Indo Bangladesh Relations – People Are the Key

India and Bangladesh have covered a lot of ground in this one year of Sheikh Hasina as the Prime Minister despite Hasina cozying upto China as articulated in an earlier post, Bangladesh Calling China. Despite this post, the two countries have made significant progress in bilateral relations through a range of  initiatives as articulated below. These are largely press reports and credible to that extent only.

The trans-shipment agreement between India and Bangladesh to facilitate trade could be in place in the next three to four months as per the India-Bangladesh Chamber of Commerce and Industry (IBCCI). As per an analysis:

Trade between the two countries has been constrained by the lack of trans-shipment facilities. For example, tea from Assam travels 1,400 km to the Kolkata port whereas the distance could be curtailed by 60 per cent if access to Chittagong port was available, says a study.

Also, goods from Agartala travel 1,645 km to Kolkata, while the distance would be 350 km if Bangladesh allows through-movement.

Opening up access through Chittagong port could also lead to possibilities of increased investment by India in Bangladesh.

An  agreement with Bangladesh to provide rail link between Akhaura on the Bangladesh side and Agartala on the Indian side. This link will also provide a shorter rail route between West Bengal and the northeastern region via Bangladesh.

The agreement would help Oil and Natural Gas Corporation’s power project in Tripura if Ashuganj becomes one of the trans-shipment point.

Chalna, a port town in southwestern Bangladesh, will be the location for a proposed 1,310 megawatt coal-fired power plant to be set up as a joint venture between Bangladesh and India.

India and Bangladesh will soon set up ‘haats’ (markets) along their international border in the northeast to boost local business and trade between the two neighbours. Two ‘border haats’ would be set up along the Indo-Bangla border in Meghalaya while eight such ‘haats’ would be established along Tripura’s border with Bangladesh.

New Delhi is also pursuing its proposal to designate Ashuganj port in Brahmanbaria (in eastern Bangladesh) as a new port of call and to allow India to use Chittagong port.

The protocol between India and Bangladesh on Inland Water Transit and Trade which emanated from the provision of the trade agreement between the two countries was renewed last year up to March 31, 2011. It includes four inland water routes on which vessels of both the countries can ply. The four inland water routes via eastern Bangladesh are Kolkata-Pandu (in southern Assam), Kolkata-Karimganj (in southern Assam), Rajshahi (in Bangladesh)-Dhulian (in southern Assam), and Karimganj-Pandu. There are also four ports of call in each country through which inter country trade through inland waterways can take place. These are: Narayanganj, Khulna, Mongla and Sirajganj in Bangladesh and Kolkata, Haldia, Karimganj and Pandu in India.On an average, distance between important cities of Bangladesh and northeast India is 30 km to 200 km.

What is needed now is a “connectivity” agreement connecting Kolkatta to North East, also referred to as the transport corridor. There are glitches here and concerted efforts from both sides are required to fructify this mutually beneficial project.

Bangladesh says the terms set for the $1 billion loan offered by India during Prime Minister Sheikh Hasina’s New Delhi visit in January, and signed by the Finance Minister this month, are “as easy as those of the AsianDevelopment Bank (ADB)”. India has offered the loan at 1.75 percent interest rate. This has a time limit for repayment of 20 years, including a grace period. 29 projects have been shortlisted out of which 14 have been agreed upon. These projects include:

Procurement of six high-powered dredgers for $71.7 million. One of the dredgers will be used for dredging at Mongla Port, three for Bangladesh Inland Water Transport Authority and two for Bangladesh Water Development Board.

An internal container port at Ashuganj at a cost of $36.2 million. Bangladesh and India have signed an agreement under which Ashuganj in Bangladesh and Silghat in India have been declared ports of call.

10 locomotive engines will be available to Bangladesh Railway at a cost of $35.5 million. Dhaka will also purchase 125 broad gauge passenger coaches for $53.6 million.

India will construct a railway bridge on river Titas costing $120 million.

Dhaka will buy 300 double-decker buses for $30 million and 50 luxury buses costing $6 million.

A power gridline will be set up for $158 million; a 400 KV inter-connector will be set up from Bahrampur in India to Bheramara in Bangladesh.

Taj Hashmi a professor at APCSS, Honolulu, USA still has this to argue his case against Sheikh Hasina:

Bangladesh should have given a second thought about the dire consequences of unilaterally giving so many concessions to India. Sheikh Hasina should have understood the implications of not addressing some pressing bilateral issues, such as the problematic Farakka Barrage; the proposed Tipaimukh Dam; the disputed Talpatty Island and corridor for Bangladeshi enclaves in India. The MOU should have also resolved once for all the so-called “Push-Back” of “illegal Bangladeshis into Bangladesh” from India and the presence of anti-Bangladesh militants in India who demand the so-called Swadhin Banga Bhumi to carve out Bangladeshi territory for Hindu refugees/immigrants from East Pakistan, presently living in India.

As giving fillip to ‘Islam-loving’ parties is counter-productive, so is antagonising China and the Muslim World by coming so close to India, which has found new allies in the US and Israel.

There will always be those opposed to any progress between the two nations but the key to building long term relationship would remain people to people contacts resulting in growth and mutual respect.

These pscho-social aspects of relations between the two countries are important. In a recent Seminar in Kolkatta, speakers argued for better people to people contacts. It was surmised that for the relationship to be stable, the conflict between “Bengali nationalism” and “Islamic nationalism” in Bangladesh must end.  Fears of a “psychological weakness” vis-a-vis its big neighbour, India in Bangladesh must be allayed through a series of confidence building measures and respect for each other’s sovereignty. While political resonance is desirable,  greater transparency in removing political hurdles like Farakka Barrage, border disputes and enclaves is a must.

The operative word, despite the above CBMs, is trust. Both, India and Bangladesh, need to take urgent steps to mobilise public opinion in this direction and follow up with credible confidence building action on ground.The political situation in Bangladesh is good today but that can change. Both countries must put people before politics to achieve sustainable development – a process which would stand scrunity through multiple regime changes.