Very low transit fee for India to use Bangladesh route raises eyebows

[Riyad]

[ ] 26/05/2016

NBR issues order
Ashuganj-Akhaura transit for Indian goods begins soon

Much-talked-about transit may start within a month to facilitate Indian goods to reach its destinations in the north-eastern states of the country from Kolkata.

The National Board of Revenue (NBR) issued an order in this regard to start transit of Indian goods through Bangladesh's Ashuganj River Port, an NBR official said.

Indian goods will be carried some 39 kilometres by road through Bangladesh territory--from Ashuganj to Akhaura-under Indo-Bangla transit and transhipment agreement.

According to the Order, the neighbouring country has to pay Tk 192.22 for per tonne of goods as transit fee. Out of the amount NBR will receive Tk 130 as customs-related charges, Tk 50 will be applicable as scot charge if necessity and the left amount will be collected by the Ministry of Road Transport and Bridges and BIWTA as supervision charge. The transit fee was fixed at a Shipping Secretary level meeting in New Delhi in early November.

It is learned that the NBR will issue a Statutory Regulatory Order (SRO) within the shortest possible time to start transhipment process in full phase. Deputy Secretary of Shipping Ministry Md Abul Fazal Mir told the Daily Observer on Wednesday that the process of transhipment through Bangladesh's Ashuganj River Port will start soon after issuing such an order.

Meanwhile, responding to India's repeated call, the Ministry of Shipping (MoS) gave NBR reminder several times to issue Statutory Regulatory Order (SRO) on the transhipment.

The MoS also asked the Ministry of Road Transport and Bridges and the Bangladesh Inland Water Transport Authority (BIWTA) to take steps for colleting transit fee so that the transhipment could start immediately.

India is eager to carry goods through Ashuganj River Port to support its 'seven-sister' states: Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura.

Indian vehicles need to travel 1,650 kilometres to transport goods from Kolkata to Agartala through Guwahati. They will have to cross only 350 kilometres if they take a cross-border trip through Bangladesh's Ashuganj port.

Last year's renewal of the Protocol on Inland Water Transit and Trade, during the visit of Indian Prime Minister Narendra Modi, paved the way for both the countries to carry goods to their own states or third countries using each other's territories.

http://www.hawker.com.bd/news_details.php?news_id=480993&news_category_id=6&val_lan=

1058 per tonne is too high, not practical. A forty ft container carrying 40 MT cargo will have to pay 42320 and then import duty and tax including transportation charges in/to the country of destination will raise the price of goods for thr final consumer. If you want to earn, make some weigh points mendatory on the way or some toll tax.

India will save a lot of money and time using Bangladesh route. A big share of this gain should be given to Bangladesh. 192 BDT is too low compared to the money and time India will save using this route. Nobody will use that laughable narrow Shiliguri corridor once they get the main access , the Bangladesh corridor at such a low rate.

 

[Homo Sapiens]

Yes, just google it. It's already done.

There is no news about 250 million grant to BD.200 million grant was given as part of earlier 1 billion credit.No news on farther 250 million to BD.You might have confused with 250 million Indian grant to Nepal with BD.Aging is taking a toll on your memory.

 

[my2cents]

Bangladesh should scrap the entire deal of giving transit to india.If they transport massive 10 million ton goods through BD,they will pay just 192 crore taka or just 25 million dollars. Why BD would damage its infrastructure and environment to get this miniscule amount of money? Even 250 million dollar would not justify it.Bangladeshi people from all side should organize protest and force govt. to scrap this anti-national deal with India.

Bangladesh should do what is best for their national interests. India should always find other ways to transport besides Bangladesh. We can develop the India-Myanmar-India connectivity via Sittwe port in Myanmar. It would save about 1000 kms and about 3 days of travel time. We are developing Chabahar port in Iran to bypass Pakistan. So, I don't see why we employ the same strategy to bypass Bangladesh altogether.

 

[dray]

India will save a lot of money and time using Bangladesh route. A big share of this gain should be given to Bangladesh. 192 BDT is too low compared to the money and time India will save using this route. Nobody will use that laughable narrow Shiliguri corridor once they get the main access , the Bangladesh corridor at such a low rate.

That Shiliguri corridor has proper broad gauge double rail line, and Indian railways has heavy volume capacity and fast transit at amazingly low prices, rail transport is anyway cheaper than road transport. And that route doesn't have any unreasonable transit fee, tolls and taxes, loading/umloading charges, etc. Besides, all the money spent stays within the countrt. Bangladesh cannot loot us, they need to learn to do business fairly.

 

[livingdead]

how much does pakistan charge for transit?

 

[dray]

There is no news about 250 million grant to BD.200 million grant was given as part of earlier 1 billion credit.No news on farther 250 million to BD.You might have confused with 250 million Indian grant to Nepal with BD.Aging is taking a toll on your memory.

Did I say two grants?

 

[Jaat Rock]

India should focus on improving road and rail transport through chicken neck and also work with Myanmar to ship goods from Kolkata to port in Myanmar and then Tripura...
These two method are better than paying 1000+ tk to Bangladesh.

 

[Imran Khan]

even if its free i will never surprised

 

[dray]

even if its free i will never surprised

It should actually be free considering the grants and soft loans we gave Bangladesh.

 

[Imran Khan]

It should actually be free considering the grants and soft loans we gave Bangladesh.

YEAH i agree with you anyhow there must be benefits on installing a gov

 

[livingdead]

first read brother.
core committee of Bangladesh Tariff commission who recommended it

how does it compare with other countries' tariff?

 

[TopCat]

I would recommend to build a toll highway connecting Kolkata to Agartala by the private sectors. The toll should be fixed at commercial rate for both BD and Indian traffic. That would diminish all the controversies. I am sure Indians will not have a problem with that.

 

[livingdead]

I would recommend to build a toll highway connecting Kolkata to Agartala by the private sectors. The toll should be fixed at commercial rate for both BD and Indian traffic. That would diminish all the controversies. I am sure Indians will not have a problem with that.

how many years will that take to build? bd should charge as per international norm, that will avoid all controversy.

 

[dray]

how many years will that take to build? bd should charge as per international norm, that will avoid all controversy.

Wait, the rate should also depend upon the quality of infrastructure offered, they cannot expect the rates charged on US highways on Bangladeshi narrow roads.

 

[TopCat]

how many years will that take to build? bd should charge as per international norm, that will avoid all controversy.

If we start working on it, private sector will not take much time. How many years already passed by?

Wait, the rate should also depend upon the quality of infrastructure offered, they cannot expect the rates charged on US highways on Bangladeshi narrow roads.

Just find my earlier solution. Private sector can build a 8 lane highways even elevated can be possible. We can award this project to Chinese.