Bangladesh PM Tarique Rahman copying anti-India Yunus, Dhaka may cancel 11 projects with India due to…, what exactly happened?

Bangladesh’s new government under Tariq Rahman is considering cancelling 11 out of the 42 projects currently being carried out with India. The move follows recommendations made during the interim government led by Muhammad Yunus.

India and Bangladesh have 42 ongoing joint projects

Currently, India and Bangladesh are working on 42 projects under three separate Line of Credit (LoC) agreements signed since 2010. India has provided Bangladesh with loans worth around $7.3 billion for these projects.

If the 11 projects are removed, the total value of India’s Line of Credit to Bangladesh will fall to about $4.68 billion.

However, projects that are already under construction or have reached an advanced stage will continue without any changes.

Railway and Infrastructure projects could be affected

Several railway and infrastructure projects are likely to be dropped. Many of these projects have faced delays or have yet to begin work.

Projects that may be cancelled include:

• Khulna-Darshana Double Line Railway Track
• Parbatipur-Kaunia Railway Conversion Project
• Bogura-Sirajganj New Railway Link
• Modernisation of Syedpur Carriage Workshop
• Mongla Economic Zone
• Bangabandhu Sheikh Mujibur Rahman Shilpa Nagar Project
• Payra Port Multipurpose Terminal
• Modernisation of Ishwardi Airport
• Three other infrastructure projects

India extended three separate lines of credit to Bangladesh

India’s first Line of Credit to Bangladesh was announced in 2010 and was worth $862 million. It covered 15 projects, out of which 12 have already been completed, while three are still in progress.

The second credit line, worth $2 billion, focused mainly on transport, healthcare, and information technology projects.

The third and biggest Line of credit, worth $4.5 billion, was meant for power infrastructure, railway development, and shipping projects.

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