March 2017 \ News \ BUSINESS FEATURE
Bangladesh - India Trade

At the India-Bangladesh Chamber of Commerce and Industry (IBCCI) in February where the Indo-Bangla Trade Fair was started, Indian High Commissioner to Bangladesh,

By Yogi Ashwini

Substantial duty concessions have been extended to Bangladesh under SAFTA, SAPTA and APTA. India has provided duty free quota free access to Bangladesh (and other SAARC LDCs) on all tariff lines except tobacco and alcohol under SAFTA since 2011. Four Border Haats, two each in Tripura and Meghalaya, have been established for the benefit of bordering communities.  Additional Border Haats on the India-Bangladesh border have been proposed and are under consideration.

Total Indian investments in Bangladesh registered with Bangladesh Investment Development Authority are USD 3.11 billion and are on an upward trajectory. Indian Foreign Direct Investment (FDI) in Bangladesh reached USD 88.0 million in 2015-16. 
India’s Economic Assistance to Bangladesh
During the visit of Prime Minister Hasina to India in January 2010, India announced a USD 1 billion Line of Credit (LoC) for Bangladesh. Most of these projects under 1st LoC have been completed.

Prime Minister Modi announced a new LoC of USD 2 billion during his visit to Bangladesh in June 2015. The new LoC covers projects in the areas of Roads, Railways, Power, Shipping, SEZs, Health & Medical Care and Technical Education.
Power and Energy Sector Cooperation
The MoU on power sector cooperation between India and Bangladesh was signed in 2010.  There are at present two interconnections through which 600 MW of power is transferred from India to Bangladesh.  Currently 500 MW of power is transferred through the Bherampur-Bheramara inter-connection and another 100 MW through the Surajmani Nagar (Agartala) - Comila interconnection. During the visit of Prime Minister Modi in June 2015 it has been agreed for additional 500 MW of power through the existing Bahrampur - Bherampur interconnection. In March, 2016 the two Prime Ministers inaugurated export of Internet bandwidth to Tripura from Bangladesh and the export of power from Tripura to Comilla. The 1320 MW coal-fired Maitree thermal power plant, a 50:50 JV between the National Thermal Power Corporation (NTPC) of India and Bangladesh Power Development Board (BPDB) is being developed at Rampal. Many private companies of India have also shown interest in the power sector of Bangladesh.

Energy sector cooperation between India and Bangladesh has also seen considerable progress in the last two years.  Many Indian public sector units such as Indian Oil Corporation, Numaligarh Refinery Limited, Gas Authority of India Limited, Petronet LNG Ltd are working with their Bangladeshi counterparts in the oil and gas sector of Bangladesh. ONGC Videsh Ltd has acquired two shallow water blocks in Bangladesh namely SS-04 and SS-09 in 50-50 consortium with Oil India Limited and is currently involved in exploration activities in these blocks. 

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