Railway Locomotives Handed Over to Bangladesh by India

Published: July 27, 2020

India handed over Bangladesh 10 railway locomotives in order to bolster ‘neighbourhood first’ policy against the backdrop of China, with whom India is engaged in a border standoff.

This is part of the grant assistance from the Indian side and it is also in line with a commitment by New Delhi made during the visit of the Bangladesh Prime Minister last year. The Railways have ensured that the two countries can continue bilateral trade without any disruption and health risk. By this move, both the countries are ensuring a better future for the people of the respective countries.

Background

Both the governments are keen on reviving the pre-1965 railway connection between India and Bangladesh. Out of the seven rail links that existed back then, four are still functional. However, to further strengthen the railway link between the two countries, one new rail link between Agartala and Akhaura in Bangladesh is being built under Grant Assistance from India. Also, both the countries have recently commenced cross-border container train services.

India and Bangladesh are developing seventeen railway projects together with a commitment of $2.44 trillion and the assistance is being provided by India to Bangladesh. India has offered lines of credit for these projects at a rate of interest of 1% a year, with repayment period of around 20 years with a moratorium of five years. Nine projects have already been completed whereas the Kulaura-Shahbazpur line is set to be completed by the end of this year and the Khulna-Mongla line worth $389 million is set to be completed by June 2021.

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