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Bangladesh and India are all set to sign the $1 billion credit line agreement that was agreed during the visit of Prime Minister Sheikh Hasina to New Delhi in February last. Indian Finance Minister Pranab Mukherjee will visit Dhaka to attend the signing ceremony on August 7. Under the agreement, Dhaka will spend at least 85% of the funds in procuring goods and services from India. The loan is to be repaid in 20 years after an initial grace period of 5 years. The interest rate on the loan is 1.75% per annum.
According to Dr Mashiur Rehman, advisor to Prime Minister Sheikh Hasina, India will give Bangladesh a grant of Tk 300 million to develop the necessary trans-shipment infrastructure to ship 'over dimensional cargoes' (ODC) for Palatana power project that is being set up in Tripura. The operational modalities of the trans-shipment deal have been finalised between the Bangladesh government and the ONGC Tripura power company which is setting up the Palatana project. Rehman has however made it clear that India’s request for waiver of trans-shipment/transit fees of Tk 10,000per TEU container for bulk product and Tk 1000 per tonne on cargo without containers is not likely to be accepted by the Bangladesh government. While India wants to commence the process of shipping its ODC by the end of the year the infrastructure required for such movement is unlikely to be ready by that time. According to one report, construction has still not started on the Ashuganj port which is going to serve as the trans-shipment point.
Amidst reports that the Indian textile ministry has imposed new conditions pertaining to labelling/branding of country of origin on the export of Bangladeshi jute bags to India, which Bangladeshi exporters see as a non-tariff barrier that will make them uncompetitive, the Bangladeshi Commerce Minister has asked state governments in India to desist from imposing non-tariff barriers on Bangladeshi exports. Calling upon India to shed its colonial mindset, Faruk said Bangladesh expects that all trade barriers would be removed by India by the end of the year.
Bangladesh’s PRAN group is likely to be the first Bangladeshi business group to invest in India. The group has sought approval from the Bangladesh Bank to set up agro and food processing plants in Tripura, Orissa and Tamil Nadu. The government of Tripura has already allotted a one acre piece of land to the company to set up its plant in Western Tripura.
According to Dr Mashiur Rehman, advisor to Prime Minister Sheikh Hasina, India will give Bangladesh a grant of Tk 300 million to develop the necessary trans-shipment infrastructure to ship 'over dimensional cargoes' (ODC) for Palatana power project that is being set up in Tripura. The operational modalities of the trans-shipment deal have been finalised between the Bangladesh government and the ONGC Tripura power company which is setting up the Palatana project. Rehman has however made it clear that India’s request for waiver of trans-shipment/transit fees of Tk 10,000per TEU container for bulk product and Tk 1000 per tonne on cargo without containers is not likely to be accepted by the Bangladesh government. While India wants to commence the process of shipping its ODC by the end of the year the infrastructure required for such movement is unlikely to be ready by that time. According to one report, construction has still not started on the Ashuganj port which is going to serve as the trans-shipment point.
Amidst reports that the Indian textile ministry has imposed new conditions pertaining to labelling/branding of country of origin on the export of Bangladeshi jute bags to India, which Bangladeshi exporters see as a non-tariff barrier that will make them uncompetitive, the Bangladeshi Commerce Minister has asked state governments in India to desist from imposing non-tariff barriers on Bangladeshi exports. Calling upon India to shed its colonial mindset, Faruk said Bangladesh expects that all trade barriers would be removed by India by the end of the year.
Bangladesh’s PRAN group is likely to be the first Bangladeshi business group to invest in India. The group has sought approval from the Bangladesh Bank to set up agro and food processing plants in Tripura, Orissa and Tamil Nadu. The government of Tripura has already allotted a one acre piece of land to the company to set up its plant in Western Tripura.
