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Dhaka seeks restoration of 1965 rail links
Dhaka seeks restoration of 1965 rail links - The Times of India
TNN | Apr 25, 2011, 03.45am IST
Article
DHAKA: DHAKA: Bangladesh has pitched for restoration of two rail links, destroyed in the 1965 war, to improve people-to-people ties. In addition, it has demanded that India provide duty- and quota-free access to 61 products, mainly textiles, as part of a plan to improve the terms of trade with its neighbour.
The suggestion for restoration of rail links was made by Bangaldeshi PM Sheikh Hasina during a meeting with commerce & industry minister Anand Sharma here on Sunday.
India has already provided $1 billion assistance to Bangladesh to improve rail and road links. On Sunday, it decided to provide the newly-launched buyers' credit facility for projects undertaken in the neighbouring country. The facility would also make bids by Indian companies more attractive.
While there was no word on the duty- and quota-free items, a decision is likely by the time Prime Minister Manmohan Singh visits Dhaka later this year. Steps have already been initiated to improve exports to India.
On Saturday, India decided to increase duty free import quota for garments by 25% to 10 million pieces from eight million earlier, and also dispensed with countervailing duties on import of all jute products.
While announcing these measures, Sharma also pitched for sharing some of the gains that Bangladesh received from the European Union in the form of preferential access for textiles. Sharma suggested that Bangladeshi companies source fabrics for garments from Indian companies for making garments and share some of the gains.
Textiles apart, New Delhi made a strong pitch for allowing access for Indian shipments through Chittagong and Mongla ports, which would help considerably lower the transaction cost for Indian companies, especially those operating in the North East.
Bangladeshi commerce minister Muhammad Faruk Khan said that while access could be provided, Bangladesh needed to upgrade its infrastructure for the purpose. "Work on developing the roads and the rail connectivity with the ports are underway," he said.
Sharma said that beefing up infrastructure at border points would help the cause further. India is spending Rs 142 crore in upgrading the land customs station at Petrapole, while another Rs 73 crore would be invested in a similar exercise in Akhaura. Work on both these trading points would be completed next year, officials said.
Dhaka seeks restoration of 1965 rail links - The Times of India
TNN | Apr 25, 2011, 03.45am IST
Article
DHAKA: DHAKA: Bangladesh has pitched for restoration of two rail links, destroyed in the 1965 war, to improve people-to-people ties. In addition, it has demanded that India provide duty- and quota-free access to 61 products, mainly textiles, as part of a plan to improve the terms of trade with its neighbour.
The suggestion for restoration of rail links was made by Bangaldeshi PM Sheikh Hasina during a meeting with commerce & industry minister Anand Sharma here on Sunday.
India has already provided $1 billion assistance to Bangladesh to improve rail and road links. On Sunday, it decided to provide the newly-launched buyers' credit facility for projects undertaken in the neighbouring country. The facility would also make bids by Indian companies more attractive.
While there was no word on the duty- and quota-free items, a decision is likely by the time Prime Minister Manmohan Singh visits Dhaka later this year. Steps have already been initiated to improve exports to India.
On Saturday, India decided to increase duty free import quota for garments by 25% to 10 million pieces from eight million earlier, and also dispensed with countervailing duties on import of all jute products.
While announcing these measures, Sharma also pitched for sharing some of the gains that Bangladesh received from the European Union in the form of preferential access for textiles. Sharma suggested that Bangladeshi companies source fabrics for garments from Indian companies for making garments and share some of the gains.
Textiles apart, New Delhi made a strong pitch for allowing access for Indian shipments through Chittagong and Mongla ports, which would help considerably lower the transaction cost for Indian companies, especially those operating in the North East.
Bangladeshi commerce minister Muhammad Faruk Khan said that while access could be provided, Bangladesh needed to upgrade its infrastructure for the purpose. "Work on developing the roads and the rail connectivity with the ports are underway," he said.
Sharma said that beefing up infrastructure at border points would help the cause further. India is spending Rs 142 crore in upgrading the land customs station at Petrapole, while another Rs 73 crore would be invested in a similar exercise in Akhaura. Work on both these trading points would be completed next year, officials said.