Delhi’s $1bn credit to Dhaka

Taking the current bonhomie with the Sheikh Hasina government to a new level altogether, PM Manmohan Singh on Monday announced a $1 billion line of credit for Bangladesh. This is the highest one-time line of credit assistance to any country by India and was described by authorities as an apt gesture to reciprocate the cooperation received from Bangladesh in dealing with terrorism and insurgency since Sheikh Hasina came back to power. The credit will, among other things, aid infrastructural development in the country including building railway bridges, supply of locomotives and assistance in dredging. Sheikh Hasina assured that no anti-India acitivity would be allowed to be carried out from the country. Sources said security was one of the most important issues to be discussed and the two sides agreed to actively cooperate on the issue. During his meeting with Hasina, Singh told her that her visit had opened a new chapter in India-Bangladesh relations leading to “complete unity of heart and mind”. In yet another goodwill gesture, India conveyed to Sheikh Hasina that it has decided to stop work on the contentious Tipaimukh dam project which had caused a lot of resentment in Bangladesh. India had earlier announced construction of a 1,500 mw hydroelectric dam on the Barak river in the north-east. The river flows into Bangladesh before emptying into Bay of Bengal. Apart from that, India will also supply 250 MW of electricity to Bangladesh over and above the 100 MW agreed to last year. New Delhi sought to address Dhaka’s concerns with regard to non-tariff barriers by agreeing to remove these on many more items. At the wide-ranging talks here between Singh and Hasina, the two sides reached a number of decisions to revive the traditional links of connectivity, which included Akhaura-Agartala railway line. As announced earlier, the two sides signed five agreements, three of them a nod to India’s primary concerns on security and terrorism. They were on mutual legal assistance in criminal matters, agreement on transfer of sentenced persons and an agreement on combating international terrorism, organised crime and illicit drug trafficking. On Monday, Sheikh Hasina and Singh met for delegation level talks in the evening, with the two leaders meeting in a one-on-one basis before the talks. In a banquet speech, the Bangladeshi PM said, “I can give you this assurance that Bangladesh is committed to eliminating all forms of terrorism from within its territory.” The talks focused on terrorism, security, trade and investment, boundary and particularly water sharing. At the banquet held in her honour, Sheikh Hasina stressed on a water agreement, reminding India of the Ganges water treaty of 1996 which made water relations more peaceful between the neighbours. Expressing gratitude for India’s role in its liberation war, Hasina said there had been “commendable progress” on talks on the land boundary. Hasina met President Pratibha Patil, finance minister Pranab Mukherjee, external affairs minister S M Krishna, UPA chairperson Sonia Gandhi and leader of Opposition Sushma Swaraj before holding wide-ranging talks with Singh.