training aspects between the two Navies. A wide spectrum of courses are being facilitated for officers and sailors of Bangladesh Navy at SNC, Kochi. The delegation would also be proceeding to #INA, Ezhimala for further interaction and acquaintance on the training aspects.
Focus has always been on #MutualCooperation and association on training aspects between the two Navies. A wide spectrum of courses are being facilitated for officers and sailors of Bangladesh Navy at SNC, Kochi. The delegation would also be proceeding to #INA, Ezhimala for further interaction and acquaintance on the training aspects.
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After two months since the last shipments of wheat through Akhaura at the end of May, wheat imports from India have started again through the land port in Brahmanbaria.
Forty trucks with 1,000 tonnes of wheat arrived at the land port yesterday.
Import of wheat from India started for the first time in August last year through the export-oriented Akhaura land port.
But, due to the Indian government's ban on wheat exports, no shipment of wheat arrived at the Akhaura land port after 30 May.
More than 14,000 tonnes of wheat, with LCs opened before the ban, got stuck.
Importer of the 1,000 tonnes of wheat, Sharda Traders of Tangail, will have the wheat shipment released from the port today.
Tarapad Das, representative of Sharda Traders, said the company opened a letter of credit (LC) before 12 May to import 2,500 tonnes of wheat.
The rest of the wheat will come in by today, he said.
Akhtar Hossain, proprietor of the port's C&F agent Adnan Trade International, which is overseeing the customs clearance of the shipment, said the import of wheat had started again as the road and rail communications between Tripura and other Indian states were normal now.
The import cost of the wheat was $355 per tonne, he said. Since the taka has depreciated against the US dollar, the price of wheat would not decrease much in the market, he added.
As it was duty free, no duty was levied by the land customs station on the import of wheat.
However, the land port authorities will get a port entry fee and a parking fee for each wheat truck.
In June, road and rail connectivity between Tripura and Northeast India was also disrupted due to heavy rains and floods and so wheat trucks could not come to Agartala port.
www.tbsnews.net
Highlights
After writing separately to India's finance and commerce ministers, Dhaka is optimistic that New Delhi would remove the anti-dumping duty on Bangladesh's jute and jute-made products soon.
"India said they will decide on the duty withdrawal based on the fact that we write to them formally," Commerce Minister Tipu Munshi told The Business Standard last week.
"During the recent visit to India, Commerce Secretary Tapan Kanti Ghosh came to know that India is considering the withdrawal of the duty," Tipu Munshi added.
However, a commerce ministry official told TBS that Dhaka is yet to receive any official response from India in this regard.
The Indian jute industry had been complaining over Bangladesh's cash incentive to jute exports, claiming India's jute industry was suffering due to Dhaka's subsidised operations. In 2017, the neighbouring country imposed the protectionist measure of anti-dumping duty to guard its local jute industry.
The imposition, ranging between $19 and $352 per tonne on Bangladesh's jute yarn, hessian and bags, was for five years.
The export of jute and jute goods has been performing poorly over the past few years since the Indian government imposed the duty. Last fiscal year, Bangladesh's overall export increased by more than 34%, but only jute registered a negative export growth.
In FY2021-22, jute yarn, twine, sacks and bags posted 14% negative growth compared to export in the previous year.
Meanwhile, India's anti-dumping duty imposition was supposed to end this January. According to the World Trade Organization (WTO) rules, no anti-dumping duty can be imposed on any product for a period of more than five years.
But following the application of six Indian companies, New Delhi has taken the initiative to conduct a "sunset review" – an evaluation of the need for the continued existence of a programme or an agency – to extend the existing anti-dumping duty on Bangladesh's jute.
Against the backdrop, Commerce Minister Tipu Munshi sent the letter to India's Commerce Minister Piyush Goyal in March. In June, Finance Minister AHM Mustafa Kamal sent another letter to his Indian counterpart Nirmala Sitharaman.
'Lifting anti-dumping wouldn't surge export'
Finance Minister AHM Mustafa Kamal assured his Indian counterpart that discontinuation of the anti-dumping would not meet with a surge in jute export by Bangladesh.
"Availability of land for growing raw jute in Bangladesh is very limited due to scarcity of land and therefore quantity of production of raw jute in Bangladesh has remained the same during the last five years. There is no possibility of any increase in the foreseeable future. Therefore, fear of any surge in export from Bangladesh after withdrawal of duty as claimed in the application [by six Indian jute industries to the Indian authorities] is totally unfounded," the finance minister wrote in the letter.
He said, "You may be aware that our jute industry has been facing continuous challenges to pay a large number of poor workers working therein due to various existential crises including those imposed by climate induced disasters and risks. Therefore, the government offers limited support mainly to stabilise the sector with the objective of saving the livelihoods of millions of workers and farmers."
Mustafa Kamal requested the Indian finance minister to resolve the matter through the WTO if the government's cash support against the jute export is a matter of India's concern.
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Forty trucks with 1,000 tonnes of wheat arrived at the land port yesterday.
Import of wheat from India started for the first time in August last year through the export-oriented Akhaura land port.
But, due to the Indian government's ban on wheat exports, no shipment of wheat arrived at the Akhaura land port after 30 May.
More than 14,000 tonnes of wheat, with LCs opened before the ban, got stuck.
Importer of the 1,000 tonnes of wheat, Sharda Traders of Tangail, will have the wheat shipment released from the port today.
Tarapad Das, representative of Sharda Traders, said the company opened a letter of credit (LC) before 12 May to import 2,500 tonnes of wheat.
The rest of the wheat will come in by today, he said.
Akhtar Hossain, proprietor of the port's C&F agent Adnan Trade International, which is overseeing the customs clearance of the shipment, said the import of wheat had started again as the road and rail communications between Tripura and other Indian states were normal now.
The import cost of the wheat was $355 per tonne, he said. Since the taka has depreciated against the US dollar, the price of wheat would not decrease much in the market, he added.
As it was duty free, no duty was levied by the land customs station on the import of wheat.
However, the land port authorities will get a port entry fee and a parking fee for each wheat truck.
In June, road and rail connectivity between Tripura and Northeast India was also disrupted due to heavy rains and floods and so wheat trucks could not come to Agartala port.
1,000 tonnes of wheat arrive at Akhaura from India
After two months since the last shipments of wheat through Akhaura at the end of May, wheat imports from India have started again through the land port in Brahmanbaria. Forty trucks with 1,000 tonnes of wheat arrived at the land port yesterday. Import of wheat from India started for the first...
Highlights
- India imposed the anti-dumping duty on jute in 2017
- Bangladesh's jute export has been performing poorly since then
- The 5-year duty imposition supposed to end in January this year
- Bangladesh requests its neighbour not to continue the measure
- Dhaka yet to receive any official response from Delhi in this regard
After writing separately to India's finance and commerce ministers, Dhaka is optimistic that New Delhi would remove the anti-dumping duty on Bangladesh's jute and jute-made products soon.
"India said they will decide on the duty withdrawal based on the fact that we write to them formally," Commerce Minister Tipu Munshi told The Business Standard last week.
"During the recent visit to India, Commerce Secretary Tapan Kanti Ghosh came to know that India is considering the withdrawal of the duty," Tipu Munshi added.
However, a commerce ministry official told TBS that Dhaka is yet to receive any official response from India in this regard.
The Indian jute industry had been complaining over Bangladesh's cash incentive to jute exports, claiming India's jute industry was suffering due to Dhaka's subsidised operations. In 2017, the neighbouring country imposed the protectionist measure of anti-dumping duty to guard its local jute industry.
The imposition, ranging between $19 and $352 per tonne on Bangladesh's jute yarn, hessian and bags, was for five years.
The export of jute and jute goods has been performing poorly over the past few years since the Indian government imposed the duty. Last fiscal year, Bangladesh's overall export increased by more than 34%, but only jute registered a negative export growth.
In FY2021-22, jute yarn, twine, sacks and bags posted 14% negative growth compared to export in the previous year.
Meanwhile, India's anti-dumping duty imposition was supposed to end this January. According to the World Trade Organization (WTO) rules, no anti-dumping duty can be imposed on any product for a period of more than five years.
But following the application of six Indian companies, New Delhi has taken the initiative to conduct a "sunset review" – an evaluation of the need for the continued existence of a programme or an agency – to extend the existing anti-dumping duty on Bangladesh's jute.
Against the backdrop, Commerce Minister Tipu Munshi sent the letter to India's Commerce Minister Piyush Goyal in March. In June, Finance Minister AHM Mustafa Kamal sent another letter to his Indian counterpart Nirmala Sitharaman.
'Lifting anti-dumping wouldn't surge export'
Finance Minister AHM Mustafa Kamal assured his Indian counterpart that discontinuation of the anti-dumping would not meet with a surge in jute export by Bangladesh.
"Availability of land for growing raw jute in Bangladesh is very limited due to scarcity of land and therefore quantity of production of raw jute in Bangladesh has remained the same during the last five years. There is no possibility of any increase in the foreseeable future. Therefore, fear of any surge in export from Bangladesh after withdrawal of duty as claimed in the application [by six Indian jute industries to the Indian authorities] is totally unfounded," the finance minister wrote in the letter.
He said, "You may be aware that our jute industry has been facing continuous challenges to pay a large number of poor workers working therein due to various existential crises including those imposed by climate induced disasters and risks. Therefore, the government offers limited support mainly to stabilise the sector with the objective of saving the livelihoods of millions of workers and farmers."
Mustafa Kamal requested the Indian finance minister to resolve the matter through the WTO if the government's cash support against the jute export is a matter of India's concern.
Govt hopes for India’s anti-dumping duty removal on jute
Jute-made products posted 14% negative growth in FY2021-22 compared to the previous year
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Diesel imports from Numaligarh Refinery Limited in India's Golaghat district to an oil depot in Parbatipur upazila of Dinajpur will likely begin at the end of the year if the India-Bangladesh Friendship Pipeline is completed on time, according to project officials.
Md Tipu Sultan, project director of the nearly 130-kilometre transnational pipeline, said almost 90 per cent of the construction has been completed so far.
Besides, development of five sectionalising valve (SV) stations have also been completed.
The SVs, which are used to isolate sections of a pipeline during emergencies such as leakage, have been placed around 30 kilometres apart from each other, he added.
However, development work on the project is currently at a standstill due to rain.
On the other hand, construction of a buffer storage tank at the oil depot of the Bangladesh Petroleum Corporation (BPC) in Parbatipur upazila is ongoing at a normal pace.
Once complete, the new tank will add 29,000 tonnes to the depot's existing 15,000-tonne storage capacity.
Construction of the India-Bangladesh Friendship Pipeline commenced through a formal inauguration in March 2020.
The completed pipeline will help ensure a stable supply of diesel in all 16 northern districts under Rangpur and Rajshahi, facilitating quick fuel transportation at a minimum cost in the region.
At present, imported diesel is supplied to two BPC oil depots, namely the Parbatipur oil depot and Baghabari oil depot in Sirajganj, through wagons and trawlers from the Chattogram and Mongla ports, officials said.
Currently, it costs about $8 to transport each barrel of fuel from the port city, making it a time-consuming and costly affair.
But the rate would drop to around $5 per barrel if the diesel supply starts through the pipeline as it will then take just one hour for the fuel to reach Parbatipur instead of the couple of days needed at present, they added.
Considering all these aspects, the government had taken the initiative to import diesel from Numaligarh Refinery Limited to ensure uninterrupted fuel supply in northern districts.
The governments of India and Bangladesh eventually signed a deal to this end with the project costing an estimated Tk 520 crore.
Of the amount, India is paying Tk 303 crore while Bangladesh is funding the rest.
The project was initially set for completion by June this year.
Bangladesh Prime Minister Sheikh Hasina and her Indian counterpart Narendra Modi had earlier laid the foundation stone via videoconferencing on September 18, 2018.
After 17 months of signing the contract, the first shipment of 22-inch diameter pipes arrived in Bangladesh through Benapole Land Port in February 2020. Officially, work on the pipeline started in early March the same year.
Numaligarh Refinery Limited of India and Meghna Petroleum Limited of Bangladesh are jointly implementing the project, officials said.
Of the 130-kilometre stretch, just 5 kilometres of the pipeline is in India. Of the remainder, 82 kilometres are in Panchagarh, 35 kilometres in Dinajpur and the rest are in the Nilphamari and Badarganj upazilas of Rangpur.
Md Masudur Rahman, managing director of Meghna Petroleum, told The Daily Star that more than 90 per cent of the work is complete and the remainder will be done after the end of the monsoon season.
However, he refused to give any set date for the start of diesel imports.
Sources say that a tentative date would be set by a joint meeting between officials of Numaligarh Refinery and Meghna Petroleum after the project is complete.
Through the pipeline, around one million tonnes of diesel can be imported from India to Bangladesh each year.
Initially, Bangladesh will purchase around 2.5 lakh tonnes of diesel and the volume will be increased up to 4 or 5 lakh tonnes in the following years.
Under the contract, Bangladesh will import diesel for 15 years from the day supply begins.
Bangladesh currently imports around 2,200 tonnes of diesel each month from Numaligarh Refinery through the West Bengal Railway and the BPC carries the fuel through Bangladesh Railway to the Parbatipur oil depot before it is supplied at the consumer level.
India-Bangladesh Oil Pipeline: Dev work 90% complete, officials say
Diesel imports from Numaligarh Refinery Limited in India’s Golaghat district to an oil depot in Parbatipur upazila of Dinajpur will likely begin at the end of the year if the India-Bangladesh Friendship Pipeline is completed on time, according to project officials.
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MV Rishad Rayhan, the first ship under the trial run of transshipment of Indian goods to its north-eastern states, reached Mongla sea port of Bangladesh today (August 8, 2022).
The ship arrived at jetty No-9 of the port this morning from Kolkata port under the Agreement on the Use of Chittagong and Mongla Port for Movement of Goods from India (ACMP), Rear Admiral Mohammad Musa, chairman of Mongla Port Authority (MPA), told The Daily Star.
"Today, a milestone has been set regarding transportation of goods with India using the Mongla Port," he said, adding that the agreement is expected to further strengthen friendship and economic ties with India.
Indian Assistant High Commissioner Indrajit Sagar was present at Mongla Port when the ship reached there.
According to port sources, the ship is carrying 16,380 tonnes of iron pipes and 8.5 tonnes of prefoam.
Transshipment of Goods to Northeast: First Indian shipment reaches Mongla port
A cargo ship carrying Indian goods reached the Mongla seaport today (August 8, 2022), the first such arrival to the port under the trial run of transshipment of products destined for the north-eastern states.
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Bangladeshi delegation had a list in this meeting for military equipment to use the LoC partially. Source from MoFA said BD plans buy big military truck and LAV/MRAP. @Nilgiri any idea which one has more chance to be procured?
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If I had to guess, the trucks have likelier chance. They remain more in line with the established conventions in the relationship when it comes to military procurements for reasons you well know.
But it will be interesting if BD goes for Indian armoured vehicles as that would herald a new chapter. There is increasing competitive diverse line up from Indian private sector here too.
Let us see.
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The senior officials of different ministries concerned today agreed to sign the Comprehensive Economic Partnership Agreement (CEPA) with India to expand trade and investment with the neighbouring country.
The inter-ministerial meeting on CEPA was attended by the officials of some important ministries, including foreign, labour, commerce, home affairs, along with different departments of agencies of the government at the commerce ministry in Dhaka.
Tapan Kanti Ghosh, senior commerce secretary, chaired the meeting.
"In the inter-ministerial meeting, all the senior officials of the ministries concerned agreed that the negotiation with India for signing the CEPA can be started," Abdur Rahim Khan, additional secretary to the commerce ministry, told The Daily Star over phone.
The negotiation of the CEPA with India is a part of the government's massive initiatives to sign trade deals with major trading partners to retain the duty benefit after the country's graduation to a developing nation in 2026.
However, CEPA is not only a Free Trade Agreement (FTA) or a Preferential Trade Agreement (PTA), it is also a broader kind of trade deal that covers issues like investment and employment.
Recently the parliament also adopted a law on signing the FTA, PTA and CEPA with the potential and major trading partners as the country will need to retain the duty benefit after its LDC graduation.
In a visit to India in April this year, Commerce Minister Tipu Munshi said Bangladesh is keen to clinch the CEPA with India in a year.
Both Bangladesh and India had agreed to sign the CEPA in 2018.
Govt one step closer to sign CEPA with India
The inter-ministerial meeting on CEPA was attended by the officials of some important ministries, including foreign, labour, commerce, home affairs, along with different departments of agencies of the government at the commerce ministry in Dhaka.
Prime Minister Sheikh Hasina has given her seal of approval to a proposal to begin formal negotiations towards signing the Comprehensive Economic Partnership Agreement (CEPA) with India, according to sources in the know about the development.
She also agreed on including this deal signing issue in the joint statement to be issued by the Bangladeshi and Indian PMs during her upcoming visit to India slated for 5-7 September.
Earlier, the commerce ministry sent a summary to the premier, seeking her permission for starting talks over striking the proposed agreement.
Bangladesh is thus for the first time going to officially start negotiations on signing a free trade agreement (FTA) with any country. Some other countries, including China and Japan, have offered Bangladesh FTA proposals, but everything is now at an assessment stage.
The CEPA is a little different from the FTA as it covers many issues, including trade in goods and services, investment, intellectual property rights and e-commerce.
According to the summary on what Bangladesh and India will gain from the trade deal once it is signed, Bangladesh's export earnings will shoot up by 190% and India's by 188%.
Besides, Bangladesh and India will see their gross domestic product (GDP) grow by 1.72% and 0.03% respectively as revealed by a Dhaka-Delhi joint feasibility study.
"Signing such an agreement with major trade partners brings about good results. But a risk of a fall in revenue is also associated with it. In FY22, Bangladesh generated Tk17,964 crore against imports amounting to Tk1,44,160 crore," the commerce ministry said in the summary.
If the CEPA is signed, import revenue will come down to a large extent in phases, it noted.
But as other aspects related to economic development, including services and investments, are included in CEPA, it is expected that there will be a positive impact on the overall economy if the deal is inked, the ministry pointed out.
In the last fiscal year, Bangladesh's exports to India rose to nearly $2 billion for the first time, while imports stood at around $14 billion.
Officials at the commerce ministry said Bangladesh currently enjoys duty-free and quota-free benefits for all products except 25, such as tobacco and alcohol, in the Indian market as a least developed country under the South Asian Free Trade Area agreement.
When Bangladesh graduates to a developing country, such facilities will no longer be available in the market after 2026. As a result, there is a risk of a negative impact on exports to India, they also said.
According to the ministry, there are various types of non-tariff barriers to exports to India, including the imposition of an anti-dumping duty, testing and certification, inadequate port infrastructure, and road and waterway communication restrictions. If such barriers are removed, exports of Bangladeshi products have potential for further growth.
During the visit of Indian Prime Minister Narendra Modi to Bangladesh on 27 March 2021, the prime ministers of the two countries issued instructions on quickly completing the joint feasibility study relating to the signing of the CEPA to strengthen bilateral trade relations.
Accordingly, Bangladesh's Foreign Trade Institute and India's Centre for Regional Trade conducted a detailed joint feasibility study. Later in May this year, they sent the study report to their respective commerce ministries. The report came up with a positive opinion over beginning negotiations for the signing of CEPA.
The commerce ministry held an inter-ministerial meeting on the report and it decided to start negotiations with India for signing the SAPA with certain precautions.
On 26 July, ahead of the PM's upcoming visit to India, Bangladesh High Commissioner to India Muhammad Imran met with India's Commerce Secretary BVR Subrahmanyam and discussed various issues of bilateral trade.
At the time, India's commerce secretary said, "The FTA negotiations should be done in a way that Bangladesh benefits more compared to India."
Once the trade deal is signed, Bangladesh's export earnings will go up by $3-5 billion and India's by $4-10 billion in the next 7-10 years, according to a final draft report of the joint feasibility study by Dhaka and Delhi.
New investment windows will also open up for both countries thanks to the proposed CEPA, said the report.
The report says, "It may be concluded that the estimates and analysis of this study indicate that the proposed CEPA between India and Bangladesh is not only feasible but also mutually beneficial in terms of possible gains in the realms of trade in goods and services, and investment."
Dr Mostafa Abid Khan, a trade policy analyst and trade negotiator, told The Business Standard that Bangladesh's main goal during the CEPA negotiations should be staying eligible for duty-free export facilities in the Indian market even after LDC graduation.
"We should also try to remove non-tariff barriers that are hindering our exports to India," he said.
Before starting formal negotiations, a detailed study needs to be done on what Bangladesh needs from India. In this case, it is also important to discuss with the private sector. Otherwise, it will not be possible to get expected benefits from the CEPA, he added.
Abdul Matlub Ahmad, president of Bangladesh-India Chamber of Commerce and Industries and former president of the Federation of Bangladesh Chambers of Commerce and Industries, told TBS that the value chain is now the most important issue in the world.
"India has cotton. We can make yarns and garments. So, if the CEPA is signed, joint investment as well as bilateral trade between the two countries will increase," he said.
The skills and resources of the two countries can be utilised for each other's development through the signing of the CEPA. This will benefit both countries. There will also be opportunities to create many jobs in Bangladesh, he noted.
"I agree with the fact that the final draft report of the joint survey has raised the possibility of increasing bilateral imports and exports," Abdul Matlub added, hoping that the trade volume will further increase if the existing barriers to bilateral trade under the CEPA are removed.
Prof Mustafizur Rahman, distinguished fellow of the CPD, earlier told TBS that the signing of the CEPA can be a win-win for both countries as such a deal covers trade, investment, connectivity, logistics, and various policy coordination issues.
It is not just tariff adjustment or tariff reduction through the CEPA, "We also need to focus on how we can boost our investment in India's north-eastern region and attract Indian investors to our special economic zones."
"It will be particularly good for us if we can bring in Indian investment in our economic zones and target the Indian market, cashing in on the advantage of zero tariffs," he added.
PM okays major trade deal negotiations with India
Prime Minister Sheikh Hasina has given her seal of approval to a proposal to begin formal negotiations towards signing the Comprehensive Economic Partnership Agreement (CEPA) with India, according to sources in the know about the development. She also agreed on including this deal signing issue...
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