• Friday, Jan 27, 2023
  • Last Update : 10:24 am

What will be the fate of the new LOC?

  • Published at 07:39 pm April 8th, 2017
What will be the fate of the new LOC?
New Delhi has formally announced to provide $4.5 billion in assistance to Dhaka as a third line of credit (LOC) for implementing different projects in Bangladesh. Indian Prime Minister Narendra Modi made the announcement on Saturday at a press conference in New Delhi, where his Bangladesh counterpart Sheikh Hasina was present. Modi said: “The fruits of our cooperation must benefit the people of both countries. In this context I am happy to announce a new concessional line of credit of $4.5 billion for the implementation of projects in priority sectors of Bangladesh. “…This brings our resource allocation for Bangladesh to more than eight billion dollars over the past six years.” According to the proposal, the third LOC has a 20-year repayment term, including a grace period of five years and a 1% interest rate with 0.5% commitment fee. However, according to an analysis of Bangladesh Bank’s research department, the Indian LOCs have resulted in huge liabilities for the Bangladesh government with the loans’ nature being “supplier’s credit.” The analysis has also revealed that the viability of projects implemented under the Indian LOCs is being questioned. In an interview with Indian newspaper The Hindu, Mashiur Rahman, economic advisor to Prime Minister Sheikh Hasina, suggested undertaking more projects to expand transportation and trade and commerce in Bangladesh. Mashiur said the fund might be used in a single or multiple projects while India wanted Bangladesh to use it in the development of railway and road communication. Economic Relations Division (ERD) under the Finance Ministry has recently finalised 17 projects to be implemented with the third LOC. And, some Tk357.25 crore has been allocated for the projects accordingly, while the rest of the projects are yet to be finalised. Bangladesh Economic Zones Authority has sought $500 million for the construction of Mirsarai Economic Zone in Chittagong’s Mirsarai upazila. The first LOC of one billion dollars between the two countries was signed on August 7, 2010. Of the amount, $200 million was converted into a grant for the Padma Bridge project. The second tranche of two billion dollars was signed on March 8, 2015. Projects under third LOC The two sides have already agreed to construct a seventh Agartala-Akhaura railway line for Bangladesh to transport goods to northeast Indian states. ERD sources said India would also invest $940 million in Bangladesh’s Rooppur Nuclear Power Plant project. Projects to be financed with the third LOC include construction of a 400KV power transmission line between Bogra and Jhharkhand at $177 million, restoration of the Buriganga river at $196.1 million, upgrading the Benapole-Jessor-Narhail road to a four-lane one at $100 million, establishing four economic zones at $450 million, upgrading the Ramgarh-Baraiar Haat road at $50 million, building railway and road connectivity for Ishwardi of Pabna, upgrading the Comilla-Brahmanbarhia-Saril road at $75 million, and developing the Ashuganj-Jokiganj road at $38 million .
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail