New transit corridor thru' Padma bridge

[BanglaBhoot]

The forthcoming visit of Prime Minister Dr Manmahan Singh may see the signing of a 'framework agreement' on transit for India through Bangladesh. The government agencies are engaged on various exercises in this regard. Sources in the government said there is a strong possibility of the signing of the framework agreement as all preparations are afoot at various levels including the ministry of foreign affairs, tariff commission and other concerned ministries. The issue, however, remained unclear in recently issued variable statements by Indian foreign minister SM Krishna and Bangladesh foreign secretary Mizarul Quas when the former said draft of the framework agreement was at final stage while the later said it was still in crude form Tariff Commission chairman Dr Mujibur Rahman told The New Nation Sunday that the possibility of signing the agreement may not be ruled out. They are also working on different tariff rates issues but any detailed exercise would be taken up only after the signing of the framework agreement. "But we are far ahead in calculating things that may come up later," he said The Tariff Commission chairman cleared the matter to a question whether the Indian side has already put their proposals on the table on various tariff rates and Bangladesh is working on harmonizing them. Experts say the framework agreement may officially decide on various transit routes, modes of transportation, nature of cargo, traffic rules, use of ports and such other things along with stoppage and storage facilities that Indian users may claim while carrying passengers and cargoes through Bangladesh. It may consist of roads, railways and water transit through various points and inclusive of Nepal and Bhutan beyond Bangladesh border, a source indicated. Referring to an earlier Tariff Commission estimate of at least $ 7 billion dollar additional investment in the next three to four years to develop a reasonable regional connectivity network, Dr Mujib said much of this investment is already in the pipeline under various development projects. The Asian Development Bank, World Bank and such other international lending agencies are providing the money, he said hoping that things would move faster than initially anticipated. "Our objective is to promote Bangladesh as a regional business hub with Chittagong port working as the catalyst," he said. Apart from agreeable transit fees and such other administrative levies, the economy will benefit from new spurt in service sectors and from new employment opportunities in business and transport related activities, he said. How the government is going to put the additional $7.0 billion investment in transit related infrastructures, apart from the Indian $1.0 credit, another source say Padma bridge itself is a mega project now under construction. The bridge with road and railway facilities is going to create a new transportation corridor for transit, to be very short cut from the existing connectivity routes across the Bangabandhu bridge over the Jamuna river. Moreover, its railway is not capable to sustain heavy cargo train. The new transit corridor using the Padma bridge will help the transportation of goods and passengers from Benapole to Dhaka through Jessore, knowledgeable sources said. To a question why the government had withdrew in haste the NBR circular on transit fees on Indians protest, he said it did not mean they are opposed to paying transit fees. The circular was not issued in proper procedure, he claimed. Dr Mujib said Bangladesh would be reasonable in fixing various transportation rates so that India feels encouraged in using the connectivity facilities. Higher transportation volume will bring more revenue. The government will obviously relate the recovery of all connectivity related investment from transit fees, he said. To another question, he said the country would stand to enormously benefit from the connectivity opening to the Indian northeast. He supported claims by FBCCI president AK Azad that it would expand Bangladesh's domestic market to the northeast including new Bangladeshi investments. The rate of its success will however depend on the speed and dynamism of Bangladeshi business which looks forward to expand activities there, he said.

http://thenewnationbd.com/newsdetails.aspx?newsid=11630

 

[BanglaBhoot]

The Padma bridge should be exclusively for Bangladesh and not part of the transit network. This is the first time it is being revealed that the Padma bridge will be part of the transit infrastructure. It seems all the infrastructure work being undertaken by the government is to serve the Indian strategic interest against China.

 

[Jade]

Good news. Win Win situation for both India and Bangladesh

Long live India Bangladesh friendship

 

[Roybot]

To a question why the government had withdrew in haste the NBR circular on transit fees on Indians protest, he said it did not mean they are opposed to paying transit fees. The circular was not issued in proper procedure, he claimed. Dr Mujib said Bangladesh would be reasonable in fixing various transportation rates so that India feels encouraged in using the connectivity facilities. Higher transportation volume will bring more revenue. The government will obviously relate the recovery of all connectivity related investment from transit fees, he said. To another question, he said the country would stand to enormously benefit from the connectivity opening to the Indian northeast. He supported claims by FBCCI president AK Azad that it would expand Bangladesh's domestic market to the northeast including new Bangladeshi investments. The rate of its success will however depend on the speed and dynamism of Bangladeshi business which looks forward to expand activities there, he said.

Thank God for the sane and smart Bangladeshis, who are at the helm of things in Bangladesh.

Haters gonna hate.

 

[Goodperson]

BD have guts to say no to all Aid from India in the name of threat to China.

 

[Maira La]

To another question, he said the country would stand to enormously benefit from the connectivity opening to the Indian northeast.

Thank God for the sane and smart Bangladeshis, who are at the helm of things in Bangladesh.

Haters gonna hate.

huh? We are already connected to the indian NE, no?

 

[Maira La]

BD have guts to say no to all Aid from India in the name of threat to China.

Why should you be so agitated if we say no to this so-called "aid"? GoI can keep the money and distribute it among the millions of indian poor who actually deserve aid from their gov!

 

[Roybot]

huh? We are already connected to the indian NE, no?

Just bordering Indian N.E and being connected to it are two different things.

 

[Maira La]

Just bordering Indian N.E and being connected to it are two different things.

No man, BD products have penetrated very very DEEP into NE. But if, apart from just constructing the infrastructure, GoI removes the current trade barriers once competition with mainland indian goods start, then it's probably a fair deal.

 

[Roybot]

No man, BD products have penetrated very very DEEP into NE. But if, apart from just constructing the infrastructure, GoI removes the current trade barriers once competition with mainland indian goods start, then it's probably a fair deal.

True Bangladeshis products are doing well in N.E market, but Bangladesh is still running a deficit when it comes to N.E India-Bangaldesh "bilateral" trade. There is still a lot of potential and lot of untapped market in N.E India for Bangladeshi businesses to capture.

Improving the connectivity will help the cause.

 

[TopCat]

True Bangladeshis products are doing well in N.E market, but Bangladesh is still running a deficit when it comes to N.E India-Bangaldesh "bilateral" trade. There is still a lot of potential and lot of untapped market in N.E India for Bangladeshi businesses to capture.

Improving the connectivity will help the cause.

I dont think NE india is a big market for BD produce. But BD could immensely benifit importing minerals and timbers from NE.
Trade deficit with India is just a foul cry. We need all those raw material and onions from India for sure.

 

[Tiki Tam Tam]

It is a good move and will cement the relationship.

The transit corridors have to be defined for obvious reasons.

The transit through Padma Bridge is a correct and intelligent action on the part of Bangladesh. Bangladesh will be able to monitor the traffic since the Bridge will be over a natural barrier (wide river) and a natural traffic choke-point where if any illegal transaction within Bangladesh is made, it can be detected and action taken.

As far as the trade deficit is concerned, India must give concessions to Bangladesh. And it will not materially affect India.

As far as Onions is concerned, I find the Onions we are getting in the market has lost the 'zing'. I am not sure if they are GM. Pretty lousy onions I will say.

 

[integra]

Stuffs we import from NE are raw materials such as
Limestones,coal,rocks sand etc in huge volumes, so there shall be
trade imbalance.

Secondly, Padma bridge will be used by Bhutan and Nepal
I don't think it will be economically viable for Indian trucks.
Rather they would have to use the Chittagong port.

 

[Tiki Tam Tam]

Allowing duty-free imports from Bangladesh will neither open the floodgates of imports, nor put the readymade garment sector under stress. Bangladesh’s global exports are $15 billion compared to India’s total imports of $321 billion. Even if half of Bangladesh’s exports come to India, it will be a minuscule portion of India’s imports with insignificant revenue implications. Bangladesh is mainly competitive with India in RMG, not in other sectors. Also, the RMG sector in Bangladesh is heavily reliant on cotton yarn and other inputs from India, thus its growth will push the exports of intermediate products from India. After the abolition of the multi-fibre agreement, the Indian RMG sector needs to be competitive. It should be able to withstand the competition from Bangladesh without any protection. Duty-free import access will also stop smuggling of products between the two countries, leading to higher official trade figures and cheaper and higher quality imports to consumers and producers. Simple calculations will prove that India has nothing to lose, but a lot to gain by allowing this concession to Bangladesh. The goodwill it will generate will pave the way for much stronger economic ties, purely based on trust and friendship.

The Telegraph - Archives

 

[Vibs]

Stuffs we import from NE are raw materials such as
Limestones,coal,rocks sand etc in huge volumes, so there shall be
trade imbalance.

Secondly, Padma bridge will be used by Bhutan and Nepal
I don't think it will be economically viable for Indian trucks.
Rather they would have to use the Chittagong port.

Well there are a lot of Power Projects coming up in North East India. Transit through Bangladesh would allow these projects to access a shorter route and bring inward remittances to Bangladesh in terms of octroi revenue. (May not seem like much but in Gujarat alone these account for a collection of around 1 Crore INR in a day).
Also duty free trade would allow a lot of Indian garment manufacturers to consider setting up shop in Bangladesh. Many Indian ayurvedic companies did the same in Nepal giving Nepal loads of revenue.