Ways of improving India-Bangladesh bilateral relations?

[EjazR]

^^^^^^^^^^^^^^^^


It failed because of West Bengal's objection.

So we are back where we started.

I think GoI is trying to go for equal sharing which it should not. Being a bigger economy it can give extra concessions in water sharing to Bangladesh.

However, I don't see this as failed talks. GoI is quite insistent on resolving water sharing issues and Taipukh Dam asap so its only a matter of time. The other issue was lack of technical data so, that has to be collected as well to allow better decisions on water sharing.

 

[EjazR]

India, Bangladesh exchange drafts of Teesta water-sharing agreements - India - The Times of India

NEW DELHI: Describing it as a significant move forward over sharing of Teesta waters, India and Bangladesh have exchanged drafts of interim agreement on Principles of Sharing of Teesta Waters during the dry season. Both sides also agreed to mandate the respective secretaries of water resources to examine the drafts and facilitate an early conclusion of an interim agreement on Teesta.

The 37th India-Bangladesh Joint Rivers Commission met in New Delhi on Thursday and Friday during which India also expressed satisfaction at the working of the 1996 Ganga Waters Treaty as well as the joint monitoring mechanism set up under this Treaty.

Water resources minister Pawan Kumar, who held nearly four hours of talks with his Bangladesh counterpart Ramesh Chandra Sen, told reporters that the two sides exchanged the draft agreements and have mandated the water resources secretaries to "take up the issue from here". The next JRC meeting would be held at the earliest and the water resources secretaries will decide on that, he said.

Sen described the exchange of draft accords as a "step forward" but neither of the two ministers disclosed the percentage of water-sharing Bangladesh has mentioned in its draft interim agreement or how much India has suggested in its document.

On the controversial Tipaimukh Dam Project, the Indian side reiterated its commitment that it would not take steps that would adversely impact Bangladesh. "The Bangladesh side appreciated India's reassurance. India also conveyed its earlier stand that it would not take any unilateral decisions on its proposed river inter-linking project that might affect the Bangladesh side,'' said the foreign ministry in a statement.

 

[idune]

West Bengal may have blocked Teesta deal

Bdnews24.com . New Delhi

The two-day Joint River Commission ministerial meeting in New Delhi failed to strike a deal as expected on sharing of the River Teesta, apparently because of West Bengal.

Both New Delhi and Dhaka claimed that the JRC talks between the water ministers, Ramesh Chandra Sen, and Indian counterpart Pawan Kumar Bansal made significant progress towards an agreement for sharing of water of the common river during dry season.

But Indian analysts stressed that the central government in New Delhi could not strike a deal without protecting West Bengal’s interests which is also dependent on a fair share of Teesta water for irrigation and hydropower generation.

India on Saturday said the next move towards inking an agreement on Teesta might be made in just a couple of months. New Delhi also sought to stress that both sides have agreed to conclude an interim agreement on the issue and it should be seen as one of the positive outcomes of the meeting.

The joint press-release issued at the end of the JRC meeting late at night on Friday termed the exchange of drafts as a ‘significant movement forward’ on the issue of sharing of water of Teesta. India presented a draft statement of principles for sharing the Teesta water during the dry season, while Bangladesh also gave India a draft of an interim agreement for the same purpose.

Ramesh and Bansal told journalists that the JRC meet, which was held after a gap of five years, helped both sides understand each other’s position better and decide on the future courses of cooperation.

Both ministers asked their respective water resources secretaries to examine the drafts presented by both sides for ‘an expeditious conclusion of an interim agreement on Teesta’.

The Indian water resources secretary, Umesh Narain Panjiyar, said he and his Bangladesh counterpart Sheikh Md Wahid uz Zaman could meet as early as in May to make the next move towards an interim agreement.

Highly-placed Indian officials said New Delhi was aware that sharing of water of the common rivers was a sensitive issue in Bangladesh and that Dhaka had ‘high expectation’ from the latest JRC ministerial meet. But, they argued, it was not possible to narrow down all the differences on a highly technical issue like water-sharing in the two-day meet, which had taken place for the first time after 2005.

But Abdur Rob Khan, Associate Professor of International Relations at Dhaka’s North South University, told bdnews24.com that the failure to strike an interim agreement on Teesta itself could be construed as a setback in Bangladesh, particularly when the processes to resolve the long-standing bilateral issues was believed to have gained momentum after prime minister Sheikh Hasina’s visit to New Delhi in January.

‘The significance of an interim agreement on Teesta for the Awami League government is more political than technical,’ said Khan, who was in New Delhi for the India-Bangladesh Security Dialogue jointly organised by the Bangladesh Enterprise Institute and Observer Research Foundation in New Delhi.

But Sreeradha Datta, a research fellow of the India’s premier think-tank Institute of Defence Studies and Analyses, said failure of the JRC to deliver an interim agreement on Teesta in its first ministerial meet since 2005 should not be seen as a setback for Delhi-Dhaka relations as the Indian government had possibly found it difficult to enter into an ad hoc arrangement without settling some technical issues.

Datta, who closely monitors India-Bangladesh relations, pointed out that the central government in New Delhi would have to ensure that the state of West Bengal continued to get a fair share of Teesta water for irrigation and hydropower generation.

She, however, added that a political statement from New Delhi reassuring Dhaka on the issue of Teesta could indeed be helpful in keeping the momentum towards forging a better relation between the two countries, especially after Hasina’s visit.

Ramesh on Friday called on the Indian prime minister, Manmohan Singh, and the finance minister, Pranab Mukherjee, before having his last round of meeting with Bansal. He is believed to have requested Manmohan and Mukherjee to give a political push to the efforts to narrow down the differences on the Teesta issue.

According to sources, both Manmohan and Mukherjee had assured Ramesh that New Delhi understood Dhaka’s concern over availability of Teesta water during dry season and its impact on the country’s agricultural production.

But Manmohan and Mukherjee had also reportedly told Ramesh that the Indian government would have to take into account the opinions of the West Bengal government before striking a deal with Bangladesh on Teesta since the Indian constitution categorised water as one of the subjects under the purview of the state government.

The West Bengal irrigation and waterways minister, Subhash Naskar, was present during the JRC meet that began last Thursday.

Apart from Teesta, the JRC also had comprehensive discussions on water sharing of other common rivers, drinking water supply and minor lift irrigation schemes on Feni and Muhuri rivers, implementation of 1996 Ganga Waters Treaty, bank protection and embankment repair works, cooperation in flood forecasting and warning arrangements, cooperation in flood management measures including dredging of the River Ichhamati, Tipaimukh Dam Project and river inter-linking project in India.

Both Ramesh and Bansal expressed satisfaction at the bank protection and embankments repair works being undertaken by mutual agreement on several sites in both countries. In addition to the 66 sites already agreed, both sides finalised 12 new Indian and 22 new Bangladesh sites for bank protection and embankment repair works. They also expressed satisfaction at the on-going dredging activities on the River Ichhamati.

Bangladesh agreed to allow India to withdraw 1.82 cusec of water from River Feni for drinking water supply schemes. Besides, in order to give Bangladesh more lead time for advance warning of floods, India in a special gesture, agreed to provide flood data to enhance the lead time to more than 57 hours.

 

[EjazR]

India proposes joint venture LNG plant in Bangladesh - Economy and Politics - livemint.com

New Delhi: As part of a growing attempt to improve political and economic ties, India has proposed to Bangladesh the setting up of a liquefied natural gas (LNG) terminal in that country in a joint venture (JV).

The proposed terminal will be used to create a power generation capacity of around 1,000MW.

According to the initial proposal, after meeting demand in Bangladesh, the remaining power will be supplied to India through a transmission link being set up between the two countries by Power Grid Corp. of India Ltd (PGCIL).
The details of the plan would be decided after a Bangladeshi delegation visits India shortly to study the LNG terminals in the country.

“Since Bangladesh does not have any coal, we suggested to them to set up an LNG terminal either through a JV with India or on their own. They can then use the gas to generate power and then sell it to India through the transmission link we are building,” said power secretary H.S. Brahma. “A delegation from Bangladesh will be visiting India shortly to take this forward.”

While Bangladesh is short of power, with an installed capacity of 10,000MW, India has an installed capacity of 153,000MW, of which 16,822.85MW is gas-based.

India has two LNG regasification terminals. Both are located in Gujarat; one is owned by Petronet LNG Ltd (with a capacity of 7.5 million tonnes per annum, or mtpa) and the other by Shell India Pvt. Ltd (3.6 mtpa). The other terminals which are in the pipeline or at proposal stage include the ones at Dabhol (Maharastra), Kochi (Kerala), Ennore (Tamil Nadu) and Mundra (Gujarat).

“Both sides are discussing the proposal and the technical people are having meetings,” said Enamul Hoque Chowdhry, minister, press at the Bangladesh high commission in New Delhi.

The proposal was made by the Indian government during Brahma’s visit to Bangladesh in February to hold discussions on a power plant that NTPC Ltd is planning to set up there, apart from other areas of energy cooperation.

“We had made this proposal to Tawfiq-e-Elahi Chowdhury, energy adviser to the prime minister of Bangladesh,” Brahma said. “Since the current producing fields in Bangladesh are old and due to the low pressure, the domestic gas is not enough, there is a need for gas.”

Bangladesh has substantial gas reserves of 135.8 billion cu.m but it has not been brought to commercial production as the country has resisted calls until now for the export of natural gas.

The developments follow the January visit of Bangladesh Prime Minister Sheikh Hasina that was part of the bid to upgrade the bilateral relationship.

New Delhi also wants to ensure closer cooperation so that Bangladesh acts against militant anti-India groups that have established bases on its soil, such as the Harkat-ul-Jihad-e-Islami, Jamaat-ul-Mujahidin, Purbo Banglar Communist Party, Bipplobi Communist Party and the Sarbahara Party.

Bangladesh plans to set up two coal-fuelled power projects of 1,320MW each, one of which, requiring an investment of around Rs6,600 crore, will be offered to state-owned NTPC, India’s largest power generation utility, to be developed in a joint venture with the Bangladesh Power Development Board. NTPC is also scouting for renovation, modernization, operation and maintenance opportunities in Bangladesh.

“This is a good proposal for both India and Bangladesh,” said Rupesh Sankhe, an equity research analyst at Angel Broking Ltd. “This can be made operational on the same lines as the India-Bhutan power trade. Bangladesh has huge gas reserves but investments are not happening for its development.”

 

[EjazR]

India spells 'easy' terms for $1 bn loan to Bangladesh

Bangladesh says the terms set for the $1 billion loan offered by India during Prime Minister Sheikh Hasina's New Delhi visit in January are 'as easy as those of the Asian Development Bank (ADB)'.

India has offered the loan at 1.75 percent interest rate. Last week, it spelt the terms in a draft agreement sent here for the credit for which the time limit for repayment is 20 years, including a grace period.

Analysts said this should set to rest speculation in political and trade circles that New Delhi was 'tying down' Bangladesh with higher interest rate loan with stipulation that Dhaka must utilise it to buy Indian goods and services.

The $1 billion loan is the highest loan India has offered any country.

The Daily Star newspaper Thursday quoted a finance ministry official as saying the terms and conditions for the credit were 'as easy as that of the Asian Development Bank'.

Interest rate of ADB's Ordinary Capital Resources (OCR) stands at London Inter-Bank Offer Rate (LIBOR) plus 0.6 percent and loan repayment period is 25 years including grace period.

The finance ministry sources said the draft agreement mentions that the loan would be given for transport, communication and river dredging projects.

The ministries concerned have already started preparing projects for utilising the loans. If there is any need for procurements for the projects, the draft agreement provides that those must be purchased from India.

The Economic Relations Division (ERD) has sought opinions of the ministries on the draft agreement. Next week, a meeting on the draft will be held with the ministries. If the government has no objection to the draft, Dhaka will convey New Delhi its consent to the agreement.

Indian Prime Minister Manmohan Singh had announced in the joint communique the credit of $1 billion for a range of projects including those for railway infrastructure, supply of locomotives and passenger coaches, rehabilitation of Syedpur railway workshop, procurement of buses and river dredging.

The joint communique issued at the end of Hasina's visit to India also contained commitments concerning transit facilities, power import from India and various projects on regional cooperation.

The prime minister's financial affairs adviser Mashiur Rahman has been given the responsibility of implementation of the commitments.

Mashiur Rahman held meetings with representatives of different ministries and departments concerned Wednesday, and will also hold meetings Thursday to discuss the progress in this regard.

 

[damiendehorn]

Sorry EjazR, this is from an indian point of view. Anyway highlighting that section wont make the terms any better, if you look at the rates from the ADB, they are still way better then what india is offering. Plus Bangladesh is free to buy from any nation and not just India, which would be the case here.

Here is a link for you to check.

ADB Loan to Help Bangladesh Boost Natural Gas Supply, Spur Growth

Infact WB rates are even beter then what is avalable from the ADB.

The nearest i got from a Bangladeshi source is an article in the daily star, but that does not have the highlighted section? Read it fully, it says "If there is any need for procurements for the projects, the draft agreement provides that those must be purchased from India".

heres the link from the daily star.

http://www.thedailystar.net/newDesign/news-details.php?nid=132489

 

[fallstuff]

India proposes joint venture LNG plant in Bangladesh - Economy and Politics - livemint.com

New Delhi: As part of a growing attempt to improve political and economic ties, India has proposed to Bangladesh the setting up of a liquefied natural gas (LNG) terminal in that country in a joint venture (JV).

The proposed terminal will be used to create a power generation capacity of around 1,000MW.

According to the initial proposal, after meeting demand in Bangladesh, the remaining power will be supplied to India through a transmission link being set up between the two countries by Power Grid Corp. of India Ltd (PGCIL).
The details of the plan would be decided after a Bangladeshi delegation visits India shortly to study the LNG terminals in the country.

“Since Bangladesh does not have any coal, we suggested to them to set up an LNG terminal either through a JV with India or on their own. They can then use the gas to generate power and then sell it to India through the transmission link we are building,” said power secretary H.S. Brahma. “A delegation from Bangladesh will be visiting India shortly to take this forward.”

While Bangladesh is short of power, with an installed capacity of 10,000MW, India has an installed capacity of 153,000MW, of which 16,822.85MW is gas-based.

India has two LNG regasification terminals. Both are located in Gujarat; one is owned by Petronet LNG Ltd (with a capacity of 7.5 million tonnes per annum, or mtpa) and the other by Shell India Pvt. Ltd (3.6 mtpa). The other terminals which are in the pipeline or at proposal stage include the ones at Dabhol (Maharastra), Kochi (Kerala), Ennore (Tamil Nadu) and Mundra (Gujarat).

“Both sides are discussing the proposal and the technical people are having meetings,” said Enamul Hoque Chowdhry, minister, press at the Bangladesh high commission in New Delhi.

The proposal was made by the Indian government during Brahma’s visit to Bangladesh in February to hold discussions on a power plant that NTPC Ltd is planning to set up there, apart from other areas of energy cooperation.

“We had made this proposal to Tawfiq-e-Elahi Chowdhury, energy adviser to the prime minister of Bangladesh,” Brahma said. “Since the current producing fields in Bangladesh are old and due to the low pressure, the domestic gas is not enough, there is a need for gas.”

Bangladesh has substantial gas reserves of 135.8 billion cu.m but it has not been brought to commercial production as the country has resisted calls until now for the export of natural gas.

The developments follow the January visit of Bangladesh Prime Minister Sheikh Hasina that was part of the bid to upgrade the bilateral relationship.

New Delhi also wants to ensure closer cooperation so that Bangladesh acts against militant anti-India groups that have established bases on its soil, such as the Harkat-ul-Jihad-e-Islami, Jamaat-ul-Mujahidin, Purbo Banglar Communist Party, Bipplobi Communist Party and the Sarbahara Party.

Bangladesh plans to set up two coal-fuelled power projects of 1,320MW each, one of which, requiring an investment of around Rs6,600 crore, will be offered to state-owned NTPC, India’s largest power generation utility, to be developed in a joint venture with the Bangladesh Power Development Board. NTPC is also scouting for renovation, modernization, operation and maintenance opportunities in Bangladesh.

“This is a good proposal for both India and Bangladesh,” said Rupesh Sankhe, an equity research analyst at Angel Broking Ltd. “This can be made operational on the same lines as the India-Bhutan power trade. Bangladesh has huge gas reserves but investments are not happening for its development.”

Sounds like a decent idea.

 

[idune]

Sounds like a decent idea.

Sounds like it will be strategic blunder if indians are allowed to be in our energy supply and storage infrastructure.

Only short sighted people and people with indian goal in mind will support such indian venture.

 

[TopCat]

Sorry EjazR, this is from an indian point of view. Anyway highlighting that section wont make the terms any better, if you look at the rates from the ADB, they are still way better then what india is offering. Plus Bangladesh is free to buy from any nation and not just India, which would be the case here.

Here is a link for you to check.

ADB Loan to Help Bangladesh Boost Natural Gas Supply, Spur Growth

Infact WB rates are even beter then what is avalable from the ADB.

The nearest i got from a Bangladeshi source is an article in the daily star, but that does not have the highlighted section? Read it fully, it says "If there is any need for procurements for the projects, the draft agreement provides that those must be purchased from India".

heres the link from the daily star.

India firms up $lb soft loan

1.75 is a good rate if you consider stringent condition they apply to any loan from WB.

 

[damiendehorn]

What stringent conditions should BD gov be affraid off?

 

[idune]

1.75 is a good rate if you consider stringent condition they apply to any loan from WB.

And indian loan does not have condition????

 

[idune]

First of all , Bangladesh do not need indian loan can do without it.

Second, indian loan was intended for building road and other infrastucture so indian ploy to get road and railway transit can be implemented at cost of Bangladeshi taxpayers. While india not only get transit but also collects interest profit.

Third, most intl loan interest rate is set with bank of england LIBOR rate + premium. And when they publish interest rate they just mention premium not the total interest rate. In same manner indian rate is LIBOR rate + 1.92%.

Pelople who are claiming indian rate is low and without any string attached have made many claim on behalf of indian ploy and was not able to provide any proof. This time it is no different

 

[EjazR]

India, Bangladesh power venture to come up in Chalna-Power-Energy-News By Industry-News-The Economic Times

DHAKA: Chalna, a port town in southwestern Bangladesh, will be the location for a proposed 1,310 megawatt coal-fired power plant to be set up as a joint venture between Bangladesh and India, an official said on Sunday.

A joint technical committee comprising officials of the Bangladesh Power Development Board (BPDB) and the National Thermal Power Corporation (NTPC) of India visited the site last week.

"We will install the power plant at Chalna. It will be a two-unit power plant on equal equity basis," ASM Alamgir Kabir, chairman of BPDB, told BSS, the official news agency of Bangladesh.

According to official sources, the NTPC team has suggested that BPDB engage local consultants for the feasibility study on socio-environmental and ecological impact of the power plant.

It also suggested engaging a consultant to work out the coal transportation plan.

"We do not have enough idea about coal handling, it would be a huge power plant and we need to import huge quantity of coal, depot it and to transport it. So, they suggested to us to work on the issue," he said.

The committee has started feasibility study and hopefully sign the joint venture agreement soon, he said.

The committee also worked on the grid inter-connection between India and Bangladesh as well as co-operation between NTPC and BPDB.

Bangladesh and India signed a memorandum of understanding on exchange of power during off-peak hours (17 hours a day) when Prime Minister Sheikh Hasina visited India in January this year.

 

[eastwatch]

India proposes joint venture LNG plant in Bangladesh - Economy and Politics - livemint.com

New Delhi: As part of a growing attempt to improve political and economic ties, India has proposed to Bangladesh the setting up of a liquefied natural gas (LNG) terminal in that country in a joint venture (JV).

The proposed terminal will be used to create a power generation capacity of around 1,000MW.

According to the initial proposal, after meeting demand in Bangladesh, the remaining power will be supplied to India through a transmission link being set up between the two countries by Power Grid Corp. of India Ltd (PGCIL).
The details of the plan would be decided after a Bangladeshi delegation visits India shortly to study the LNG terminals in the country.

“SINCE BANGLADESH DOES NOT HAVE ANY COAL, we suggested to them to set up an LNG terminal either through a JV with India or on their own. They can then use the gas to generate power and then sell it to India through the transmission link we are building,” said power secretary H.S. Brahma. “A delegation from Bangladesh will be visiting India shortly to take this forward.”

Indian ministers and newspapermen seem to be ignorant of BD's coal reserves in its north-west. BD has 2,500 million tonnes of coal reserves. In terms of natural gas equivalent, this reserve is equal to more than 90 trillion cft of gas. In contrast, our gas reserve is somewhere between 13 trillion to 38 trillion only. So, how come India proposes a LNG project! This is something that BD does not need immediately.

 

[ramu]

Indian ministers and newspapermen seem to be ignorant of BD's coal reserves in its north-west. BD has 2,500 million tonnes of coal reserves. In terms of natural gas equivalent, this reserve is equal to more than 90 trillion cft of gas. In contrast, our gas reserve is somewhere between 13 trillion to 38 trillion only. So, how come India proposes a LNG project! This is something that BD does not need immediately.

Really ?

Energy profile of Bangladesh
=====================

Natural Gas
===========

Natural gas reserve estimates vary widely for Bangladesh. Oil & Gas Journal (OGJ) reported that Bangladesh had 5 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2006, down significantly from OGJ’s January 2005 estimate of 10.6 Tcf. It is not clear why the large downgrade of Bangladesh’s natural gas reserves occurred. In mid-2004, estimates from state-owned Petrobangla put net proven reserves at 15.3 Tcf. Bangladesh’s Ministry of Finance estimated in 2004 that the country holds 28.4 Tcf of total gas reserves, of which 20.5 Tcf is recoverable. In June 2001, the U.S. Geological Survey estimated that Bangladesh contains 32.1 Tcf of additional “undiscovered reserves.”

While estimates of the country’s reserves vary, natural gas is Bangladesh’s only significant source of commercial energy. The government of Bangladesh estimates that natural gas accounts for 80 percent of the country’s commercial energy consumption. In 2004, Bangaladesh produced 463 billion cubic feet (Bcf) of natural gas, up from 429 Bcf in 2003 and more than doubling the 1994 level. Despite increasing production levels, Bangladesh has never been a net exporter of natural gas. Given the uncertain size of the country’s natural gas reserves, the government has been reluctant to export natural gas and has instead focused on meeting current and future domestic energy needs.




Coal
======

Bangladesh has small coal reserves, and has consumed little coal in the past. Bangladesh began commercial coal production in April 2003 with the opening of the Barapukuria Coal Mine, which is expected to produce one million short tons of coal per year (Mmst/y), principally for electricity generation. This mine is being used to fuel the 250-MW Barapukuria Coal-Fired Power Plant in Parbotipur, which began commercial operation in January 2006. Another possible coal mining project at Khalashpir is under consideration as well.

Despite Bangladesh’s small reserves, the government has recently promoted the development of coal to ease its reliance on natural gas for power generation. Bangladesh’s coal reserves have so far not been developed, mainly owing to a lack of domestic financing. To attract investment, the government has opened the coal sector to foreign bidding. Although estimates vary, Bangladesh’s Energy Ministry judges that the country has up to 2.7 billion short tons of high-quality coal reserves. According to the latest Energy Information Administration (EIA) figures, in 2004 Bangladesh has no domestic coal reserves or production. The government is currently crafting a new national coal policy that will govern foreign involvement in Bangladesh’s coal sector. Some analysts anticipate the new coal policy will hike the royalty rate on coal projects from 6 percent to 16 percent and place limits on coal exports from the country, among other guidelines.

In July 2005, UK-based Asia Energy Corp. (AEC) submitted a proposal to develop a coal mine in Bangladesh’s Phulbari region. According to a Scheme of Development and Feasibility Study submitted to the government, AEC declares that the Phulbari site contains an estimated 572 million short tons of recoverable coal reserves. The initial investment in the project would be $1.4 billion, and the open-pit mine is expected to produce 15 Mmst/y of coal to fuel a planned 500-megawatt power station. AEC is awaiting formal approval from the government, which has declared that it will not approve any new coal development projects until its new coal policy is enacted. AEC also faces a number of other obstacles in gaining approval for the project. According to the Feasibility Study submitted by Asia Energy, up to 40,000 people would gradually be relocated away from the Phulbari area that currently live on or near the planned mining locations.

Energy profile of Bangladesh - Encyclopedia of Earth