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Proximity To Connectivity:

India And Its Eastern And Southeastern Neighbours

PART 1

India-Bangladesh Connectivity:
Possibilities and Challenges

Project Advisor: Professor Rakhahari Chatterji


Authors: Anasua Basu Ray Chaudhury & Pratnashree Basu
Researcher: Garima Sarkar

Observer Research Foundation, Kolkata


India-Bangladesh Connectivity: Possibilities and Challenges

About the Authors

Rakhahari Chatterji (Ph.D, Chicago) was a Professor of Political Science and Dean of the
Faculty of Arts at the University of Calcutta. He was a Fulbright Scholar (1970-71), Social
Science Research Council Fellow (1973-75) and a Fulbright Post-doctoral Visiting Fellow
(1986-87) at the University of Chicago; a Ford Foundation Visiting Fellow (1988-89) at the
University of Michigan at Ann Arbor; a Fulbright American Research Fellow (1996-97) at
the University of Virginia, Charlottesville; and the UGC Emeritus Fellow (2009-11). Books
written by him include Methods of Political Inquiry, Unions, Politics and the State, Working
Class and the Nationalist Movement in India, Introduction to Comparative Political Analysis.
His most recent publication is Gandhi and the Ali Brothers-Biography of a Friendship (New
Delhi: Sage, 2013). Besides frequently contributing to academic journals and newspapers,
he has also edited a number of volumes. Currently, he is the Advisor, Observer Research
Foundation, Kolkata.

Anasua Basu Ray Chaudhury, Ph.D in International Relations (with specialisation in South
Asia), is currently Fellow at the Observer Research Foundation, Kolkata. She was a Visiting
Fellow at Science Po, Paris in 2012. She received the  Kodikara Award  from the Regional
Centre for Strategic Studies (RCSS), Colombo, Sri Lanka in 1998-99. She was an ICSSR Post-
Doctoral Fellow (2004-06) at the Centre for the Studies of Developing Societies (CSDS), Delhi.
Her publications include Women in Indian Borderlands (Sage, New Delhi, July 2011, co-edited
with Paula Banerjee);  Sanghat O Sashan: Purbottar Bharater (Conflict and Governance: A
Northeast Diary), Gangchil, Kolkata, 2013; Negotiating the Emerging Energy Crisis in South
Asia, Centre for South and Southeast Asian Studies, University of Calcutta, 2009. (Occasional
Paper); SAARC at Crossroads: The Fate of Regional Cooperation in South Asia (Samskriti, New
Delhi, 2006), The Energy Crisis and Sub-regional Cooperation in South Asia (Policy Studies 13
published by the RCSS in 2000). Her interests include Regional Cooperation, Energy Politics,
Refugees and Displacement, Women and Conflict Situations in South Asia.

Pratnashree Basu is a Junior Fellow at ORF, Kolkata. She has completed her M.Phil in
International Relations from Jadavpur University. She has also worked as a Guest Lecturer at
Gurudas College (University of Calcutta) and been associated with various academic pursuits,
including organising and participating in various national and international seminars and
workshops. She has worked with the American Library, Kolkata and as a Research Assistant
in a study involving women’s human rights cases under Dr. Tamara Relis (Research Fellow at
The London School of Economics and Political Science and also Columbia University Law
School). She also co-authored ’The Interplay between Psychological and Societal Dimensions
of Terrorism’ in The Challenges of Terrorism, edited by Prof. Radharaman Chakrabarti & Dr.
Imankalyan Lahiri, Academic Excellence, 2009.

1
India-Bangladesh Connectivity: Possibilities and Challenges

Observer Research Foundation


Building Partnerships for a Global India

Observer Research Foundation (ORF) is a not-for-profit, multidisciplinary public policy think


tank engaged in developing and discussing policy alternatives on a wide range of issues
of national and international significance. Some of ORF’s key areas of research include
international relations, security affairs, politics and governance, resources management and
economy and development. The fundamental objective of ORF is to influence formulation
of policies for building a strong and prosperous India in a globalised world. ORF pursues
these goals by providing informed and productive inputs, in-depth research and stimulating
discussions. Set up in 1990 during the troubled period of India’s transition from a protected
economy to its new engagement with the international economic order, ORF examines critical
policy problems facing the country and helps develop coherent policy responses in a rapidly
changing global environment. As an independent think tank, ORF develops and publishes
informed and viable inputs for policymakers in the government and for the political and
business leadership of the country. It maintains a range of informal contacts with politicians,
policymakers, civil servants, business leaders and the media, in India and abroad. ORF
publications are distributed widely to government officials and legislators, business leaders,
journalists and academics. ORF’s principal research divisions are: Centre for International
Relations, Institute of Security Studies, Centre for Economy and Development, Centre for
Resources Management, and Centre for Politics and Governance. Headquartered in New
Delhi, ORF has chapters in Chennai, Mumbai and Kolkata. More information about the
Foundation is available at our website www.orfonline.org

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India-Bangladesh Connectivity: Possibilities and Challenges

Contents

About the Authors ................................................................................................. 1


About the Foundation.............................................................................................. 3
Acknowledgements................................................................................................. 7
Preface ................................................................................................. 9
List of Abbreviations................................................................................................ 10
List of Maps ................................................................................................. 12
List of Tables ................................................................................................. 12
An Overview ................................................................................................. 13
Introduction ................................................................................................. 16

1 Connectivity through Rail and Road: Prospects and Hurdles ...................... 19


1.1 Existing Rail Links between India and Bangladesh................................... 20
1.2 Proposed Agartala-Akhaura Rail Connectivity.......................................... 22
1.3 Proposed Links........................................................................................... 25
1.4 Operational Bus Services . ........................................................................ 26
1.4.1 Kolkata-Dhaka Bus Service.......................................................... 26
1.4.2 Dhaka-Agartala Bus Service......................................................... 27
1.5 Issues and Prospects.................................................................................. 27

2 Connectivity through Waterways: Scope for Development........................... 31


2.1 India-Bangladesh Protocol on Inland Water Transit and.......................... 31
Trade at a Glance
2.2 Constraints ................................................................................................ 34
2.2.1 Necessity of Dredging................................................................... 34
2.2.2 Lack of Assured Freeways ........................................................... 34
2.2.3 Lack of Round-the-clock Navigation Facilities ............................ 35
2.2.4 Lack of Terminal and Cargo Handling Facilities ......................... 35
2.2.5 Shortage of IWT Vessels .............................................................. 35
2.2.6 Dominance of Bangladeshi Vessels in IWT ................................. 35
2.2.7 One-Way Traffic ........................................................................... 35
2.2.8 Renewal of the Protocol as an Obstacle....................................... 36
2.3 Proposals for Improvement....................................................................... 37
2.4 Coastal Shipping Agreement between India and Bangladesh.................. 41

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India-Bangladesh Connectivity: Possibilities and Challenges

3 Possibilities and Challenges in Energy Trade Between India and Bangladesh 43


3.1 Energy Indicators in India and Bangladesh............................................... 44
3.2 India-Bangladesh Cooperation in Power Sector....................................... 46
3.3 Scope for Energy Trade between India and Bangladesh: ........................ 48
Oil and Natural Gas
3.4 Engaging with Bhutan and Nepal.............................................................. 51
3.5 Road Bumps............................................................................................... 53

4 Border and Border Management................................................................... 55


4.1 Irritants in India-Bangladesh Relations...................................................... 57
4.1.1 Illegal Migration............................................................................ 57
4.1.2 Insurgent Camps in Bangladesh................................................... 58
4.1.3 Criminal Activities Across the Border........................................... 58
4.1.4 Feminisation of Undocumented Migration.................................. 61
4.1.5 Trafficking of Women and Children............................................. 61
4.2 Steps Taken by India.................................................................................. 62
4.3 Borderland and Border Management ...................................................... 66
4.3.1 A New Milestone: The India-Bangladesh Land............................ 67
Boundary Agreement
4.4 Bilateral Trade............................................................................................ 72
4.4.1 Non-Tariff Barriers........................................................................ 74
4.4.2 Border Haats................................................................................. 75
4.4.3 Land Customs Stations................................................................. 77
4.5 The Way Forward...................................................................................... 78
4.5.1 Short-term Work Permits: A Logical Way Out?............................ 78

5 Concluding Remarks and Recommendations............................................... 80


5.1 Recommendations to Enhance Connectivity through Road and . ........... 80
Rail Links
5.2 Recommendations to Enhance Connectivity through Waterways............ 81
5.3 Recommendations for Energy Sector........................................................ 81
5.4 Additional Recommendations .................................................................. 81

Endnotes ................................................................................................. 84

6
India-Bangladesh Connectivity: Possibilities and Challenges

Acknowledgements

This report is an outcome of a year-long research project on Proximity to Connectivity. The


research project encompasses three phases—Phase I: India-Bangladesh Connectivity; Phase
II: India-Myanmar Connectivity; and Phase III: India-China Connectivity. This report comprises
the first phase, and is titled, ‘India-Bangladesh Connectivity: Possibilities and Challenges’.

We are indebted to individuals in Bangladesh who assisted in the study and compilation of
this report. We thank Md. Tafazzal Hossein, Director General, Railways, Bangladesh; Md.
Mizanur Rahman, Chief Engineer, Planning & Design, Bangladesh Power Development
Board; Brigadier Gen. Md. Shamsur Rahman, Additional Director General, Border Guards
Bangladesh; Md. Shahriar Alam, M.P., State Minister, Ministry of Foreign Affairs, Bangladesh;
Ambassador Farooq Sobhan (Retd.), President, Bangladesh Enterprise Institute; Md. Humayun
Kabir, Senior Research Director, Bangladesh Enterprise Institute; Tareq Md. Ariful Islam,
Director General, South Asia, Ministry of Foreign Affairs, Bangladesh; Sandeep Chakraborty,
Deputy High Commissioner, Indian High Commission, Dhaka; Bijay Selvaraj, First Secretary,
Commerce, Indian High Commission, Dhaka; Md. Shafiqul Haque, Director, Marine Safety
and Traffic Management, Bangladesh Inland Waterways Transport Authority; Mahmud Hasan
Salim, Director, Planning, Bangladesh Inland Waterways Transport Authority; Moniruzzaman,
Joint Secretary, Member (Finance), Bangladesh Inland Waterways Transport Authority;
Debapriya Bhattacharya, Distinguished Fellow, Centre for Policy Dialogue; Khondaker
Golam Moazzem, Additional Director, Research, Centre for Policy Dialogue; Muhammad
Yunus, Senior Research Fellow, Bangladesh Institute of Development Studies; Mahfuz Kabir,
Senior Research Fellow, Bangladesh Institute of International and Strategic Studies; Haroun
Habib, writer and journalist; A.S.M Shamsul Arefin, Chairman, Bangladesh Research and
Publications; Shahnaj Begum, Special Correspondent, The Independent, Bangladesh;
Joyonto Acharjee, Editor, Vision News Service, Bangladesh.

We are also indebted to individuals in India who assisted in the study and compilation
of this report. We thank Gen. Shankar Roy Chowdhury (Retired), ex-Chief of Army Staff;
C. Raja Mohan, Distinguished Fellow and Head, Strategic Studies, ORF, New Delhi; Sreeradha
Dutta, Director, MAKAIAS, Kolkata; Abu Nasar Md. Anawarul Islam, Counsellor, Deputy High
Commission, Bangladesh, Kolkata; Raj Pal Singh Kahlon, IAS, Chairman, Kolkata Port Trust;
S.V.K. Reddy, Director, Inland Water Ways Authority of India, Kolkata; A.K. Bagchi, Director,
Marine Department, Kolkata Port Trust; Sanjoy Kumar Mukherjee, Sr. Public Relations Officer,
Kolkata Port Trust; Tarun Sengupta, General Manager, RITES, Kolkata; Jayanta Bhattacharya,
PTI, Agartala, Tripura; Nitya Nanda, Fellow, TERI, New Delhi; Lydia Powell, Head, Centre for
Resources Management, ORF, New Delhi; Joyeeta Bhattacharjee, Associate Fellow, ORF New
Delhi; Hari Vasudevan, Professor, Department of History, University of Calcutta; Sabyasachi

7
India-Bangladesh Connectivity: Possibilities and Challenges

Basu Ray Chaudhury, Vice Chancellor, Rabindra Bharati University; Jayanta Bandyopadhyay,
former Professor, Indian Institute of Management, Kolkata; Mrinal Kanti Chakma, Fellow,
MAKAIAS, Kolkata; Pranab Ray, Professor (Retired) Department of Geography, Presidency
College, Kolkata; Subir Bhowmik, journalist; Santanu Sanyal, journalist; Rajat Roy, journalist;
Milan Dutta, journalist, Ananda Bazar Patrika, Kolkata.

We are immensely grateful for the constant inspiration, encouragement and guidance of the
research faculty at Observer Research Foundation, Kolkata, in the study and compilation of
this report.

8
India-Bangladesh Connectivity: Possibilities and Challenges

Preface

The project on India’s Connectivity with Bangladesh and Myanmar on the east and China in
the north has been one of the major research projects that the Observer Research Foundation,
Kolkata, has undertaken since the beginning of its second year. For pragmatic reasons
we decided to look into Bangladesh first, which would be followed by an examination of
connectivity with the other two of India’s close neighbours. In slightly less than a year’s time
we have finished our research based on examination of documents, consultation with experts
in both countries informally and through an India-Bangladesh workshop we organised at
ORF, Kolkata, and field work in both Kolkata and Bangladesh. This report is Part One of the
complete report on India’s connectivity with the three above-mentioned countries, which
we expect to complete within the next year.

In this report, we present a picture of the existing state of connectivity between India and
Bangladesh, give an assessment of what has been promised and what has been so far
delivered and finally, provide policy directions for a dense and more productive network of
connectivity between these two historically and culturally close neighbours. India, being the
larger and more resourceful of the two countries, has greater manoeuverability as well as
responsibility to initiate and pursue connectivity measures. Of course, the desire for enhanced
connectivity must be present in both parties; there must also be a consensus between the
two as to what needs to be done, and finally, whatever policies are adopted, they must have
the promise of mutual benefit. This will, in addition, create a positive environment for such
linkages throughout the subcontinent.

The research undertaken for this part of the project has been inspired, helped and intellectually
supported by Dr. C. Raja Mohan and Dr. Manoj Joshi, both Distinguished Fellows at ORF,
New Delhi. Many other colleagues there whose help and advice we needed have been very
responsive, helpful and forthright. Mr. Sunjoy Joshi, Director, ORF, has been an abiding
inspiration. We value and appreciate their consistent help, co-operation and support.

Finally, Mr.Ashok Dhar, Director, ORF, Kolkata has been the linchpin for this project. Without
his inspiration, unstinted support and encouragement, this report would not have been
possible. We alone, however, are responsible for the errors and imperfections that remain in
the report.

Rakhahari Chatterji
22 May 2015

9
India-Bangladesh Connectivity: Possibilities and Challenges

List of Abbreviations

ASEAN Association of Southeast Asian Nations


BCIM Bangladesh-China-India-Myanmar Forum for Regional Cooperation
BIMSTEC Bay of Bengal Initiative Multi-Sectoral Technical and Economic
Cooperation
BGB Border Guards Bangladesh
BIISS Bangladesh Institute of International and Strategic Studies
BPDB Bangladesh Power Development Board
BRGB Border Region Governance Bodies
BRTC Bangladesh Road Transport Corporation
BSF Border Security Force
CBEC Central Board of Excise and Customs
CBMP Coordinated Border Management Plan
CIWTC Central Inland Water Transport Corporation
FCI Food Corporation of India
GW Gigawatt
HVDC High Voltage Direct Current
IANS Indo-Asian News Service
ICP Integrated Check Post
ICT Inland Container Terminal
INGO International Non-Governmental Organisation
IRCON Indian Railway Construction Company Limited
IUCN International Union for Conservation of Nature
IWT Inland Water Transport
IWTDA Inland Water Transport Directorate Assam
JSC Joint Steering Committee
JWG Joint Working Group
LCS Land Customs Station

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India-Bangladesh Connectivity: Possibilities and Challenges

LNG Liquid Natural Gas


LP Land Port
LPAI Land Port Authority of India
MDoNER Ministry of Development of North Eastern Region
MEA Ministry of External Affairs
MOU Memorandum of Understanding
MTOE Million Tons of Oil Equivalent
MW Megawatt
NGO Non-Governmental Organisation
NTB Non-tariff Barrier
PGCIL Power Grid Corporation of India Limited
POL Petroleum, Oils and Lubricants
PTI Press Trust of India
RITES Rail India Technical and Economic Service
SAARC South Asian Association for Regional Cooperation
SAFTA South Asian Free Trade Association
TAR Trans Asian Railway
TCF Trillion Cubic Feet
TCM Trillion Cubic Metre
UNESCAP United Nations Economic and Social Commission for Asia and the
Pacific
WBSTC West Bengal Surface Transport Corporation

11
India-Bangladesh Connectivity: Possibilities and Challenges

List of Maps:

Map 1: Inter Country Rail Links and Rail Network Map of Bangladesh
Map 2: Northeastern Frontier Railway
Map 3: India-Bangladesh Protocol Routes
Map 4: Proposed National Waterway (No 6) River Barak
Map 5: IWT Protocol Route-Connectivity of Tripura through Ashuganj
Map 6: Gas Pipelines in India and Bangladesh
Map 7: Regional Power Exchange Possibilities
Map 8: India-Bangladesh Border
Map 9: Locations of Enclaves
Map 10: North and Northeastern Border Zone
Map 11: The Western Border Zone (A)
Map 12: The Western Border Zone (B)

List of Tables:

Table 1: Major Border Crossings between India and Bangladesh on Rail


Table 2: Condition of Roads in Bangladesh, 2004–2010
Table 3: Plants Commissioned During 2009 – December 2013
Table 4: Calendar Year-Wise Generation Addition programme (From 2014 to 2018)
Table 5: Energy indicators in Bangladesh, India and other regions 2011
Table 6: India-Bangladesh Energy Trade
Table 7: Progress of work of fencing in states bordering Bangladesh
Table 8: Progress of the work of construction of border roads
Table 9: Progress of flood lighting works as on 31.3.14 along the India-Bangladesh
border
Table 10: Trends in India’s trade with Bangladesh
Table 11: Summary of Results on Potential Savings from NTB Reforms for Bangladesh
and India

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India-Bangladesh Connectivity: Possibilities and Challenges

An Overview
From strengthening political and cultural ties to fostering economically beneficial associations,
‘connectivity’ has become a buzzword in recent years. In the wake of globalisation’s second
wave, strengthening regional and sub-regional cooperation is widely appreciated and
acknowledged at all levels. Keeping these facts under consideration the Observer Research
Foundation decided to undertake a project on examining the issue of connectivity between
India and its eastern and south-east Asian neighbours. As part of this broad study project, we
propose to examine India’s linkages with Bangladesh, Myanmar and China.

Improving connectivity is key to a region’s security and development. Transformations taking


place in the region, as elsewhere in the world, necessitate and facilitate greater connectivity
between countries. Connectivity may provide the transmission channels through which
development impulses can spread across the region and can add to the dynamism of economic
and social progress of both India as well as its eastern and southeastern neighbours. For
India, such developments promise to be harbingers of dramatic changes in its own eastern
and northeastern states, including the city of Kolkata.

It has been argued that current infrastructure in the region reflects the domination of exports to
the US and Europe in most economies in Asia. To adjust to the West’s shrinking consumption
following the ongoing global financial crisis and European debt crisis, Asia now needs to
promote intra-regional connectivity in infrastructure in order to deepen and expand regional
economic cooperation. Investment in infrastructure connectivity could boost competitiveness
and productivity, speed up economic recovery, and help in achieving balanced, sustainable,
and inclusive growth in the medium- to long-term. In addition, connectivity could promote
environmental sustainability through the development of cross-border green energy and transport
networks. The coordinated financing by Asian countries of regional infrastructure networks and
enhanced regional connectivity would maximise the efficient application and use of resources
and lead to a sustainable, inclusive and high-growth path in the long run. This would require
concentrated efforts to develop both “hard” and “soft” infrastructure: physical infrastructure such
as transport, energy, and telecommunications networks, and facilitating infrastructure such as
appropriate policies, regulations, systems and procedures, trade facilitation measures, and the
institutions necessary to make hard infrastructure work properly.

At the same time, connecting low-income countries like Bangladesh and Myanmar, to large
countries like India and China, can narrow existing development gaps. In addition, India needs
to connect to China and Southeast Asian economies through Myanmar (which is opening
up rapidly) and Bangladesh by creating cross-border transport-cum economic, energy and
telecommunications corridors. The ease of Indian national connectivity, particularly for
its northeastern region depends on its connectivity with Bangladesh. Experts opine that
infrastructure connectivity is essential in trade integration and enhancement through lowering
trade and logistics costs. Involvement of Northeast India, Bangladesh, and Myanmar are

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India-Bangladesh Connectivity: Possibilities and Challenges

crucial for enhancing connectivity between south and southeast Asian countries as well as
India’s national connectivity.

The project has three objectives:

n To examine existing and planned networks of cross-border connectivity under various


bilateral, sub-regional and regional initiatives between India and its neighbours
(Bangladesh, Myanmar, and China) and to evaluate the progress of such initiatives
as well as identify the reasons for delay, if any;
n To assess the benefits and adverse impacts of cross-border connectivity, keeping in
mind the complex development-security nexus and issues related to environment,
displacement and rehabilitation.
n To provide suggestions to improve trans-border connectivity, keeping in view the
complex nature of challenges faced by such an initiative.

For the present study, the primary means of connectivity signifies physical connectivity
comprising land (through road and rail networks), water (through sea, port and inland water
ways). Additionally, the study intends to explore collaboration in the field of energy (gas,
electricity, hydropower); coordination in border management to facilitate movement of
people across the border states (through tourism, local trade, operationalising border haats,
etc.) and also the institutional and administrative mechanisms necessary for coordination
among various agencies and stakeholders. The aspect of air connectivity we have deliberately
left out as we felt it was relatively less significant in comparison with the other modes we have
examined.

In this study, analytical, statistical and interpretative methods have been followed to analyse
data collected by the researchers. The researchers have consulted government documents
published by the Ministry of External Affairs, reports of the External Publicity Division and
other reports published by the concerned countries. They also consulted Lok Sabha debates,
newspapers clippings, books and journals, reports published by private consulting agencies,
NGOs/ INGOs and multilateral organisations like the World Bank, Asian Development Bank,
as well as regional organisations like ASEAN and SAARC. The researchers interviewed the
experts working in this area, leading journalists, politicians, bureaucrats (at the state, central
and international levels), persons in the business sectors and the common people.

This study explores the existing modes of connectivity, including infrastructural projects,
bilateral, sub-regional and regional initiatives and cultural ties. To understand the nature
of the deadlock in initiatives which are yet to materialise, the study examines government
policies on the concerned projects. The researchers have also examined the stalled projects
and tried to identify the geographical, technical, political and social impediments. After
evaluating the current situation, the project tries to provide a roadmap on how connectivity
can be substantially improved in the region.

14
India-Bangladesh Connectivity: Possibilities and Challenges

Over the years many connectivity projects have been envisaged by successive governments in
India and also by the governments of South and Southeast Asian states. In India the concerns
for connectivity projects has broadly come under the purview of India’s ‘Look East Policy’.
The aim of establishing connectivity is to boost bilateral and multilateral ties among these
nations so that they can understand each other better and also complement each other’s
strengths.

Initiatives have also been taken by regional bodies (Asian Highway, Railway and Dry ports)
and sub-regional groups (ASEAN, BIMSTEC, BCIM) and international organisations (World
Bank, Asian Development Bank and UNESCAP). The existing trans-border projects on
physical connectivity between India and its eastern and southeastern neighbours have been
examined in this study, entailing a) evaluation of the current status; b) importance of the
projects in bilateral, sub-regional and the regional milieu.

The structure of the ORF project on Indian’s connectivity with its eastern and southeastern
neighbours has been divided into three primary segments: a) India-Bangladesh; b) India-
Myanmar; and c) India-China. This report is based on the analyses of the possibilities and
challenges in India-Bangladesh connectivity.

15
India-Bangladesh Connectivity: Possibilities and Challenges

Introduction
India’s ties with Bangladesh comprise various dimensions—civilisational; cultural/religious;
social; and economic. These two countries, like two children born of the same mother, are
organically linked—with their common heritage and shared history, common memories of
tragic loss and the separation of families in massive scales following epic events in their
contemporary histories. The cultural cords that tie them to each other are strong as is their
peoples’ passion for music, literature and the arts.

These historical ties translate into multi-dimensional—and ever-expanding—bilateral relations


between the two nations. Geographical locations of India and Bangladesh complement each
other and present an opportunity for both nations to further strengthen their connectivities
and economies.

Prior to the partition of India in 1947, the trade and commerce of India’s northeastern regions
with the rest of the country used to pass through the territories of what is now Bangladesh.
Rail and river transit across the erstwhile East Pakistan continued until March 1965 when, as
a consequence of the India-Pakistan War, all transit traffic was suspended. Only river transit
was restored in 1972 without much progress however until fairly recently.

Enhancing bilateral relations between India and Bangladesh promises to provide exponential
benefits for both countries. For India, in particular, transit and transshipment across Bangladesh
is important as it is expected to boost the economy of India’s Northeast. Developments in
connectivity hold a well of promise for transforming India’s eastern and northeastern states,
including the city of Kolkata in West Bengal.

India’s northeastern regions are resource-rich: they are home to huge reservoirs of oil and
gas, coal, limestone, forest wealth, and fauna and flora. The region is a vibrant source of
India’s largest perennial water system, the river Brahmaputra and its tributaries, which can
be tapped for energy, irrigation and transportation. India’s Northeast may serve as a gateway
for Bangladesh’s enhanced access to India as the country is surrounded by India from three
sides and may, in the long run, promote bilateral trade relations. West Bengal is positioned to
be a major beneficiary of enhanced India-Bangladesh connectivity.

India and Bangladesh share a border of some 4,096 km., of which almost 1,880 km is within
India’s Northeast (1,434 km is land border; 446 km is riverine tract). Besides West Bengal, four
northeastern states—namely, Assam, Meghalaya, Tripura and Mizoram—share international
borders with Bangladesh.1 With the exception of Meghalaya, the remaining northeastern
states share both land and riverine borders with Bangladesh, and among them, Tripura and
Mizoram have the longest land and riverine borders with Bangladesh. India’s Northeast is
connected with the rest of India by a 22-km-wide stretch of land called the Chicken’s Neck,
which passes through a hilly terrain with steep roads and multiple hairpin bends. Agartala

16
India-Bangladesh Connectivity: Possibilities and Challenges

is 1,650 km from Kolkata via Shillong and Guwahati, while the distance between Agartala
and Kolkata via Bangladesh is just about 350 km. Moreover, the distance between important
cities of Bangladesh and northeast India falls within the range of 20 to 200 km.2

Bangladesh is home to approximately 160 million people and its economy posts a consistent
annual growth rate of five to six percent. It is an important neighbour of India. Indeed,
land connectivity with India’s Northeast and its access to Southeast Asia through that region
may help Bangladesh to achieve its ambition to reach lower-middle income level by 2021.
Moreover, connectivity with India may help Bangladesh to earn money from the payment
of transit fees and may also provide access for its burgeoning middle class to the Indian
market.3 Being India’s largest trading partner in the region, Bangladesh cannot ignore such
an opportunity. Connectivity between India and Bangladesh may yet prove to be a win-win
situation for both countries.4 Regrettably, however, in many cases their relations have been
affected not only by security considerations but by mutual suspicion as well.

Both New Delhi and Dhaka have sought to overcome this longstanding distrust in recent
years, with reciprocal state visits as well as negotiations for some important agreements to
advance trade and commercial ties, resolve long-standing border disputes, and facilitate
river-water sharing and land connectivity across Bangladesh. For example, while the Land
Border and River Water sharing agreements still face obstacles in India, relations are at
present the best that have been in many years: economic ties have improved and counter-
terrorism cooperation is being strengthened. Still, the question remains: Can the formal
‘bilateral communiqué’ of 2010 be a game-changer for India-Bangladesh relations?

It is against this backdrop that the present study intends to assess the benefits and adverse
impact of India-Bangladesh cross-border connectivity. For instance, in areas with difficult
terrain, air or water connectivity may be considered more significant; border haats and
local trade may substantially add to the local development efforts. Similarly, trade in energy
may help these states to meet rising demand. On the other hand, security considerations at
certain conflict-prone points on bordering areas may be a factor in determining the limits
of establishing physical connectivity. Therefore, complex development-security factors are
to be taken into consideration, as also issues related to environment, displacement and
rehabilitation. If India and Bangladesh manage to follow through on earlier promises about
opening up their economies for transit and trade as set out in a memorandum of January
2010, a new era could dawn in India-Bangladesh relationship.

The study is divided into four sections, namely:

n Rail and road connectivity;


n Connectivity through waterways;
n Possibilities in energy trade; and,
n Issues and challenges in border management, including border trade.

17
India-Bangladesh Connectivity: Possibilities and Challenges

Following are some of the questions that are dealt with in this study: What are the main
impediments to the development of rail, road, and water connectivity between India and
Bangladesh? What suggestions can be made for rapid progress to remove identified constraints?
What are the structural changes required for bridging the gap in the near future?

18
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India-Bangladesh Connectivity: Possibilities and Challenges

Connectivity through Rail and Road:


Prospects and Hurdles

One of the most vital forms of physical connectivity among different geographical locations
is connectivity through roads and railways; this is true for India and Bangladesh as well. Road
networks and railways constitute an essential means of communication and an indispensable
facilitator for the operation of trade and commerce. At present, rail links between the two
countries are not central in terms of their use. They require substantial enhancement in
order to link the region more successfully. Road networks, which are more in use, are highly
insufficient to reach the level of connectivity that is being envisioned. It thus becomes
important to explore the various dimensions and problems that exist with relation to rail and
road connectivity links between India and Bangladesh and investigate ways in which these
can be augmented.5

Steps towards establishing increasing connectivity links through railways, roads, inland
waterways and ports were officially discussed in 2010 and 2011 when joint communiqués
were signed by the respective heads of government. It was at this time that both countries

19
India-Bangladesh Connectivity: Possibilities and Challenges

expressed their interest in reviving former rail routes as well as establishing and upgrading
existing ones. India offered Bangladesh a line of credit of $1 billion towards “the development
of rail infrastructure, supply of broad gauge locomotives and passenger coaches, rehabilitation
of Saidpur railway workshop, procurement of buses, dredging of rivers, and strengthening of
the Bangladesh Standards and Testing Institution (BSTI).”6

1.1 Existing Rail Links between India and Bangladesh

There are several rail links that exist at present between India and Bangladesh through the
following routes:

n Gede (India)-Darsana (Bangladesh) - Broad Gauge


n Singhabad (India)-Rohanpur (Bangladesh) - Broad Gauge
n Petrapole (India)-Benapole (Bangladesh) - Broad Gauge
n Radhikapur (India)-Birol (Bangladesh) - Broad Gauge on Indian side and Metre Gauge on
Bangladesh side.
n Mahisasan (India)-Shahbazpur (Bangladesh) - Metre Gauge.
n Haldibari (India)-Chilhati (Bangladesh) - Broad Gauge.

Of these routes, Gede-Darsana, Singhabad-Rohanpur and Petrapole-Benapole are used for


transporting goods. The operation of the Radhikapur-Birol route has been suspended since
April 2005 because the tracks on the Indian side have been upgraded to broad gauge ones
while those on the Bangladeshi side remain meter gauge. The Mahisasan-Shahbazpur route
has also remained non-operational since 1996 due to lack of sufficient traffic. It was agreed
in 2011 between the Prime Ministers of both countries that the Haldibari-Chilhati route,
which was not renewed after 1965, would be revived. Both countries have also discussed
running passenger train services between Sealdah and Jamuna Bridge, as well as the early
operationalisation of Sealdah (Kolkata)-Joydevpur (Dhaka) passenger train service; neither
one has kicked off, however.

The Railway link between Kolkata and Dhaka which remained inactive for the last 43 years was
activated again and the Maitree Express from Kolkata to Dhaka Cantonment started running
from April 14, 2008. Also known as the Friendship Express, the train had a test running from
Kolkata to Dhaka on July 8, 2007. There have been mixed responses to this train service with
a lot of hope and jubilation on the one hand and protests on the other. However, the demand
for the service led the representatives of Railway Ministries of both governments to increase
the frequency of the service by an additional day from January 2015.7

Road networks and railways constitute an essential part of communication and


the functioning of trade and commerce. Upgrading existing rail and road links
and establishing new ones would hence facilitate interconnection.

20
Connectivity through Rail and Road: Prospects and Hurdles

Talking about India-Bangladesh Connectivity through rail and road at the ORF workshop,
Jayanta Bhattacharya, a journalist with the PTI, Agartala, drew attention to the fact that before
the partition of India in 1947, road, rail and port networks were interconnected and what
is today Bangladesh was already economically linked with the rest of country. At that time,
the transport network was an integrated system which supported an integrated economy.
It was after the Partition that these links were severed. Consequently, the region became
economically weaker. The decline in economic interactions resulted in a de-integration
of the network. The question is: How can these links be restored, improved and extended
for infrastructure linkage between Bangladesh and its bordering Indian states? Despite the
fact that the northeastern region of India shares about 98 percent of its land border with
Bangladesh, the region is connected with the rest of India only by the Siliguri corridor, which
is too narrow.8 There is, however, a lot of scope for the northeastern region of India and West
Bengal, which shares a 2,216-km border with Bangladesh, to become an interconnected
region with and through Bangladesh, if road and rail linkages are established and those
which existed previously, are revived. The interconnection of this contiguous zone through
rail and road links will not only bring economic gain, but also increase the mobility of the
common people and enhance trust on both sides of the border.

The Indian government’s report of 2008, entitled Vision 2020 and released at Agartala, assures
the establishment of necessary infrastructure and better connectivity within the region and,
subsequently, with the larger South and Southeast Asian region. For the seamless movement
of trade as well as passenger traffic, the governments of both India and Bangladesh have
undertaken the establishment of land ports and land custom stations. Table 1 shows the
major border crossings for movement via both rail and road.

Table 1: Major Border Crossings between India and Bangladesh on Rail

Crossing Points Modes


Benapole (BD)/ Petrapole Road; Rail (Freight Only)
Darshana (BD)/Gede Rail Broad Gauge (Maitree and Freight)
Rohanpur (BD)/Singhebad Rail Broad Gauge
Birol (BD)/ Radhikapur Rail Meter Gauge
Shabbajpur (BD)/ Mahishasan Rail Meter Gauge
Banglbandha (BD)/Phulbari Road
Chilhati (BD)/Haldibari Rail (potential)
Burimari (BD)/Changra bandha Road
Hilli (IND-BD Border)/Balurghat Road
Tamabil (BD)/Dawki Road
Karimganj/Zakiganj (BD) Road
Akhaura (BD)/Agartala Rail/Road planned

21
India-Bangladesh Connectivity: Possibilities and Challenges

While identifying the Ganga-Brahmaputra basin region comprising Bangladesh and the
eastern part of India, Bhattacharya has suggested ways in which development can be
fostered in the area. The most important of these strategies is to enhance possibilities
and opportunities for trade. For instance, the landlocked northeastern region forms the
hinterland of the Chittagong port in Bangladesh and access to this port would be beneficial
for trade from the northeast. Access to the port would also enable the utilisation of the
abundant natural resources of the northeastern states. Conversely, this linkage— which
would be allowing India transit—would also benefit Bangladesh in terms of revenue
generation. The importance of land connectivity can be best realised when these links are
extended to the nearest ports. In this sense, another important port is Ashuganj, which
sits on the river Meghna in the Brahmanbaria district of Bangladesh. The port is 37 km
from Agartala, the capital of Tripura and would be a vital link among India’s northeastern
states. The Ashuganj port, though, is underdeveloped, and that is the challenge. It is still
in the process of being modernised and there is an imperative for the institutionalisation
of infrastructural support.

1.2 Proposed Agartala-Akhaura Rail Connectivity

Besides the Ashuganj port, another important link for Bangladesh-India connectivity is the
Akhaura-Agartala rail link. Akhaura is the nearest rail junction to Agartala, Tripura, and work
is being done to lay tracks for the 15.054-km rail project. The Minister of Development of the
North Eastern Rergion (MDoNER), P. K. H. Singh, has said: “With the establishment of the
new railway link, northeast India would be connected to the Chittagong international sea
port by rail”.9 It is to be noted that Agartala is one of the newest stations established by the
Indian Railways, coming up on the country’s rail map only in October 2008. The Agartala-
Akhaura link was first approved in 2010 between then Prime Minister Manmohan Singh and
Bangladesh Prime Minister Sheikh Hasina. Besides linking Agaratala with Akhaura, it will also
reduce the distance between Kolkata and
Agartala—from 1,700 km to 350 km—by
offering transport through Bangladesh.

Surface connectivity is an important factor


as the landlocked northeastern states are
surrounded by Bangladesh, Myanmar,
Bhutan and China, and the only land route
to these states from within India is through
Assam and West Bengal. A huge part (70
percent) of this route, though, is difficult
terrain: hilly, with steep roads and multiple
hairpin bends. For ferrying goods and
heavy machinery to the northeast from
abroad and other parts of the country,

22
Connectivity through Rail and Road: Prospects and Hurdles

India has for long been seeking land, sea and rail access through Bangladesh. Agartala, for
instance, is 1,650 km from Kolkata and 2,637 km from New Delhi via Guwahati and West
Bengal; in contrast, the distance between the Tripura’s capital Agartala and Kolkata through
Bangladesh is only 350 km. It is worth noting that the Northeast Frontier Railway (NFR)
is now laying tracks to connect Tripura’s southernmost border town of Sabroom, 135 km
south of here. From Sabroom, the Chittagong international sea port is a mere 72 km away.

The Indian Railway Construction Company (IRCON) is laying the new railway tracks on both sides
of the border. Of the 15-km rail line, a length of five km of tracks falls within Indian territory.

The Centre has already started working on the upgrade of the Silchar-Agartala rail-line, from
meter gauge to broad gauge. Surveys on extending the rail-link to Sabroom in southern Tripura
have also been taken up. Sabroom, the southernmost subdivision of Tripura, sits closely to the
India-Bangladesh border.

Upon completion, these tracks will offer a vital link to the Trans Asian Rail (TAR) Link from
Jiribam and Moreh in Manipur, and then on to Mynamar, besides providing a road link to
the Chittagong port. The Akhaura-Agartala rail link would therefore be able to open up
multimodal links to key points in Bangladesh, the northeast of India, besides connecting
with Myanmar as well as being part of the TAR. India has requested Bangladesh to permit
East-West transit through the latter, which would greatly reduce the distances that now need
to be covered. This, in turn, would allow Bangladesh to earn increased revenues.10 More
fundamentally, it would create scope for people-to-people exchanges.

Past records reveal that the linking of Akhaura and Agartala by rail was suggested as far back as
1974 with the signing of a protocol between Bangladesh and India for cross-traffic movement.
The idea then became dormant, and would only be revived many years later, during Trade
Review Talks between India and Bangladesh in December 1998. In the Joint Communiqué
issued during Bangladesh Prime Minister Sheikh Hasina’s India visit in January 2010, it was
agreed that the construction of the proposed Akhaura-Agartala railway link would be financed
by a grant from India. The new line
would run from Agartala (India) to
Gangasagar (Bangladesh). This would
involve a double line from Gangasagar
to Akhaura and additional loop lines at
two stations of Bangladesh Railways,
Gangasagar and Imambari.

The INR260-crore-plus project, to be


implemented by the North Frontier
Railway, is to be funded entirely by
the Union Government: partly by
the Department of North-Eastern
Region and mostly by the Ministry of Akhaura Rail Junction, Bangladesh.

23
India-Bangladesh Connectivity: Possibilities and Challenges

External Affairs. India sanctioned a budget of INR2.25 crore for laying the railway tracks to
connect West Bengal and Tripura through Bangladesh. While the potential for road and rail
connectivity between India and Bangladesh is strong, the implementation of the same has
been characterised largely by various challenges. One of the most important of these is that
it is widely believed in Bangladesh that India seeks transit through their territory for the mere
objective of opening up its landlocked northeast, and that Bangladesh, in turn, would not be
given access to India’s northeast nor the rest of the country. Some in Bangladesh also entertain
the opinion that India’s requests are directed to undermine the sovereignty of Bangladesh. It is
for this reason that Bangladesh makes the permission for transit conditional upon India allowing
north-south connectivity of the Chittagong port through India with Bhutan and Nepal.

So far, India has allowed transit between Nepal and Bangladesh across the Chicken’s Neck
only for bilateral trade. Thus there is a need for India to consider seriously, Bangladesh’s

Map 1: Rail Network Map of Bangladesh

Source: High Commission of India, Dhaka, Bangladesh http://hcidhaka.gov.in/pages.php?id=1219

24
Connectivity through Rail and Road: Prospects and Hurdles

point and work towards a shared transport policy between the two countries, which would
then translate into the larger goal of an interconnected Indian subcontinent.

1.3 Proposed Links

Chittagong-Silchar Rail Link


The Northeast Frontier Railway employees Union that the project will take until 2018 to be
completed. Such concern was addressed by officials of the NFR in a progress report released
in November 2010, available with Concern for Silchar11, which said that as of that time,
51 percent of the super structures of major bridges has been completed. The report also
explained that the poor condition of the region’s roads was proving to be a major deterrent
in the project’s rapid completion.

There is also the issue of the project allegedly being hampered by insurgencies in the
areas involved. While the Assam Government has made the claim that it has successfully
brought peace in Dima Hasao by signing ceasefire agreements with the Dima Hasao Daoga

Map 2: Northeast Frontier Railway

Source: Northeast Frontier Railway, http://www.nfr.indianrailways.gov.in/view_section.jsp?lang=0&id=0,1,379

25
India-Bangladesh Connectivity: Possibilities and Challenges

(Jewel Gorlosa faction), engineers from


the construction companies that are
working in the district say that there has
been little change on the ground. The
engineers allege that tribal insurgents
and petty miscreants alike, have resorted
to harassing them and no action is being
taken by the authorities and the police.
That the delay in the project is creating a
major communication bottleneck for the
people of South Assam, Tripura, Manipur
and Mizoram, is already clear. Moreover, it
is also creating a huge dent on the national A carriage in front of the Bangladesh Railway Board.
exchequer: While the completion cost of
the 201-km stretch was first pegged at INR 1689.12 crores, the estimate has since ballooned
to over INR3,909.49 crores.

Kolkata-Dhaka-Agartala Bus Service


In May 2015, during a meeting among Nitin Gadkari, Union minister of road transport and
highway, Government of India; Bangladeshi Transport Minister Obeidul Quadar; officials from
the state governments of West Bengal and Tripura; the Ministry of External Affairs, India; and
Customs and the Border Security Force it was decided that the first Kolkata-Dhaka-Agartala
bus will be flagged off in Dhaka on 6 June.12

The decision is a significant one in the history of the two countries and acknowledges a
long standing demand from the people of Tripura for a direct land route to Kolkata. The
new route will greatly reduce both time and distance between Agartala and Kolkata. The
proposed service from Kolkata to Agartala will run three times per week and pass through
the Benapole-Petrapole checkpost and the Akhaura-Agartala checkport.

Other Proposals
Besides the Kolkata-Dhaka-Agartala link, a few other bus services are also being considered.
These include services from Kolkata to Jessore, Kolkata to Khulna, and Siliguri to Dhaka.

1.4 Operational Bus Services

1.4.1 Kolkata-Dhaka Bus Service


The Kolkata-Dhaka Bus Service was inaugurated on 19 June 1999 and remains one of the most
vital modes of transportation between India and Bangladesh. The service has helped increase

26
Connectivity through Rail and Road: Prospects and Hurdles

the volume of trade and commerce between the two countries while also contributing to
easier people-to-people exchange. The service is operated jointly by the West Bengal Surface
Transport Corporation (WBSTC) and the Bangladesh Road Transport Corporation (BRTC).
From Kolkata, buses ply to Dhaka every Tuesday, Thursday and Saturday; from Dhaka to
Kolkata, every Monday, Wednesday and Friday. One of the major challenges that is regularly
faced by passengers and traders using the service is the length of time involved in clearing
customs and immigration requirements at the border point. Measures must be put in place to
facilitate the process, including conducting the customs formalities while in transit.

There are also private operators with bus services between the two cities.

1.4.2 Dhaka-Agartala Bus Service


After years of negotiations, the operation of the Dhaka-Agartala bus service was agreed upon
on 11 July 2001. The service was introduced from 2003. Subsequently, the Agartala-Dhaka
bus service was suspended and Indo-Bangla trade through the Tripura border came to a halt
following incidents of violence and strikes in neighbouring Bangladesh. Bus service between
the two countries was stopped in view of the political turmoil in the country, according to
Managing Director of TripuraRoad Transport Corporation (TRTC), R M Malakar.13

Despite frequent political disturbances the Agartala-Dhaka service is set to resume from May
2015. Like the Kolkata-Dhaka rail link, this bus has also been named Maitri. The service
would run twice every week.

1.5 Issues and Prospects

The interest in extending physical connectivity between India and Bangladesh through
railways and road networks, is not new; the idea has been in existence for some time now.
The interest, however, has never been translated to action: While the merits and demerits
of connecting the two countries through rail and road have been discussed at length by
government officials, policymakers and academics, little has taken shape in the way of
realising these goals.

An important reason for this, according to Mr. Tareq Md. Ariful Islam, the Director General
for South Asia, Ministry of Foreign Affairs, Bangladesh, is that establishing connectivity is
a time-consuming, capital-intensive process. For instance, gauge conversion of railways
which is being done priority-wise in Bangladesh, demands intense labour and capital. The
same applies to laying tracks for a proposed second Maitrayee Express from Khulna to
Benapole.

The poor condition of roads in Bangladesh is a cause of concern for India and hampers the
growth of bilateral trade. Mr. Islam maintained that if Bangladesh asserts that existing roads

27
India-Bangladesh Connectivity: Possibilities and Challenges

are sufficient for its own use then they will remain as they are; if India wants to use them for
either passenger traffic or trade, then India can make its own investments accordingly. A
lot needs to be done to upgrade existing networks and build new ones. The Motor Vehicles
Agreement, signed at the 2014 SAARC Summit, prescribes that countries in the region iron
out their respective issues in this regard.

In Bangladesh, the development of railways, being capital intensive, has suffered over the
years. Another reason is rooted in the country’s topography: the predominance of alluvial
soil in most parts of the country makes the laying of tracks, extremely difficult. Moreover,
infrastructural investment has focused more on the development of roads than railways,
given the higher stakes in roads; everyone—from toll officers to the police—are able to
reap monetary benefits from building road networks. The line of credit extended by India to
Bangladesh may now be utilised for the improvement of the rail network and for upgrading
the meter gauge tracks to broad gauge tracks. The variations in rail gauges, coupled with
incompatibilities in rolling stock, pose difficulties for making inter-country rail connectivity
more effective.14

Of the six trans-national routes passing through Bangladesh, five are viable. The
operationalisation of the BCIM route is expected to slash in half the total transport cost,
according to Dr. Mahfuz Kabir, Senior Research Fellow at the Bangladesh Institute of
International and Strategic Studies. In Dr. Kabir’s opinion, given that the current regime
in Bangladesh is more amenable towards India, it has allowed transit facilities to the latter,
something which was unthinkable as recently as six years ago. This is primarily because of the
progress made by the Awami League in the country. However, there is a rider on the point
of Bangladesh allowing transit to India for the country has demanded a fee for the same.
Sandeep Chakraborty, Deputy High Commissioner, Indian High Commission in Dhaka, says
that this fee is very high and if India has cheaper and safer routes through its own territory,
there will be no reason to opt for transit through any foreign country even though such an
option may reduce the duration of transit.

On the other hand, as Subir Bhaumik notes, “The distance differential between Calcutta
and the Northeast Indian state capitals will help highlight the importance of getting to use
Bangladesh for transit from the Indian mainland into northeast India.”15

An ADB report on ‘Connecting South Asia and Southeast Asia: A Bangladesh Country Study’
shows the condition and status of roadways in Bangladesh from 2004 to 2010.16 Overall, the
number of roads has improved in Bangladesh according to the report (see Table 2). But
what is important for the country is the development of more durable roadways that are
capable of handling heavy vehicles.17 The report states that the condition of cross-border
roads, especially those with India is very poor and therefore affects bilateral trade.

28
Connectivity through Rail and Road: Prospects and Hurdles

Table 2: Condition of Roads, 2004–2010

Primary (km) Class I (km) Class II (km) Class III (km) Below III (km) Total (km)

Country 2004 2008 2010 2004 2008 2010 2004 2008 2010 2004 2008 2010 2004 2008 2010 2004 2008 2010

Bangladesh 0 0 0 20 92 68 441 1,648 1,574 476 0 32 868 25 83 1,805 1,765 1,762

India 0 90 90 484 4,069 4,069 0 1,675 1,675 10,889 5,699 5,699 105 117 117 11,458 11,810 11,810

Share (%)

Bangladesh 0 0 0 1.1 5.2 3.86 24.4 93.4 89.33 26.4 0 1.82 48.1 1.4 4.71 100 100 100

India 0 0.8 076 4.2 34.5 34.45 0 14.2 14.18 94.9 48.3 48.26 0.9 1 0.99 100 100 100

Source: Connecting South Asia and Southeast Asia: A Bangladesh Country Study, ADBI Working Paper Series.

These issues related to the building of roads are not the only impediments to the expansion
of existing networks in the mountainous regions. There is also the problem of availability
of stone chips, also known as ‘aggregates’ in such regions. The materials used for road
construction in such regions are riverbed particles which are unsuitable: whereas stone
chips have angular and irregular surfaces riverbed particles are rounded and do not bind
properly, and therefore are less durable. Stone chips are mostly found in Rampurhat, WB
and Pakur, Bihar. Transporting these to northeast India increases the cost of construction. On
the other hand, stone chips are available in Chittagong and Rajshahi districts in Bangladesh,
bringing down the cost of construction significantly. Environmental costs also need to be
kept in mind during the planning of roads. A Rehabilitation Action Plan (RAP) is mandatory
for feasibility studies on construction of any road project, according to Mr. Tarun Sengupta,
General Manager, RITES, Kolkata.

Ongoing unrest in India’s northeastern regions also acts a hindrance to development projects.
Various individuals and agencies need to be paid for allowing any kind of work to begin,
raising the expenses. When the locals have been engaged in such projects, at times they have
failed to work and they do not seem interested enough as they see the backhand payments
as easy money, according to Mr. Sengupta.

However, one of the more recent success stories is that after prolonged diplomatic and
strategic parlays lasting for nearly three years, rice is now being transported from Andhra
Pradesh to Tripura via Bangladesh since August 2014. Three Bangladeshi trucks loaded
with rice entered India through the Akhaura integrated checkpost in the presence of Food
Corporation of India (FCI) and Tripura government officials. “For the first time, Bangladeshi
trucks transported rice from Ashuganj port in Bangladesh directly to the FCI warehouse at
Nandannagar (on the outskirts of the Tripura)...,” FCI general manager Bidol Tayeng told
IANS.18

29
India-Bangladesh Connectivity: Possibilities and Challenges

Transit through Bangladesh for Indian goods

Source: Bangladesh approves transit for India via it’s roadways, land and river ports, 27 May 2013, http://www.
english.rtnn.net/?/newsdetail/detail/1/3/54059

The usual practice was to shift contents from Bangladeshi trucks to Indian trucks before
entering Indian territory. Tayeng said the External Affairs Ministry had earlier given clearances
to allow Bangladeshi trucks 7 km inside Indian territory from Akhaura border. “The trucks
carrying rice will be going through truck scanners installed at the Akhaura check post,” he
said.

The Tripura government made arrangements such as medical facilities, rest house and
food for Bangladeshi truck drivers at the Nandannagar FCI depot, Tayeng added. The first
consignment of 5,000 tonnes of rice in small ships from Kakinada port in Andhra Pradesh
reached the Ashuganj river port in (eastern) Bangladesh via Kolkata port on August 5. In this
context Bhanulal Saha, Minister of Tripura Food, Civil Supplies said: “The rice is being ferried
via Bangladesh to avoid the long and mountainous surface road up to Tripura via Assam
and Meghalaya.” Another 5,000 tonnes of rice will be similarly ferried to Tripura in the next
phase. After Tripura, it is likely that food grains will be ferried in a similar fashion for other
northeastern states.

30
2
India-Bangladesh Connectivity: Possibilities and Challenges

Connectivity through Waterways:


Scope for Development

2.1 India-Bangladesh Protocol on Inland Water Transit and Trade at a


Glance

For India and Bangladesh, connectivity through waterways holds great potential for both
economic and people-to-people links. The India-Bangladesh Protocol on Inland Water Transit
and Trade was first signed in 1972 and is renewable every two years. However, this pattern has
not been followed since 3 October 2001 and the renewal has been done only in a piecemeal
manner. Under the protocol, India and Bangladesh agreed to use inland waterways for the
passage of goods between two places of one country through the territory of the other, as
well as for inter-country trade. The protocol provides for a 50:50 ratio for sharing on tonnage
basis for inter-country and transit cargo by Indian and Bangladeshi vessels. In April 2015, the
two countries decided to renew the Protocol automatically after every five years.19

31
India-Bangladesh Connectivity: Possibilities and Challenges

The following transit routes are specified in the protocol:

n Kolkata-Haldia-Raimongal-Chalna-Khulna-Mongla-Kaukhali-Barisal-Hizla-Chandapur-
Narayanganj-Aricha-Sirajganj-Bahadurabad-Dhubri-Pandu and vice-versa;
n Kolkata-Haldia-Raimongal-Mongla-Kaukhali-Barisal-Hizla-Chandpur-Narayanganj-
Bhairab Bazar-Ajmiriganj-Markuli-Sherpur-Fenchuganj-Zakiganj-Karimganj and vice-
versa.
n Rajshahi-Godagari-Dhulian and vice-versa
n Karimganj-Zakiganj-Fenchuganj-Sherpur-Markuli-Ajmiriganj-BhairabBazar-
Narayanganj-Chandpur-Aricha-Sirajganj-Bahadurabad-Chilmari-Dhubri-Pandu and
vice-versa.

Under this protocol, the following ports of call in each country have been nominated for
facilitating inter-country trade:

India: Kolkata, Haldia, Karimganj, Silghat and Pandu;

Bangladesh: Narayananganj, Khulna, Mongla, Ashuganj and Sirajganj.

The protocol enumerates various operational parameters, including: conservancy and


pilotage; port dues and other charges; handling facilities; and supply of bunkers. Cargo
moved on the Brahmaputra river system includes fertilisers, Petroleum, Oils and Lubricants
(POL) products, jute, tea, cement, timber, iron and steel, cement, forest products, paper
products and coal.

While discussing India-Bangladesh protocol routes, certain experts express reservation in


accepting waterways as the cheapest mode of transportation, pointing to the fact that most
of the rivers are not navigational in nature throughout the entire year. In order to overcome
this problem, adequate facilities for dredging should not only be arranged but also be made
mandatory to make navigation possible. Moreover, as there are no night navigational facilities,
the cost of cargo to be brought to the river front has become highly expensive.20

It is worth noting that there are six national waterways in India, with NW 6 having been
added most recently in 2013. Of these, NW 2 is the main protocol route (from Kolkata-
Sundarban-Chalna-Khulna-Mongla, Kaukhali-Barisal-Narayanganj-Aricha-Dhubri-Pandua.
NW 6 bifurcates from Narayangaj towards Bhairabbajar-Ajmerganj-Karimganj-Lakhipur.
This is the new route over Kusiyara and Barak rivers. These two rivers are connected to the
Brahmaputra and receive very little water: they are seasonal routes. There are two aspects
to the Protocol route: transit and trade (export/import).

The importance of land connectivity can be best realised when rail and road
links are extended to the nearest ports. Inland waterways hold immense
potential for achieving multi-modal connectivity.

32
Connectivity through Waterways: Scope for Development

Map 3: India-Bangladesh Protocol Routes

Source: Director, Inland Waterways Authority of India.

Map 4: Proposed National Waterway (No 6) River Barak


Length: 121 Km, Development cost – Rs 123 crore (at 2012 prices),
Status: Proposed

Source: Director, Inland waterways Authority of India.

33
India-Bangladesh Connectivity: Possibilities and Challenges

2.2 Constraints

2.2.1 Necessity of Dredging


Promoting this protocol route requires the regular dredging of the rivers. (For instance, the
Kolkata Port is an inland port and thus requires constant dredging year-round; the same applies
to the Kusiyara-Barak Rivers). Bangladesh, being a poor country, does not have enough
resources to make dredging a meticulous, highly organised process on fixed intervals. Still,
work is at present being undertaken in Bangladesh to improve the navigability of rivers and
increase the number of ports of call. The country wants India’s involvement in the sharing
of technological knowhow, at least, if not capital investment. The prospect of enabling the
use of shallow draft vessels where deeper ones enter is also being explored, though it may
be more expensive.

2.2.2 Lack of Assured Freeways


Assured fairway with desired depth and width is the key to year-round operation. Unsafe and
uncertain fairways restrict speed and have been found to cause frequent groundings that, in
turn, result in higher fuel costs: the system then becomes expensive and unreliable. Sediment
deposition is the other factor that disturbs the river bed and the waterway. Unpredictable
shoals appear all along the entire river bed, which becomes detrimental for the passage of
vessels, resulting in the disturbance to the grounding of vessels.

Dredging in river Hooghly

34
Connectivity through Waterways: Scope for Development

2.2.3 Lack of Round-the-clock Navigation Facilities


The provision of night navigation facility is essential for 24-hour navigation. This has been
provided by the Inland Waterways Authority of India between Dhubri and Pandu on NW-2.
The waterways within Bangladesh, which are used for trade and transit routes, reportedly
have 24-hour navigational facilities between Chalna and Padma-Meghna confluence
and Bhairab Bazar, covering a distance of 387.5 km. However, stretches where night
navigational facility exists do not reduce voyage times of Indian vessels; Bangladesh pilots
do not use these aids. Night navigation is an option rarely taken by Indian vessels plying
Bangladeshi routes.

2.2.4 Lack of Terminal and Cargo Handling Facilities


On NW-2, floating terminals are present only at Dhubri, Jogighopa, Pandu and Silghat. Some
initiatives have recently been taken up to develop the terminals along NW-2. One fixed
terminal capable of handling containers is being developed at Pandu, and a floating terminal
at Silghat was also developed in association with the Numaligarh Refinery Ltd and is being
used by a private operator. At Jogighopa, too, a mechanical loading/unloading facility is
being created to upgrade current floating terminals.

2.2.5 Shortage of IWT Vessels


The Inland Waterway Transport has few vessels to run services in eastern and northeastern
India. The Central Inland Water Transport Corporation (CIWTC) owns a number of vessels, and
so do the WBSTC (West Bengal Transport Corporation), Vivada Transportation Corporation
and IWTDA; they are not enough, though, to cater to proposed needs.

2.2.6 Dominance of Bangladeshi Vessels in IWT


The cargo movement from India to Bangladesh has increased manifold in the last few years,
mainly on account of enhanced export of fly ash, slag and gypsum for cement factories in
Bangladesh. Most of this cargo is, however, transported using Bangladesh vessels: Despite
the prescription of 50:50 cargo-ratio in the protocol, the share of Indian vessels in IWT
inter-country trade remains insignificant. Bangladeshi private operators continue to carry
the advantage of low vessel cost because of various factors, such as cheaper diesel cost in
Bangladesh, cheaper labour cost and lower capital cost of Bangladesh vessels vis-a-vis Indian
vessels. These lower costs, in turn, are due to less stringent construction and safety standards
adopted in Bangladesh.

2.2.7 One-Way Traffic


A vital challenge in trading with Bangladesh is that the traffic has remained largely one-way:
Except for jute, there is not much demand for imported items from Bangladesh in India.
Garments have been another major commodity from Bangladesh but demand has declined
over the years. The result is that most traffic carrying goods travel from India to Bangladesh

35
India-Bangladesh Connectivity: Possibilities and Challenges

and come back empty. This increases the cost incurred by private trading agencies and
discourages economic linkage.

2.2.8 Renewal of the Protocol as an Obstacle


The movement of vessels between Bangladesh and India is taking place under the provisions
of this protocol. However, this protocol on inland water transport is renewed on a monthly
basis which is considered to be the foremost obstacle to inland waterways transport corridors
between Bangladesh and India. One month is not enough for the transporters to book cargoes
and vessels and organise their schedules to carry on the business. As a result, only a small
number of vessels are plying on both inter-country and transit routes, causing the trade to
suffer. The spirit of the agreement gets lost in the process.

The protocol is also restrictive: the only ports of call in India are Kolkata, Haldia, Pandu and
Karimganj, and in Bangladesh, Khulna, Mongla, Narayanganj and Sirajganj. Traffic destined for
other locations in Bangladesh, such as Barisal and Bhairab Bazar, incurs additional transshipment
costs from the nearest port of call, resulting in waterways transport not being competitive.21

There is no discussion yet regarding the development of Mongla port although there are
plans for making the Asuganj and Narayanganj ports into hub ports. In 1954 the anchorage
was transferred to the Mongla port because of its potential for accommodating and handling
deeper vessels. Developing the Mongla port and enabling it to have better facilities with
larger cargo handling abilities may help in relieving traffic from the Narayanganj route. The
Mongla port is connected to other inland river ports and, more importantly, to the Khulna
rail terminal. There are possibilities of multi-modal connectivity through the Mongla port
and onto rail and road routes further inside Bangladesh, a possibility being explored by the
Bangladesh Institute of International and Strategic Studies (BIISS), according to Dr. Mahfuz
Kabir, Senior Research Fellow at the Institute.22

At present, the inland waterway services between these two states focus only on cargo movement
and entail no passenger service. Against this backdrop, one recent development has been by
Rabinowich, an International Tiger expert group. This group conducted a tour from Kolkata to
Dhaka via waterways. This encouraged Kolkata based journalists like Santanu Sanyal, to suggest
that the Calcutta Cruise Company should organise similar services, even on a periodic basis if
not regularly. The Inland Waterway services are essentially used for two purposes, namely: 1)
bilateral trade; and 2) transit (cargo movement through Northeast and Bangladesh river system).
Earlier, the river route between Kolkata and Assam was one of the most thriving routes and was
active in the movement of goods and people. Today the renewal of the earlier route has become
a challenge. Recently, Chhatak was added as a transit call. India holds the view that identification
of route can be established based on the cargo and navigational status of the river.23

According to Sanyal, in 2010 there was an agreement with Bangladesh, which allowed India
to use the Ashuganj port. The Inland Waterway Authority of India (IWAI) has doubts about the
relevance of the Protocol routes since the entire trade is dominated by Bangladeshi quarters.

36
Connectivity through Waterways: Scope for Development

Indian operators do not enjoy the subsidies which exist for Bangladeshi operators. Central Inland
Water Corporation Limited (CIWTC) is the active player in the Inland Water Transport. There
is only one commodity which is tradable, fly ash from Kolkata to Bangladesh. The International
Union for Conservation of Nature (IUCN), one of the leading international non-governmental
organisations working on the most pressing environment and development challenges across the
world, has estimated that 1.5 million tonnes of traffic can be moved along this route. According
to the IUCN, new items like coal, iron ore, pellets and food grains, should also be exchanged.

Trade through protocol routes had become expensive primarily because of their lesser use as
the maximum share of trade between India and Bangladesh takes place via roads. Therefore
new river routes for trade are to be explored.24

Dr. Nilanjan Ghosh, ORF Senior Fellow25 made an interesting point that over time, as the
mangrove forests are receiving increasingly less quantities of water the area is losing one of
its most critical species, i.e., the hilsa. Hilsa fish has a tendency to move to the sweeter side
of water, therefore the best quality of the fish are moving towards the Myanmarese side, as a
result of which the trade potential of Bangladesh is significantly diminished.26

2.3 Proposals for Improvement

Currently, there is one Inland Container Terminal (ICT) at the Pangha–Dhaka port. A proposal for
a new Inland Container Terminal at Ashuganj has been the subject of discussions between the two
countries; Bangladesh has prepared a Detailed Project Report. Since then, however, the matter
has not made much headway. The Ashuganj-to-Zakiganj line is seasonal and Bangladesh has
sought India’s help with regard to the improvement of the line. India’s response on this is awaited.
The improvement of this line would benefit both countries, according to initial estimations. The
Bangladesh Transport Policy Note released in 2009 reveals that India has recognised the problem
and is taking action to provide new terminals capable of handling containers.

Storage facilities are being planned at the proposed terminals in India and, depending on
the utilisation of these terminals and routes, the provision or upgrade of these facilities could
be occasionally considered. If similar facilities are provided in the Bangladesh portion of the
protocol routes, it will enhance utilisation of the routes. It is to be noted that the maintenance
cost that India used to give Bangladesh since 1972 was INR25,000. While it has been increased
to 10,000 crores, it remains insufficient.22

To make the inland waterway route more viable, therefore, there should be more imports
from Bangladesh. At present, Bangladeshi shippers get diesel at a subsidised rate and thus
the shipping costs are not high. However, Indian ships pay regular diesel prices. This should
encourage traders and shippers from Bangladesh to trade more with India. Indeed, to relieve
traffic on land ports such as Benapole-Petrapole, the possibilities of increasing river traffic
both ways between the countries need further exploration. Bangladesh is also exploring

37
India-Bangladesh Connectivity: Possibilities and Challenges

the possibility of expanding inland waterway routes to Bhutan, according to Md. Shafiqul
Haque, Director, Marine Safety and Trafic Management and Mahmud Hasan Salim, Director,
Planning, Bangladesh Inland Waterway Transport Authority.

The Major Hindrances

n Bangladeshi vessels outnumber Indian vessels. Why so? Deriving a viable answer to
this is important.
n Indian operators complain that while Bangladesh vessels are allowed by India to load,
unload cargo at various jetties around the designated parts of call, the same facility is
not given to Indian vessels.
n The Indo-Bangladesh Protocol on Inland Water Transit and Trade does not provide any
tourism operation involving passenger traffic and the tourism potential of northeast
remains untapped.
n River notices indicating the depth in the protocol route are not shared at present by both
countries. These should be done to increase awareness between both the countries.
n Inter-country trade is forbidden in discharge cargo or passengers in the country through
which they are passing.
n There is no container handling terminal in Bangladesh where Indian vessels can load
or unload containers, so dissuading the bigger Indian-operators to operate inter-
country trade.

For instance, the Jogigopa-Pandu-Dhubri route with India can be turned into a tripartite one
with the inclusion of Bhutan; this will be important for the Padma Setu in Bangladesh. This
route can also include Nepal. Nepal is helping in the upgrade of the Banglabandar land port
in Bangladesh. Coastal agreements exist with India and cover Vizag, Paradeep and other
ports along India’s eastern and southeastern coast.

There is a lot of demand in both the countries for enabling passenger traffic through the
Protocol routes. The Protocol therefore needs to be amended to include passenger traffic.
A proposal for this has been submitted by Bangladesh and is scheduled to be raised again at
the 17th Standing Committee meeting. There is also the need to explore how Bangladeshi
customs barriers can be removed to include more items from both India and Bangladesh.

Among the additional routes that can be explored for both cargo as well as passenger traffic
are the following:

n Namkhana-Khulna-Kolkata-Mongla-Barisal-Chandpur-Dhaka-Silghat-Pandu-Dhubri. For
Bhutan, it can be extended by road to Jogighopa.
n Karimganj. Along the Surma river, which is used for domestic cargo, it can be connected
with the Protocol route, although there are certain physical barriers such as avalanches and
Tipaimukh. It can still be worked out if both sides agree, though it may be expensive.

38
Connectivity through Waterways: Scope for Development

n Demagiri-Rangamati riverine route may be connected by road to Chittagong and further


inland.

Both governments are studying proposals for multi-modal connectivity. For instance, after
entry via Angtihara, larger vessels can rest while smaller tourist vessels can carry passengers
and cargo further inland. Another possibility for connectivity is from Chandpur towards
Chittagong.

Two key proposals for enhancing connectivity have been suggested by Captain Bagchi,
Director of Marine Department, Kolkata Port Trust: (a) improve the health of the rivers so
that they become navigable throughout the year and also enable deeper vessels to ply; (b)
increase the draft and vessel speed so that more vessels can ply and balance the movement
of cargo on both sides.27

The Inland Waterways Authority of India strongly emphasises the need for increasing the
duration of validity of the Indo-Bangladesh Trade & Transit Protocol for longer periods of time.
During meetings between representatives of both governments in April 2015, it was decided
that the Protocol would be automatically renewed after every five years. Another important
proposal advanced by the IWAI is the need to link major river ports—like Jogighopa, Tejpur,
Silghat, Oriyam ghat, Dibrugarh, Karimganj, Badarpur and Ashuganj—with multi-modal rail
and road connections. This, in turn, will offer an outlet to India’s northeastern states via

Figure 1: Cargo Movement through Indo-Bangladesh Protocol Route 2004-14 1831637.07


1724924.69

20,00,000
1496359.92

1481158.16
1338659.14

16,00,000
1246032.15
in metric tonnes

12,00,000
889348.14

884451.36
753277.74
555972.16

8,00,000
322872.61

4,00,000

0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Director, Inland Water Ways Authority of India

39
India-Bangladesh Connectivity: Possibilities and Challenges

waterways, in addition to road and rail infrastructure. This in fact will also help to remove
pressure from rail and road links through the Chicken’s neck link to the Northeast. After the
declaration of Barak river as a National Waterway of India, terminal facilities at Bhanga (19
km upstream of Karimganj), and at Badarpur, would be taken up by the Inland Waterways
Authority of India (IWAI).

Following the feasibility studies undertaken by the Rail India Technical and Economic Services
(RITES), India has decided to submit a concrete proposal to Bangladesh for opening new
waterways. RITES has prepared a detailed project report which it has submitted to the IWAI.
Initial fund involvement is pegged at INR47 crore. It has also been reported that the IWAI has
set up a scheme for the development of waterways in northeastern India. The North Eastern
Council (NEC) is likely to provide funding. The Tripura government has already proposed to
the Central government that it should take up matters with Bangladesh to declare Gumti as a
national waterway in view of its potential of establishing linkages with Bangladesh.28

The utilisation of inland waterways for both transit and trade is beneficial not only for relieving
the pressure off rail and road traffic but also because it is a much more cost-effective mode
of transport.

Map 5: IWT Protocol Route: Connectivity of Tripura through Ashuganj

Source: Director, Inland Water Ways Authority of India

40
Connectivity through Waterways: Scope for Development

Figure 2: Inland Water Transport- A Cost Effective Mode of Transportation

Fuel efficiency: One HP moves Kgs One liter of fuel moves (T-km)

4000
4000 120
105

85
3500
80

3000
40
24

2500
0
Road Rail IWT
2000
Operating cost (international level) Cents/T-km)

1500 6 5.2

1000 4

2.5
500
500 2
1
150

0 0
Road Rail IWT Road Rail IWT

Source: Inland Waterways Authority of India, ‘Inland Water Transport in Northeast’, Shillong, 19 June 2012.

2.4 Coastal Shipping Agreement between India and Bangladesh

The Bangladesh Cabinet recently29 approved a draft proposal that would allow coastal trade
between India and Bangladesh. This agreement will go a long way in helping to reduce the
time taken at present for trade between the two countries through sea and river routes. It
is expected that the agreement will be ratified during the visit of Prime Minister Modi to
Bangladesh in June 2015. The agreement was finalised during a Secretary-level talks during
the visit of a delegation from Bangladesh to India from April 19-23rd. Port of calls include
the Pangaon (ICT) in Bangladesh and the Farraka and Bandel on National Waterway (NW)-1
on the Indian side.30 The Indian government will be holding talks internally before deciding
whether Farakka becomes a port of call.

At present, trade through sea routes passes via Singapore or Colombo. The time and cost
of trade through this route is therefore higher (involving four to five days for ships from
Bangladesh to reach India) and this is why the coastal trade agreement will become very

41
India-Bangladesh Connectivity: Possibilities and Challenges

important for India and Bangladesh. Trade through the coastal route will reduce both the time
and cost of trade and thus create scope for increased economic cooperation and benefits.

According to the terms of the agreement, the route will be open only for the movement
of cargo and will not include within its purview the movement of passengers, war ships,
paramilitary forces and vessels of oceanographic and scientific research. The implementation
of the agreement will be done through a standard operating procedure (SOP) which is being
prepared.

The agreement will be functional for a tenure of five years with provisions that facilitate
automatic renewal.

42
3
India-Bangladesh Connectivity: Possibilities and Challenges

Possibilities and Challenges in


Energy Trade Between India and
Bangladesh

The contemporary security discourse has indeed come a long way from the long-held,
conventional perspective of Strategic Studies. In a world confronting depleting resources,
the idea of ‘security’ is no longer complete today without the concomitant issue of energy
security. Unless a country has access to scarce energy resources, its huge stockpiling of arms
and ammunitions can hardly make it safe. Moreover, there are certain problems faced by
contemporary societies which cannot be efficiently dealt with by individual states alone.
There may be a requirement of some trans-national initiatives which can try to solve some of
society’s present-day problems. Keeping these factors in mind, the present section deals with
possibilities and challenges in cross-border energy trade between India and Bangladesh. The
real significance of India-Bangladesh energy connectivity is not just what it can do for India
and Bangladesh together, but how this can facilitate broader cooperation within the region
of South Asia and beyond.

43
India-Bangladesh Connectivity: Possibilities and Challenges

3.1 Energy Indicators in India and Bangladesh

Energy has come to be known as a `strategic commodity’ and any uncertainty about its
supply can threaten the functioning of an economy, particularly in developing economies.
Energy security has long been a major challenge faced by both India and Bangladesh. Over
the last three decades, relatively higher economic growth has meant higher demand for
energy products and services which, in turn, has led to even higher energy vulnerability for
India.31 Home to more than 17 percent of the world’s population, India accounts for roughly
0.3 percent of global oil reserves, 0.7 percent of natural gas reserves and 7.0 percent of coal.
On the other hand, with about 0.2 trillion cubic metres (TCM) of gas reserves, Bangladesh
accounts for only about 0.1 percent of global natural gas reserves, and virtually no oil
reserves and negligible coal reserves, although it is home to about two percent of global
population. India has significant hydropower potential and only a part of this is currently
being exploited. Bangladesh, given its flat topography, has almost non-existent hydropower
potential in its territory. Moreover, like in other South Asian states, traditional fuels have
always played an important part in the energy supplies of both Bangladesh and India, but
they have now become rather stagnant, environmentally unsustainable and unable to cope
with the increasing demand for modern commercial fuels.32

According to Energy Statistics 2013, the power sector in India had an installed capacity of
236.38 Gigawatt (GW) as of March 2012, posting an increase of 14 percent over the numbers
of March 2011. Captive power plants generate an additional 36.5 GW. Thermal power plants
constitute 66 per cent of the installed capacity, hydroelectric about 19 per cent and the rest
15 per cent being a combination of wind, small hydro-plants, biomass, waste-to-electricity
plants and nuclear energy. Projections made in the Twelfth Plan document of the Planning
Commission of India indicates that total domestic energy production of 669.6 million tonnes
of oil equivalent (MTOE) will be reached by 2016-17 and 844 MTOE by 2021-22. This will
meet around 71 percent and 69 percent of expected energy consumption, respectively, with
the balance to be met from imports, projected to be about 267.8 MTOE by 2016-17 and
375.6 MTOE by 2021-22.33

On the other hand in Bangladesh, since the government under Sheikh Hasina took charge,
power generation was pegged at a range of 3,200 to 3,400 MW, against the national demand
of 5,200 MW. In the election manifesto, Hasina’s party declared a specific power generation
commitment of 5,000 MW by 2011 and 7,000 MW by 2013.34 To achieve these goals, in
spite of major deterrents like an energy crisis and shortage of gas supply, the government
has taken several initiatives to generate 13,000 MW by 2018.  According to a government
report, 5,415 MW of power has already been added to the national grid as of June 2014, 500
MW of which is imported from India. In this context, it is worth noting that the government
has already developed a Power System Master Plan 2010 which forecasts demand at some

India can provide leadership to form a cross-border sub-regional power grid,


which would be beneficial for the larger neighbourhood.

44
Possibilities and Challenges in Energy Trade Between India and Bangladesh

19,000 MW by 2021, and 34,000 MW in 2030. To meet this demand, the generation capacity
should be 39,000 MW in 2030. The plan suggested a fuel-mixed option, namely: domestic
coal, 30 percent; imported coal, 20 percent; natural gas (including LNG), 25 percent; liquid
fuel, five percent; and nuclear, renewable energy and power import, 20 percent.35 In line
with the Power System Master Plan 2010, an interim generation addition plan up to 2018 has
been prepared. (See Table 4.)

Table 3: Plants Commissioned During 2009 – December 2013 (MW)

YEAR 2009 2010 2011 2012 2013 TOTAL

Public   255 800 607 587 2249

Private 356 520 963 344 76 2259

Power Import         500 500

Total 356 775 1763 951 1163 5008

* From January to June 2014: Total 407 MW of capacity Power Plants comissioned.
Source: http://www.powerdivision.gov.bd/user/brec/112/58, accessed on 12 January 2015.

Table 4: Calendar-Year-Wise Generation Addition programme (From 2014 to


2018) (MW)

YEAR 2014 2015 2016 2017 2018 TOTAL

Public 225 1293 1475 2131 1320 6444

Private 1024 1218 1014 640 630 4526

Total 1249 2511 2489 2771 1950 10970

Source: http://www.powerdivision.gov.bd/user/brec/112/58, accessed on 12 January 2015

There is another huge challenge to India and Bangladesh’s energy security: the lack of access
to energy for large sections of its populations. India’s per capita total primary energy supply
(0.60 tonne) is lower not only than the global average but even that of Africa. In Bangladesh,
it is even worse at 0.21 tonne per capita. Considering all forms of energy, India’s dependence
on outside sources is about 28 percent of its total supplies. Similarly, in the case of Bangladesh,
its dependence on outside energy sources is about 18 percent of its total supplies, which is
largely in the form of oil.36 Moreover, the demand for power in Bangladesh is at its peak
during summers but the power frequency remains the same, thus creating a gap between
demand and supply.37

45
India-Bangladesh Connectivity: Possibilities and Challenges

Table 5: Energy indicators in Bangladesh, India and other regions (2011)

Country/Region TPES/Pop TPES/GDP (toe/ TPES/GDP (PPP) Per capita Electricity


(toe/capita) thous 2000USD) (toe/thous 2000USD) Consumption (KWh)

South Asia 0.55 0.55 0.17 580

OECD 4.28 0.14 0.14 8226

World 1.88 0.25 0.19 2933

Africa 0.67 0.55 0.25 592

Bangladesh 0.21 0.36 0.13 263

India 0.60 0.57 0.19 673

[Note: toe= tonne oil equivalent; KWh= kilowatt hour; TPES= total primary energy supplies; GDP= Gross
Domestic Product; PPP= purchasing power parity]
Source: IEA (2013)

This figure is lower than that for many neighbouring countries like Japan, South Korea,
Taiwan and Singapore. However, India’s net energy import bill is around USD120 billion,
which translates to about 40 percent of its total exports. The amount is higher than for many
countries. As India relies largely on imported energy products and services, it causes for
much concern for energy vulnerabilities. Similarly for Bangladesh, at about USD5 billion, the
energy import bill is one-fifth its total exports.38 Thus Bangladesh is also an energy-vulnerable
country and the situation is only likely to get worse. With these factors in mind, the next section
will deal with existing trends in cross-border energy trade between India and Bangladesh and
explore the scope for further development.

3.2 India-Bangladesh Cooperation in Power Sector

The possibility of exporting gas-based power to India, while augmenting supplies in Bangladesh,
has long been discussed. A pre-feasibility study prepared for the government of Bangladesh
under the USAID SARI-E programme in 2000 demonstrated that a gas-fired, combined cycle
power plant of 500MW to 1000MW capacity located at Bheramara or Sirajganj, and exporting
a minimum of 400 MW to the eastern grid of India, would be competitive in the Indian power
market with a delivered power cost of about 4.4 to 4.7 cents/kWh. Similar options for power
plants located at Sylhet or Fenchuganj were also estimated to be economic and competitive.
Since then several proposals have been made to the government for similar power plants in
Bangladesh.

46
Possibilities and Challenges in Energy Trade Between India and Bangladesh

The most talked about proposal in this context has come from the Tata Group in India. The
Tata Group plan includes a steel plant with an annual production capacity of 2.4 million
tonnes, a urea factory with a 1-million-tonne capacity, a 500-megawatt coal-fired power
station and a 1,000 megawatt gas-fired power plant. It would also involve export of electricity
to India. Gas-fed power generation is considered to be more efficient owing to newer energy
cycles achieved through combined cycle turbines. The projects would amount to be the
largest single foreign investment ever made in Bangladesh and would equal the total the
country has received since 1972.39 Bangladesh authorities, however, have not responded
positively to any of these proposals.

In November 2009 the India-Bangladesh cooperation was formally initiated, followed shortly
by a visit of high-level Bangladesh delegation led by the Secretary, Power Division, Ministry
of Power, Energy & Mineral Resources, from 18 to 22 November 2009. A Memorandum of
Understanding was signed between the two countries on 11 January 2010 during the visit
of Bangladesh Prime Minister Sheikh Hasina. The MOU laid down the salient terms of the
proposed cooperation on power sector between the two countries. It included the following:

n Exchange of power through Grid connectivity between the two countries


n Joint venture (JV) investment in power generation
n Capacity development of Bangladesh Power Development Board (BPDB)40

The MOU also provided that a Joint Steering Committee (JSC) to be co-chaired by both the
power secretaries, as well as a Joint Working Group (JWG), would be constituted to promote
and facilitate cooperation. It was agreed that the JWG would meet at least twice a year while
the JSC would meet at least once a year to review the progress.

It was decided that establishment of a grid connectivity would be the first step, which would
allow power trading between the two countries. Based on a detailed techno-economic
analysis undertaken by a joint technical team, it was agreed that the most effective option
would be to set up an interconnection between Baharampur in India and Bheramara in
Bangladesh. The scope of the project includes a 400-KV, 30-Km double circuit line from
Bheramara to Baharampur, and the establishment of a 500-MW, 400/230-KV back-to-back
high-voltage direct current (HVDC) substation at Bheramara. In the proposed Bheramara
HVDC centre, existing in Ishardi-Khulna (South) 230 KV double circuit transmission line was
designed loop in-loop out 5 km. The transmission line was designed for an ultimate power
flow of 1,000 MW. ADB is financing the project from the Bangladesh side.41 As a result of
this cooperative endeavour, Bangladesh is receiving nearly 470 MW, of which 250MW is
at a negotiated price, while the rest is being procured from the Indian market. However,
issues like system loss have become a major concern for Bangladesh at present. Bangladesh
purchases power from India, but some of it is lost in transmission.42

Discussion is also going on for the export of about 100MW of electricity from the Indian
northeastern state of Tripura. This will require the construction of only about nine Km of

47
India-Bangladesh Connectivity: Possibilities and Challenges

transmission line. In this context, the statement of Indian Deputy High Commissioner in Dhaka,
Sandeep Chakravorty, is noteworthy. He confirmed that “several steps have been taken
following the Indian government’s commitment of supplying 100 MW of power to Bangladesh
from southern Tripura’s Palatana power plant. The Power Grid Corporation of India Limited
(PGCIL) would construct a transmission line from western Tripura’s Surjyamaninagar power
grid to Comilla (in eastern Bangladesh) power grid to supply the power”.43 India is also
building a coal-based power plant near Khulna in Bangladesh as a joint venture, though the
plant has come under environmental scrutiny owing to its proximity to the Sunderbans.

Experts argue that if the surplus power needs to be transmitted to other regions of India
through the narrow stretch of Siliguri corridor in West Bengal, it is certain to face obstacles.
India intends to trasmit this surplus power through Bangladesh territory. Part of the power can
be consumed in Bangladesh as well. There has been no concrete progress in this regard.

3.3 Scope for Energy Trade between India and Bangladesh: Oil and
Natural Gas

Both India and Bangladesh are heavily dependent on other countries for their oil requirements.
Under the circumstances there is hardly any scope for trade in oil between them. Indeed
this is quite true for crude oil. However, experts still maintain that there is significant scope
for trading in refined oil between them; this sphere has hardly been explored.44 Refining
is an area where India can help Bangladesh to deal with her refining capacity constraints.
Bangladesh, for its part, has discovered coal resources of its own, much of which are not yet
utilised and India might help Bangladesh to access these resources. Transported and traded
gas is yet another area of cooperation which holds promise.45

Table 6: India-Bangladesh Energy Trade

Petroleum Products Bangladesh imports from India

Coal Bangladesh imports from India

Electricity Bangladesh receives about 470MW of electricity through the


Baharampur-Bheramara transmission line.

Gas No trade

Source: Nitya Nanda & Krishna Swaroop Dhar Dwivedi, “India- Bangladesh energy Relation” in Energy and Power,
in http://ep-bd.com/online/details.php?cid=32&id=17519, accessed on 13 March 2015.

India, being one of the most energy-hungry countries in the world, has long been keen on
exploring various options for procurement. India’s access to assured gas supplies continues

48
Possibilities and Challenges in Energy Trade Between India and Bangladesh

to be uncertain and the country frequently pays higher prices for spot LNG purchases.46 The
importance of gas to India’s development aspirations is obvious: in 2011-2012, 10 percent of
electricity produced in India came from gas, next only to coal and hydro-power.47

The first proposal to export natural gas from Bangladesh to India has come from one of the
foreign producers operating in Bangladesh. Unocal (now Chevron)—which has developed
a gas field in north-eastern Bangladesh—proposed the construction of an 847-mile (1363-
km) gas pipeline from Bibiyana to New Delhi.48 However, the issue soon became politically
contentious in Bangladesh and the proposal was nipped in the bud. Natural gas being the
only energy resource available within its territory, Bangladesh was reluctant to part with it.49

According to Md. Mizanur Rahman, Chief Engineer, Planning and Design, Bangladesh Power
Development Board, the country has 15-16 TCF reserves. If offshore reserves are also found,
the import of coal can be substituted with gas. There is high domestic demand and the
common assumption for a long time has been that there is not enough gas. Technological
improvements too can make way for the substitution of coal with gas. Moreover, 3rd or 4th
generation technological changes can allow more potential for the generation of energy.

An important factor in India-Bangladesh cooperation in the field of natural gas could be


Myanmar, which has estimated natural gas reserves of 89.722 tcf, of which 18.012 tcf are
considered proven recoverable reserves. Investors from various countries are engaged in the
oil and gas sector of Myanmar, including Australia, Britain, Canada, China, Indonesia, India,
South Korea, Malaysia and Thailand. ONGC and GAIL of India have a 30-percent stake in
partnership with Daewoo of South Korea (60 percent) and South Korean Gas Corporation
(10 percent) in the off-shore gas exploration of Blocks A-1 and A-3 off the western Rakhine
coast. GAIL and Essar of India have other assets as well in Myanmar. While some companies
have been there since 2000, PSC-1 on-shore block in Central Myanmar worth US$ 73 million
has been awarded to Jubilant Energy of India on the basis of a global tender in 2011.50
Recently, Indian company ONGC Videsh Ltd successfully bid for two on-shore blocks51 in the
2013 Myanmar Oil and Gas bids.

In order to transport this gas to India, negotiations have been held with the Bangladesh
government to provide transit facilities when necessary. Although in January 2005 Bangladesh
agreed to allow the 559-mile pipeline to pass through its territory, such acceptance by the
Bangladesh government was subject to several conditions, including the grant of several
trade concessions, the removal of tariff, non-tariff and administrative barriers to Bangladesh
exports to India, the provision of access to hydroelectricity from Nepal and Bhutan and the
establishment of a free-trade corridor to these countries (World Bank 2007). India, at that
time, was not willing to give these concessions to Bangladesh; now it has agreed to all of
Bangladesh’s demands.52

Earlier, India had considered alternative options for importing gas from Myanmar, including:
(a) overland route to India bypassing Bangladesh; (b) under-sea pipeline to India; and (c)
LNG shipments. However, reticence in decision-making cost India, and Myanmar decided

49
India-Bangladesh Connectivity: Possibilities and Challenges

Map 6: Gas Pipelines in India and Bangladesh

Source: Chief Engineer, Planning & Design, Bangladesh Power Development Board

to sell the available gas to China. The construction of the Myanmar-China pipeline project
which consists of dual oil and gas pipelines originating at Kyaukryu port on the west coast of
Myanmar and entering China at Yunnan’s border city of Ruili, also worked in favour of China.
Meanwhile, the energy situation has also changed significantly in Bangladesh. It has started
facing a shortage of gas, mainly due to its inability to tap full potential as well as failure to
find significant additional reserves due to a severe lack of funds. Realising that a Myanmar-
Bangladesh pipeline was not economically viable, in 2010 the Bangladesh government finally
gave its approval to a potential Myanmar-Bangladesh-India pipeline.53

According to Dr. Nitya Nanda of New Delhi’s The Energy and Resources Institute (TERI), a
lack of convergence in the energy policies of India and Bangladesh could have significant
opportunity costs. The failure of the Myanmar-Bangladesh-India (MBI) pipeline project,
notwithstanding, it cannot be overemphasised that the natural gas reserves in Myanmar are
limited. Myanmar is not in a position to accommodate the needs of both China and the
India-Bangladesh partnership. However, the discovery of the off-shore North-West Myanmar
Gas Field– estimated to contain reserves of between 120–170 billion cubic metres of gas–has
sparked renewed interest in the proposed pipeline to India via Bangladesh.

India is also building a coal-based power plant near Khulna in Bangladesh as a joint venture.
An Indian company has also received exploration contract for natural gas in Bangladesh. India
is developing a number of hydropower projects in its northeastern states. Bangladesh can,
potentially, get supplies from these plants as well as help India transmit the power generated
from this region to the rest of India. The potential for Bangladesh-India cooperation in the
energy sector is much higher than what has been achieved so far.

50
Possibilities and Challenges in Energy Trade Between India and Bangladesh

A landmark step towards India-Bangladesh energy cooperation is the agreement signed at Dhaka
on 22 April 2015, between the Numaligarh Refinery Ltd (NRL) and the Bangladesh Petroleum
Corporation for the export of petroleum products to Bagladesh through the proposed Indo-
Bangla Friendship Pipeline (IBFPL). The petroleum products will be transported from Siliguri
in India to Parbitipur in Bangladesh. The IBFPL is a 130-km-long pipeline and is slated to be
implemented through a joint venture company formed by NRL and Bangladesh Petroleum.54

India is also looking to export electricity from its northeastern region with potential to
generate some 58,971 MW to its eastern states through Bangladesh. A bilateral meeting
between India and Bangladesh has been proposed to pick up on the thread from the recent
SAARC Framework Agreement for Energy Cooperation for the eastern sector of South
Asia. Through India, Bangladesh hopes to gain access to power resources of Nepal and
Bhutan. Bangladesh has formally requested India to open a ‘power corridor’ for her to access
Bhutanese and Nepalese markets. It has agreed to allow India to transfer hydroelectricity
from Assam to Bihar through its territory. The proposed meeting would attempt to remove
irritants in project-related areas. Four South Asian nations—India, Bangladesh, Nepal and
Bhutan—will soon meet for a comprehensive multilateral dialogue on cross-border energy
cooperation, according to Bangladesh Finance Minister AMA Muhith.55 The next section will
focus on the prospects of this multilateral energy cooperation.

3.4 Engaging with Bhutan and Nepal

India-Bangladesh energy cooperation could become more meaningful if countries like Bhutan,
Nepal and, of course, Myanmar, are also brought into this framework. Bangladesh has already
shown its interest to import power from Bhutan and Nepal. The cross-border trading with India
opens up the possibility for power trading with Nepal and Bhutan as well. Negotiations for
power trading with Myanmar are also going on. Under this process, 500 MW of hydro power
will be transmitted to Bangladesh by 2017 from Myanmar.56 According to a government official
of the Bangladesh Power Development Board, a master plan was also created in 2010 for the
development of power in Bhutan and Nepal which will help in regional power development.
It can be achieved, though, only through cooperation with India.

On the other hand, the Association for South East Asian Nations (ASEAN) is in the process of
developing a region-wide grid of natural gas pipelines and electricity transmission lines. India
can get connected through these two ASEAN-wide grids just by developing transmission line
and gas pipeline connections with Myanmar through Bangladesh. India-Bangladesh energy
connectivity will therefore be pivotal in promoting energy connectivity between ASEAN and
India, and beyond in South Asia.

Engaging with all the probable stakeholders at different levels needs to be


considered to enhance and streamline trade and people-to-people interactions
across the long border shared by India and Bangladesh.

51
India-Bangladesh Connectivity: Possibilities and Challenges

There has also been a proposal to promote sub-regional economic cooperation involving
the four countries of Bangladesh, Bhutan, India and Nepal, often referred to as the South
Asia Growth Quadrangle. These options, however, have not taken any concrete shape so far.
Today Bhutan is the only country in the region to have substantial surplus in capacity and
generation, though its installed capacity is only 1,500 MW as against a potential of 30,000
MW. Bhutan today has substantial surplus capacity that has been developed largely with
outside support, particularly from India.

The borders of Nepal, Bhutan and Bangladesh converge near Siliguri in the state of West Bengal
in India. Considering this, a study under the SARI-E program suggested connecting Siliguri
(India) to Anarmani (Nepal) and Thakurgaon (Bangladesh). It also suggested the alternative
of connecting Purnea (India) to Duhabi (Nepal) and Ishurdi (Bangladesh). Connections from
Chukha (Bhutan) to Siliguri and then on to Purnea already exist. Bilateral discussions between
India and Bangladesh in the last 20 years have focused on interconnections from Jessore,
Rangpur and Sylhet, but have not resulted in any action.

It is also worth noting that even eastern India (except for some pockets in the northeastern
states) does not have access to natural gas. Failure to access gas from Myanmar has also

Map 7: Regional Power Exchange Possibilities

Source: Chief Engineer, Planning & Design, Bangladesh Power Development Board, Bangladesh

52
Possibilities and Challenges in Energy Trade Between India and Bangladesh

delayed the process of supplying natural gas to this region. Naturally, Bhutan and Nepal
happen to border this region of India and, as a result, are unable to gain access to natural
gas from India. Moreover, some parts of Bangladesh that border the eastern Indian state of
West Bengal do not receive supplies of natural gas. Thus eastern India, western Bangladesh
as well as Bhutan and Nepal, could benefit if all these regions are connected through gas
pipelines.

In this context it is important to keep it in mind that a prerequisite for power trading in the
region is the establishment of a regional power grid. This concept has been under discussion
for quite some time and was adopted as a priority in a South Asian Association for Regional
Cooperation (SAARC) declaration issued in January 2004. The SAARC Working Group on
Energy is currently considering this concept.57

While discussions about Bangladesh-India energy cooperation in the context of accessing


natural gas from Myanmar have been on for some time, there is now a possibility that the
proposal could take on a broader form. ASEAN has been an energy-surplus region for a
long time, yet its surplus energy has generally moved eastward rather than westward. While
regional energy cooperation within SAARC is only selective and on a piecemeal basis, ASEAN
is going ahead in full force towards a comprehensive regional energy cooperation regime.
SAARC has not even visualised energy cooperation beyond a regional electricity grid and a
common market for electricity.

3.5 Road Bumps


Several constraints hamper the growth of India-Bangladesh energy connectivity. One of the
recent controversies that has come up in the context of India-Bangladesh relationship is
the Tipaimukh project, designed to generate 1500 MW of hydropower and ensure flood
control for the Indian states of Manipur and Mizoram. This involves building a 162.8-metre-
high rock-fill dam around 500 metres downstream from the confluence of river Barak with
Tuivai. The project is expected to help control floods in Bangladesh as well. Owing to limited
communication from India and little objective study conducted so far, speculative fears in
Bangladesh still prevail and certain sections in Bangladesh are yet to be convinced of the
benefits of the Tipaimukh project.58

Another important challenge that Bangladesh and India had to face while finalising the
transmission of power from India to Bangladesh through the Berhampore-Bheramara
transmission line was to agree on the price of electricity to be traded. It took prolonged
negotiations before a price could be agreed upon for supply of 250MW of power. Any
additional power that Bangladesh is drawing from India is at market-determined price in
India. Nevertheless, there is limit to the growth of pure bilateral cooperation and trade in
energy between Bangladesh and India. Any meaningful growth in this relationship will be
possible in an environment of deeper and broader energy cooperation in a sub-regional

53
India-Bangladesh Connectivity: Possibilities and Challenges

framework involving Nepal and Bhutan on one side and Myanmar and beyond in Southeast
Asia on the other.

India is being seen as a partner for joint efforts with Bangladesh to satiate its growing energy
needs. At the same time, India’s overwhelming political and economic power is seen as a
threat. The problems that Bangladesh is facing are many, which include the high oil import
dependency of the country with low resilience to oil price volatility and the limited ability
to change existing energy resource base. The inefficient use of energy and the presence of
a closed domestic market which is unresponsive to changes in the global energy market are
other challenges being faced by the nation. However, India being analogically compared
to the biblical figure of ‘Goliath’, is ironically facing the same problems as ‘David’, that is,
Bangladesh.59 The obvious and enduring answer to this problem would be enhancement
of connectivity. Connectivity is projected to not only benefit market participants—as market
benefits are not an end in itself in a democracy—but can also create a wider and fulfilling
impact on people’s lives in the concerned countries.

54
4
India-Bangladesh Connectivity: Possibilities and Challenges

Border and Border


Management

The border between India and Bangladesh has always been contentious, and has defined the
relationship between the two countries to a large extent. The fact that it is the longest India
shares with any country is an important reason for the difficulties encountered. It is also the
reason why there is a need to establish mutually acceptable structures in the border areas
(see Map 8).

The British must hugely bear the responsibility for creating this disconnect
between the people who shared common strands of history, language, culture
and tradition.

55
India-Bangladesh Connectivity: Possibilities and Challenges

Map 8: India-Bangladesh Border

Source: Nations Online, http://www.nationsonline.org/oneworld/map/bangladesh_map2.htm accessed 13 October


2014.

The border, especially the part which runs along the state of West Bengal, for about 2,217
km, has been a complicated one, ever since the partition of India in 1947 and remained so
evern after the formation of Bangladesh in 1971. This is mainly because the border ended
up dividing a land that for centuries existed as part of one socio-economic, political and
cultural space. In fact, it is the porous nature of the border which is at the heart of issues
related to border management between the two countries. The vast stretches of unmanned,
unguarded border have created numerous trans-border problems, including undocumented
migration, increasing amount of unofficial trade, smuggling of arms and drugs and contraband
items, and crimes like kidnapping for ransom, human trafficking, cattle lifting, extortion and,
crossborder movement of terrorists.

56
Concluding Remarks and Recommendations

The British must hugely bear the responsibility for creating this disconnect between the people
who shared common strands of history, language, culture and tradition. The demarcation of
the boundary between India and Bangladesh was made abruptly by Sir Cyril John Radcliffe
Leeway, Chief of the Boundary Commission. Sir Radcliffe lacked knowledge of India and faced
an array of limitations, including that of time. The resultant boundary was thus extremely
arbitrary, with no reference to any natural barriers on which the division could be relied
upon.60 The Partition left the majority on both sides of the border dissatisfied and created
dissonances which the subcontinent has not been able to cope with till now.

The relations between India and Bangladesh have improved significantly in the past few years.
The visits of Bangladesh Prime Minister Sheikh Hasina to India in January 2010 and of the
former Indian Prime Minister Manmohan Singh to Dhaka in September 2011 have greatly
helped in transforming the relationship. With the growth of this bilateral relationship the issue
of border management has returned to the table. Prime Minister Narendra Modi has expressed
a keen interest in enhancing friendly ties with Bangladesh. A special emphasis is being given on
improving the economic relationship. India’s decision to give duty-free access to all Bangladeshi
products except 25 narcotics items is seen as a major step towards strengthening the bilateral
trade relationship. As a result, Bangladesh’s exports to India are expected to touch $1 billion.61
The growth of the trade relationship will also increase movement of people and goods across
the border and this will raise the demand for further easing of existing rules to facilitate smooth
cross-border movement of goods and people.

4.1 Irritants in India-Bangladesh Relations

4.1.1 Illegal Migration


Illegal migration from Bangladesh is a major concern for India. The migration, which began
from 1947 onwards, was largely provoked by political upheaval, religious persecution,
demographic and environmental pressures. In addition, opportunities for employment and
education as well as medical needs encouraged illegal movement of traffic. Though migration
across the border is well acknowledged, there is lack of authentic data on the exact number
of people who have migrated. Some studies claim that the number runs into millions. This
has caused serious problems of security and social tension in many parts of India, especially
in the Northeast. The illegal migration has disturbed the demographics in some of the Indian
border-states and has created serious ethnic tensions. The anti-Bengalee agitation of the
1980s is a case in point.

Of late, Bangladesh has also been claiming the existence of illegal migrants from India. Media
reports claim that Indians living illegally in Bangladesh are remitting billions of dollars to
India.62 According to some Bangladeshi authors,63 the figure is as high as 500,000 Indians
sending about $3,716 million.64 People migrating to Bangladesh illegally, it is claimed, are
from West Bengal, Meghalaya, Assam, Tripura and Mizoram. According to Bangladesh

57
India-Bangladesh Connectivity: Possibilities and Challenges

government authorities, most of them come in search of jobs and mostly work in NGOs and
garments and textile industries. These claims, official and otherwise, remain questionable for
want of verifiable evidence.

4.1.2 Insurgent Camps in Bangladesh


Presence of insurgent groups from north-eastern states in Bangladesh has been a major
cause of concern for India. Taking advantage of the porous border, insurgent groups from
these states often base themselves in Bangladesh and run their operations from across the
border. Following requests from India, Bangladesh took action against these groups. Many
top leaders of these insurgent groups were arrested and repatriated. But the problem is far
from over and, according to some media reports, many of these groups are still active in
Bangladesh. During the 39th Border Cooperation Conference between Director Generals of
India’s Border Security Force (BSF) and Border Guards Bangladesh (BGB) in August 2014,
India handed over a list of 71 camps of insurgent groups still active in Bangladesh.65

4.1.3 Criminal Activities Across the Border


The porous border has encouraged cross-border criminal activities like smuggling of
contraband, human trafficking (mainly of women and children) and circulation of fake Indian
currency. Though there is no authentic data on the size of this illegal trade, some estimates
suggest it to be around $500 million annually.66 A major reason for this flourishing trade is
the export ban imposed by India. The demand for beef in Bangladesh is quite high but the
supply is limited. On the other hand, India is a cattle surplus country and the demand for
beef is fairly low. The issue is also important as it is directly linked to the killing of people
along the border. Most of those killed at the border are cattle smugglers, often referred
to by the Bangladeshi media as cattle traders. It is known that cattle smuggling would not
survive without the support of the local population, border guards and the police.67 The poor
economic condition of people living on the border has been one of the reasons for growth of
this trade. The border areas greatly lag in economic development.

The most effective and pragmatic step would be to lift the export ban on cattle. This would
make the trade legal, facilitate health check-ups of animals and generate revenue. It would
also stop needless deaths on the border. Bangladesh may bristle at the decision initially but
could be convinced about its long-term benefits. As an initial step, cattle trade could be
allowed at specially organised haats or markets on the West Bengal-Bangladesh border. The
bigger problem, however, would be at home in India where cattle export is a highly emotive
and sensitive issue. It would be difficult for any government to take the risk of legalising it,
especially in an era of coalitions and regional compulsions or even more so under a BJP
dispensation. However, it is in India’s own interest to review the current approach to cattle
trade across the border and build the much-needed political consensus by aligning national
policy with ground realities and pragmatism.68

Another major cause of concern has been the smuggling of contraband substances.

58
Concluding Remarks and Recommendations

Bangladesh often raises the issue of Phensidyl, a cough syrup, which is smuggled from India
and poses serious health hazards in Bangladesh. Bangladesh has been urging India to take
appropriate measures to stop smuggling of this drug.

Smuggling of arms and explosives has been a major cause of worry too for both India and
Bangladesh. For a long time, Bangladesh was used by Indian insurgent groups as a transit
point for smuggling of arms into India. In 2004, 10 truckloads of arms were seized in the port
city of Chittagong in Bangladesh that were destined for use by insurgent groups in north-east
India. The Bangladesh government has been taking action against such activities and has
prosecuted the culprits involved in the Chittagong arms haul. Interestingly, there is a great
demand for Indian-made country guns in Bangladesh, which are smuggled into Bangladesh
from India.69 It has also been reported that Kolkata, Guwahati and Shillong have of late
emerged as India’s new smuggling hubs, due to a spurt in trans-border smuggling through
Bangladesh, Myanmar and Nepal. According to Central Board of Excise and Customs statistics,
a total of 35,500 cases of smuggling and commercial fraud in 2012-13 have been reported
as compared to 33,251 cases the previous year. Of these, less than five percent are from
Mumbai whereas Kolkata, Guwahati and Shillong accounted for over 64 percent.70

Yet another issue of concern is the smuggling of fake Indian currency from Bangladesh. Fake
Indian currency sourced from Pakistan is sent via Bangladesh and brought into India. The
smuggling of fake Indian currency takes place along India-Bangladesh border in particular.
A Delhi Police report reveals that there are fake currency gangs, which have been smuggling
fake notes into India from Bangladesh. While arresting a fake currency racket very recently
the police said the accused and their associates obtained high quality fake currency at about
25 per cent of its face value in Bangladesh and sold it to chain retailers at 45 per cent of
the face value. These smugglers were thus earning approximately Rs 20 per hundred rupee
note.71 However, because of clandestine nature of these activities it is very difficult to assess
the quantum of illicit trade.

The network of illegal trade or


smuggling including human
trafficking is very strong and
it demonstrates how border
produces a spatial and exceptional
economy, which runs parallel to
normal economy. In many cases
the smugglers conspire with the
state apparatus. In this context
it is important to understand
how the smuggling business is
organised and controlled by
various ‘syndicates’ and how
these syndicates are extremely
India, Bangladesh Border at Sonamura, Agartala India. well connected with the higher

59
India-Bangladesh Connectivity: Possibilities and Challenges

levels of political parties, civil administration and police, so that their identities have rarely
been exposed.

The complex procedures involved in undertaking legal cross-border trade have also
contributed to the growth of illegal trade. The volume of illegal trade is estimated to be
double that of legal trade. The items most commonly smuggled from Bangladesh include
sarees, diesel, fish and mosquito nets. Items smuggled from India include sugar, salt, medicine,
betel nut, timber, among others. The inefficient functioning of the Land Customs Stations has
also been a cause of concern. Lack of infrastructure and lack of coordination among various
agencies cause delays in clearance of passenger and cargo traffic and this has become a
major obstacle to trade.

Since the border has been susceptible to cross-border criminal activities such as smuggling of
cattle, narcotics substance, arms, illegal movement of people and terrorism, both countries
are apprehensive about opening it up. The belief that a peaceful Indo-Bangladesh border
will be a harbinger of prosperity is, however, gaining ground in both countries. The real
challenge will be for the two countries to create policy instruments and mechanisms to
allow seamless movement of legitimate goods and people while also maintaining peace and
stability and providing security.72

Border management has gained importance on both sides of the border for the following
reasons:

n To streamline the large volume of informal trade that takes place between the two
countries with measures that would enable participation of people in the border areas.
There is need to strengthen and increase border haats which have a lot of potential in
improving economic engagement, not only between the two countries, but also among
people living in these areas who depend almost entirely on informal trade.
n To ensure that legal cross-border movement takes place smoothly and illegal/
undocumented movement is minimised.
n To ensure that terror outfits do not use vulnerable border areas for passage. Security detail
on the border areas needs to be increased. This is especially required on the Bangladeshi
side of the border where the number of personnel deployed for patrolling is lower than
on the Indian side.

India and Bangladesh have a number of border management instruments in place such as
the Joint Working Group on the Border, periodic flag meetings, and bi-annual meeting of
the Border Security Force (BSF) and the Border Guard of Bangladesh (BGB) commanders.
A Coordinated Border Management Plan (CBMP) was signed between the Director Generals
of BSF and BGB on 30 July 2011, under which more than 1,200 joint patrols have been
undertaken so far, leading to a reduction in the number of border deaths.73

The major challenge at the border is controlling illicit and undocumented cross-border
activities without disrupting legitimate movement of goods and people. While some irritants

60
Concluding Remarks and Recommendations

in border management have been discussed above, there are others that need to be addressed
to understand the dynamics of the relationship.

4.1.4 Feminisation of Undocumented Migration


Crossing the border is a daily routine for many in both India and Bangladesh. There has
been an increase in the trafficking of women and children, narcotics and drugs along with an
increase in illegal and undocumented migration between these two countries.74 The growth
in cross-border migration and trafficking flows has resulted from a combination of push, pull
and facilitating factors. Illiteracy, poverty, clashes between communities, natural calamities,
political and ethnic unrest have all constantly increased vulnerabilities of marginalised groups,
and made them susceptible to gross violations of human rights. At the same time, economic
growth, relative prosperity and peace on other side of the border act as ‘pull’ factors. India’s
growing economy creates increased
demand for imported labour. Young
women are particularly in demand
because they are regarded as more
compliant and less likely to rebel against
substandard working conditions. In
this context, it is to be noted that
much of the earlier migration flows in
Asia involved unskilled men looking
for work. However, studies indicate
a steady feminisation of migration
since the 1990s as women seize the
economic opportunities that migration
offers. This phenomenon has also
affected trafficking.75 Border Pillar at Agartala.

4.1.5 Trafficking of Women and Children


A large part of the border is flat terrain and has only 20 official checkpoints manned by the
BSF along the Indian side of the border.76 This small number is often ineffective in maintaining
strict vigil, making illegal entry by traffickers very common. A number of illicit ‘migration
businesses’ have also developed to facilitate this cross-border movement, which may charge
up to INR 50 per person for each trip.77 Human trafficking per se involves forced or coerced
movements. Sometimes people are kidnapped outright and taken forcibly to another
location. In other cases, traffickers use deception – such as false promises of well-paying
jobs to entice victims. After providing transportation to get victims to their destinations, they

The complex procedures involved in undertaking legal cross-border trade have


also contributed to the growth of illegal trade. The volume of illegal trade is
estimated to be double that of legal trade.

61
India-Bangladesh Connectivity: Possibilities and Challenges

charge exorbitant fees for their services, creating debt bondage. A well organised bribery
system also assists the informal system that has developed.

Further, traffickers facilitate easy entry of Bangladeshi girls into Kolkata brothels by using fake
passports. A close nexus exists between traffickers and border village communities. In the
Kushtia area of Bangladesh, some villages are used as stations for the traffickers. The borders
in Rajshahi district are used because there are fewer checkpoints there. The border adjacent
to Jessore is also very popular with traffickers. Particular hotels are used to keep the girls
brought from different parts of Bangladesh. Since traffickers do not usually accompany the
women while the latter cross the border, it is difficult for the border police to arrest them.
There are female members in trafficking gangs, which helps them hide their identity and
escape arrest.78 Once the women enter India, they are kept in West Bengal or Orissa. After
being ‘sorted and graded,’ they may be sent to Delhi, Mumbai or even the Middle East.79

The issue of women trafficking inevitably arises when discussing border management
– therefore is the need for a more holistic look at border concerns. Migration and the
consequential presence of ‘illegal’ immigrants are problems related to resources such as land
and money, but they are also equally related to the politics of nationalism, citizenship and the
search for a self sufficient identity.

4.2. Steps Taken by India

India’s approach to border management stands on four pillars: Guarding the border, regulating
the border, developing border areas and cooperating with neighbours.

Guarding the border includes steps


like deployment of border guards at
every entry point, setting up of border
outposts, erecting fences, building
roads and increasing surveillance to
prevent illegal activities at the border.
Regulating the border entails regulating
movement of goods and people that
takes place through various designated
transit points. Every Land Customs
Station (LCS) is closely monitored.

India started work on developing the


border areas from 1987 onwards. The
main focus of this programme has been
to improve the critical infrastructure at
the border as well as to improve the Double row fencing – India-Bangladesh border.

62
Concluding Remarks and Recommendations

economic condition of the people living in remote border areas. The programme covers 360
border blocks of 98 districts of 17 states in India located along the international border.80

Realising that no border problem can be resolved without the cooperation of neighbours,
India makes a special effort to cooperate with them. It has developed a bilateral institutional
mechanism to resolve border issues with its neighbours. The institutional mechanism includes
interactions at the levels of the Foreign Minister, Home Minister, and Chief of forces guarding
the border, surveyor generals, and the establishment of a Joint Boundary Working Group.

In accordance with these basic elements of border


management, India has taken steps like deploying
border guards and increasing surveillance at the
border, erecting fences, floodlighting them and
upgrading infrastructure such as widening roads
and laying railway lines to facilitate connectivity.

India has decided to fence a total of 3,359.59 km


on the India-Bangladesh border and work on
2.823.046 km has already been completed (see
Table 7). It is, however, important to note that the
entire India-Bangladesh border cannot be fenced
because the terrain – at places riverine or hilly
or marshy – does not permit the construction of
fences. Moreover, building fences is not an easy
task and is fraught with major hurdles. One of
the biggest hurdles is delays in the acquisition
of land. In addition, vested political interests,
Single row fencing on the India-Bangladesh
border. the lackadaisical and uncooperative attitude
of state governments, stringent environmental
laws, paucity of funds and unwillingness of the local people living within 150 yards of the
border to relocate have all contributed to stalling the process of fencing.81 Disputed and non-
demarcated patches of the border and resistance from Bangladesh further complicate the
fencing effort.82 Nonetheless, a substantial part of the border has indeed been fenced. (see
Table 8)

Furthermore, a pilot project on floodlighting 277 km has been completed in West Bengal.
Following its success, India has decided to undertake installation of floodlights in West Bengal,
Meghalaya, Assam, Mizoram and Tripura along 2,840 km of the Indo-Bangladesh border (see
Table 9).

India-Bangladesh border cannot be fenced because the terrain – at places


riverine or hilly or marshy – does not permit the construction of fences.
Moreover, building fences is not an easy task and is fraught with major hurdles.

63
India-Bangladesh Connectivity: Possibilities and Challenges

Table 7: Progress of work of fencing in states bordering Bangladesh (Length in km)

Name of state Sanctioned Completed

West Bengal 1471.00 1236.15

Assam 229.03 224.23

Meghalaya 462.23 346.66

Tripura 848.00 782.54

Mizoram 349.33 233.54

Total 3359.59 2823.04

Source: Annual Report 2013-14 Ministry of Home Affairs, Government of India83

Table 8: Progress of the work of construction of border roads (Length in km)

Name of state Sanctioned Completed

West Bengal 1770.00 1616.15

Assam 288.75 260.06

Meghalaya 531.29 380.33

Tripura 1182.37 992.73

Mizoram 634.70 447.33

Total 4407.11 3697.47

Source: Annual Report 2013-14 Ministry of Home Affairs, Government of India84

To address the issue of inadequate infrastructure at the border, India has taken the initiative to
establish Integrated Check Posts (ICPs) or Land Customs Stations (LCSs) at major entry points
on the land border (ICP and land ports have been discussed in detail under the segment of
Non-Tariff Barriers). To provide better services at the border, ICPs or land ports, India set up
the Land Port Authority of India (LPAI) in March 2012 under the LPAI Act of 2010. The LPAI
has the mandate to establish, develop and manage ICPs.

64
Concluding Remarks and Recommendations

Table 9: Progress of flood lighting works as on 31.3.14 along the India-Bangladesh


border (Length in km)

Name of State Sanctioned Completed Balance

West Bengal 1134.13 809.00 325.13

Assam 208.74 114.40 94.34

Meghalaya 443.00 159.20 283.80

Tripura 718.47 642.26 76.21

Mizoram 335.66 38.20 297.46

Total 2840.00 1763.06 1076.94

Source: Annual Report 2013-14 Ministry of Home Affairs, Government of India85

India has planned 13 ICPs along its entire international border (with Pakistan, Nepal,
Bangladesh and Myanmar), of which seven are for the India-Bangladesh border. About
two or three are functional at the India-Bangladesh border at the moment.86 ICPs are
expected to provide all the facilities necessary for smooth cross-border movement of
people, vehicles and goods under one roof. ICPs facilitate the processes of immigration,
customs, security, quarantine, etc. The following are the infrastructural facilities provided
at the ICPs: Passenger terminals, internet facility, cargo inspection sheds, quarantine
laboratory, banks, isolation bay, cafeteria, currency exchange, cargo process building,
warehouse/cold storage, clearing agents, scanners and parking.87 The first multi-facility ICP
along India-Bangladesh border was inaugurated by Union Home Minister Sushil Kumar
Shinde at Akhaura, Bangladesh, on 17 November 2013 in the presence of his Bangladeshi
counterpart Mohiuddin Khan Alamgir. The Akhaura LCS is spread over 11 acres with
around 4,500 people crossing the border both ways every month.88

In this context, a statement by Special Director General of Border Security Force (BSF) Mr.
B.D. Sharma is worth mentioning. He stated recently in Agartala89 that no border can be
properly protected only with guns. Massive development projects are required for socio-
economic development of the people living on both sides. The BSF has thus sent a proposal
to the Ministry of Home Affairs to set up 60 more haats on the eastern border to help people
from both sides to trade.90 Of the 60 border haats, 22 have been proposed to be set up in
Meghalaya, 32 in West Bengal, four in Tripura and two in Assam.91

To address the problem of undocumented migration, India is working on easing of visa


restrictions. India is considering providing five-year multiple entry visas to Bangladeshi
citizens. During External Affairs Minister Sushma Swaraj’s visit to Bangladesh in June 2014,
India agreed to give five-year multiple entry visas to Bangladeshi citizens above the age of

65
India-Bangladesh Connectivity: Possibilities and Challenges

65 and below the age of 13. The idea of providing short-term work visas for Bangladeshi
people has also been floated, but this has not gathered much support due to objections from
various sections within India. Also, India has initiated the multipurpose national identity card
to identify foreigners.

Moreover, the Border Development Area Programme has been implemented for overall
development of the border areas. These initiatives have helped in addressing some of the
issues but they are not sufficient to achieve the desired outcome. It is often pointed out that
the political state of affairs in Dhaka affects the nature of its interaction with Delhi. The latter
has always been more comfortable with the Awami League in power in Dhaka. Measures
to address the issues and challenges of border management have therefore been handled
more effectively under Awami League governments than under the Bangladesh Nationalist
Party (BNP) government. For instance, after the 2008 general elections which saw the Awami
League come to power, there have been significant efforts at neutralising insurgent groups
operating within Bangladesh which pose a threat to India.92 Concrete measures to effectively
manage areas of security cooperation, inadequately taken earlier, were implemented,
especially in the last few years, including the establishment of nodal points along the border
areas.

4.3. Borderland and Border Management

One of the key issues in the bilateral relationship is management of the 4,066-km-long shared
border. Complexities are compounded because Bangladesh is almost entirely surrounded on
three sides by India. Brigadier General Md. Shamsur Rahman, Additional Director General,
Border Guard Bangladesh, has said that the understanding between the two countries about
border related concerns is at its best currently as opposed to what it was a few years ago.93
This improvement in bilateral understanding indicates the willingness on both sides to sort
out long-standing concerns.

Regarding the fencing of the border, the most prevalent opinion is that the cross-border
movement of people cannot be stopped by fencing alone. On this issue, the view in Bangladesh
is that given the shared histories of people, and the traditional free-flowing movements and
settlements of people, it is not entirely possible to completely restrict this movement. Dr.
Muhammad Yunus, Senior Research Fellow at the Bangladesh Institute of Development
Studies believes that nowhere in the world is the border policed to the extent as it is in the
case of India and Bangladesh. Policing, he says, will not help in the resolution of bilateral
problems.94

However, simplified legal measures that would allow cross-border movement can restrict
illegal movement. In this respect, it has long been held that the finalisation of the Land
Boundary Agreement will help in resolving the issue of enclaves and improve the situation
in the border areas.

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Concluding Remarks and Recommendations

4.3.1 A New Milestone: The India-Bangladesh Land Boundary Agreement


The most important bilateral initiative has been the attempt to resolve the long-standing
border dispute that arose after Partition – that of enclaves. There are 111 Indian enclaves
inside Bangladesh and 51 Bangladeshi enclaves inside India. There are also enclaves
within enclaves. In September 2011, the governments of India and Bangladesh announced
their intention to resolve the issue by swapping 162 enclaves, giving residents a choice of
nationality. India will receive 51 enclaves with a total area of 7,110 acres, while Bangladesh
will get 111 enclaves (out of the 119 Indian enclaves inside Bangladesh proper) covering a
total area 17,149 acres (see Map 6).95

Bangladesh is to set gain about 10,000 acres, and it will also retain the 4,617 acres of its
Dahagram-Angarpota enclave. People living in these enclaves want to be recognised as
citizens of the country inside which these enclaves are located. With efforts from the two
neighbours, the dispute has come close to resolution after India and Bangladesh signed a
Land Boundary Agreement in September 2011.

The Constitution Amendment Bill, 2013, on the exchange of the enclaves had been awaiting
ratification by the Indian Parliament. Bangladesh had already ratified it. The Bill, submitted
to the Rajya Sabha during the period of Congress-led United Progressive Alliance (UPA)
government on 18 December 2013, faced opposition from political parties like the Asom
Gana Parishad and the Bharatiya Janata Party (BJP) on the argument of losing territory to
Bangladesh. More recently, the Narendra Modi-led BJP government has made a push to

Figure 3: Enclaves along India-Bangladesh International Border (West Bengal Sector)

Source: India-Bangladesh Land Boundary Agreement, Ministry of External Affairs, Government of India, http://www.
mea.gov.in/Uploads/PublicationDocs/24529_LBA_MEA_Booklet_final.pdf accessed 10 May 2015.

67
India-Bangladesh Connectivity: Possibilities and Challenges

ratify the deal. An un-demarcated stretch of 6.1 km of boundary between the two countries
was demarcated in 2011 after bilateral discussions.

On 7 May 2015 the Indian Parliament unanimously passed a historic bill to operationalise the
Land Boundary Agreement, settling the country’s 41-year-old border issue with Bangladesh.
The passage of the Bill ratifying the 1974 India-Bangladesh Land Boundary Agreement (LBA) is a
sign that India’s ‘neighbourhood-first’ policy is beginning to work. The Lok Sabha, showing rare
unanimity, has passed the Constitution (119th Amendment) Bill to allow the operationalisation
of the 1974 India-Bangladesh Land Boundary agreement. All the 331 members present in
the House voted for the bill which became the 100th Constitutional amendment passed by
Parliament. Earlier, External Affairs Minister of India Sushma Swaraj said it was beneficial
for both the countries and that there would only be a “notional” loss of territory without
borders getting contracted. Swaraj also opined that the measure, apart from demarcating the
boundaries, would also help in checking illegal immigration. “A solution to the problem of
illegal immigration is inherent in this legislation. With the land border now being decided (with
the passage of the bill), the portions where there is no fencing will also get fenced,” she said.96

A package of Rs 3,008 crore has been assured for West Bengal based on estimation that about
35,000 people will need rehabilitation. The package has a component of fixed expenditure of
Rs 775 crore, which would be spent on infrastructure building and a variable component of
Rs 2,234 crore. As far as Assam is concerned under the LBA, India will be getting 470 acres
of land from the neighbouring country, while 268 acres would go to Bangladesh.97

The unanimous endorsement of LBA by the Indian Parliament is seen in Bangladesh as a


landmark step before Narendra Modi’s visit to Bangladesh. It also shows an affirmation of the
general attitude of friendliness towards Bangladesh. The experts in Bangladesh argue that it
has been an important step to create a positive image for India in the country. It reflects the
resolve of India’s leadership to be fair towards a country that has demonstrated goodwill for
India by taking action against insurgent leaders sheltering within its territory, as it has shown
its readiness to partner with India on mutually supportive connectivity and infrastructure
initiatives. Bangladeshis are hopeful that some more positive news about other major irritants
in bilateral relations, including the Teesta water sharing issue, would come up during Modi’s
visit in early June. According to a leading daily of the issue, “going by the latest approach of
the Indian government towards solving bilateral issues, one may feel tempted to have faith in
Indian Foreign Minister Sushma Swaraj’s most recent statement that India wants to behave
like a ‘caring elder’ brother, not a ‘big’ brother towards its neighbours. With this kind of spirit
in place, it would not be hard to resolve other problems that have been vitiating relations
between the two close neighbours for long”.98

While the ratification of the LBA is no doubt a welcome development in bilateral relations
between the two countries, the implementation of the agreement needs a lot of consideration.
Since, according to the agreement, the two countries will be able to exchange enclaves located
in each other’s territory, it inevitably calls into question the process of rehabilitation of the
people who have been residing in these enclaves. The LBA is expected to offer a better quality

68
Concluding Remarks and Recommendations

of life to the people who, till date, did not enjoy basic human rights including access to schools,
hospitals and other basic amenities. These people were stateless, for all intents and purposes.
Since India will receive more enclaves from Bangladesh, more people will be entering the
country. Therefore, there needs to be a proper and durable rehabilitation policy for these
people so that they can be assimilated quickly with as few hassles as possible.

The problems related to the demarcation of the maritime boundary were recently put to
rest by the verdict of the United Nations Permanent Court of Arbitration, which awarded
Bangladesh 19,467 sq. km of the 25,602 sq. km sea area of the Bay of Bengal, which India
gracefully and readily accepted.

New Ideas of Cooperation

Given the complexity and sensitivity of the issues involved, the time is now ripe for exploring
the possibilities of cooperative border management.99

A framework of cooperative border governance based on inter-governmental arrangements


can be considered in this regard. Considering national security perspectives on both sides of
the border, joint border management could be framed at the primary level. In order to do
so, the importance of the borderland needs to be revisited. At the secondary level, it may be
suggested that customs, immigration, banking, insurance, transport and connectivity, transit
facilities, regional trade centre planning, movements of commuters and extra-regional trade
should be administered by Border Region Governance Bodies (BRGBs).

The BRGBs could be developed through the following steps:100

Six steps for Cooperative Border Governance

n First,an India-Bangladesh Bi-national Border Zone (BBZ) extending 15 km on either


side of the international border may be demarcated .
n Second, treat the BBZ as a Special Socio-economic Zone with developmental planning
and execution vested in the Border Zone Authority, comprising an equal number
of administrators from the two countries with a chairman who could be appointed
alternately from either state.
n Third, institute 12 bi-national, sub-regional zones extending over a 50 sq km area to be
developed as ports of entry and connectivity nodes.
n Fourth, develop integrated services for immigration, customs, judicial services, financial
(banking, insurance) services, police, border security and transportation in bi-national,
sub-regional zones.
n Fifth, operationalise the zonal systems by combined service cadres from both
countries
n Finally, finance the expenses of operationalising the zonal systems by both states on the
basis of proportional trade and revenue.

69
India-Bangladesh Connectivity: Possibilities and Challenges

The concept of border governance through bi-national border authorities within a marked
border region would provide a useful entry point for examining the proposed changes in
the new modalities of regulation over the borderlands. These constructive efforts would
create a positive perception of the societies in the two countries, cutting across all sections
from individual actors and local communities to regional networks and finally national
governments. Gradually, these zones on the border would emerge as functional spaces for
local, sub-regional, regional and national networks.

Moreover, the population in the border areas on both sides is mostly homogeneous because
of socio-cultural and linguistic affinity, except perhaps along about 443 km of the Meghalaya-
Bangladesh border. Further, successful border trade is in full swing in the Tamabil-Dawki–
Shillong-Guwahati trade corridor, despite linguistic and cultural heterogeneity of the people
on either side of the border. It is in this context that the importance of the proposed India-
Bangladesh Bi-national Border Zone BBZ should be considered. The exchange/transfer of
goods and free movements of people in the BBZ could lead to harmonious and symmetrically
inclusive development. Pranab Ray, an eminent geographer has said that the experience of
‘border deconstruction’ in Europe was not always successful, but the case of India-Bangladesh
need not be the same. Possibilities of success are brighter given the linguistic and cultural
homogeneity on both sides, although this is tempered to some extent by religious differences.
But with a positive approach, these broad networks of governance could herald a better
future for the border, and beyond.

Scope of India-Bangladesh Bi-national Border Zones

After having examined a part of the border between Bangladesh and West Bengal of
2,214 km to identify multi-scale border regions between these two political spaces where
homogeneity is high, experts like Pranab Ray have identified three layers of border regions
along with possible nodes and links for restructuring the Bangladesh-West Bengal border. The
nodes may initially be accepted as towns with a population of over 50,000 with a working
transport linkage within the borderland zone. The following BBZs may be proposed for early
implementation to strengthen connectivity between India and Bangladesh:101

n The North and Northeastern Border Zone: This zone would extend from the northwestern
junction between Bangladesh and India at Darjeeling district (West Bengal) and move
eastwards through the districts of Jalpaiguri and Coochbehar towards the Assam and
Meghalaya borders. The suggested Zones are (see Map 10):
i. Nilphamari-Chulahati (Jalpaiguri)
ii. Panchagram-Chater Hat
iii. Lalmanirhat-Sitai
iv. Phulbari-Dinhata
v. Kurigram-Dhubri
vi. Maulong-Tamabil
vii. Tura-Tarkanda
viii. Sonamura-Piz Bazar

70
Concluding Remarks and Recommendations

n The Western Border Zone: This zone would be developed along the West Bengal and
Bangladesh border from Uttar Dinajpur district in the north towards South 24 Parganas
district to the south. The following would be proposed zones (see Map 11 and 12):
i. Panchagram-Islampur (Moraghat)
ii. Radhikapur-Kaliaganj-Debipur
iii. Rajshahi-English Bazar
iv. Lalgola-BirBazar
v. Gede-Phulgram

Map 10: North and Northeastern Border Zone

Source: Prepared by Pranab Ray

Map 11: The Western Border Zone (A) Map 12: The Western Border Zone (B)

Source: Prepared by Pranab Ray Source: Prepared by Pranab Ray

71
India-Bangladesh Connectivity: Possibilities and Challenges

vi. Chougacha-Jessore
vii. Bongram-Sarsa
viii. Taki-Debhata

Issues to be Considered:

a) Linguistic and other ethnic affinities often invoked between West Bengal and Bangladesh
due to their shared past no longer hold as well as in the past. The new generation is
globalised and commercially oriented. Market-centred engagement such as trade and
investment needs to be considered while addressing cross-border management issues.
b) It is important to understand people’s perceptions – which vary from place to place –
while dealing with India-Bangladesh border management. For instance, perceptions of
people from India’s northeast and those of people from West Bengal differ regarding
Bangladesh. Bangladeshi people too feel differently, depending on the Indian community
they are considering. Trans-boundary issues therefore need proper handling. Factors
playing out in the border regions are not limited to these areas but are of much larger
import.102
c) While assessing cross-border migration/undocumented population flow, demand and
supply factors should be kept in mind.
d) Priorities vary for India and Bangladesh. For India, border management is an important
issue, but for Bangladesh, it is only one point on the agenda and is not a key priority. In
other words, Bangladesh is more relaxed in its attitude to border issues than India is.
This can have many implications. A balance is thus required from both sides to arrive at
solutions.
e) India’s border force must be clearly told not to treat the frontier with Bangladesh as
a hostile one like the border with Pakistan. Bangladesh is a friendly country and that
appreciation should be reflected in India’s border management.103

4.4. Bilateral Trade

About the formalised trade through


the border, Bijay Selvaraj, First
Secretary, Commerce, Indian High
Commission,104 Dhaka, believes that
the issue of land acquisition for the
construction of Land Customs Stations
and Integrated Check Posts needs
to be addressed. Land acquisition
for this purpose depends on state
governments in India and therefore
runs the risk of facing complexities. An
Checkpost at Srimantapur – Trucks from Bangladesh
important and positive outcome of the bringing cement for the Srimantapur LCS on the Indian side.

72
Concluding Remarks and Recommendations

establishment of land ports has


been an increase in the number
of people using them instead of
crossing illegally. This is why the
establishment of more LCSs and
ICPs such as Petrapole-Benapole
and Akhaura-Agartala would
facilitate cross-border trade to a
great extent and also in turn act
as a check on undocumented
movement of both people
and goods. Inland container
terminals (ICTs) could also be
considered for facilitating trade.
Feasibility studies on trade
being containerised are being Construction underway at Land Customs Station, Srimantapur,
undertaken by India. Tripura, India.

The latest report by the Ministry of Commerce and Industry, Government of India, shows that
trade between India and Bangladesh has steadily increased over the last five years, although
the balance of trade remains significantly tilted towards India.

Table 10: Trends in India’s Trade with Bangladesh (Value in US $ million)

Year Exports Imports Total Trade Balance of Trade

2009-10 2,433.77 254.66 2,688.44 2,179.11

2010-11 3,242.90 446.75 3,689.66 2,796.15

2011-12 3,789.20 585.73 4,374.93 3,203.47

2012-13 5,144.99 639.33 5,784.31 4,505.66

2013-14 6,166.93 484.34 6,651.27 5,682.59

Source: Report of Press Information Bureau, Government of India, Ministry of Commerce &Industry on Trade
between India and Bangladesh, 17 December 2014.

Bangladesh became India’s largest trading partner in the South Asian region in 2013,
replacing Sri Lanka.105 It is estimated that bilateral trade between the two countries could
double in the next few years to around $10 billion.106 But while bilateral trade has been
on the rise, a number of contentions need to be ironed out. Increase in trade depends

73
India-Bangladesh Connectivity: Possibilities and Challenges

on factors like the easing of non-tariff barriers and other facilities as discussed below. The
major factor that adds to the imbalance in trade is unrecorded trade between the two
countries. Another reason for the trade surplus is the decline in exports from Bangladesh.
This can be addressed by an increase in Indian investment in Bangladesh, which stood at
USD 2.5 billion in 2013.

A 2014 CII report pointed out that investment can be improved by developing “single window
clearance for new business proposals; repatriation of profits; setting up an Industrial Park for
India in Bangladesh outside Export Processing Zone (EPZ) with all the needed infrastructure
facilities”, among others.107 Sectors in which Indian companies could invest include agro
processing, textiles, organic chemicals, electrical machinery, automobiles, pharmaceuticals
and healthcare equipment, along with hospitals, tourism and other services sector industries.
Given that Bangladesh is a growing economy with a large market, there is significant potential
for improving the investment climate.

Improvement of bilateral trade will also benefit the region as a whole, as goods from
landlocked countries like Nepal and Bhutan also pass through Bangladesh, which would
help in increasing economic integration among the SAARC countries.

4.4.1 Non-Tariff Barriers


Free movement of trade is one of the key elements of economic cooperation. Given that
India is one of the biggest trading partners of Bangladesh, it is more important for the
latter to urge the removal of barriers to trade, both tariff and non-tariff. Tariff barriers
enforce restrictions on the free flow of trade and in response to Bangladeshi demands,
India has now allowed duty-free access to most Bangladeshi products with the exception
of liquor and tobacco. As for non-tariff barriers (NTBs), these are also a major concern for
Bangladesh. The country has long demanded the easing and gradual removal of NTBs in
its trade with India.

There are broadly three categories of NTBs. The first covers prohibitions, export subsidies and
barriers for the exporting side. The second includes import licensing, customs procedures and
other restrictions on the importing side. The final category consists of environmental standards,
laboratory testing of consumables such as food products and cosmetics, requirements for
proper packaging and infrastructural facilities like warehousing, and so on.108 There are a
number of difficulties posed by these NTBs due to lack of infrastructural services, storage
facilities and delays in quality testing, and various laws which regulate prohibitions, customs
requirements and so on.109 These barriers are an impediment for the growth of exports. At
the same time, certain procedures such as quality testing of consumables are necessary to
ensure safe consumption.

Against this backdrop, it is worth focusing on border haats and Land Customs Stations.

74
Concluding Remarks and Recommendations

Table 11: Summary of Results on Potential Savings from NTB Reforms for
Bangladesh and India (Trade Volumes for 2010-11)

Bangladesh

Partner Rate of Import Domestic Revised Potential Potential


Country Non-Tariff Value in Value in Import Value Savings Saving as %
Trade Cost Bangladesh Partner in Bangladesh from NTB of Import
(US$mm) Country using Ideal Reforms Value
(US$mm) Non-Tariff Rate (US$mm)
(US$mm)

India 82.28 3,405.52 1,868.28 2,575.79 829.72 24.36

India

Partner Rate of Import Domestic Revised Import Potential Potential


Country Non-Tariff Value in Value in Value in India Savings Saving as %
Trade Cost Bangalesh Partner using Ideal from NTB of Import
(US$mm) Country Non-Tariff Rate Reforms Value
(US$mm) (US$mm) (US$mm)

Bangladesh 82.28 579.13 317.71 438.03 141.10 24.36

Source: Reforming Non-tariff Barriers: Case for a Participatory Approach in South Asia, CUTS, 2013

4.4.2 Border haats


A border haat is a makeshift market located on the zero line of the border between India
and Bangladesh, which allows people from both countries to buy each other’s products
on a fixed day each week. These markets allow people in remote villages along the border
to not only purchase basic requirements but also engage in economic pursuits that would
help in improving their livelihood. The first border haat was the Baliamari-Kalaichar haat,
which opened on 23 July 2011 in Meghalaya. This was followed by the Dolora-Balat haat
in Sunamganj, Meghalaya in 2012. The border trade between the two countries, however,
has a longer history, dating back to 1972, although it has been a tumultuous exercise given
the extensive smuggling that began soon thereafter. The Memorandum of Understanding110
between both governments on establishing border haats, signed in 2011, provides a detailed
framework for the operation of border haats. Thirteen locally grown agricultural and
manufactured finished products for trading at these haats have been identified.111

With the aim of formalising illicit trade through the border areas, and to offer an economic
opportunity to people living in remote areas along the border between India and Bangladesh,
the decision to establish border haats was formalised. The states of Meghalaya and Tripura
have been the most vocal about the importance of setting up these haats along its shared

75
India-Bangladesh Connectivity: Possibilities and Challenges

border with Bangladesh. On the other


hand, there has been no such response
from West Bengal.

A long time has elapsed since the proposals


for border haats were raised and hence
the speed of setting up the proposed haats
needs to be looked into.112 It is important
to increase the number of border haats
because they serve the key purpose of
helping to bring into its fold informal
trade.113

The Director General for South Asia,


Ministry of Foreign Affairs, Bangladesh Mr.
Tareq Md. Ariful Islam added that border Kamasagar Border haat construction underway.
haats are also important because they play
a social role by engaging people living in remote areas.114 It is for this reason that the selection
of sites for these haats is very important. Along with location, supporting infrastructure like
security and banking facilities are also required. Viability of these infrastructural supplements
needs to be kept in mind while selecting sites for the haats. The fact that infrastructural
improvement is necessary at border haats has also been voiced by several experts in
Bangladesh.

Border trade through these haats has another important concern besides infrastructural
support. The necessary evil of regulatory mechanisms like NTBs poses a tedious prospect
for local people who are not accustomed to rules and norms of official trade. The NTBs,
which often curtail the extent of trade otherwise possible through illegal trade, often acts as a
deterrent for people. It is therefore believed that while the NTBs may not be completely done
away with, measures to ease regulations and make them simpler would encourage increased
involvement in border trade through haats.

The objective behind setting up of these markets is to enhance bilateral ties and also promote
the well-being of people in border areas. However, there are several regulations that control
and monitor the functioning of these haats. While these regulations are necessary to check
both illegal movement and illegal trade, they also limit the extent of trade and engagement
possible. The main aspects that hamper the proper functioning of these haats and thus reduce
their benefits are as follows:

i) An important concern of traders and consumers is the limited number of items that are
permitted to be traded. The border haat rules state that only goods produced locally in
the areas of the border haats can be traded. But people on the Indian side often complain
that officers of the BSF or customs officials prevent them from purchasing permitted items
from Bangladeshi sellers. In addition, Indian buyers are at times barred from purchasing

76
Concluding Remarks and Recommendations

Bangladeshi goods, which undermines the interest and incentive for Bangladeshi traders.
These norms could be eased to a certain degree while keeping vital regulations such as
the prohibition of third country goods intact.
ii) When border haats were initially set up, trade amounting to $50 per day was allowed
per trader, which was later increased to $100. Increasing the volume of trade would also
allow more economic engagement.
iii) Infrastructural requirements for the border haats are not sufficient. On the Bangladeshi
side, for instance, bailey bridges are needed by traders to reach the markets, which have
not been set up by the government. During monsoon months, people often have to use
boats to reach the marketplace, which acts as a discouragement. There have also been
demands to raise the land on which such haats are located. Lack of physical infrastructure
is a key reason which curtails the smooth functioning of border haats.115
iv) Passes were initially allotted to a limited number of traders at these haats, who continue to
monopolise them. For instance, 25 people were issued passes at the Baliamari-Kalaichar
and Dolora-Balat haats and despite there being a provision for these passes to be rotated
among other traders, it has not happened. This discourages traders who may never get
the opportunity to trade at these haats.

The most crucial fallout of these challenges is that they allow informal trade to continue
unabated.

4.4.3 Land Customs Stations


Land Customs Stations or land ports have been set up by both India and Bangladesh to assist
cross-border trade. These land ports provide infrastructure for handling cargo, storage facilities
and collection of revenue. Land ports, at certain important points of entry along the border,
have also been upgraded to
Integrated Check Posts (ICPs)
to accommodate the increasing
demand from traders on both
sides of the border. The ICPs are
mandated to contain regulatory
agencies such as Customs,
border security, immigration,
warehousing, banking facilities
and fuel stations. Major ICPs
include Petrapole-Benapole,
Agartala-Akhura, and Dawki-
Tamabil. These land ports
serve as points of contact for
travellers and traders entering
and leaving each country
ICP at Agartala. and are required for tackling

77
India-Bangladesh Connectivity: Possibilities and Challenges

challenges such as lack of infrastructure, storage and banking facilities that exist along the
India-Bangladesh border.

Mechanisms that will bring increased benefits from LCSs and ICPs are being worked out by
both governments. However, there needs to be a more comprehensive and speedy response
system between the two nations. One of the major complaints made by traders is regarding
the time taken for checking and assessing cargo being transported from one country to the
other. Most of the complaints are directed at the ports located on the Indian side of the border,
which means that a lot of time is taken for processing details. There are also restrictions on the
export of electronic goods and motor bikes from Bangladesh to India, which the latter wants
lifted. The need for quality certification by Indian ports also restricts the entry of goods into
the country that has already been certified by Bangladesh. Sudden bans on certain essential
commodities imposed by India constitute another issue that needs to be dealt with.

India, on its part, has requested that 225 items be removed from Bangladesh’s ‘sensitive’ list
under the South Asian Free Trade Agreement (SAPTA) to facilitate trade.116 Till date Bangladesh
has removed 21 items and has notified that consultations on the status of other items are
underway. Importers and exporters also face problems of banking and misused letters of credit,
which need resolution. The Indian companies face difficulties in sending remittances back.

These concerns, along with those of enhancing the physical connectivity of land ports with
the hinterland, require careful yet prompt handling. Both countries can agree to a dialogue
on the specific products that face restrictions or delays due to NTBs and devise measures
that would gradually ease these restrictions and increase the volume of trade. Infrastructural
facilities such as weighbridges at entry points along the border can be improved to curtail
unnecessary delays, customs procedures can be streamlined, awareness of the regulations
among traders can be increased and storage facilities expanded. Banking arrangements at
LCSs are also a necessary requirement – most bank branches existing at land posts are not
adequately equipped to handle cross-border trade. These measures will help in handling
NTB-related concerns in a more effective and efficient manner, while at the same time
making way for increased bilateral trade.

Infrastructural improvements along the border including more border posts would facilitate
the regulation of cross-border movement of people, as pointed out by Farooq Sobhan,
President, Bangladesh Enterprise Institute.117

4.5. The Way Forward

4.5.1 Short-term Work Permits: A Logical Way Out?


The above discussion has made it clear that almost all outstanding issues between India
and Bangladesh are related to disputes along the common border. A solution for the

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Concluding Remarks and Recommendations

successful negotiation of the immigration problem, which is also linked to the larger issue
of enhanced sub-regional communication and trade, will be to examine the possibility of
providing temporary work permits to applicants not only for the organised but also for the
unorganised sector on both sides of the border, keeping the demand and supply of cheap
labour in mind.

A scheme could be developed to allow migrants to enter legally into the region on the basis
of work permits issued by a Central Work Permit Authority in association with the Home
Ministry as well as the Ministry for Law and Company Affairs, with the help of the relevant
state government and approval by Parliament. State officials and village-level administrators
could be involved in managing the system, as they will carry out checks and balances. To
discourage illegal migration and promote healthy economic cooperation, permits could be
issued to small groups (not more than 20 or so) rather than to individuals, initially for one
year, in areas such as agricultural operations at harvest time; construction; boatbuilding;
fishing and allied activities. Such work permits can be issued at the border check-posts
specifically set up for this purpose. Before issuing permits, identity proofs of applicants along
with their documents from employers on the other side of the border should be verified by
the concerned authority. It is to be ensured that the permit holders will have no voting or
political rights, but will have access to courts of the host country if their civil rights are injured
in any way, and that they would be permitted to receive payment for services at the same
level as local workers as well as remit their savings to their home country.118

The potential of going beyond the territorial foundation of politics and rigid state boundaries
to develop the border should be kept in mind. The suggestion of free movement of people
does not mean making the border more porous. The idea is to allow work and commerce
related movement of workers, traders, academics, businessmen, patients, as well as easy
movement for religious and cultural purposes.

79
5
India-Bangladesh Connectivity: Possibilities and Challenges

Concluding Remarks and


Recommendations

Having discussed different aspects of improving connectivity between India and Bangladesh,
we intend conclude by proposing specific recommendations in this section.

5.1 Recommendations to Enhance Connectivity through Road and Rail


Links

n Utilise Chittagong, Kolkata, Haldia and Kulpi ports for enabling the exchange of both
trade and passenger movement.
n Encourage large-scale transportation of goods through Bangladesh to the northeastern
region.

80
Concluding Remarks and Recommendations

n Develop Gauge compatibility between India and Bangladesh Railways.


n Explore a new project connecting the capital cities of the northeastern states of India and
West Bengal with Dhaka and Chittagong through broad gauge railway networks.
n Modernise ports and make improvements in connecting the ports by road or railways.
n Enhance the frequency of Kolkata-Dhaka roadways and extend it to Agartala and
beyond.

5.2 Recommendations to Enhance Connectivity through Waterways

n Both India and Bangladesh need to understand their own specific challenges (as discussed
in the appropriate section) related to the protocol route.
n Both countries should then examine and decide on mechanisms that would help benefit
and complement each other’s strengths and existing gaps.
n The validity of duration of the protocol routes needs to be increased (preferably for five
years) requiring less frequent renewals to facilitate continuity of functioning (this has
been done very recently).
n India can offer technological knowhow related to the upkeep of river systems in Bangladesh
and offer technical and financial assistance for dredging.

5.3 Recommendations for Energy Sector

n Conceptualise a plan for transmission of surplus power from India’s Northeastern region
to Bangladesh and through Bangladesh to other parts of India. The borders of Nepal,
Bhutan and Bangladesh converge near Siliguri in the state of West Bengal in India.
Inter-connections can be planned between Siliguri (India) and Anarmani (Nepal) and
Thakurgaon (Bangladesh) to enhance cross-border electricity trade.
n India can provide leadership to form a cross-border sub-regional power grid considering
contiguous economic zones of Bangladesh, Bhutan, Nepal and India’s northeast
(BBNI).
n India should provide opportunities to Bangladesh for refining crude in its refineries.

5.4 In addition to the specific suggestions given in this section


covering India-Bangladesh connectivity through rail, road,
waterways and energy, few other general recommendations are
mentioned below.

Short-term Recommendations:
n The potential for developing the border into trans-national form of cross-border
governance may be kept in mind without in any way affecting the territorial foundation
of states and existing state boundaries.

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India-Bangladesh Connectivity: Possibilities and Challenges

n For simplified cross-border movement to enhance people-to-people interaction – a)


easing of Visa restrictions; b) easing cross-border vehicle movement.
n Transforming borders into space for opportunities – a) the suggestion of a free movement
of people is not to suggest making the border more porous but to allow cross-borders job
and commerce related movement of workers, traders, academics, businessmen, patients
and groups of people having connection to cultural and religious traditions in the other
country; b) coordination among border guards on either side of the border; c) short-term
work permit on experimental basis; d) for countering militants and internal insurgents,
both countries need to set up a joint intelligence cell and also need to coordinate counter-
terrorist operations.
n Ratification of the Coastal Shipping Agreement, which was approved by the Bangladesh
Cabinet, at the earliest to reduce cost and duration of trade.
n A durable rehabilitation policy for the implementation of the Land Boundary Agreement
is essential for its smooth and humane operation.
n There should be equal emphasis on physical and institutional connectivity to realise trade
potentiality to the fullest extent.
n Initiation/strengthening of tourism schemes/packages to foster people-to-people
contact – a) Protocol routes may be used for passenger traffic by enhancing navigability;
b) package tour on inter-country river cruise may be introduced; c) development of widely
publicised eco-tourism of Sundarbans on both sides can be organised in an integrated
manner. Information on tourism opportunities should be more frequently exchanged
between these two countries.
n Importance of dialogue with all the probable stakeholders at different levels to engage
them into the process. To address local issues the best way is to arrange frequent meetings
of district level officials along with the officials from border guarding authorities on both
sides of the border.
n Cultural interaction across the border may foster the pace of building physical
connectivity. Music and sports, especially football and cricket, have a huge appeal in
India and Bangladesh. District level teams from both sides should be encouraged to play
on both sides of the border. Exchange of academics, researchers and students across the
borders should also be undertaken and pursued more vigorously.
n It is important to have more sincere commitments towards cooperation (like the LBA)
on a win-win basis by India.
n Quick and transparent decision-making by India is needed to consolidate the sub-
region BBNI (Bangladesh, Bhutan, Nepal, India).

Long-term Recommendations:
n The emerging possibilities of borderlands as cross-border political and economic spaces
between India and Bangladesh should demand attention in both countries.
n The quantitative acceleration of border haats is needed for the minimisation of the impact
of NTBs. Diversification of products at these haats is necessary to complement trade.
n Special haats for cattle trade – To address the problems around cattle smuggling, the
two countries can think of a few border haats specifically for legitimised cattle trade.

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Concluding Remarks and Recommendations

n It is important to translate similarities across the border into synergies. India should
act as “caring elder” and not “big brother”119 in this context. The concept of connectivity
has a multidimensional connotation. It is important to have a good synergy between
planning and execution.
n The strategic location of Bangladesh should be utilised by taking up projects which are
mutually beneficial and which strengthen inter dependence involving private sectors.
These projects may include joint cooperation in a India-Bangladesh Transport
Cooperation, a joint Tourism Development Corporation. Treating the contiguous areas
comprising Bangladesh and India’s Northeast and West Bengal as a subset zone to
be geared towards harnessing and utilising natural resources and positive potentials of
this geographical space to the benefit of the common people within this region. This can
be thought of independently of the SAARC mechanism.
n More initiatives are to be taken for confidence-building measures to generate positive
perceptions towards each other.

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India-Bangladesh Connectivity: Possibilities and Challenges

Endnotes
1 Annual Report 2013-14, Ministry of Home Affairs, Government of India.
2 “An Indian bridge to boost neighbourhood trade”, in http://www.assamtribune.com/scripts/detailsnew.
asp?id=aug2312/at047, accessed 23 May 2014.
3 Status Report on India-Bangladesh Economic Relations, December 2012, p.18
4 For instance, the number vessels which are able to call at the Chittagong Port are limited because it is an inland port.
However, it being an important port, multi-modal connectivity needs to be enhanced through rail and road for ease of
access. For more information, see Interim Report on the Joint Study of the Asian Development Bank and the Asian
Development Bank Institute on Connecting South and Southeast Asia, http://www.adbi.org/files/2013.05.05.book.
connecting.south.asia.southeast.asia.interim.report.pdf, accessed 28 January 2014.
5 Proceedings of International Consultative Workshop India-Bangladesh Connectivity: Possibilities and Challenges,
ORF Kolkata, 19-20 September, 2014.
6 Connecting South Asia and Southeast Asia: A Bangladesh Country Study, Mustafizur Rahman, Khondaker Golam
Moazzem, Mehruna Islam Chowdhury, and Farzana Sehrin, ADBI Working Paper Series, September 2014.
7 “Indian Railways runs Additional Trip of ‘Maitree’ Express between Kolkata and Dhaka”, http://www.business-
standard.com/article/government-press-release/indian-railways-runs-additional-trip-of-maitree-express-between-
kolkata-and-115010500658_1.html, accessed 2 February 2015.
8 Proceedings of International Consultative Workshop India-Bangladesh Connectivity: Possibilities and Challenges,
ORF Kolkata, 19-20 September, 2014.
9 Deliberation of P. K.H. Singh, Minister of DoNER, Northeast Council, Government of India at Guwahati, BCIM
Stakeholders’ Meeting on 18-19 June 2014.
10 K.R. Chowdhury, India-Bangladesh Agree on Northeastern Rail Link, Khabar South Asia, 16 April 2013, http://
khabarsouthasia.com/en_GB/articles/apwi/articles/features/2013/04/16/feature-02, accessed 8 January 2015.
11 Concerned for Silchar is a blog recording the political and socio-economic developments in the northeastern states of
India.
12 “Kolkata-Dhaka-Tripura bus to roll out soon”, http://timesofindia.indiatimes.com/india/Kolkata-Dhaka-Tripura-bus-
to-roll-out-soon/articleshow/47365287.cms, accessed 22 May 2015.
13 “Agartala-Dhaka bus service suspended”, http://www.dnaindia.com/india/report-agartala-dhaka-bus-service-
suspended-2059264, accessed 13 May 2015.
14 Summary: Bangladesh Sub-regional Connectivity Aspects, ADB, http://www.adb.org/sites/default/files/linked-
documents/44142-01-ban-oth-03.pdf, accessed 8 January 2015.
15 “Look East through the Northeast: Challenges and Prospects for India”, Subir Bhaumik, ORF Occasional Paper # 51,
June 2014.
16 Connecting South Asia and Southeast Asia: A Bangladesh Country Study, Mustafizur Rahman, Khondaker Golam
Moazzem, Mehruna Islam Chowdhury, and Farzana Sehrin, ADBI Working Paper Series, September 2014.
17 Ibid.
18 In a first, Andhra Rice reaches Tripura via Bangladesh, Business Standard, 7 August 2014, http://www.business-
standard.com/article/news-ians/in-a-first-andhra-rice-reaches-tripura-via-bangladesh-114080701069_1.html, accessed
10 January 2015.
19 “India, Bangladesh agree inland water transit contract auto renewal”, http://www.thehindubusinessline.com/news/
international/india-bangladesh-agree-inland-water-transit-auto-renewal/article7138068.ece, accessed 2 May 2015.
20 Ibid.
21 See World Bank, Bangladesh Transport Policy Note 2009, Bangladesh Government Economic Review (2010 English
Edition), World Bank, Revival of Inland Water Transport, Bangladesh BIWTA, BIWTC.
22 Interview with Dr. Mahfuz Kabir, Senior Research Fellow, Bangladesh Institute of International and Strategic Studies
(BIISS), Dhaka, 19 November 2014.
23 Santanu Sanyal said this during his presentation at the International Consultative Workshop India-Bangladesh
Connectivity: Possibilities and Challenges, ORF Kolkata, September 19-20, 2014.

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India-Bangladesh Connectivity: Possibilities and Challenges

24 Ibid.
25 Nilanjan Ghosh at the International Consultative Workshop India-Bangladesh Connectivity: Possibilities and
Challenges, ORF Kolkata, September 19-20, 2014.
26 Ibid.
27 Interview with Captain Bagchi, Director Marine Department, Kolkata Port Trust, on 3 September 2014.
28 Jayanta Bhattacharya, “Tripura Needs New waterways in Bangladesh”, Tripura Infoways, on 17 July 2014.
29 “Cabinet okays draft of deal on coastal shipping with India”, The Daily Star, 5 May 2015, http://www.thedailystar.net/
city/cabinet-okays-draft-deal-coastal-shipping-india-80551, accessed 11 May 2015.
30 “India Bangladesh finalise draft pact on coastal shipping” Business Standard, 24 April 2015, file:///C:/Users/
abc/Desktop/Coastal%20agreement/India,%20Bangladesh%20finalise%20draft%20pact%20on%20coastal%20
shipping%20_%20Business%20Standard%20News.htm, accessed 11 May 2015.
31 Nitya Nanda argued this at the International Consultative Workshop India-Bangladesh Connectivity: Possibilities
and Challenges, ORF Kolkata, September 19-20, 2014. In this context see Nitya Nanda & Krishna Swaroop
Dhar Dwivedi, “India- Bangladesh energy Relation” in Energy and Power, in http://ep-bd.com/online/details.
php?cid=32&id=17519, accessed 13 March 2015.
32 Ibid.
33 The report entitled Energy Statistics 2013, Central Statistics Office, Ministry of Statistics and Programme
Implementation, Government of India, New Delhi, pp.i-ii.
34 Ministry of Power, Energy and Mineral Resources, Government of the People’s Republic of Bangladesh, http://www.
powerdivision.gov.bd/user/brec/112/58, accessed 12 January 2015.
35 Ibid.
36 Estimated from IEA Database.
37 Interview with Md. Mizanur Rahman, Chief Engineer, Planning and Design, Bangladesh Power Development Board,
Dhaka, 19 November 2014.
38 Estimated from Trade Statistics of India (2013-1014) and Bangladesh (2011-2012), respectively
39 ‘‘Tata group mulls over Bangladesh pull-out”, in http://articles.economictimes.indiatimes.com/2006-07-04/
news/27424806_1_alan-rosling-largest-single-foreign-investment-tata-sons, accessed 13 March 2015.
40 http://www.powerdivision.gov.bd/user/brec/54/97, accessed 11 January 2015.
41 Ibid., accessed 10 January 2015.
42 Interview with Md. Md. Mizanur Rahman, Chief Engineer, Planning and Design, Bangladesh Power Development
Board, Dhaka, 19 November 2014.
43 See the report, “Tripura to supply 100MW power to Bangladesh”, The Times of India, 7 October 2014.
44 Nitya Nanda at the International Consultative Workshop India-Bangladesh Connectivity: Possibilities and Challenges,
ORF Kolkata, 19-20 September 2014.
45 Ibid.
46 Financial Express, 2013.
47 IEA, 2012.
48 Srinjoy Bose, Energy Politics: India-Bangladesh-Myanmar Relations, IPCS Special Report, No. 45, New Delhi:
Institute of Peace and Conflict Studies.
49 Gas Strategy for Bangladesh (January 2006), report prepared for Petrobangla by Wood Mackenzie Ltd. The report
assumes a proved level of 9.2 tcf, proven plus probable reserve of 14.4 tcf, and a proven plus probable plus possible
reserve of 22.2 tcf, these being the most conservative estimates. The government has been reluctant to make any
commitment for the export of gas or gas-based electricity on account of the uncertainty of its reserves position. It
is claimed that if coal mining and coal-based power development takes root, and if the country has access to the
hydropower of Nepal, Bhutan and Myanmar, it might adopt a slightly more liberal approach to gas exports (World
Bank 2007).
50 Press Release by Ministry of Commerce and Industry, Government of India, June 9, 2013.
51 Blocks EP3 and PSC B2.
52 Anasua Basu Ray Chaudhury, “India’s Pipeline Options in the East: Problems and Prospects”, Prachya: A Journal on
Asia -- Past and Present, Department of South and Southeast Asian Studies, University of Calcutta, Vol: 2, January
2007.

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India-Bangladesh Connectivity: Possibilities and Challenges

53 Varigonda Kesava Chandra, “The Pipeline That Wasn’t: Myanmar-Bangladesh-India Natural Gas Pipeline”, Journal of
Energy Security, April 2012.
54 “NRL signs MoU with Bangladesh Petroleum for Pipeline”, Business Standard, 22 April 2015, http://www.business-
standard.com/article/pti-stories/nrl-signs-mou-with-bangladesh-petroleum-for-pipeline-115042201101_1.html,
accessed 29 April 2015.
55 “Multilateral dialogue on energy cooperation soon”, in http://www.thehindubusinessline.com/economy/policy/
multilateral-dialogue-on-energy-cooperation-soon-bangladesh-fm/article6732732.ece, accessed 12 March 2015.
56 http://www.powerdivision.gov.bd/user/brec/54/97, accessed 11 January 2015.
57 See the report, Regional Energy Security for South Asia: Regional Report, USAID’s South Asia Initiative for Energy
(SARI/Energy).
58 Nitya Nanda at the International Consultative Workshop India-Bangladesh Connectivity: Possibilities and Challenges,
ORF Kolkata, 19-20 September, 2014.
59 As a discussant, Lydia Powell, Head, Centre for Resources Management, ORF, New Delhi, opined at the International
Consultative Workshop India-Bangladesh Connectivity: Possibilities and Challenges, ORF Kolkata, 19-20 September,
2014.
60 NS Jamwal, “Border Management: Dilemma of guarding the India-Bangladesh Border”, Strategic Analysis Vol.28,
No.1, January-March 2004.
61 “Export to India will cross $1 billion”, The Daily Star, 7 March 2012.
62 “Bangladesh-India Economic Relations”, The Financial Express, Dhaka, 26 July 2009.
63 Smruti S. Pattanaik, Politics of Illegal Immigration and India Bangladesh Relations, IDSA Issue Brief, May 16, 2014.
64 “15 Nations Sending highest Remittances to India”, Silicon India, 21 May 2013, http://www.siliconindia.com/news/
business/15-Nations-Sending-Highest-Remittances-to-India-nid-147515-cid-3.html. It is difficult to imagine the
illegal immigrants from West Bengal, Tripura, Assam, Mizoram and Meghalaya sending USD 7,400 per annum by
working in NGOs, garment and textile industries which would mean they would be earning more than 800 USD per
month to be able to save USD 7,432 per year to send back home.
65 “It is crossing, not illegal migration,” The Asian Age, August 25, 2014.
66 “Legal trade to cut border killing,” The Daily Star, September 19, 2011.
67 In the International Consultative Workshop held on 19-20 September 2014 in Kolkata Subir Bhaumik, eminent
journalist pointed out that there are strong vested interests on either sides of the border to thwart legalization of cattle
trade.
68 Joyeeta Bhattarchajee, India-Bangladesh Border Management: The Challenge of Cattle Smuggling, ORF Special
Report 1, July 2013, pp. 6-7.
69 The area from where the arms were recovered was once the base camp of the now-defunct Indian insurgent outfit, the
Tripura-based All Tripura Tiger Force (ATTF). The camp was later captured by insurgents belonging to the National
Liberation Front of Tripura (NLFT). The United Liberation Front of Asom (ULFA), with its principal theatre of
operations in the Indian State of Assam, abutting Tripura, and ATTF had earlier smuggled a huge quantity of Chinese-
made weapons from the Southeast Asian grey market by sea, landed them around Cox’s Bazar or Chittagong, and
transported these to rebel bases such as Satchari, from where arms were smuggled into India’s troubled northeast.
For detailed report see Veronica Khangchian “Arms Trafficking: Residual Networks in India-Bangladesh-Analysis”,
http://www.eurasiareview.com/30062014-arms-trafficking-residual-networks-india-bangladesh-analysis/, accessed 14
October 2014. In this context also see, “Porous border gives easy access to small arms”, Dhaka Tribune, 21 September
2013.
70 “Eastern India new smuggling hub”, 27.7.2013 http://bdnews24.com/world/2013/07/27/eastern-india-new-smuggling-
hub, accessed 15 October 2014.
71 “Indian kingpin of fake currency racket held”, http://www.tribuneindia.com/news/delhi/indian-kingpin-of-fake-
currency-racket-held/59923.html, accessed 13 May 2015.
72 Joyeeta Bhattacharjee, ORF, Delhi presented this table during the International Consultative Workshop held on 19-20
September 2014 at Kolkata.
73 ‘India, Bangladesh vow to increase joint border patrolling’, The Times of India, 24 August 2014, in http://timesofindia.
indiatimes.com/india/India-Bangladesh-vow-to-increase-joint-border-patrolling/articleshow/40859031.cms, accessed
13 October 2014.
74 See Upala Devi Banerjee, “Globalisation and its Links to Migration and Trafficking: The Crisis in India, Nepal and
Bangladesh”, Canadian Women Studies, Vol. 22 (3, 4), 2003, pp.124-130.

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India-Bangladesh Connectivity: Possibilities and Challenges

75 See Jyoti Sanghera, Trafficking of Women and Children in South Asia: Taking Stock and Moving Ahead – A Broad
Assessment of Anti-Trafficking Initiatives in Nepal, Bangladesh and India. (UNICEF, ROSA and Save the Children
Alliance, South and Central Asia, 1999.
76 See Anasua Basu Ray Chaudhury, “Trafficking of Women and the Crisis of Identity”, Peace Prints: South Asian
Journal of Peace Building, Vol. 4, No. 1: Summer 2012.
77 Jyoti Sanghera, same as note 71.
78 See Trafficking in Women and Children: The Cases of Bangladesh, UBINIG , Dhaka, 1995.
79 Anasua Basu Ray Chaudhury, same as note 72.
80 Annual Report 2013-14, Ministry of Home Affairs Government of India.
81 Under the directive of Rakesh Mishra of the 29th Battalion of the Border Security Force at Sonamura, Tripura, India,
the researchers visited India’s nearest border point with Bangladesh. The border here passes through one particular
village technically dividing the residents of the village between both countries. This part of the border is unfenced
but will be fenced soon, for which the villagers will have to be relocated at least 150 yards away from the fences,
in accordance with international norms. The Gram Pradhan with whom the researchers interacted spoke about the
difficulties of explaining to the villagers the concept of states and border and the fact that they will have to resettle.
The resettlement will also impact the agricultural lands owned by the villagers.
82 Pushpita Das, “Border Fencing will not stop illegal migration”, IDSA comment, 26 December 2014, in http://www.
idsa.in/idsacomments/BorderFencingWillNotStopIllegalMigration_pdas_261214.html, accessed 22 January 2015.
83 Joyeeta Bhattacharjee presented this table in her deliberation during the International Consultative Workshop, same as
note 68.
84 Ibid.
85 Ibid.
86 Seven ICPs are:-
•Petrapole in West Bengal (corresponding to Benapole in Bangladesh),
•Dawki in Meghalaya (corresponding to Tamabil in Bangladesh) and
•Agartala in Tripura (corresponding to Akhaura in Bangladesh).
•Hili, West Bengal (corresponding to Hili in Bangladesh),
•Chandrabangha, West Bengal (corresponding to Burimari in Bangladesh),
•Sutarkhandi Assam (corresponding to Sheola in Bangladesh) and
•Kawarpuchiah, Mizoram (corresponding to Thegamukh in Bangladesh).
87 Annual Report 2013-14, Ministry of Home Affairs, Government of India.
88 Jayanta Bhattachrya, “Tripura laps up Bangladesh goodies”, First World, Vol 1: issue 3, September 2014, p. 32.
89 Interview with Special Director General of Border security Force (BSF) B.D. Sharma, on 19 November, 2014.
90 An agreement for setting up two border haats on Meghalaya’s border with Bangladesh and an agreement on Standard
Operating Procedure for allowing each other’s trucks to move 200 metres into each other’s territory were signed. Also
a MoU between TATA Motors India and Uttara Motors of Bangladesh was signed to provide technical assistance to
assemble and manufacture mini trucks in Bangladesh and make spare parts in Bangladesh.
91 Same as note 84.
92 India-Bangladesh Relations: Towards Increased Partnership, Report by Aspen Institute, India, in http://www.
anantaaspencentre.in/pdf/India_Bangladesh_Report.pdf, accessed 10 April 2015.
93 Interview with Director General for South Asia, Ministry of Foreign Affairs, Bangladesh Mr. Tareq Md. Islam, on 22
November 2014 in Dhaka.
94 Interview with Dr. Muhammad Yunus, Senior Research Fellow Bangladesh Institute of Development Studies, on 19
November 2014 in Dhaka.
95 There are three sectors where the border is undemarcatedviz, Latithila-Dumabari ( 2.5kms in Assam Sector), South
Berubari (1.5 kms in West Bengal Sector) and Mahuri River/ Belonia Sector (2.5 kms in Tripura Sector). Meanwhile,
India has 111enclaves in Bangladesh (17,256.24 acres) while Bangladesh 51(7,083.72acres) inside India. These
enclaves are located in Cooch Bihar district of West Bengal on the Indian side of the international border while
in Rangpur in South Bengal. Also, 34 pieces of India land are under Bangladesh’s possession and 40 pieces of
Bangladesh’s land are under India’s possession. Source: Sreeradha Dutta , “India and Bangladesh: The Border Issues”,
Himalayan and Central Asian Studies, Vol.7 Nos.3-4, July-December, 2003.

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India-Bangladesh Connectivity: Possibilities and Challenges

96 “Parliament approves bill to settle 41 year old border issue with Bangladesh”, IBN Live, 7 May 2015, http://ibnlive.
in.com/news/parliament-approves-bill-to-settle-41yearold-border-issue-with-bangladesh/544313-37-64.html, accessed
9 May 2015.
97 Ibid.
98 “India’s LBA ratification”, The Financial Express, 10 May 2015, http://www.thefinancialexpress-bd.
com/2015/05/10/92026, accessed 11 May 2015.
99 Pranab Ray, Calcutta Climate Research Centre and a former Professor of Geography suggested this during the
International Consultative Workshop held on 19-20 September 2014.
100 Ibid.
101 Ibid.
102 Khondaker Golam Moazzem, Centre for Policy Dialogue, Dhaka at the International Consultative Workshop held on
19-20 September 2014.
103 Based on Subir Bhoumik’s comment, during the International Consultative Workshop held on 19-20 September 2014.
104 Interview by researchers with Bijay Selvaraj, First Secretary, Commerce, Indian High Commission, on 20 November
2014, Dhaka.
105 Asit Ranjan Mishra, ‘Bangladesh now India’s Largest Trading Partner in Subcontinent’, Livemint, 7 March 2013,
http://www.livemint.com/Politics/tnvtYZ1HPZtnhQSACSgI9I/Bangladesh-now-Indias-largest-trading-partner-in-
subcontine.html, accessed 22 December 2014.
106 India-Bangladesh trade may almost double to $10 billion by 2018: CII, The Economic Times, 24 June 2014, http://
articles.economictimes.indiatimes.com/2014-06-24/news/50825908_1_h-mahmood-ali-bangladesh-exports-industry-
body-cii-today, accessed 17 December 2014.
107 India-Bangladesh trade may almost double to $10 billion by 2018: CII, The Economic Times, 24 June 2014, http://
articles.economictimes.indiatimes.com/2014-06-24/news/50825908_1_h-mahmood-ali-bangladesh-exports-industry-
body-cii-today, accessed 17 December 2014.
108 Abhirup Bhunia and Geethanjali Nataraj, “Break down the barriers to trade in South Asia”, East Asia Forum, 14
March 2014, http://www.eastasiaforum.org/2014/03/14/break-down-the-barriers-to-trade-in-south-asia/, accessed 13
October 2014.
109 See Enhancing Trade and Regional Economic Integration between India and Bangladesh -Phase I, Report Prepared
by CUTS International, in http://cuts-international.org/CRC/pdf/Report-Indo_Bangla_Trade-Phase-I.pdf, accessed 12
October 2014.
110 Memorandum of Understanding on the Establishment of Boder Haats across the border between India and
Bangladesh, in http://commerce.nic.in/trade/MOU_Border_Haats_across_Border_India_and_Bangladesh2010.pdf,
accessed 3 April 2015.
111 Mode of Operation of Border Haats Across the Border Between Bangladesh and India, 15 May 2012, http://
commerce.nic.in/trade/MOU_Border_Haats_across_Border_India_and_Bangladesh2010.pdf, accessed 16 August
2014.
112 Interview with Shahriar Alam, State Minister, Ministry of Foreign Affairs, Bangladesh, on 20 November 2015.
113 Ibid.
114 Interview with the Director General for South Asia, Ministry of Foreign Affairs, Bangladesh Mr. Tareq MdAriful
Islam, on 20 November 2014 in Dhaka.
115 Position Paper on Border Haats, Report by Bangladesh Enterprise Institute, Dhaka, in http://www.hcidhaka.gov.in/pdf/
RE%20BEI-IHC%20POSITION%20PAPER%20ON%20BORDER%20MARKET.pdf, accessed 13 August 2014.
116 Summary Record of India-Bangladesh Meeting of the Joint Working Group on Trade held on 13-14 June 2013,
Ministry of External affairs, Government of India, in http://commerce.nic.in/trade/Joint_Statement_India_
Bangladesh_13_14_June_2013.pdf, accessed on 11 October 2014.
117 Interview with Farooq Sobhan, President, Bangladesh Enterprise Institute, on 19 November 2014 in Dhaka.
118 For details please see, Paula Banerjee, Sanjoy Hazarika, Monirul Hussain, Ranabir Samaddar, “India-Bangladesh
Cross Border Migration and Trade”, Economic and Political Weekly, September 4, 1999, pp. 2549-2551.
119 “India’s LBA ratification”, The Financial Express, 10 May 2015, http://www.thefinancialexpress-bd.
com/2015/05/10/92026, accessed 11 May 2015.

88
India’s ties with Bangladesh comprise various dimensions: civilisational,
cultural, religious, social and economic. The close geographical
locations of these two neighbours present an opportunity for both
nations to further develop their connectivities and, in turn, create a
significant impact on their respective economies.

This study is a picture of the existing state of connectivity between


India and Bangladesh. It makes an assessment of what has been promised
and what has so far been delivered, and provides policy directions
for a dense and more productive network of connectivity between
these two historically and culturally close neighbours. The study
explores physical connectivities over land and waterways across
the border. It examines the scope for enhancing legal, cross-border
trade, along with possibilities for furthering collaboration in the
energy sector to help these states to meet the rising demands of
their respective territories.

Indeed, road networks and railways constitute an integral part


of communication as it enables the smooth operation of trade and
commerce. Upgrading existing rail and road links—and establishing
new ones—would facilitate interconnection. The importance of land
connectivity can be best realised when these links are extended to the
nearest ports. Inland waterways hold a lot of potential for achieving
multi-modal connectivity. With the view in mind that demand for energy
in both countries is high, India can provide able leadership in the
formation of a cross-border, sub-regional power grid, which could
be beneficial for the larger neighbourhood as well. Finally, engaging
with all the exisiting and probable stakeholders at different levels
needs to be considered by India and Bangladesh, as it would enhance
and streamline not only their bilateral trade but, equally important,
people-to-people interactions as well.

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