Bangladesh, India companies strike deals worth nearly $10b

Leading companies from India and Bangladesh today signed 13 MoUs and agreements for power, energy, logistics, education and medical sectors, including the controversial Rampal thermal power plant, worth nearly $10 billion.

With an aim to strengthen the bilateral economic partnership between the two neighbouring countries, the deals were made.

Read more: Another golden era in friendship

The deals were signed in the presence of Prime Minister Sheikh Hasina at a programme titled India Bangladesh Business Forum which was organised by Ministry of External Affairs, India, in association with the Confederation of Indian Industry (CII), Federation of the Indian Chambers of Commerce & Industry (FICCI) and Associated Chambers of Commerce of India (ASSOCHAM) at Hotel Taj Palace in New Delhi, reads a press note issued by the Indian High Commission of Dhaka.

Also read: It's no fault of Teesta

The deals include: a facility agreement between Bangladesh-India Friendship Power Company (BIFPCL) and Exim Bank of India for debt financing for construction of 1,320MW Maitree Power Project in Rampal of Bangladesh at a cost of $1.6 billion.

The location of the thermal project near the ecologically-sensitive Sundarbans area has triggered an outcry among environmentalists in Bangladesh.

Read more: Hasina cooks steamed hilsa for Pranab

The MoUs include an implementation and power purchase agreement between Reliance Power and the Ministry of Power, Energy and Mineral Resources for the first phase (718MW) of the 3,000MW power project at Meghnaghat, entailing $1 billion (out of a total proposed investment of $3 billion).

The development came following meetings with the high-powered Bangladeshi business delegation accompanying Hasina on her four-day visit to India.

The Bangladesh delegation comprised of businessmen representing sectors such as automobiles, cement, insurance & banking, ready-made garments, shipping, IT/ITeS, food and beverages, jute, power, renewable energy, real estate, electronic and print media, packaging, poultry, education, health and pharma, chemicals and telecommunication.