India extends $1 bn credit line to Bangladesh, signs security, power pacts (Roundup)
January 12th, 2010 - 1:05 am ICT by IANS
New Delhi, Jan 11 (IANS) India and Bangladesh Monday took a slew of defining steps to transform their bilateral ties that included New Delhi extending $1 billion for development projects in the neighbouring country and five agreements, including key security pacts to expand counter-terror cooperation.
Prime Minister Manmohan Singh and his Bangladeshi counterpart Sheikh Hasina, who is on her first visit to India after assuming power last year, held nearly two-hour-long discussions on a range of bilateral and regional issues.
This visit has opened a new chapter in India-Bangladesh relations, reflecting the unity of minds and hearts, Manmohan Singh told Sheikh Hasina.
“India stands ready to be a full and equal partner in the realisation of your vision of social change and economic development for Bangladesh,” Manmohan Singh said at the banquet in honour of the visiting Bangladesh leader.
“India seeks to build a new future with Bangladesh. The time has come to chart a new path. We are ready to pursue a bold vision for our relations, based on mutual respect and mutual benefit,” Manmohan Singh said.
The one-billion dollar line of credit is the largest ever one-time bilateral financial assistance India has provided to any country. It underlined India’s resolve to go the extra mile to spur the economic development of the neighbouring country.
The credit line will be used for the construction of railway bridges and lines, supply of coaches and locomotives and buses, and assistance in dredging, an issue of pressing concern to Dhaka.
Expanding counter-terror and security cooperation topped the discussions. The two leaders rejected extremism, violence and terrorism and agreed to cooperate proactively in combating these evils.
Sheikh Hasina assured Manmohan Singh that Bangladeshi territory will not be used for anti-India activities by insurgents from northeastern states - an issue that had shadowed ties between the two countries earlier.
They also discussed the sharing of river waters, the resolution of the maritime border dispute, the promotion of bilateral trade and new steps to increase rail and road links between the two countries.
After the talks, the two sides signed three treaties on mutual legal assistance in criminal matters, mutual transfer of convicted prisoners, and cooperation in the fight against international terrorism, organised crime and illegal drug trafficking.
The three security-related pacts signal a big step forward in expanding their counter-terror cooperation and will help New Delhi to press Dhaka for the extradition of suspected insurgents from its northeastern states who have taken shelter in Bangladeshi territory over the years.
In a sign of transforming relations, India also acceded to a long-pending demand of Dhaka by allowing rail transit from Bangladesh to Nepal and Bhutan.
The two sides inked a Memorandum of Understanding (MoU) on expanding power cooperation that will include building inter-grid connectivity. They signed another pact on enhancing cultural cooperation and people-to-people contacts.
India agreed to supply 250 MW of electricity through its central grid. The two sides took important steps to improve connectivity, including a decision on starting the Akhaura-Agartala rail link. They also decided to declare Asughat in Bangladesh and Silghat in India as ports of call.
The ties between the two nations had suffered under the previous regime in Dhaka over a host of tricky issues, including the alleged sheltering of insurgents from India’s northeastern states in Bangladeshi territory. The two sides also agreed to enhance their economic engagement that included the removal of non-trade barriers and India signaling its willingness to prune further its negative list of items Bangladesh can export to India.
Other positive steps included India increasing annual scholarships to Bangladeshi students to 300 and the decision to hold a joint celebration of the 150th birth anniversary of Nobel poet laureate Rabindranath Tagore in 2011.
Earlier Monday, Sheikh Hasina, who is on her first visit to India after assuming power last year, was accorded a ceremonial welcome in the forecourt of Rashtrapati Bhavan.
The Bangladesh leader called on President Pratibha Patil, met External Affairs Minister S.M. Krishna, ruling United Progressive Alliance chair Sonia Gandhi, Finance Minister Pranab Mukherjee and Leader of Opposition Sushma Swaraj.
Sheikh Hasina will be conferred the prestigious Indira Gandhi Prize for Peace, Disarmament and Development at a function at the Rashtrapati Bhavan Tuesday. She will go to Ajmer Wednesday to visit the shrine of the much-revered sufi saint.
India is leaving no stone unturned to make Sheikh Hasina’s visit to India “path-breaking” one and has underlined that it’s “a historic opportunity to build a new and forward-looking relationship”. Describing Sheikh Hasina as “a great leader of her country”, Minister of State for External Affairs Shashi Tharoor said: “We in India are looking forward to a transformation in our relationship with Bangladesh.”
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Tags: bilateral ties, bold vision, extra mile, india activities, locomotives, manmohan, manmohan singh, mutual benefit, mutual respect, neighbouring country, northeastern states, one billion, pacts, prime minister manmohan, prime minister manmohan singh, proactively, railway bridges, regional issues, security cooperation, sheikh hasina