Now Reading: India may tie extra diesel supply to Bangladesh project progress
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India may tie extra diesel supply to Bangladesh project progress
India may tie extra diesel supply to Bangladesh project progress
India may link its decision on Bangladesh's request for additional diesel supplies to progress on stalled development projects financed through its Lines of Credit (LoCs), according to sources. Dhaka has sought higher…
India may link its decision on Bangladesh's request for additional diesel supplies to progress on stalled development projects financed through its Lines of Credit (LoCs), according to sources. Dhaka has sought higher volumes of diesel from India to address an acute energy shortage. The request is currently under examination by New Delhi.
India extended three major LoCs to Bangladesh totaling about $7.3 billion for infrastructure projects. Of these, 15 have been completed, eight are ongoing, and about 11 have been identified for cancellation. Implementation has been slow amid strained bilateral ties.
Uncertainty over the fate of these projects persists as political ties between New Delhi and the government led by Prime Minister Tarique Rahman remain unsettled. There is no confirmed date for his proposed visit to India. A deeper Chinese presence in Bangladesh's ports and infrastructure is a concern for India. The MEA confirmed it has received the diesel request and is examining it.
Indian Opinion Analysis
The $7.3 billion in LoCs is India's largest aid package to any neighbour. The 11 projects marked for cancellation represent sunk planning costs and delayed connectivity gains. Bangladesh imports roughly 5% of its diesel from India. With Chinese investment in Bangladesh's power and port sectors rising, India cannot afford indefinite project delays. The next signal to watch is whether the Rahman visit is announced. If it is, diesel supply talks will likely accelerate.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
