For the first time since regime-change, Bangladesh and India have carried out a review of all India-funded development projects in the country that are running behind schedule after the ouster of former Prime Minister Sheikh Hasina in August 2024 and decided to try and expedite them, sources said.
“A team from Bangladesh, that included Finance Adviser Salehuddin Ahmed, was in New Delhi this week. Talks were held with a team from the Ministry of External Affairs. The talks went well, and it was decided that all efforts would be made to fast-track the projects,” a source told businessline.
India extended concessional financing in the form of loans and grants amounting to approximately $10 billion, making Bangladesh India’s largest development partner, per a MEA submission before a Parliamentary Standing Committee on External Affairs.
Key ongoing projects include cross-border rail links, river dredging works, and several high-impact community development projects.
The security situation in Bangladesh following the political upheaval did impact the execution of Indian projects, and the MEA has been observing the situation.
“In the review meeting, both sides recognised that despite the delay in the projects, they would not be cancelled. Efforts will be made to resolve issues in all projects and continue them,” the source said.
Trade ties with Bangladesh, under the Muhammad Yunus led interim government, are normal and India was exporting goods to the country. “While dollar payments may continue to be a problem, the country is managing to carry out trade,” the source said.
Overall, there are 42 projects under the three Lines of Credits from India, of which 14 have been completed at a cost of around $410 million, per reports in Bangladesh media.
Of the six ongoing railway projects with Indian line of credit, the Khulna-Mongla Rail Line has become functional. Work on four other projects is expected to be delayed further, the reports said.