$1b Indian Credit: Railway signs first contract

Bangladesh Railway yesterday inked a $16.45 million deal with Indian company Texmaco Ltd, the first-ever contract under India's $1 billion credit to Bangladesh.

According to the deal, 165 broad-gauge oil tank wagons and six brake vans will be purchased in a year.

Twenty development projects including 12 of Bangladesh Railway will be implemented under the line of credit.

The wagons and vans will be used to supply oil to power plants, Communications Minister Syed Abul Hossain told reporters after the signing of the contract.

Abu Taher, director general of Bangladesh Railway, and AK Sinha, senior vice president of Texmaco Ltd, signed the agreement at the Railway Bhaban in the capital.

Railway Division Secretary Ibadat Ali, Bridges Division Secretary Mozammel Haque Khan and Railway Adviser to the Indian High Commission Chandrima Roy were present at the signing of the deal.

"This is the first contract and the rest will be signed gradually," said the communications minister.

The two countries signed a joint communiqué in New Delhi in January last year for enhancing cooperation in many areas that include providing transit to India.

India agreed to give Bangladesh $1 billion credit under the joint communiqué.

The agreement was signed in Dhaka on August 7 last year with terms and conditions for the credit and an outline of projects to be implemented with the loan.

Source: The Daily Star 

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