India, Bangladesh ink pact on investment protection, promotion

Dhaka, Jul 7 (PTI) Giving a boost to bilateral economic
and security ties, India and Bangladesh on Thursday signed an
agreement on investment protection and promotion according
each other the Most Favoured Nation status in investments and
resolved to jointly combat terrorism in all its forms.
Culminating Indian External Affairs Minister S M
Krishna's talks with Bangladesh Premier Sheikh Hasina and his
counterpart Dipu Moni here, the two countries inked a
Bilateral Agreement on Promotion and Protection of Investments
(BIPPA) under which investments of either country would not be
nationalised or expropriated except for public purpose and
that too against "fair and equitable compensation."
The 10-year agreement also provides for repatriation of
capital investments, non-operating profits, loan repayments,
royalty payments and service fees on a non-discriminatory
basis.
The agreement also envisages that national treatment and
Most Favoured Nation treatment to be accorded by either
country to investments from each other.
The accord was signed by Indian High Commissioner to
Bangladesh Rajeet Mitter and Bangladesh High Commissioner to
India Tariq A Karim in the presence of Krishna and Moni.
The two countries also signed an agreement under which
India would allow transit of trucks carrying goods from Bhutan
to Bangladesh, nine months after a similar deal was inked to
enable Nepal and Bangladesh to trade through Indian territory.

The decision to grant transit to Bangladesh for its trade
with Nepal and Bhutan was taken during Hasina's visit to Delhi
and talks with Prime Minister Manmohan Singh in January, 2010.
Addressing a media conference, Krishna said security
cooperation figured high on the agenda of his delegation-level
talks with his Bangladeshi counterpart when the two countries
recognised the importance of addressing each other's security
concerns.
"Both the countries expressed determination to jointly
combat the menace of terrorism and insurgency and agreed not
to allow their territories to be used by elements inimical to
each other," Krishna said.
Moni reciprocated by assuring India that Bangladesh was
"steadfast in the fight against terrorism in all its forms and
manifestations."

Krishna said the BIPPA will facilitate two-way investment
and Indian investment will generate employment in Bangladesh.
Asked about the sending back of ULFA leader Anoop Chetia,
who has served out his sentence in Bangladesh, to India, Moni
said her government would whole-heartedly address security
concerns of New Delhi but declined to name any individual.
She expressed satisfaction at the level of security
cooperation and coordination between India and Bangladesh and
said that "on our part, we have reiterated to Krishna our
unequivocal stand against terrorism in all its forms and
manifestations."
Moni said the two countries have agreed to closely
coordinate their activities to prevent trafficking and
smuggling of arms, narcotics and fake currency notes in order
to control criminal activities along the border.
She said Bangladesh has agreed to India's proposal for a
joint border management, which would be followed by the
Bangladesh border guards and BSF for identified 'sensitive'
patches along the border. Both sides are working to finalise
the plan at an early date, she added.
Moni said she conveyed to Krishna Bangladesh's concern
over the killing of its nationals along the border and sought
maximum restraint.
Krishna said he had "very fruitful discussions" with Moni
on a range of bilateral issues, including implementation of
Joint Communique and projects under the USD one billion Line
of Credit extended by India during Hasina's visit to Delhi.
A number of the proposals received for utilisation of the
USD one billion Line of Credit from India are under
implementation, he added.
He said bilateral cooperation "is on a high trajectory in
recent times with both sides embarking on a comprehensive,
forward looking, pragmatic and mutually beneficial initiatives
and projects."

Krishna said the two countries have been working together
on implementation of the Joint Communique adopted by their
Prime Ministers during Hasina's visit to India and
"considerable progress" has been made in this regard.
He said there has been a "significant forward movement"
in India-Bangladesh cooperation in power sector, including
establishment of grid connectivity up to 500 MW of power from
India, of which 250 MW will be given at a preferential rate,
that is the rate at which NTPC sells electricity in India.
India, Krishna said, responded positively to Bangladesh's
request for setting up of a high technology joint venture
thermal power plant of 1320 MW capacity at Khulna and has
completed the feasibility report.
He said the two countries have made made "substantial
forward movement" in the field of water resources sharing,
discussing interim water sharing of Teesta and Feni rivers.
The work on river bank protection and embankment
construction along the common rivers is progressing and the
dredging of Ichhamati River is nearing completion, he said.
He said both sides are engaged in a process to seek a
comprehensive resolution of outstanding land boundary issues.
Moni said the two countries have undertaken a joint
survey of the enclaves under adverse possession of the two
sides and are expected to reach a "pragmatic" agreement taking
into account the ground realities.
She said Bangladesh proposed to allow India use of Mongla
and Chittagong ports.
Moni said India has already approved six projects under
the USD one billion Line of Credit and at least five other
projects, including supply of rail wagons and dredgers, are
also expected soon.
She said the delay in implementation of the projects under
the Line of Credit was largely due to the fact that both sides
were working out the administrative procedures and not because
there was a lack of interest or will to implement them.