News Desk :
Bangladesh and India have conducted a review of all India-funded development projects for the first time since the change in government in Bangladesh that has been delayed following the removal of deposed Prime Minister Sheikh Hasina in August 2024.
Both the countries have agreed to accelerate their completion, sources have confirmed.
“A delegation from Bangladesh, which included Finance Adviser Salehuddin Ahmed, visited New Delhi this week.
Talks were held with a team from the Ministry of External Affairs, and the discussions were positive. It was agreed that all efforts would be made to fast-track the projects,” a source told an Indian media outlet Businessline.
India has extended concessional financing through loans and grants totalling approximately $10 billion, making Bangladesh India’s largest development partner, according to a submission by the Ministry of External Affairs to a Parliamentary Standing Committee on External Affairs.
Key ongoing projects include cross-border rail links, river dredging works, and several high-impact community development programmes.
However, the security situation in Bangladesh, following the political upheaval, has affected the implementation of these projects, and the Ministry of External Affairs has been closely monitoring the situation.
“During the review meeting, both sides acknowledged that despite the delays, the projects would not be cancelled. Efforts will be made to resolve issues and ensure the continuation of all projects,” the source said.
Trade relations between Bangladesh and India under the Muhammad Yunus-led interim government remain stable, with India continuing to export goods to Bangladesh.
“Although dollar payments remain an issue, Bangladesh is managing to maintain trade,” the source added.
In total, there are 42 projects funded under three Lines of Credit from India, 14 of which have been completed at a cost of approximately $410 million, according to reports in the Bangladeshi media.
Of the six ongoing railway projects funded by Indian credit, the Khulna-Mongla Rail Line is now operational, while work on four other projects is expected to face further delays, the reports indicated.
