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Nilgiri

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India proposes Bangladesh to jointly produce defence equipment​


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Photo: BSS
BSS, Dhaka
Indian High Commissioner in Dhaka Pranay Verma yesterday proposed Dhaka to develop and produce defence equipment jointly while inviting Bangladesh Armed forces to benefit from India's cost-effective and high quality military gear.
The envoy also expressed India's readiness to partner with Bangladesh in its defence modernisation through the $500 million Defence Line of Credit extended by New Delhi to Dhaka earlier.

Verma made the remark while presenting a keynote speech at a seminar on Indian Defence Equipment (SIDE) in Dhaka as part of the initiative to promote defence industry cooperation between India and Bangladesh, said a press release issued by Indian High Commission here.
The envoy urged the defence industry on both sides to take full advantage of the Defence Line of Credit.
The high commissioner identified defence industry cooperation between India and Bangladesh as an emerging focus area of their defence partnership.
He highlighted the accomplishments of the Indian defence industry over the last nearly a decade driven by Indian prime minister's vision of "Make in India, Make for the World".
Chief of General Staff of Bangladesh Army Lt Gen Ataul Hakim Sarwar Hasan also made a separate keynote speech.
The Bangladesh Army chief praised India's defence manufacturing capabilities and proposed closer cooperation between the two sides for closer defence industry partnership.
Several key Indian defence manufacturers, from both public and private sectors, participated and made presentations on their defence products and platforms.
Representatives from Bangladesh Armed Forces, paramilitary forces, as well as law enforcement agencies were present.
India and Bangladesh have close and friendly defence relationship that covers diverse areas of cooperation and is guided by the spirit of their shared sacrifices during the Liberation War of 1971.

@Nilgiri

This has been same formula repeated a while now. Things wont really change IMO unless there is greater trust built within BD military w.r.t India...given obviously this is in some state of deficit now due to whole host of reasons.

BD political admin anyway cannot impose things upon BD military if there are real concerns there....given those concerns will remain a long time especially if there is feeling/resentment that grows by it being bypassed in some way. In any case even BD political admin has a complicated relationship with India.

So I feel BD will maybe make some token responses and maybe some limited production venture on something not too critical.....and remain focused on defence imports (and local collaboration + production) from further distance away.

i.e You dont want to be reliant on key things with huge neighbour you have complicated relationship with basically....and Bangladesh is not a small population either (so it has a fair amount of options to address things itself and experience built up on this so far).

This keeps the overall relationship in a healthier state too if BD public see low reliance on India (militarily) till both countries grow and mature more economically and keep relationship more focused there first to chug along till final domains of it can improve long term in a more rational succession.

You see same phenomenon in history and present day more generally all the time.
 

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The Ministry of Agriculture has approved a proposal to import 5732.02 tonnes jute seed from India this year against country’s demand of 6400 tonnes of jute seeds.

The decision was taken following the 109th meeting of the National Seed Board with Agriculture Secretary Wahida Akhter in the chair on Thursday.

“The annual demand of country’s jute seed including the most popular varieties like Mesta and Kenaf has been fixed almost 6,369 tonnes ---of its Bangladesh Agricultural Development Corporation (BADC) will supply 1,300 tonnes and the rest nearly 5200 tonnes will be imported from India”, reports BSS citing an official release.

In 2023-24, kenaf and mesta jute will be cultivated on country’s 7,64,000 hectares of land where nearly 6400 tonnes of jute seed is needed to fulfill jute cultivation target.

Of the total required seed, the release said the government has issued permission to import 4,600 tonnes of Indian tossa jute variety JRO-524 and another 576 tonnes jute seed of Mesta and Kenaf variety also.

During last year, the government has approved to import 5,000 tonnes of jute seed while the net import was only 4,166 tonnes.

 

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Indian conglomerate Adani Group’s subsidiary Adani Power has begun supplying electricity from its plant in Jharkhand to Bangladesh after a test run.

On Thursday evening, Bangladesh was receiving 70 megawatts of electricity from Godda Power Plant after the launch of transmission, said Power Secretary Habibur Rahman. Supply will rise gradually in line with demand, according to him.

Badruddoza Sumon, a spokesman for the Power Grid Company of Bangladesh, said they informed Adani and the Power Development Board after completing preparations for the transmission on Wednesday.
The PGCB has set up a substation in Bogura and 134 kilometres of transmission lines from the Chapainawabganj border to transmit power from the Godda plant.

Bangladesh has been importing power from India for supply without disruption since 2013. Now Bangladesh receives 1,000 MW of electricity from Bahrampur in West Bengal via Kushtia’s Bherama and 160 MW from Suryamoni in Tripura via Cumilla daily.

Adani Power and Bangladesh Power Development Board signed a memorandum of understanding in 2015 following a joint declaration issued during Indian Prime Minister Narendra Modi's visit to Dhaka that year. As per the MoU, the entire production from the project can be supplied to Bangladesh.

Meanwhile, Adani Group is facing its worst-ever crisis following accusations of stock manipulation and accounting fraud by US firm Hindenburg Research. The group’s market losses swelled to more than $100 billion.

Some farmers also legally challenged the construction of Adani transmission lines on farmlands at an Indian court.

Media reports said Bangladesh sent a letter to Adani Power Ltd to negotiate a lower import price for coal under the power purchase agreement. The reports also suggested both sides held “positive talks” on the issue.

 

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India has urged the Bangladesh government to resume the import of meat from the neighbouring country as the traders concerned in both the countries are being hit hard by the non-shipment of such items, officials said.

The Indian embassy in Dhaka has recently sent a letter to the Ministry of Fisheries and Livestock with a request to resolve the issue.

The Bangladesh government has stopped the import of frozen meat, especially buffalo meat, from India with a view to protecting local cattle farmers and helping the domestic livestock sector flourish, a sector insider said.

According to the Import Policy-2021-24 Notification that was issued in April 2022 by the commerce ministry, prior approval has to be taken from the Department of Livestock for import of meat including frozen buffalo (bovine) meat, says the letter.

Both Indian exporter and Bangladeshi importer associations have raised concern over the issue in the past couple of months, reads the letter.

They also have highlighted that due to change in the import policy, no import of frozen bovine meat has taken place in the past few months affecting their businesses.

All Indian Buffalo and Sheep Meat Exporters Association (AIMLEA) and Bangladesh Meat Importers and Traders Association (BMITA) have requested the Bangladesh government authorities concerned to consider resolving the issue.

The letter highlighted that the Bangladesh national budget for the fiscal year 2021-22 imposed 20 per cent supplementary duty along with an increase in the assessment value from US$ 4.0/kg to US$ 5.0/kg that was introduced for frozen boneless bovine meat imports from India. The issue nullifies the SAFTA benefit available to Indian exporters, it said.

It mentioned that Indian companies are among the largest global exporters of high-quality, hygienically processed meat, of a variety that is non-competitive in Bangladesh.

Bangladesh is now self-sufficient in meat production, a source said, but spent nearly US$ 2.5 million in the fiscal year 2017-18 to import the item from 14 countries. Some luxury hotels and food chains import the meat, the source added.

The country produced over 8.44 million tonnes of meat in the FY 2020-21 against an annual demand of nearly 7.4 million tonnes, according to the Department of Livestock Services (DLS).

According to a Bangladesh Garment Manufacturers and Exporters Association (BGMEA) concept paper, meat import has increased by about four times in five years -- from US$ 0.72 million in FY 2013-14 to nearly US$ 2.5 million in FY 2017-18.

Bangladesh imported meat from 14 countries, with India being the largest source.

Other countries included Ethiopia, France, Korea, Thailand, China, United Arab Emirates (UAE), USA, Pakistan, Malaysia, Singapore and Indonesia.

 

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Indian auto giant Mahindra and Mahindra (M&M) has shut down the operations of its wholly-owned subsidiary Mahindra Bangladesh Private Limited (MBPL).

In a regulatory filing in India, it said shutting down the inoperative entity would not interrupt Mahindra's prevailing business of import and distribution of a wide range of commercial, passenger, and utility vehicles as well as construction and agricultural equipment that have been under the operations of a branch office of the Indian company for more than two decades in Bangladesh.

M&M convened its last general meeting with shareholders on 14 March and approved the final voluntary winding up, the company disclosed in the filing.

MBPL, a different venture altogether created four years ago, has been liquidated and ceased to exist effective from Tuesday, Indian media said, adding that it had zero income from operations as on 31 March last year.

Its net worth, as of that point, stood at some Tk4 crore (₹3.18 crore), constituting 0.01% of the consolidated net worth of the Mumbai-based auto major, M&M noted.

In September 2022, MBPL shareholders passed a resolution proposing the winding up of the unit and the appointment of a liquidator to complete the process.

Thereafter, MBPL did not undertake any business operations.

M&M incorporated Mahindra Bangladesh in 2019.

According to the company's previous statement, the objective of the Bangladesh subsidiary was "to carry on the businesses of trading, distributing, supplying, storing, exporting, importing, servicing, manufacturing, developing, assembling, leasing, selling on hire-purchase or instalment systems, and conducting research and development, of all kinds of passenger, transportation, and utility vehicles, including but not limited to tankers, tractors, agricultural machinery, multi-utility vehicles, trailers, lorries, trucks, buses, motor cars, motor cycles, three-wheelers, or other motor vehicles."

Earlier, local company Aftab Automobiles started manufacturing Mahindra two-wheelers in its Chattogram factory, but with little success, it shut down the two-wheeler business in 2022.

Mahindra itself had earlier opted out of manufacturing small commuter motorcycles and focused on medium segment motorcycles, which are yet to be allowed on Bangladeshi roads.

 

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Bangladesh has raised eyebrows over neighboring India’s move to divert transboundary Teesta River waters for agricultural purposes, calling it “alarming” as further withdrawal of the joint waters would be disastrous for the country's downstream agriculture lands.

Bangladesh will send a letter to India's Central Water Commission to seek an explanation for the diversion of fresh water, Joint Rivers Commission (JRC) Member Mohammad Abul Hossen told Anadolu on Friday.

An Indian newspaper reported last week that West Bengal's irrigation department had taken possession of approximately 1,000 acres of land to dig two more canals under the Teesta Barrage Project to channel water for agricultural purposes.

Under the new project, India will build three hydropower plants in Darjeeling, two of which will draw water from the Teesta River, according to The Telegraph.

Bangladesh is prepared to write to India asking for an explanation and for details about the projects that the Indian government has launched to dig canals to divert water from the joint river for agricultural use.

The 414 kilometers (257 miles) Teesta River originates in the eastern Himalayas and crosses northern Bangladesh.

Bangladesh has 57 transboundary rivers, 54 of which are shared with India and three with Myanmar.

"They (India) should have informed us, but we have not been informed of anything officially. Therefore, we will send a demi-official letter to the Indian counterpart to know the facts and express our concern that such an initiative would have an impact on the Teesta downstream in Bangladesh," JRC's senior official Hossen said.

The JRC usually provides water for irrigation to 55,000 hectares of agricultural land during the dry season, but this year it has only provided water to 35,000 hectares due to a lack of water flow in the Teesta River and other renovation work in canals of the Teesta barrage project, he explained.

The Teesta Barrage, located 44 kilometers (27 miles) northeast of Nilphamari, began operation in 1979.

The river nearly dried up during the dry season due to irrigation and water control upstream in India, he said, adding that if the waters are diverted further, the entire ecosystem in the Teesta downstream will suffer.

"We don't have minimum water flow in the Teesta during the dry season, no water, no fish are found in the river with only limitless char or sandbanks due to the overcontrol of water flow in the upstream in India," he said, adding that they are forced to take this step.

Bangladesh State Minister for Water Resources Zaheed Farooque also called the initiative concerning. He told reporters in Dhaka on Thursday that the government will ask New Delhi to explain the situation.

Meanwhile, in its weekly briefing, Foreign Ministry spokesperson Seheli Sabrin said Bangladesh is monitoring the situation and will take the appropriate action based on India's response.

Despite repeated assurances from New Delhi, including Prime Minister Narendra Modi, and protests from India's West Bengal state, Bangladesh could not have allowed its neighbor to sign the long-standing water-sharing agreement over the last 12 years.

Some 11 small rivers in Bangladesh, mostly in northern districts that are dependent on Teesta River water flows, are now dying due to wishful waters withdrawing upstream in India in the absence of a water-sharing deal.


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Prime Minister Sheikh Hasina and her Indian counterpart Prime Minister Narendra Modi on Saturday formally inaugurated 'Indo-Bangla Friendship Pipeline'.

The 131.57-kilometre cross-border pipeline was inaugurated as part of cooperation in energy sector between the two neighbouring countries through which Bangladesh will import petroleum products, especially diesel from India.

Hasina was connected from her official residence Ganabhaban while Modi was connected from his office in New Delhi.

Of the pipeline, 126.57 kilometres are in Bangladesh while the remaining 5 kilometres have been installed in India.

The BPC, the state agency under the Energy and Mineral Resources Division, has been implementing the project under a 15-year deal with India to annually import 250,000 tonnes to 400,000 tonnes of diesel from the neighbouring country through the cross-border pipeline.

The deal was signed in 2017 following the approval of the Cabinet Economic Affairs Committee on August 23.

Bangladesh annually needs to import 6.6 million tonnes to 7.7 million tonnes of diesel to meet its demand.

According to official documents, the whole consignment of petroleum will come through the cross-border pipeline from India's Numaligarh refinery, located in Golaghat in north-eastern Indian state of Assam, while Bangladesh will receive it at Parbatipur petroleum fuel depot in the north-western district of Dinajpur.

Official sources said though most part of the proposed pipeline is to be laid in the Bangladesh part, the Indian government has provided about Rs 303 crore as a loan under Indian line of credit (LOC) to build the Bangladesh portion.

Bangladesh will operate the pipeline in its part while India will operate the pipeline in its portion.

The documents also reveal that Bangladesh will annually import 250,000 tonnes in the first three years, 300,000 tonnes annually in the 4th to 6th years, 350,000 tonnes annually in the 7th to 10th years and 400,000 tonnes annually from the 11th to 15th year.

Currently, Bangladesh has been importing 22,000 tonnes of diesel per month using railway wagons.

The deal could be extended for a further period of time.

Such petroleum imports from India through cross-border pipelines will help create a stock of petroleum in the northern region to meet the growing demands in that part of the country.

Indian Ministry of External Affairs on Friday said that the operation of the Bangladesh-India Friendship Pipeline will put in place a sustainable, reliable, cost-effective and environment-friendly mode of transporting fuels from India to Bangladesh.

It will further enhance cooperation in energy security between the two countries.

This is the first cross-border energy pipeline between India and Bangladesh, built at an estimated cost of Rs 377 crore, of which the Bangladesh portion of the pipeline built at a cost of approximately Rs 285 crore, has been borne by the government of India under grant assistance.

The Pipeline has a capacity to transport 1 million tonnes per annum of High-Speed Diesel (HSD).

It will supply HSD initially to seven districts in northern Bangladesh.


The Indian government allowed passenger movement between India and Bangladesh through the Mahadipur immigration check-post (ICP) in Malda after a three-year gap on Thursday.

"Authorities have provided permission for immigration through the Mahadipur ICP. We are putting all efforts so that people can again start using this route," said Malda District Magistrate Nitin Singhania, reports The Telegraph.

Movement of people resumed along the route from Mahadipur in Malda leads to Sona Masjid under the Chapainawabganj district

The movement of people and goods through this route was stopped on 15 March 2020 because of the Covid-19 pandemic.

Although the border reopened on 4 June 2020, it was only for the movement of goods.

However, before the pandemic, around 200 residents of Bangladesh would enter India through Mahadipur daily.

 

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Indian company VA Tech Wabag (Wabag), a pure-play water technology company, has secured an order worth around Tk1,000 crore towards Design, Build and Operate (DBO) for reconstruction, expansion and operation of the Pagla Sewage Treatment Plant (STP).

The treatment plant, with a capacity of 200 Million Litres per Day (MLD), is located in the capital's Pagla area, reports Indian media.

The development project will be done for the Dhaka Water Supply and Sewerage Authority (Dhaka Wasa) with funds from multilateral funding agencies including the World Bank (WB) and Asian Infrastructure Investment Bank (AIIB).

The scope of the project includes design, engineering, supply, construction, installation and commissioning of the 200 MLD STP followed by Operation & Maintenance (O&M) for a period of 60 months.

The Indian company Wabag, in a recent statement, said that given that the plant will operate based on an activated sludge treatment process, which uses biogas generated during the wastewater treatment process, the order also meets the environmental norms and combats global climate change.


Prime Minister Sheikh Hasina today stressed the need for enhancing regional connectivity for boosting trade and commerce, offering India to use Chattogram and Sylhet ports for mutual benefits.

"India can use our Chattogram and Sylhet ports if they want," she said when Member of the Governing Council of India Foundation Ram Madhav called on her at her official residence Ganabhaban here. PM's Deputy Press Secretary KM Shakhawat Moon briefed the reporters after the meeting.

Sheikh Hasina mentioned that increased connectivity in the regions will help enhance people-to-people contact.

She conveyed her greetings to the Indian Prime Minister through Ram Madhav.

Ram Madhav highly appreciated the socioeconomic advancement in Bangladesh under the unparallel leadership of Prime Minister Sheikh Hasina, saying, "Bangladesh and India have excellent friendship as neighbouring countries and hope that this relation will continue in future."

Ambassador at Large M Ziauddin, State Minister for Foreign Affairs M Shahriar Alam and PM's Principal Secretary M Tofazzel Hossain Miah, among others, were present at the meeting.

 

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Inditex appears to be the first shipper to use a new land-air corridor out of Bangladesh via India, following a bilateral agreement.

The first freighter service, a 747-8F operated by Atlas Air, departed from Delhi Airport on Monday for Zaragoza in Spain, where Inditex has a logistics centre, carrying some 124mt of cargo.

The consignment was mainly ready-made garments (RMG), the mainstay of Bangladesh’s export trade, which has expanded market share as global importers increasingly search for alternative markets to doing business with China. Booked RMG exports from Bangladesh for the first half are up 15.5%, year on year.

The first transhipment move, from Bangladesh to Delhi, involved a five-day journey by road, using a fleet of some 20 trucks, according to industry sources.

The shipment followed a trial, handled by Delhi Air Cargo on 3 March, under the cross-border transhipment arrangement. The Indian transhipment connectivity is a big boost for Bangladesh exporters that are reeling under direct/reliable supply chain constraints. Delhi Airport has expansive international flight connections and wider market reach than Dhaka.

However, for the coming month, the cost of land transport in Bangladesh is expected to spike as Ramadan begins. Yesterday, trucking rates in Chittagong increased between 40% and nearly 100%.

Chowdhury Zafar Ahmed, secretary general of the Bangladesh Covered Van-Truck-Prime Mover Goods Transport Owners Association, said some truckers were now charging up to $450 for a Chittagong-Dhaka trip, up from about $240.

He added that trucks and covered vans were now charging about $200 to carry cargo to Dhaka, or garment district Narayanganj, from Chittagong, compared with $150 yesterday.

“The supply of export cargo is now very scant. Some truckers are now charging two-way rates, [backhaul and fronthaul] despite carrying goods only one way,” he added.

Ramadan in Bangladesh begins this evening and ends on 20 April, when rates are expected to fall again.

Road access between India and Bangladesh has seen significant improvement, thanks to a 1.9-km bridge over the Feni River that now connects Sabroom (Tripura) in India with Ramgarh in Bangladesh, providing a shorter and more economical alternate route.

Transhipping Bangladesh cargo by sea and air routes could also bump up cargo volumes for Indian gateways, bolstering New Delhi’s goal of regional trade hub development.

Vineet Malhotra, co-founder and director at Kale Logistics Solutions, told The Loadstar the Delhi air corridor presented considerable growth potential for the Bangladesh export industry, adding that the Indian air cargo industry was on the cusp of major development and transformation because of a heavier government focus on airport expansion.

“India is currently the seventh-largest civil aviation market in the world and is expected to become the third-largest within the next 10 years,” he noted. “Airlines operating out of India are now finding it more viable to carry cargo and increase their supply of freighters with dedicated infrastructure and digital platforms like air cargo community systems in place.”

Mumbai Airport has reported a near 30% increase in overall cargo volumes this year, with international freight up 26% and domestic shipments up 40%. Bangalore Airport has also seen strong cargo growth, emerging as the top perishables handler in the country.

 

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Bangladesh needs more than $1.6 billion in additional funding to complete the developmental projects that are being implemented under the three Indian Line of Credits (LoC).

Accordingly, Bangladesh proposed India to sign a new framework agreement to secure the funding needed to cover cost overruns in some of these ongoing projects, officials of the Economic Relations Division (ERD) said.

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As part of the proposed framework, funding would be transferred from slow-running projects or those that have been dropped from the LoC list to projects that are making faster progress towards completion, as explained by ERD officials.

"We will initially need an additional $1.6 billion in LoC-funded projects but it may take more than that. The cost of all ongoing and in-process projects will increase. This may require a reevaluation of the funds available for active projects," a senior ERD official, on condition of anonymity, told The Business Standard (TBS).

For example, the Dhaka-Tongi-Joydebpur rail line project will require an additional $66 million, in addition to $235.1 million previously provided by India, he said.

The IT/Hi-Tech Park establishment (in 12 districts) project needs $47 million in addition to a $193 million Indian loan, the official said.

Besides, the Benapole-Jashore-Narail-Bhatipara-Bhanga Road project will require an Indian loan of over $1 billion, on top of the $100 million given earlier, he told TBS.

The ERD official said, "An Indian Technical Committee will visit Bangladesh to find out how much additional funding will be needed for all the projects. We wanted the team to come in March, but their visit was deferred to May due to Ramadan."

The exact amount of additional funding and its sourcing will be known after the arrival of the Indian team. A decision will be made on whether to arrange additional financing by relocating funds from slow-moving projects or through new loans from India, the official added.

During the 3rd meeting of the high-level project monitoring committee held on 14 February in Dhaka, both countries discussed the additional costs of the projects. Officials have decided that a technical team from India will visit Bangladesh to hold discussions and work out the details of the proposed new framework agreement.

The meeting was co-chaired by Special Secretary Prabhat Kumar from the Indian side and ERD Secretary Sharifa Khan from the Bangladesh side.

New framework agreement:

ERD officials said that in the new framework agreement, a project-based loan repayment and grace period facility has been proposed. India has also agreed to discuss a project-based grace period facility instead of the LoC-based one.

Under the terms of the current framework agreement with India, the calculation of the entire debt period starts immediately after the loan disbursement in any project under the LoC package.

An LoC package can have a maximum of 15 projects. Once a project has started, the grace period kicks in, even for projects yet to be implemented.

When the Indian technical team arrives, a deadline will be fixed for the existing three LOCs. All projects and contracts expected to exceed that deadline will be shifted to the new framework agreement.

Officials familiar with the matter said the new arrangement will allow projects to have their own specific stand-alone repayment timeline. New projects that are currently under discussion could also be included under this larger framework agreement, and individual project-specific financing agreements could be finalised.

Status of LoC-funded projects:

Of the 42 projects under three Indian LoCs, 14 have been completed and the remaining 28 projects are at various stages of implementation.

Of the remaining projects, eight are at the physical execution stage, and 11 are at the tendering stage. Some projects have been excluded from the LoC list due to implementation complications.

India has so far disbursed a little over 18.2% of the total $7.35 billion committed to Bangladesh under three lines of credit (LoCs) in more than 12 years, ERD data show.

Causes for delay in implementation and an increase in costs:

The requirement to obtain consent from the Indian authorities for every project under the LoC programme and approval at various stages has caused delays in project implementation and disbursement, according to officials of the ERD and implementing agencies.

At the 3rd high-level meeting, ERD officials also stressed that the ministries concerned about the LoCs should quickly determine the exact amounts of fund escalation so that additional requirements can be discussed.

In the meeting, officials concerned said additional money is required for the Dhaka-Tongi-Joydebpur rail line project, which is being implemented under the first Indian LoC. Since the Indian contractor company is not working at the moment, no money is being spent on the Kulaura-Shahbazpur railway project under the same LoC. Hence, the fund of the Kulaura-Shahbazpur project can be used for the Dhaka-Tongi-Joydebpur rail line project.

The ERD informed the Indian authority that the Dhaka-Tongi-Joydebpur rail line project will require an additional $66 million loan. The Indian side assured the ERD that the request will be assessed as soon as possible.

Construction work on the Dhaka-Joydebpur project began in 2012. The project, which was supposed to be completed in three years, will now take 15 years, to be completed in 2027.

Project Director Nazneen Ara Keya told railway officials that the feasibility study of the project had not been done properly, which was the reason for the delay.

So far, the progress of the project is about 65% and the cost is being increased to Tk3,265.76 crore, which is four times the original estimate.

Meanwhile, railway officials said the cost of the Kulaura-Shahbazpur railway line project will increase again. The project, which started in June 2011, is being implemented by the Indian contractor firm Seoul. Project work stopped after 25% of progress.

Project Director Md Sultan Ali said progress in this project has been hindered due to the non-operation of the contractor. The project expired last December and the process for a two-year extension is now underway.

In November 2017, Bangladesh Railway signed an agreement with the Indian contractor Kalindee Rail Nirman, a concern of Texmaco Rail and Engineering Limited, for the restoration of the Shahbazpur railway line in Brahmanbaria from Kulaura in Maulvibazar. According to the contract, the contractor was supposed to complete the construction work in May 2020.

At the 3rd high-level meeting, the ERD noted that it may be better to terminate the Texmaco contract due to underperformance. The slow progress of this project was acting as a drag on LoC 1 and so it may be better to terminate the current contract and take on balance works under a new contract or project.

The Ashuganj-Sarail-Dharkar-Akhaura road project is also progressing slowly due to a cash flow problem of the Indian contractor. In addition, the cost of the Ashuganj inland container river port project will increase by 10% to 15%.

The cost of the Barapukuria-Bogura-Kaliakoir 400 KV line project has already increased due to an increase in the tender price. A proposal to amend this delayed project was recently approved by the Executive Committee of the National Economic Council (Ecnec). The project cost has been increased from Tk4,052 crore to Tk10,247 crore. Of which, the Indian loan increased from Tk2,050 crore to Tk6,373 crore.

Slow-moving projects:

According to ERD officials, of the slow-moving projects identified till February this year, the Bay Container Terminal project at Chattogram (with a $400 million loan), the Saidpur airport project ($375 million loan) and the Saidpur Railway Carriage Workshop project ($375 million loan) may be shifted under the proposed new framework agreement.

The project to build solar-based stations for the Teletalk network in hard-to-reach areas (with a $30 million loan) could be permanently dropped as nearly 50% of the 420 towers planned for construction under this project had been constructed under other ongoing projects.

Officials said several projects have been excluded from the Indian LoC list due to similar complications. Some other projects may also be dropped.

The establishment of Sheikh Hasina Medical College and Hospital and a nursing college in Jamalpur, along with the construction of 500-bed hospitals in Jashore, Cox's Bazar, Pabna and Noakhali, were also withdrawn from the LoC list by the government.

Besides, the Chattogram Port Authority has said the Bay Terminal construction project will also not be implemented with Indian credit.


Bangladesh on Thursday started receiving electricity from India's Adani Group on a commercial basis under a 25-year power purchase agreement, as the Bangladesh Power Development Board issued the commercial operation date (COD) to unit-1 of the Adani Godda 1,600MW thermal plant.

Adani Power (Jharkhand) Limited, the owner of the plant, received the COD after a successful 14-day reliability test that ended on Thursday.

The PDB issued the COD to the Adani Godda plant based on the reliability test report by the technical committee that returned home on Monday after observing Godda plant facilities.

The reliability test is the continuous uninterrupted operation of the entire facility for 72 hours at maximum load which the Adani Godda plant conducted in presence of a technical committee of the PDB.

The first unit of the Godda plant has the capacity to generate around 750MW of electricity, but the plant is currently ready to supply around 660MW, according to sources.

Meanwhile, Adani Power (Jharkhand) Limited, a wholly-owned subsidiary of Adani Power Limited, informed the National Stock Exchange of India Limited about the COD for unit-1 of the Godda plant in a letter signed by its Company Secretary Deepak S Pandya. The second unit with a capacity of 800MW is also in the final stages of completion and is expected to be commissioned soon, it said.

Earlier on 9 March, the first unit of Adani's Godda 1,600MW Thermal Power Plant was synchronised with the transmission line of the Power Grid Company of Bangladesh.

The Adani Group faced controversy when it requested a power supply order from Bangladesh, which BPDB officials found to be unusually high compared to the cost of coal with the same heating value used in the Payra 1,320MW Thermal Power Plant built in Patuakhali of Barishal.

In a statement issued on 2 April this year, Adani Bangladesh officials, however, refuted the claims, stating that the cost of their power plant electricity would not be higher than that of other coal plants in Bangladesh, including Payra, Rampal, and Matarbari thermal power plants.

The PDB is contractually obligated to purchase at least 34% of the power generated by Adani's plant throughout the 25-year contracted period. If the PDB purchases less than this amount, they will be required to pay Adani the entire cost of the coal used to produce 34% of the electricity generated by the plant. This includes the price of the coal, as well as any costs associated with transportation and port charges.

In contrast, there are no similar conditions in place for the five coal-based ultra-supercritical technology power plants in Bangladesh. The PDB only pays for the amount of coal used to generate the electricity that they actually purchase from these plants. This is the case for both the Payra and Rampal plants.

Adani Power will charge a capacity payment of 5.0969 cents (Tk5.4027) per unit of electricity generated. Annually, Adani will charge Tk6,228 crore solely for the rental of the plant.


Covid restrictions have gone and customers are flocking back to Kolkata's budget markets for this year's Pahela Baishakh and EID boosting sales, The Telegraph India reports.

The closure of Tallah Bridge in 2019 and the COVID-19 pandemic hit the business of hawkers and owners of small shops, stalls, and kiosks hard.

However, as restrictions have eased and international borders reopened, shoppers are coming back to the Hatibagan and New Market areas.

"There's a plethora of offers and shoppers are spoilt with bumper discounts and offers and this is the best time to stock up on your year-long make-up," said Shinjini Ghosh of Barrackpore, who regularly visits Hatibagan market.

Similarly, the Chaitra sale at New Market is experiencing a surge in sales thanks to the return of Bangladeshi buyers who are gearing up for the upcoming Eid celebrations following the reopening of international borders.

Hatibagan has seen an estimated 60% rise in sales compared to the last few years, while New Market is witnessing a 50% increase in sales.

"To be honest, Bangladeshi shoppers are keeping this market alive. While most Kolkatans flock to malls, Bangladeshi shoppers visit us every year during this time," said Md Shamim, a shoe seller at New Market's Globe Gali.

Shoppers favour traditional attire such as lehenga, salwar suits, and cotton sarees for the upcoming festivities, while kurtas and semi-formal suits are also selling well.

"During Eid, we not only shop for ourselves but also for relatives. So, if you are buying in bulk, it's cheaper than in Bangladesh, including the travel cost," said a woman from Jessore.


India has urged Bangladesh to reopen two border haats (markets) in Tripira to promote the local business of the people living on both sides of the frontier.

Union Minister of State for Commerce and Industry, Anupriya Patel, in a letter to Rajya Sabha member and former Tripura CM Biplab Kumar Deb on Friday said that efforts have been ongoing to encourage Bangladesh to reopen the haats, reports the Times of India.

The haats were situated at Kamlasagar and Srinagar in Sepahijala and South Tripura.

"We have been raising the matter in the bilateral meetings with Bangladesh. We are hopeful of an early resolution,” said Anupriya Patel.

Following the outbreak of the Covid-19 pandemic, and the subsequent lockdowns, four border haats - two in Tripura and two in Meghalaya - were closed in March 2020.

Last year, the two border haats in Meghalaya, located in Balat and Kalaichar were reopened, and they now operate on a weekly basis.


India has said it has no immediate response to Bangladesh's diplomatic communication seeking information over media reports on West Bengal digging two more canals to use Teesta water.

"I don't have any immediate response. I don't have the details whether we have responded yet or not," Ministry of External Affairs spokesperson Arindam Bagchi told reporters at a weekly briefing in New Delhi Thursday (6 April).

"I've seen the comment by the (Bangladesh) foreign secretary. This is something we have not made any statement on yet."

Bangladesh Foreign Ministry spokesperson Seheli Sabrin also said India has not yet responded to their diplomatic note (note verbale) seeking to know about the digging of two new canals in West Bengal to withdraw Teesta water.

Earlier, The Telegraph of Kolkata ran a report saying the Bengal irrigation department took possession of around 1,000 acres to dig two more canals under the Teesta Barrage Project to channelise water for agricultural purposes.

The move will help bring more farms under irrigation in Jalpaiguri and Cooch Behar districts but may upset Bangladesh where the Teesta flows into from north Bengal, it added.

Teesta water is crucial for irrigation in the northern part of Bangladesh, especially during the lean period between December and April. The country has been waiting for the Teesta water-sharing deal with India for more than a decade to solve the water scarcity.

 

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Cargo transit between northeast & Chittagong port to start soon​



The transit and transhipment of cargo between northeast India and Bangladesh using Chittagong port will start soon, the neighbouring country’s minister of state for shipping Khalid Mahmud Chowdhury said here on Wednesday.

Tripura is set to become the ‘Gateway of North East’ with access to Chittagong port of Bangladesh, which is just 70 km from Sabroom in the northeastern state, he said.


“We are ready for the start of transit and transhipment of goods between Bangladesh and the northeastern region of India through Chittagong. Trial runs were completed and all arrangements for immigration and customs formalities on the Bangladesh side are also ready,” Chowdhury told PTI.

The statutory regulatory order, required for the movement of cargo from Bangladesh to India, will be issued by the National Board of Revenue.
 

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Is this even feasible?
I mean, we could not even meet our own supply demands from Chittagong port on time.

And now we are gonna have carry the burden of more new transit.

Clearly, given the current political conditions new Delhi is trying to take advantage and putting pressure to okay this absurd deal with extraordinarily low custom and transit fees.

If there is any change of government in BD, such one sided transit deals may backfire on India.



@Nilgiri what is your 'Indian perspective on this?
 
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Is this even feasible?
I mean, we could not even meet our own supply demands from Chittagong port on time.

And now we are gonna have carry the burden of more new transit.

Clearly, given the current political conditions new Delhi is trying to take advantage and putting pressure to okay this absurd deal with extraordinarily low custom and transit fees.

If there is any change of government in BD, such one sided transit deals may backfire on India.



@Nilgiri what is your 'Indian perspective on this?

If its such a chokepoint already, then BD ought to invest in expanding capacity and handling rate there.

North East logistics wont impose on that unduly, it will flow and expand commensurately after BD invests more into CTG port (if this issue is pressing one like you state).

If you need more immediate liquidity for capital work, take Japanese loan and assistance for it....they are interested in integrating this area lately.

BD economy can advance a lot if it pays more attention to core infrastructure this decade.
 

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Bangladesh allows India corridor to build power line to seven sisters

ENERGY

TBS Report
04 May, 2023, 10:40 pm
Last modified: 04 May, 2023, 10:46 pm




Representational image. Photo: MumitM/TBS

Representational image. Photo: MumitM/TBS

Bangladesh has granted permission to India to build a corridor through Dinajpur to construct a power transmission line from Katihar in Bihar to Bornagar in Assam to supply electricity to the seven sister states.
The Power Transmission corridor will be jointly built by the Power Grid Company of Bangladesh and its Indian counterpart.
Bangladesh gave the permission at the 21st Joint Steering Committee's meeting with India on power sector cooperation on Thursday.

At the meeting, it has been agreed that a tripartite power purchase agreement (PPA) would be concluded soon between Nepal, India, and Bangladesh to facilitate the transfer of 500MW of cross-border electricity from Nepal's 900MW Upper Karnali hydropower project, which will be developed by India's GMR Group, said a member of the Bangladesh team who attended the meeting.


The meeting was led by Bangladesh Power Division Secretary Md Habibur Rahman and Indian Power Secretary Alok Kumar.


Bangladesh has planned to import electricity from this project in 2026. However, the exact rate of per unit power has not yet been disclosed.

Sources at the Power Division have stated that Bangladesh initially opposed the construction of the power transmission corridor due to concerns over security, operation, maintenance, and geographical issues.

India's plans to supply electricity from hydropower projects in Meghalaya raised concerns for Bangladesh, as it is a lower riparian country.

Furthermore, according to regulatory provisions, the licensee of another country is not allowed to construct transmission lines across the territory of Bangladesh.
PGCB is the only authority to implement transmission system in Bangladesh.

As a result of these concerns, India has agreed to partner with PGCB to construct the transmission line within Bangladesh's territory, according to the source.
On this ground, Bangladesh has agreed to allow India build the lines.
The Joint Steering Committee also discussed the implementation of a hydropower project in Bhutan through a tripartite investment between Bangladesh, Bhutan, and India.
Nepal has an estimated hydropower potential of around 80,000MW, but the country currently only has the capacity to produce around 2,000MW. Since 2019, Nepal has been exporting power to India at a rate of six Indian rupees per unit.
At present, Bangladesh imports 1,160MW of power from India through the Baharampur-Bheramara and Tripura-Cumilla cross-border grid lines.
Bangladesh aims to increase the share of imported electricity in its energy mix up to 40% by 2041, when the total generation capacity will reach 60,000MW.
Currently, 52% of Bangladesh's electricity is generated from natural gas, 32% from liquid fuel, and 8% from coal, with the remaining 8% coming from imports.
 

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Not really.The recent deals with India are rather good decisions.
Which one?
Previously we gave them Chittagong port for extraordinarily low fees.
Bangladeshi importers has to pay more in customs than Indian transit shipments. Doesn't sound like a good decision.

It should've been the other way around. Don't you think?


And that Adani deal was a complete disaster. And (probably legally void)
 

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India inaugurated a land port on Thursday at Dawki in the state of Meghalaya along the Bangladesh border to boost trade and tourism between the two neighbouring countries.

The corresponding land port in Bangladesh is Tamabil in the Sylhet district.

Located in the West Jaintia Hills district, the Dawki land port is an important project of the Indian central government and aims at promoting trade, commerce and tourism between India and Bangladesh, reports The Statesman.

The Dawki land port, set up over 23 acres of land at a cost of Rs83.38 crore, will serve as a vital trade and transportation hub between the two neighbouring countries, facilitating the movement of goods, people, and vehicles from across the border.

"Earlier there was only a Letter of Credit station in Dawki. As a result, when any goods were sent from Bangladesh, it was often found lying on the street. From now onwards, many facilities will increase, which will boost import and export," Mahfuzul Islam, deputy director of Tamabil land port, told TBS.

Addressing the inaugural function, Union Minister of State for Home Affairs Nityanand Rai said that the land port has been made keeping in mind the requirements of the two neighbouring countries. The main aim is to bring together all the agencies and stakeholders under a single roof.

Meghalaya Deputy Chief Minister Sniawbhalang Dhar, Indian High Commissioner to Bangladesh Pranay Kumar Verma, Chairman of Land Port Authority of Bangladesh Mohd Alamgir, and other senior officials of the Meghalaya government attended the inaugural function.


Nepal and Bangladesh will discuss jointly using Indian transmission lines for power trade between the two countries, a senior official of Nepal's energy ministry said on Saturday (6 May).

The two sides will hold talks in Dhaka on 15-16 May during their Joint Working Group and Joint Steering Committee meetings to explore trilateral cooperation with India, reports The Kathmandu Post.

"One of the items on the agenda of these meetings is how to take India on board to use existing transmission lines and a dedicated transmission line through the Indian territory to enable electricity trade between the two countries," said Madhu Bhetuwal, spokesperson at Nepal's Ministry of Energy, Water Resources and Irrigation.

Nepal can only sell electricity to Bangladesh through India due to the absence of a direct geographical connection between Nepal and Bangladesh.

"As India has started a green grids initiative—One Sun One World One Grid—to introduce a transnational electricity grid that supplies power and has a neighbourhood first policy, forging connectivity between Nepal and Bangladesh will help India's own initiative," the official said.

Another topic for discussion will be the sale of Nepal's 40 MW-50 MW of electricity to Bangladesh through the existing transmission line in India.

The discussions will also include the development of the 683 MW Sunkoshi 3 hydropower project which the two countries had agreed to develop through a joint venture investment during the fourth meeting of the working group and a joint steering committee held in late August.

"We have not yet consulted with Bangladesh about the possible involvement of India in this project. But that will ease transmission of power to Bangladesh," Bhetuwall added.

 

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Bangladesh Army chief General SM Shafiuddin Ahmed on Wednesday went to India on a five-day official visit following an invitation from his Indian counterpart, chief of army staff General Manoj Pande.

He left Dhaka’s Hazrat Shahjalal International Airport on a scheduled flight of Biman Bangladesh Airlines, the airport officials said.

Inter Services Public Relation Directorate in a press release said that the army chief would attend the passing out parade of officer cadets in Chennai.

The release added that during his visit, he would hold meetings with Indian three services’ chiefs, foreign and defence secretaries, and chief of Indian defence staff, among others, and discuss to improve bilateral relations and mutual cooperation.

He will visit important military installations of the Indian Army, the ISPR said, adding that with the initiative of the army chief, the existing relationship between two armies of Bangladesh and India has been developed further in the past two years.

He is scheduled to return to Dhaka on April 30, the release said.

This is his second visit to India after assuming office of the chief of army staff.

Earlier, according to the ISPR, the army chief visited India for three days in September 2021 with an eight-member delegation.


The Enforcement Directorate (ED) has claimed, in its chargesheet submitted against TMC leader Anubrata Mondal, that cattle were smuggled across the Indo-Bangladesh border with the help of the Border Security Force (BSF) personnel.

The chargesheet was recently filed before the Rouse Avenue court in Delhi. The 204-page chargesheet named Anubrata Mondal as an accused in the cattle smuggling case. The central probe agency has alleged that BSF personnel were involved in the smuggling.

On the 12th page of the chargesheet, the ED mentioned that the accused Md. Enamul Haque, Md. Anarul Seikh and Md. Golam Mustafa used to purchase seized cattle, with the help of BSF, at a very low price. The cattle were then shown as auctioned cattle but were illegally smuggled across the Indo-Bangladesh international border.

The ED has also mentioned that the accused used to procure the cattle from local markets at Ilambazar in the Birbhum district and Pandua in the Hooghly district. The animals were then transferred in small groups toward the international border.

The ED has alleged that the passage of the international border, which was earmarked for allowing the smuggling on any particular day, was informed to the accused Md. Enamul Haque in advance. At the border, the smugglers were not shown any resistance due to Md. Enamul Haque’s close contacts with the BSF and local authorities.

CATTLE SMUGGLING CASE

Anubrata Mondal was picked up by the Central Bureau of Investigation (CBI) from his Bolpur home after the central probe agency said it had found his direct involvement in the cattle smuggling scam.

The TMC leader's name came up in the case after the CBI registered an FIR in 2020. According to the CBI, between 2015 and 2017, over 20,000 cattle heads had been seized by the Border Security Force (BSF) as they were being smuggled across the border.

 

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