Though over four years have elapsed since the signing of a loan agreement with India for implementing various development projects in Bangladesh, only seven out of 15 projects under the US$ 800-million Indian line of credit (LoC) have been completed, according to a progress report.
India extended a US$ 1-billion credit line to Bangladesh for developing infrastructure projects, mostly in the communications sector. The loan agreement between the EXIM Bank of India and the Economic Relations Division (ERD) of the Ministry of Finance was signed in August 2010, reports UNB.
India also converted US$ 200 million out of the US$ 1 billion LoC as grant assistance in June 2012, enabling Bangladesh to utilise it for any priority project.
As per the progress report on Indian LoC as of August 31, 2014 prepared by the ERD, the seven completed projects are: Procurement of double-decker, single-decker AC and articulated buses for Bangladesh Road Transport Corporation (BRTC) (LoC of $ 36.85 million); procurement of 180 (165) broad-gauge (BG) tank wagons and six bogies of brake vans ($ 17.38 million); procurement of 50 units of metre-gauge (MG) flat wagons (BFCT) and 5 units of MG brake vans with air brakes for carrying containers ( $ 3.28 million); procurement of 30 (16) units of BG diesel electric (DE) locomotives ($ 60.95 million); procurement of 10 units of BG DE locomotives (LoC of US$ 33.05 million); procurement of 100 (81) units of MG bogies of tank wagons and five units of MG brake vans with air brakes and air brake equipment for carrying aviation fuel (US$ 7.43 million); procurement of 170 units of MG flat wagons (BFCT) and 11 units of MG bogie brake vans (BBVs) with air brake systems for carrying containers (LoC of US$ 10.73 million).
Eight LoC projects show slow progress
FE Team | Published: September 13, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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