In a display of strong bilateral cooperation between India and Bangladesh, Prime Minister Narendra Modi and Prime Minister Sheikh Hasina will jointly inaugurate three pivotal Indian-assisted development projects on November 1, 2023, via video conferencing at around 11 AM. These projects are set to enhance connectivity and energy security in the region, symbolizing the close ties between the two neighboring nations.
Prime Ministers of India and Bangladesh to jointly inaugurate three development projects on 1st November
These three projects have been executed through assistance from India
Three projects are Akhaura – Agartala Cross-Border Rail Link; Khulna – Mongla Port Rail Line; and Unit…
— PIB India (@PIB_India) October 31, 2023
The first project, the Akhaura – Agartala Cross-Border Rail Link, has been executed under a Government of India grant assistance of INR 392.52 crore provided to Bangladesh. This ambitious initiative spans 12.24 kilometers, featuring a 6.78-kilometer Dual Gauge rail line in Bangladesh and 5.46 kilometers in Tripura, India, fostering improved cross-border connectivity.
Next on the list is the Khulna – Mongla Port Rail Line Project, which has been implemented through a Government of India concessional Line of Credit with a total project cost of USD 388.92 million. This undertaking involves the construction of approximately 65 kilometers of broad gauge rail route, linking Mongla Port with the existing rail network in Khulna. This connection marks a significant milestone, as it integrates Mongla, Bangladesh’s second-largest port, into the broad-gauge railway network.
The third project, Unit – II of the Maitree Super Thermal Power Plant, is a testament to India’s commitment to enhancing energy security in Bangladesh. This 1320 MW (2×660) Super Thermal Power Plant, located in Rampal in Khulna Division, has been made possible through an Indian Concessional Financing Scheme loan of USD 1.6 billion. It has been implemented by the Bangladesh-India Friendship Power Company (Private) Limited (BIFPCL), a 50:50 Joint Venture between India’s NTPC Ltd and Bangladesh Power Development Board (BPDB). Following the unveiling of Unit I in September 2022, Unit II is set to be inaugurated on November 1, 2023, further bolstering energy resources in Bangladesh.
These projects are poised to fortify connectivity and energy security in the region, fostering economic growth and development.
Notably, this year, India and Bangladesh has launched a much-anticipated trade transaction in rupees (INR). Speaking of the development, Indian High Commissioner to Bangladesh Pranay Verma highlighted the significance of this new mechanism for settling bilateral trade in INR. He emphasized that it would reduce dependence on foreign exchange reserves for trade, lower transaction costs and time, improve trade settlement speed and efficiency, enhancing competitiveness and overall trade volumes. He also noted the potential of this mechanism to further boost bilateral trade, especially in the context of the Comprehensive Economic Partnership Agreement (CEPA).
From Bangladesh side, Governor Abdur Rouf Talukder of Bangladesh Bank also acknowledged that launching bilateral trade in Indian Rupees would simplify complexities and open new avenues for trade promotion.
