NEW DELHI: India will on Monday hand over 10 broad gauge (BG) locomotives to
as a part of its grant assistance to the eastern neighbour. India sees rail cooperation with Bangladesh, a country where China is looking to rapidly expand its
including through rail connectivity, as vital for promoting trade and connectivity and shoring up the economic partnership.
Official sources here said that with the handing over India will fulfil its commitment made during Bangladesh PM Sheikh Hasina’s visit in October 2019.
Foreign minister S Jaishankar and railway minister Piyush Goyal will be present at the virtual ceremony to mark the occasion on Monday. The Bangladeshi side will also be represented by their foreign minister Abul Kalam Abdul Momen and railway minister Nurul Islam Sujan.
India and Bangladesh are jointly working to enhance rail connectivity by developing some crucial railway projects as well as by restoring some old rail links with Bangladesh, according to Indian authorities.
“A total of 17 railway sector projects have been included in LoC (line of credit) assistance extended by India to Bangladesh, with a commitment of US $2.44 billion,” said an official source, adding India had offered all LoCs to Bangladesh at a rate of interest of 1% per annum and repayment over 20 years with a moratorium for 5 years.
Of the 17 railway projects, according to India, 9 have been completed including supply of locomotives, flat wagons, railway bridges and signaling equipment.
The railway projects which are being implemented with LoC assistance include the Kulaura-Shahbazpur railway line at a cost of US $78 million, likely to be completed by end of this year, and the Khulna-Mongla railway line project worth US $389 million (that includes a railway bridge) which is likely to be completed by June 2021.
“Three other p