Prime Minister Narendra Modi and Bangladesh premier Sheikh Hasina inaugurated a pipeline worth Rs 377 crore to transport diesel from Numaligarh in Assam to northern Bangladesh. The pipeline will supply up to 1 million tonnes of diesel annually, cutting costs and reducing the carbon footprint of moving the fuel. This move is especially significant in the context of developing nations struggling for energy security and access to fertilizers.
In September 2018, the foundation stone was laid for the first cross-border energy pipeline between India and Bangladesh, which has now been inaugurated. The pipeline, costing Rs 377 crore, will transport diesel from Numaligarh in Assam to northern Bangladesh, supplying up to 1 million tonnes of diesel per annum. The Bangladesh section of the pipeline, costing Rs 285 crore, was funded by the Government of India under grant assistance. Despite the pandemic, the pipeline's construction continued, and it is expected to reduce transportation costs and lower the carbon footprint of the fuel supply. The pipeline will be beneficial for the agriculture and industrial sectors in Bangladesh, aiding faster development in the country and increasing connectivity between the two nations. Modi expressed gratitude to Hasina for her guidance on the project and emphasized the importance of strengthening all pillars of connectivity, including transport, energy, electricity grid, and digital, to aid people-to-people contact. India has been supplying over 1,100 MW of electricity to Bangladesh, and the Maitree thermal power project, built under India's concessional financing scheme, has begun operations. The hydrocarbon cooperation between the two nations, which is across the entire value chain, has crossed USD 1 billion, and the pipeline will further strengthen this cooperation.
The operationalization of the India-Bangladesh Friendship Pipeline (IBFPL) is set to strengthen the bond between the two countries, which have been growing closer in relations. Bangladesh is India's topmost development partner and largest trade partner in the region. The pipeline will transport 1 million tonnes per annum of diesel from Numaligarh Refinery Limited (NRL) in Siliguri to the Parbatipur depot of Bangladesh Petroleum Corporation (BPC), serving seven districts in Northern Bangladesh.
The fuel transport deal is set to last for 15 years, with an option for further extension during subsequent phases if both countries agree. The pipeline is expected to further enhance ongoing energy cooperation between India and Bangladesh and aid growth in Bangladesh, particularly in the agriculture sector.
Currently, exports between the two countries are worth USD 16 billion, with Bangladesh being the fourth biggest market for Indian exports worldwide. The countries are now working on a Comprehensive Economic Partnership Agreement (CEPA), which could potentially double India's exports to Bangladesh to USD 32 billion in the near future.
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