INDO-BANGLA PIPELINE PROJECT
• Prime Minister Narendra Modi and his Bangladesh counterpart Sheikh Hasina on September 18, 2018 jointly launched the construction of India-Bangladesh Friendship Product Pipeline.
Pipeline is from India to Bangladesh
Project through video conferencing.
• The project will go a long way in strengthening the Indo-Bangla ties. It is a new milestone in the history of cooperation between India and Bangladesh.
• Both the sides had entered into an agreement for the construction of the pipeline in April 2018 during Foreign Secretary Vijay Gokhale’s visit to Dhaka.
INDIA-BANGLADESH FRIENDSHIP PRODUCT
PIPELINE PROJECT
• The 130-kilometre pipeline will connect Siliguri in West Bengal in India and Parbatipur in Dinajpur district of Bangladesh.
• The six-kilometre Indian leg of the pipeline project will be implemented by the Assam-based Numaligarh Refinery Limited and the remaining 124kilometres of the pipeline project will be implemented by BangladeshPetroleum Corporation.
•The capacity of the pipeline will be 1 million metric tons per annum.
MAJOR MILESTONE
• Bangladesh would initially receive 2.5 lakh tonnes of diesel every year and it would gradually be increased to 4 lakh tonnes.
• The project will replace the existing practice of sending diesel by rail covering a distance of 510 kilometres.
• The estimated project cost will be Rs 346 crore and it will be completed in 30 months time.
• This will be the first such pipeline through which refined diesel will be supplied to Parbatipur depot from Numaligarh of Assam in India.
BANGLADESH TO PROVIDE INDIA ACCESS TO KEY PORTS
• Bangladesh Cabinet chaired by Prime Minister Sheikh Hasina has approved draft agreement allowing India to use its Chittagong and Mongla ports to transport cargo to and from its North eastern states.
AGREEMENT ON SEA PORTS FOR TRANSPORTING GOODS
• Under this agreement, India can transport goods as per capacity of two sea ports.
NOTES :
• Under it, India will have to follow General Agreement on Tariff and Trad (GATT) and Bangladeshi regulations, pay customs duties and buy tax equivalent bonds to transport freight. India will also pay fees for using infrastructure of Bangladeshi land ports. To keep track of cargo new modern tracking system will be used.
• The agreement will be effective for five years, but it can be extended for another five years automatically. However, any side can cancel the agreement after giving six months’ notice and suspend deal. Standard Operational Procedure (SOP) will be prepared for implementing this agreement. The SOP will be prepared after consulting with various stakeholders.
IMPORTANCE OF BANGLADESH
According to global firepower index ECONOMY OF BANGLADESH
The market-based economy of Bangladesh is the 42nd largest in the world in nominal terms, and 31st largest by purchasing power parity; it is classified among the Next Eleven emerging market middle income economies and a Frontier market.
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