The Union Cabinet has given approval to the MoU on Third Line of Credit (LoC) of US $ 4.5 billion to Bangladesh for implementation of developmental projects. The MoU was signed during the visit of the Prime Minister of Bangladesh to India in April 2017.
The MoU provides for deepening the strategic partnership, development of infrastructure in Bangladesh, improving connectivity between India and Bangladesh, thus enhancing accessibility to 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.
The MoU specifies a list of projects which will be undertaken 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 for Indian companies.
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