On September 5, India welcomed one of the closest friends in the neighbourhood, Bangladesh Prime Minister Sheikh Hasina, who is in India on a four-day visit. During the course of her trip, she held a bilateral meeting with Prime Minister Narendra Modi as well as interacted with President Droupadi Murmu. The immediate outcome of the visit was the signing of the seven memorandums of understanding (MoUs) in various fields, including the withdrawal of water from the cross-border Kushiyara river, cooperation in space technology, collaboration in IT systems used by railways in areas such as movement of freight, science and technology cooperation, training of Bangladesh Railway personnel and Bangladeshi judicial officers in India, and cooperation in broadcasting between Prasar Bharati and Bangladesh Television, aimed at boosting all-round ties between the two countries.

Among the seven pacts signed on September 6, a memorandum of understanding (MoU) on withdrawal of 153 cusecs (cubic feet per second) of water from the Kushiyara by Bangladesh is most welcomed by Dhaka. It is the first such deal the two countries have inked since the Ganga river water-sharing agreement in 1996 and is seen as a breakthrough in addressing an issue that has cast a shadow on their otherwise close ties. The deal came to the Sylhet region as a blessing that is expected to help alleviate some of Dhaka’s concerns. 

A pact to share water resources from transboundary rivers that run downstream from the Himalayas from India into Bangladesh has long been a priority for Bangladesh, a lower riparian state that suffers from crippling water shortages. Earlier, India and Bangladesh finalised the Teesta water-sharing deal in 2010 and it was likely to be signed in 2011. But it could not be inked due to opposition from West Bengal Chief Minister Mamata Banarjee.

The agreement will benefit southern parts of Assam state in India and the Sylhet region in Bangladesh. According to the agreement, the withdrawal of 153 cusecs of water from the Kushiara river through the Rahimpur canal will bring major changes in dry season farming in Jokiganj upazila bordering Bangladesh. At the same time, the farmers of Kanighat and some parts of Biyanibazar Upazila will benefit.

Wide spectrum of cooperation

The two leaders engaged in talks on connectivity, trade, flood management, counter-terrorism, food security, and nuclear energy partnerships. In a bid to help Bangladesh deal with the energy crisis, the two leaders unveiled the first unit of the Maitree Thermal Power Plant, a 1320 MW supercritical coal-fired thermal power plant at Rampal in the Khulna division of Bangladesh. The project is being set up at an approximate budget of $2 billion out of which $1.6 billion was Indian Development Assistance that will enhance Bangladesh’s power generation capacities. Experts believe that the Maitree Power Plant will give citizens of Bangladesh access to affordable electricity, helping Bangladesh tide over the difficulties it is facing in because of the growing energy prices worldwide.

Both leaders also discussed the issue of counterterrorism. “Today we also stressed cooperation against terrorism and fundamentalism. To keep the spirit of 1971 alive, it is also very necessary that we face such forces together, who want to attack our mutual trust,” Modi said. 

In flood management, India has extended the period of sharing flood water-related information in real-time which will help Bangladesh counter the annual floods.

Connectivity boost

An important project that was inaugurated was the Rupsha bridge. The 5.13 km Rupsha rail bridge is a key part of the 64.7 km Khulna-Mongla port single-track broad gauge rail project, connecting for the first time Mongla Port, Bangladesh’s second largest port, with Khulna by rail, and thereafter to central and northern Bangladesh and also to the India border at Petrapole and Gede in West Bengal. 

"The inauguration of the railway bridge over the Rupsha river is a remarkable step towards enhancing connectivity. This bridge is an important part of the new railway line being built between Khulna and Mongla port under India's Line of Credit," Modi said in a statement at a joint media appearance with Hasina.

An announcement was also made that India would supply road construction equipment and machinery in 25 packages to the road and highways department of the Bangladeshi government. The Khulna-Darshana railway line link project was also announced to upgrade the existing (doubling of broad gauge) infrastructure, linking the current cross-border rail link at Gede-Darshana to Khulna and thereby augmenting the rail connections between the two countries, especially to Dhaka, but also in future, to Mongla Port. The project cost is estimated to be USD 312.48 million. 

Another project, the Parbatipur-Kaunia railway line, will see the conversion of the existing metre-gauge line to a dual-gauge line at an estimated cost of USD 120.41 million. The project will connect the existing cross-border rail at Birol (Bangladesh)-Radhikapur (West Bengal) and enhance bilateral rail connectivity. The connectivity initiatives are part of the ongoing projects in Bangladesh that are aimed at converting the country into a major connectivity hub of South and Southeast Asia.

India has provided concessional loans worth $9.5 billion for development projects in Bangladesh, especially connectivity initiatives. These initiatives include improving rail connectivity between Khulna and Dhaka, Chilahati and Rajshahi and connecting Mongla port with Darshana-Gede at a cost of $312million, the Parbatipur-Kaunia rail project to facilitate the transportation of fuel that is being built at a cost of $120million, and the supply of road construction equipment and machinery worth $41million to repair and maintain Bangladesh’s road network. With the expansion of connectivity between our two countries, and the development of trade infrastructure on the border, the two economies will be able to connect more with each other.

Trade prospects under CEPA

While India is Bangladesh's largest trade partner in South Asia, with bilateral trade reaching a record $18 billion in the last financial year, there has been a significant trade imbalance between the two countries. To narrow the trade gap and to further accelerate trade, the two sides agreed to begin negotiations on a Comprehensive Economic Partnership Agreement (CEPA) this year. When the CEPA is operationalised, bilateral trade potential is expecte to touch $40 billion. Moreover, the CEPA will boost bilateral and sub-regional connectivity that Bangladesh is championing in its policy initiatives.

During the trip, Hasina met with Indian industrialist Gautam Adani, who recently became the world’s third-richest person, according to Bloomberg’s Billionaire Index. Adani Power, a subsidiary of Adani Group, will supply power to Bangladesh from its upcoming 1,600 MW thermal power plant in the Godda area of Jharkhand. The project is significant as Bangladesh has been recognised as an important partner under India's "Neighbourhood First" policy.

Cooperation during the visit extended to all fields, including trade and commerce, power and energy, transport and connectivity, science and technology, rivers, and maritime affairs. The visit will act as a catalyst for closer coordination and cooperation in resolving all issues, including Teesta river water sharing. It is expected that Indo-Bangladesh ties will touch new heights and will continue to add more depth and momentum in the coming days.

(The author is a security and strategic affairs analyst in Dhaka, Bangladesh. Views are personal. He can be contacted at kamalmazumderju@gmail.com)