The union cabinet chaired by Prime Minister Narendra Modi on Wednesday gave ex-post facto approval to the memorandum of understanding (MoU) on a third line of credit of $4.5 billion to Bangladesh for implementation of development projects.
The MoU, signed during the visit of the Prime Minister of Bangladesh to India in April, provides for deepening the strategic partnership, development of infrastructure in Bangladesh, improving connectivity between India and Bangladesh, thus enhancing accessibility to our North Eastern Region, as well as creating new business opportunities for Indian companies in Bangladesh.
The concessional financing system to Bangladesh would strengthen bilateral relations and development cooperation between India and Bangladesh, a cabinet release stated.
The MoU specifies a list of projects that will be taken up under the concessional financing system. This provides an opportunity to ensure that projects of India's interest are undertaken under this LoC.
Some of the projects will ensure better and faster connectivity to the North Eastern region of India with the mainland as well as to the outside world. They will also ensure India's security and will open up business opportunities for Indian companies.