Modi to woo Bangladesh with financial packages | Current Affairs, Current Affairs 2017

Modi to woo Bangladesh with financial packages

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modi-mamtaBangladesh is all ready to welcome the visit of Indian Prime Minister Narendra Modi along with West Bengal Chief Minister Mamata Banerjee which is expected to a give a new thrust to the bilateral relationship.

A number of financial packages will be offered to Bangladesh which, in turn, is expected to facilitate trade and transit facilities between the Indian mainland and its north-eastern states. A credit line of $2 billion and two private sector power purchase deals are on the table, said a senior member of the PM’s delegation.

“The overall capital flow from soft loans and credit line is expected to be around $4-5 billion,” it is said.

On their part, the Bangladeshi side has presented a detailed plan for a soft loan for the IT sector.  “We have sought $1 billion (credit line) to set up 12 IT parks in 12 districts of Bangladesh,” State Minister of Post, Telecommunications and IT Zunaid Ahmed Pulak has said.

Moreover, Bangladesh is ready to supply 10 gigabyte per second of bandwidth to India and an agreement to this end will be signed between the PSU telecom firms of the two nations.

“Bangladesh will make money out of it, while the efficiency of networks will drastically improve in India’s northeast, gasping for Internet speed,” Ahmed said.

Out of the many agreements to be signed, two will be on power exports which are expected from Adani and Reliance groups.

The agreements on transit-transhipment and railway communication and one between the Bureaux of Standards of the two countries are expected.

In an interactive session at the national press club on Friday, Bangladesh state minister for foreign affairs Mohammed Shahriar Alam indicated that Modi’s visit would lead to steps to reduce the trade deficit.

For Bangladesh to open transit and transhipment through its territory, India will be providing financial packages for infrastructure development. Both the sides may sign a visa facilitation agreement to encourage people-to-people exchanges.

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