No fund yet from Indian LoC to start 8 dev projects

A total of eight development projects under the 2nd and 3rd Indian Line of Credit (LoC) are yet to get any fund disbursement from India even after getting nods from the Executive Committee of the National Economic Council.

Even after a lapse of over 2-3 years, the relevant ministries are yet to get the fund from the Indian government, said officials at the Economic Relations Division.

Meanwhile, two projects involving nearly $400 million under the second LoC have been de-listed in the wake of delay relating to fund disposal prompting the government for implementing those two on domestic resources.

ERD officials blamed the terms of LoCs, bureaucratic red tape and lack of planning for the delay in fund disbursement.

Since 2010, India has so far disbursed $ 809.332 million of a total $ 7.36 billion under three LoC pledged as loans till June 2021.

So far, 46 projects have been taken up under three Indian LoCs, and only 12 of them involving $160 million have been completed.

Under the second line of credit, construction of Double Line Track in Khulna-Darsana Junction of Bangladesh Railway got the ECNEC approval on May 8 in 2018.

The project aimed at boosting trade with neighbouring countries using Mongla port was supposed to be carried out by December 2022 at a cost of Tk 3,506.75 crore, of which India would provide $312 million or 77 per cent as loan.

Another railway project under the second LoC, Conversion of Metre Gauge Line to Dual Gauge in Parbatipur-Kawnia section was cleared by the ECNEC on February 27 in 2018. The Indian government committed to provide $ 120.41 million.

Barapukuria-Bogra-Kaliakoir 400KV Line Project under the Power Division got approved on February 27 in 2019, and the Indian commitment was to provide $ 210.67 million.

Under the third line of credit, ECNEC okayed Four-Laning Programme from Ramgarh to Baruerhat under Road Transport and Highways Division on August 18 in 2020 with an expected pledge of $ 80 million from India.

The installation of 1 Lakh LED street lights under Local Government Division was granted on July 09, 2021. India committed to provide $ 379.29 million.

The upgradation of Mongla port under the Ministry of Shipping was authorised on February 18 in 2020. The loan commitment was $530 million.

The establishment of Special Economic Zone (Indian SEZ) at Mirsharai was consented to by ECNEC on April 09 in 2019, with a $ 115 million support from the Indian government.

Finally, the building of Solar-based Base Stations under the Post and Telecommunication Division got endorsed from ECNEC on October 23 in 2018. The loan commitment was $ 30 million.