5 more projects under $ 2b Indian LoC get approval

With the fresh approval, nine projects have so far received Indian EXIM Bank's approval where around $1,596 million would be needed for implementing these projects

India has given approval to five more projects proposed by Bangladesh in key sectors, including railway, road infrastructure and power, to be implemented under its $ 2 billion Line of Credit (LoC), raising the total number of approved projects to nine, reports UNB. "The Indian EXIM Bank in a recent letter sent to the Economic Relations Division (ERD) of the Ministry of Finance mentioned the fresh approval to these five projects," said a senior ERD official.
The official preferring anonymity said that these approved five projects are Construction of double line track in Khulna-Darshana-Junction section of Bangladesh project with an estimated cost of $ 396 million (LoC portion $312.4 million), Conversion of meter gauge line to dual gauge line in Patbatipur-Kaunia section of Bangladesh Railway project with an estimated cost of $ 142.73 million (LoC portion $120.04 million), Barapukuria-Bogra-Kaliakoir 400 kv line project with an estimated cost of $ $366.31 million (LoC portion of $ 210.06 million).
Besides, establishment of Indian economic zone in Mongla, Bagerhat and Bheramara project
with an estimated cost of $ 88.02 million
(LoC portion of $ 88 million), Procurement of
equipment and machineries of construction,
repair and maintenance of road infrastructure project with an estimated cost of $ 74.23 million (LoC portion of $ 59.84 million).
With the fresh approval, some nine projects have so far received Indian EXIM Bank's approval where around $ 1596 million would be needed for implementing these projects.
Out of the overall cost of these nine projects, the Indian government would provide $ 1221.54 million while the rest of $ 374.46 million would come from the state exchequer.
Another official at the ERD said that two more projects are awaiting approval of the Indian EXIM Bank. These two projects are Creating facilities for additional 1 lakh student enrollment in different polytechnique institute project (LoC portion of $ 241 million and Establishment of IT Park at district level project (LoC portion of $ 193 million).
The official said that both the concerned
officials of India and Bangladesh would sit soon to review the implementation of the LoC projects
as the 10th LoC review meeting would be held
in New Delhi.
Earlier, India gave approval to four projects in the communication sector involving $ 430.14 million to be covered under its fresh 2nd $2 billion Line of Credit (LoC) offered to Bangladesh.
Earlier on March 9 last, the government signed an agreement with Indian EXIM Bank to receive $2 billion Indian Line of Credit against 14 development projects in the country's various sectors.
Under the Indian 2nd LoC, 14 social and
infrastructure development projects in power, railways, road, transportation, ICT, shipping, health and technical education sectors were identified for implementation.
The fresh $ 2 billion LoC is the biggest credit line that India has so far extended to any country. The first Line of Credit of $ 1 billion was extended by India to Bangladesh in 2010.
The fresh Indian 2nd credit bears an interest rate of 1 per cent with 0.5 per cent commitment fee to be repaid in 20 years with five years' of grace period. Earlier, the MoU on the new LoC was signed on June 6 last year during Indian Prime Minister Narendra Modi's Bangladesh visit.

5 more projects under $ 2b Indian LoC get approval

With the fresh approval, nine projects have so far received Indian EXIM Banks approval where around $1,596 million would be needed for implementing these projects

India has given approval to five more projects proposed by Bangladesh in key sectors, including railway, road infrastructure and power, to be implemented under its $ 2 billion Line of Credit (LoC), raising the total number of approved projects to nine, reports UNB. The Indian EXIM Bank in a recent letter sent to the Economic Relations Division (ERD) of the Ministry of Finance mentioned the fresh approval to these five projects, said a senior ERD official. The official preferring anonymity said that these approved five projects are Construction of double line track in Khulna-Darshana-Junction section of Bangladesh project with an estimated cost of $ 396 million (LoC portion $312.4 million), Conversion of meter gauge line to dual gauge line in Patbatipur-Kaunia section of Bangladesh Railway project with an estimated cost of $ 142.73 million (LoC portion $120.04 million), Barapukuria-Bogra-Kaliakoir 400 kv line project with an estimated cost of $ $366.31 million (LoC portion of $ 210.06 million). Besides, establishment of Indian economic zone in Mongla, Bagerhat and Bheramara project with an estimated cost of $ 88.02 million (LoC portion of $ 88 million), Procurement of equipment and machineries of construction, repair and maintenance of road infrastructure project with an estimated cost of $ 74.23 million (LoC portion of $ 59.84 million). With the fresh approval, some nine projects have so far received Indian EXIM Banks approval where around $ 1596 million would be needed for implementing these projects. Out of the overall cost of these nine projects, the Indian government would provide $ 1221.54 million while the rest of $ 374.46 million would come from the state exchequer. Another official at the ERD said that two more projects are awaiting approval of the Indian EXIM Bank. These two projects are Creating facilities for additional 1 lakh student enrollment in different polytechnique institute project (LoC portion of $ 241 million and Establishment of IT Park at district level project (LoC portion of $ 193 million). The official said that both the concerned officials of India and Bangladesh would sit soon to review the implementation of the LoC projects as the 10th LoC review meeting would be held in New Delhi. Earlier, India gave approval to four projects in the communication sector involving $ 430.14 million to be covered under its fresh 2nd $2 billion Line of Credit (LoC) offered to Bangladesh. Earlier on March 9 last, the government signed an agreement with Indian EXIM Bank to receive $2 billion Indian Line of Credit against 14 development projects in the countrys various sectors. Under the Indian 2nd LoC, 14 social and infrastructure development projects in power, railways, road, transportation, ICT, shipping, health and technical education sectors were identified for implementation. The fresh $ 2 billion LoC is the biggest credit line that India has so far extended to any country. The first Line of Credit of $ 1 billion was extended by India to Bangladesh in 2010. The fresh Indian 2nd credit bears an interest rate of 1 per cent with 0.5 per cent commitment fee to be repaid in 20 years with five years of grace period. Earlier, the MoU on the new LoC was signed on June 6 last year during Indian Prime Minister Narendra Modis Bangladesh visit.