India extends $4.5 bn line of credit to Bangladesh

Modi also announced a new line of concessional credit of United States dollars 4.5 billion for implementation of projects in Bangladesh.

Indian Prime Minister Narendra Modi on Saturday offered $4.5 billion in concessional loans to Bangladesh, underlining surging ties between the neighbours, but a contentious water-sharing deal remained elusive.

Over 20 agreements, including a civil nuclear agreement and two Memorandums of Understanding (MoUs) on defence cooperation, were signed after Saturday's bilateral talks between India and Bangladesh.

Modi described energy security to an important dimension of development partnership assured that India will continue to be a willing partner in meeting the energy needs of Bangladesh, and its goal of achieving 'Power for all by 2021′.

Earlier, following the bilateral talks, two countries signed 22 agreements across multiple sectors.

State-run Bangladesh Sangbad Sangstha news agency reported that two premiers, she said, discussed the issues of water resources management including sharing of water of common rivers like Teesta, the Padma-Ganges Barrage Project and basin-wise management of the trans-boundary streams. "They solemnly acknowledged the atrocities and called upon the worldwide community to recognize and preserve the memory of those who lost their lives and those who suffered during the genocide", the joint statement notes.

However, the much-delayed Teesta water-sharing pact, that will determine the sharing of the river water between the two countries, has yet to be sealed, sources said. He said this was "important for India, for Bangladesh and for India-Bangladesh relationship".

About the issue of terrorism, Jaishankar said that the two countries had positive experience in counter-terrorism operations.

Sheikh Hasina will formally begin her visit tomorrow morning with a ceremonial guard of honour at Rashtrapati Bhavan.

Earlier, PM Modi, along with Bangladesh Prime Minister Sheikh Hasina, paid tribute to Indian soldiers martyred in 1971 war at Manekshaw Centre for Sommanona Ceremony here.

The Bangladesh Prime Minister arrived here on Friday on a four-day visit to India. The two countries have had a close relationship since 1971, when Bangladesh, aided by India, gained independence from Pakistan following a bloody nine-month war. "The thought whose priority is not humanity, but extremism and terrorism", Modi said, without naming the neighbouring country.

In this context he referred to an agreement to open new border haats for trade and said steps being are being taken to put into operation the Coastal Shipping Agreement. In the evening, she called on Vice President Hamid Ansari.

Hasina's father Shaikh Mujibur Rehman, famously known as "Bangabandhu", and one of the leaders who led the Bangladesh Liberation movement were assassinated in a coup in 1975, along with the former's family members.

  • Leroy Wright