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http://www.thedailystar.net/backpage/indian-finance-minister-may-visit-dhaka-next-month-1417651
12:00 AM, June 09, 2017 / LAST MODIFIED: 02:26 AM, June 09, 2017
Indian finance minister may visit Dhaka next month
Arun Jaitley
Rejaul Karim Byron and Pallab Bhattacharya
Indian Finance Minister Arun Jaitley is likely to have a three day tour of Bangladesh in the first week of July.
This will be his first visit to Bangladesh after Modi government came to power.
During his visit various issues including the quick implementation of $5 billion new loan for development projects and defence procurement is expected to come up.
A finance ministry official said the Indian finance minister is likely to come to Bangladesh on July 2 at the invitation of his counterpart AMA Muhith when a $4.5 billion Line of Credit (LoC) is expected to be signed.
“We have not yet got the draft copy of the LoC. If this is available soon an agreement may be signed," the official said.
During Prime minister Sheikh Hasina's recent visit to India, India committed to give Bangladesh $5 billion LoC and a primary agreement was signed in that regard.
Of this $4.5b will be given for various development projects, including economic zones, ports and road infrastructures, and river restoration. The two countries have already come up with 17 projects to be funded by the new credit.
The remaining $500m will be made available for defence procurement.
During Arun Jeitley's visit a final agreement is expected to be signed which may include details of interest on loans and other terms and conditions, a finance ministry official said. India has committed that the terms and conditions of the loan would remain as it was in earlier loans, the official added.
India signed the first and the second LoC with Bangladesh with financing of more than $3 billion and $2 billion respectively. In March 2016 India's Exim Bank and Bangladesh's Economic Relations Division signed an agreement making the loan in the second LoC effective from May 2016.
The rate of interest on the loans was 1 percent. Other conditions of the loan stipulated that in general in a project the Indian content will have to be 75 percent. But in particular projects of civil construction the Indian content will be 65 percent.
Until March this year, India disbursed a little over 50 percent of the $1.06 billion loan it sanctioned in August 2010.
Of the first loan, $200 million was channeled to the Padma bridge project in grant. New Delhi later provided another $62 million after the cost of several projects rose. The total amount of credit finally stood at $862 million, of which $353 million has been received so far.
Our New Delhi correspondent adds: During his talks with Finance Minister A M A Muhith, Jaitley will seek to expedite the pace of projects identification and implementation under the LoC.
Jaitley, who also holds the additional charge of Defence, will also discuss Bangladesh's requirements in defence under the 500 million dollar credit line. Although officials here are tight-lipped as to whether Dhaka has already communicated its preferences for the defence hardware under the concessional loan, they made it clear that India would be guided by Bangladesh's priorities and requests. Where Dhaka will have to specify its needs, New Delhi needs to look at what the supply possibilities are available for the same.
In April this year, Prime Minister Sheikh Hasina pitched for Indian assistance to build a Padma-Ganga barrage and river delta management and both matters are likely to come up in Jaitley's talks with Muhith.
Muhith is expected to flag the issue of anti-dumping duty imposed by India on jute products from Bangladesh and Jaitley is likely to convey to him that India is willing to go the extra mile to address the issue.
The two Finance Ministers are also likely to deliberate on taking forward the cooperation in civil nuclear sector.
An MoU was signed during Hasina's visit in this regard envisaging transfer and exchange of knowledge, supply and manufacture of components for use in nuclear power plants, treatment and disposal of radioactive waste, nuclear safety and radiation safety, exchange of information and training of personnel to deal with various aspects of safety and regulatory issues pertaining to operations of nuclear facilities.
12:00 AM, June 09, 2017 / LAST MODIFIED: 02:26 AM, June 09, 2017
Indian finance minister may visit Dhaka next month
Arun Jaitley
Rejaul Karim Byron and Pallab Bhattacharya
Indian Finance Minister Arun Jaitley is likely to have a three day tour of Bangladesh in the first week of July.
This will be his first visit to Bangladesh after Modi government came to power.
During his visit various issues including the quick implementation of $5 billion new loan for development projects and defence procurement is expected to come up.
A finance ministry official said the Indian finance minister is likely to come to Bangladesh on July 2 at the invitation of his counterpart AMA Muhith when a $4.5 billion Line of Credit (LoC) is expected to be signed.
“We have not yet got the draft copy of the LoC. If this is available soon an agreement may be signed," the official said.
During Prime minister Sheikh Hasina's recent visit to India, India committed to give Bangladesh $5 billion LoC and a primary agreement was signed in that regard.
Of this $4.5b will be given for various development projects, including economic zones, ports and road infrastructures, and river restoration. The two countries have already come up with 17 projects to be funded by the new credit.
The remaining $500m will be made available for defence procurement.
During Arun Jeitley's visit a final agreement is expected to be signed which may include details of interest on loans and other terms and conditions, a finance ministry official said. India has committed that the terms and conditions of the loan would remain as it was in earlier loans, the official added.
India signed the first and the second LoC with Bangladesh with financing of more than $3 billion and $2 billion respectively. In March 2016 India's Exim Bank and Bangladesh's Economic Relations Division signed an agreement making the loan in the second LoC effective from May 2016.
The rate of interest on the loans was 1 percent. Other conditions of the loan stipulated that in general in a project the Indian content will have to be 75 percent. But in particular projects of civil construction the Indian content will be 65 percent.
Until March this year, India disbursed a little over 50 percent of the $1.06 billion loan it sanctioned in August 2010.
Of the first loan, $200 million was channeled to the Padma bridge project in grant. New Delhi later provided another $62 million after the cost of several projects rose. The total amount of credit finally stood at $862 million, of which $353 million has been received so far.
Our New Delhi correspondent adds: During his talks with Finance Minister A M A Muhith, Jaitley will seek to expedite the pace of projects identification and implementation under the LoC.
Jaitley, who also holds the additional charge of Defence, will also discuss Bangladesh's requirements in defence under the 500 million dollar credit line. Although officials here are tight-lipped as to whether Dhaka has already communicated its preferences for the defence hardware under the concessional loan, they made it clear that India would be guided by Bangladesh's priorities and requests. Where Dhaka will have to specify its needs, New Delhi needs to look at what the supply possibilities are available for the same.
In April this year, Prime Minister Sheikh Hasina pitched for Indian assistance to build a Padma-Ganga barrage and river delta management and both matters are likely to come up in Jaitley's talks with Muhith.
Muhith is expected to flag the issue of anti-dumping duty imposed by India on jute products from Bangladesh and Jaitley is likely to convey to him that India is willing to go the extra mile to address the issue.
The two Finance Ministers are also likely to deliberate on taking forward the cooperation in civil nuclear sector.
An MoU was signed during Hasina's visit in this regard envisaging transfer and exchange of knowledge, supply and manufacture of components for use in nuclear power plants, treatment and disposal of radioactive waste, nuclear safety and radiation safety, exchange of information and training of personnel to deal with various aspects of safety and regulatory issues pertaining to operations of nuclear facilities.
