Efforts underway to resolve issues in projects funded by Indian credit: Pranay Verma

The Indian High Commissioner to Bangladesh, Pranay Kumar Verma, has said both countries are satisfied with the progress of projects being implemented under India’s Line of Credit (LoC). However, efforts are underway to resolve problems affecting several large projects, he added.

Pranay Verma made the remarks to journalists after a courtesy meeting with finance minister Amir Khosru Mahmud Chowdhury at the Secretariat in Dhaka on Sunday.

The Indian high commissioner said the discussion with the finance minister had been “very positive and productive”. Talks covered strengthening cooperation in the financial sector between the two countries, expanding economic relations and other issues of mutual interest.

Pranay Verma claimed that progress in projects being implemented under the Indian LOC programme has been satisfactory overall. However, he acknowledged that some major projects are facing initial challenges and that steps are being taken to address them.

“Both sides are satisfied with the overall progress of the projects,” he said.

Funding under the LOC programme is being provided by the Export-Import Bank of India (Exim Bank). So far, loan agreements worth about $7.36 billion have been signed under three LOCs.

Most of the projects financed under the programme related to sectors such as infrastructure, power and transport.

The first LOC, worth $1 billion, was extended in 2010. Under that facility, 15 projects were taken up. Of those, 12 have been completed while three are still under implementation.

Under the second Line of Credit, 15 projects were approved. Two have been completed, 10 are currently under implementation and three remain at the proposal stage.

Of the 13 projects under the third Line of Credit, eight are underway while five remain at the proposal stage.

Pranay Verma told the media that the meeting also discussed Bangladesh’s priorities in the financial sector, including improving the ease of doing business, reforming the tax system and expanding the use of technology to ensure broader participation in economic activities.

He added that he briefed the finance minister on India’s experience in expanding financial inclusion through digital public infrastructure. The two sides also exchanged views on how technology could be used to make economic participation more inclusive.

Development cooperation projects between the two countries were also discussed during the meeting.

The high commissioner said discussions were held on deepening trade and economic relations between Bangladesh and India. Emphasis was placed on making existing connectivity—by sea, land and air—more efficient and accessible in order to expand trade.

Pranay Verma said simplifying various procedures as part of efforts to improve the ease of doing business would help increase cooperation between business communities in the two countries. This, he added, could lead not only to an increase in bilateral trade but also to higher exports from Bangladesh to the Indian market.

Verma further said discussions also covered ways to more closely integrate the economies of Bangladesh and India at both the bilateral and regional levels.

He expressed hope that positive and constructive discussions would also take place in the future regarding the potential use of ports by the two countries.