Bangladesh to launch three major projects with Indian aid in September

BANGLADESH is set to launch three major infrastructure projects, including a power plant, under India's financial assistance in September, a senior official has said.

Indian high commissioner in Dhaka, Pranay Verma, called on prime minister Sheikh Hasina on Tuesday (18) at her Ganobhaban official residence.

They discussed issues such as the currency exchange system between Bangladesh and India, connectivity, and ongoing projects under the Indian Line of Credits and grants.

The work on the 660-megawatt super thermal power plant and two railway lines would coincide with Hasina’s planned visit to India in September for the G20 summit, an official said.

The power plant would be the second unit of the Rampal plant in southwestern Bangladesh while the two other infrastructure projects are 65km-long Khulna-Mongla Port Railway Link, Akhaura (Bangladesh) and Agartala (India) Railway Link.

Maitree Super Thermal Power Plant-2 has been built as a 50:50 joint venture project, while the first unit of the project, also having a 660 MW capacity, was commissioned in December last year, the official said.

The official said the power plant and the Khulna-Mongla Port railway track were constructed under an Indian Line of Credit while the Akhaura (Bangladesh) and Agartala (India) Railway Link was built under an Indian grant.

Verma informed Hasina that two types of credit cards, one Rupee and the other Taka card, will be issued “so the people of the two countries can use the cards for their payments”.

Recently, Bangladesh and India launched a trade transaction in local currency in their bid to reduce dependence on the US dollar and strengthen regional currency and trade.

It was the first time Bangladesh started bilateral trade with a foreign country in any other currency other than the US dollar.

Under the formal arrangement, the trade would be transacted in rupee and then gradually in Bangladeshi currency Taka.

According to the latest official data from Dhaka, exports from Bangladesh to India amount to $2 billion, while Bangladesh's imports from India are worth $13.69bn.

(PTI)