• Wednesday, July 8, 2020

India backs away from Bheramara economic zone project

Discussion in 'Bangladesh Defence Forum' started by Black_cats, Jun 29, 2020.

  1. Black_cats

    Black_cats SENIOR MEMBER

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    India backs away from Bheramara economic zone project

    ECONOMY
    Saifuddin Saif
    29 June, 2020, 11:30 am
    Last modified: 29 June, 2020, 12:35 pm

    The Indian authorities have cancelled their plan to establish an economic zone at Bheramara in Kushtia.

    They have already informed the Bangladesh government of their decision.

    The Bangladesh Economic Zones Authority (Beza) and Economic Relations Division officials said, ‍based on the feasibility study report, the Indian authorities think the economic zone in Bherama will not be convenient for investment.

    That is why they discarded the plan, officials said.

    According to the minutes of the meeting held at the Prime Minister's Office in February this year, India is not interested in establishing the economic zone in Bheramara. Instead, it is interested in establishing a tourism park near the Naf River and constructing a cable car over the river.

    Indian officials said, at the joint working group meeting held on August 21 last year, that they no longer wished to consider the Bheramara site, and requested that an alternative site be considered.

    The project of establishing two economic zones in Mongla and Bheramara was taken under the Indian Second Line of Credit (LoC). India was supposed to lend $88 million to implement the project.

    As the Bheramara project has been cancelled, Indian officials said the remaining funds of around $50 million will be used for a new project.

    The project has not yet received final approval by the Indian authorities. That is why it has not yet been raised at the Executive Committee of the National Economic Council (Ecnec) meeting.

    Officials said the Bheramara project was cancelled but India wants to establish the economic zone in Mongla.

    Beza said the Mongla project proposal was sent to the Indian government and is currently being reviewed. A memorandum of understanding was signed in February last year between Beza and the Nidar Group to set up the zone.

    Also, 110 acres of land was allocated for the Mongla project, but an additional $30-40 million will be needed to develop the zone as per India's requirements.

    On the other hand, another project titled Bangabandhu Sheikh Mujib Shilpanagar in Chattogram's Mirsharai under the Second LoC is underway. It was approved by Ecnec in mid-2019, and is estimated to be finished by June next year.

    India is providing Tk914.59 crore of the Tk919.85 crore project. Beza officials said Indian investors would be able to invest there by next year.

    https://tbsnews.net/economy/india-backs-away-bheramara-economic-zone-project-99400
     
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  2. Michael Corleone

    Michael Corleone SENIOR MEMBER

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    All talk no action
     
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  3. DalalErMaNodi

    DalalErMaNodi FULL MEMBER

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    Wasn't feasible for them, they pulled out.

    End of Story.


    Not a huge loss anyway and if you think about it, it may be a blessing in disguise.
     
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  4. Chakar The Great

    Chakar The Great SENIOR MEMBER

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    Why would neighbours or International community trust India, when they back out of everything they say.
     
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  5. Michael Corleone

    Michael Corleone SENIOR MEMBER

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    Dude just be happy. These fuckers only cooperate on hinges that benefit them the most. That’s probably what happened here
     
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  6. bluesky

    bluesky ELITE MEMBER

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    India is flooded with cheap labors. So, its corporations have little incentives to invest in its neighboring country. The GoB should have proper understanding of this small thing. It should not have approached India from the very beginning.

    This Gadha GoB people went to Vietnam once and asked them to invest in BD. How ridiculous!! Vietnam wants and gets FDIs from many rich countries, the total FDI being $145 billion. But, it is just another developing country. Why should its companies need to invest in an unknown poor country?

    BD govt people are a bunch of silly people going everywhere asking for FDIs.
     
    Last edited: Jul 1, 2020
  7. Michael Corleone

    Michael Corleone SENIOR MEMBER

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    Because rich countries business have poor trust on bd stability
     
  8. bluesky

    bluesky ELITE MEMBER

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    Lack of stability may be one reason that FDIs shun Bangladesh. Its geographical location and people's mindset may be some other reasons that FDI people avoid BD. However, I hope the Chinese from Kunming will find BD a good destination of their investment.

    India itself seeks FDIs. How should someone expect its companies to invest in other countries. The GoB people are callous.
     
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  9. Michael Corleone

    Michael Corleone SENIOR MEMBER

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    It’s just a way to help Indian business moguls establish dominance at the cost of comfortable life at NY for MP’s children
     
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  10. salarsikander

    salarsikander ELITE MEMBER

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    intresting what happened to Chabhar, Rival to Gawadar, Rival to One belt one road project ?
     
  11. serenity

    serenity FULL MEMBER

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    India has cheap labor costs but less organization of that labor. No transportation system networks. Lower infrastructure. Their production for even a lot of things will not actually be cheaper than production in Vietnam or other south east asian countries. In many cases not even as cheap as China.

     
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  12. bluesky

    bluesky ELITE MEMBER

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    What I want is heavy Chinese private investments in manufacturing in Bangladesh. These companies can export not only to Indian market but also western markets where BD has some trade/tax leverage as well as African market. China is already building quite a few physical infrastructures and will surely build many factories in those countries because of the availability of mineral resources under their soil.

    But, it may be more feasible for Chinese companies to bring in the mineral raw materials to BD shore from Africa, process,and manufacture finished goods that they can export cheaper than it is from China proper via Shanghai. Kunming can be an important station for Chinese Executives to come to Dhaka. I have already seen planes loaded with these people already.
     
    Last edited: Jul 1, 2020
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