India has extended 3 Lines of Credits to Bangladesh in the last 7 years amounting to US$ 8 billion. This makes Bangladesh the largest recipient of LOC funds from India till date.
During the visit of Bangladesh PM to India in January 2010, India had announced a US$1 billion Line of Credit (LOC) for Bangladesh covering projects in public transportation, roads, railways, bridges and inland waterways etc. Most of these projects have been completed and the remaining are at various stages of completion.
India had extended the second LOC of US$ 2 billion during the visit of Prime Minister Modi to Bangladesh in June 2015. This LOC covers 15 projects in areas of Roads, Railways, Power, Shipping, SEZs, Health & Medical Care and Technical Education.
During the visit of Bangladesh PM to India in April 2017, India extended a third LOC of US$ 4.5 billion to Bangladesh. The new LOC will cover projects in areas of Port Construction, Railways, Roads, Airports, Power & Energy, Telecommunications, and Shipping etc.
In addition to LOC funds, Government of India also provides grant assistance to Bangladesh for projects under ‘Aid to Bangladesh’. Projects such as construction of school/college buildings, laboratories, dispensaries, deep tube wells, community centres, renovation of historical monuments/buildings, etc. have been financed by Government of India under this programme. At present, three Sustainable Development rojects (SDPs) are being undertaken in the cities of Rajshahi, Khulna and Sylhet.
The extended development work of Rabindra Nath Tagore’s ancestral house in Shilaidaha, 36 community clinics in selected districts of Bangladesh are also being undertaken. One of the biggest projects under the Indian grant assistance is the Bangladesh section of the Agartala-Akhaura rail-link.
