Bangladesh positive about giving fuel transit to India

India is likely to be allowed to use Bangladesh territory for fuel transportation from Assam to Tripura and other Northeastern states of the next-door neighbour, said a high official.

Bangladesh is positive about such a proposal as 'it would increase the country's options for energy trade negotiations, foreign secretary Masud Bin Momen told the FE on Sunday.

Bangladesh can reap benefits out of such a deal, he noted.

Recently, India was given such transit up to November 30 for carrying fuel when severe floods had snapped the road and rail connections in the Indian states.

Now, India is seeking to sign a deal with Bangladesh under which they would pay tolls and taxes to Bangladesh in lieu of using the route that, they think, would ensure more reliable fuel supply to their NE states.

"We've other options in the future. We're going to procure fuel from them and an agreement was signed with an Indian oil company," said the FM. "So, we will also discuss whether they can transport fuel for us too while carrying fuel for their NE states through our land."

Earlier, the fuel transit was given due to an emergency, and if the emergency persists, that can be extended, said the foreign secretary.

According to reports, India is looking to extend its pact with Bangladesh to transport fuel through the eastern neighbour to the states of Tripura, Mizoram and Manipur.

The way through Bangladesh allows Indian fuel retailers to avoid the mountainous route through Silchar in Assam, which is prone to landslides.

The only rail link connecting Assam's Dima Hasao district with Mizoram, Manipur and Tripura, and the rest of the country was washed away after heavy rains and landslides earlier this year, according to a report by Indian media.

"We are trying to solidify and extend it (deal) further for LPG and fuel transport. So instead of going through Silchar and the hilly areas which are prone to landslides, we can come through Bangladesh straight to the Tripura border," an official of the concerned Indian ministry told the Indian media recently.

State-run Indian Oil Corp. Ltd (IOCL) had first sent seven tankers carrying 84,000 litres of kerosene and diesel from Guwahati to Tripura via Bangladesh in 2016 after heavy rains cut off Tripura's road links to Assam, where the supply originates.

It was done under a short-term agreement.

A spokesperson of IOCL told the media that the MoU for movement of petroleum products from Assam to Tripura / Mizoram via Bangladesh is valid until November 30,2022.

"We propose to get the MoU further extended with a provision for further extension on mutual consent," the spokesperson said.

So far, the arrangement has been adopted for short periods, largely during the monsoon and post-monsoon periods, when the usual interstate route is inundated.

But the government now wants to extend the usage of the Bangladesh route so that trucks and tankers could enter the neighbouring country through Dawki in Meghalaya, the official said.

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