Dhaka proposes 2 bodies for pipeline, trade issues
Bangladesh yesterday proposed forming two committees -- one for the proposed tri-nation gas pipeline and the other for trade issues -- at the talks with visiting Indian Petroleum and Natural Gas Minister Mani Shankar Aiyar.
Dhaka also proposed to keep the option of taking gas if and when it requires from the pipeline to India from Myanmar through Bangladesh when it is set up.
For all latest news, follow The Daily Star's Google News channel. Talking to reporters after the meeting with Aiyar at the Secretariat, Finance Minister M Saifur Rahman said trade and tri-nation gas pipeline issues can be discussed separately. It is not right to link them.
Adviser to the Energy Ministry Mahmudur Rahman however toed a different line, linking the issues of trade imbalance, corridor through India and import of electricity from Nepal and Bhutan to the pipeline issue.
Aiyar later sounded very positive about the outcome of the meeting with Saifur, saying he would report it to the Indian government. When Dhaka officially approves the outcome, he hopes " to come back very soon to sign the (pipeline) agreement among India, Bangladesh and Myanmar," he added.
Aiyar, who arrived in Dhaka yesterday morning on a two-day official visit, earlier held meetings with the prime minister, foreign minister and energy adviser.
Foreign Minister M Morshed Khan had briefed the finance minister about the three meetings.
Saifur told journalists that trade-related issues should not be discussed with the gas pipeline issue. Trade issues should be discussed by the commerce ministers of India and Bangladesh as they involve a lot of complicated matters like rules of origin.
On trade imbalance, Saifur pointed out that Bangladesh has trade gap not only with India but also with China and Singapore. " Agreements alone will not increase our export to India. If our goods are cost effective, India will not be able to bar them from entering its market," he said.
The finance minister however said the corridor issue and import of electricity from Bhutan and Nepal can be discussed with the tri-nation pipeline issue as a package deal.
Saifur also asked the Indian minister to immediately initiate the process of setting up the pipeline, saying even if talks start now, it will take at least two and a half years to start the work.
He also mentioned the lack of sincerity both in India and Bangladesh concerning the gas pipeline. "The problem with both Bangladesh and India is we talk more and work less."
Asked about Bangladesh's benefits from the tri-nation pipeline, Aiyar said Bangladesh will be able to take its gas from its north-eastern part to the areas around Jessore where Bangladesh has petrochemical plants.
Aiyar also talked positively about Bangladesh's demand for transit with Nepal. "A commitment in this regard has already been achieved in January this year."
AIYAR- MAHMUDUR MEET
Energy Ministry Adviser Mahmudur and Indian Minister Aiyar at a meeting between them discussed the much-talked-about $1 billion gas pipeline issue.
Both of them, however, stuck to their previous stances during the discussion.
Sources said Mahmudur informed Aiyar Bangladesh has agreed in principle to allow its territory for the pipeline, providing that India would have to consider the issues of trade imbalance and corridor to and electricity from Nepal and Bhutan.
However, Aiyar objected to bilateral issues being linked to the pipeline project.
Aiyar after the meeting told reporters he held the meeting with Mahmudur with 'considerable satisfaction'.
"We've had very constructive dialogue, which I think has opened the path to the resolution of the few remaining issues ," he said.
Mahmudur said the Indian minister has supported the three issues but opposed linking these to the pipeline project.
"We have pointed out our stance on the issues and said they are very much important for our economy" he told reporters after the meeting.
The energy adviser said he believes the level of confidence between the two sides has increased through the talks.
Mahmudur said the Indian minister's visit is a courtesy one and he wants to know his government's stance. "The goal of the courtesy visit has been fulfilled hundred percent"
He expressed the hope the differences between the two countries on the pipeline issue will be reduced in a considerable time.
The three countries agreed in principle to construct the pipeline on the basis of the proposal of Mohona Holding Ltd., a Bangladeshi firm, at the Rangoon meet of the energy ministers in January.
However, the project has not witnessed much progress due to pre-conditions set by Bangladesh for allowing passage through its territory.
India feels Dhaka should be happy with an annual transit fee of $125 million, but Bangladesh does not see it as a fair deal.
If the pipeline is laid through Bangladesh to West Bengal -- as it was originally planned -- it will be 900km long and cost around Rs450 million. If it is laid through the northeast bypassing Bangladesh, it will be 500km longer.
India is predicted to require 400 million standard cubic meters of gas everyday by 2025, up from current 90 million standard cubic metres.
AIYAR-MORSHED MEET
During a meeting, Morshed and the Indian minister agreed to take up confidence building measures to enhance the existing ties between the two nations.
Emerging from the meeting, Aiyar said, "My impression is that things are moving forward."
Briefing reporters, Foreign Secretary Hemayetuddin said Aiyar's visit was not centred on any particular issue and Bangladesh is happy with his visit. Aiyar is an influential minister and a senior politician, he added.
Aiyar's visit following the tour by Indian External Affairs Minister Natwar Singh last month is very important to the Indo-Bangladesh relations, he said. Aiyar came to Bangladesh at the invitation of the foreign minister, he added.
Turning to the meeting between Aiyar and the foreign minister, Hemayetuddin said they discussed a wide rang of bilateral issues including expansion of trade, sharing of common rivers, water issues, and tri-lateral cooperation in gas pipeline.
"There was no in depth discussions it was a general discussion between the two ministers.
"They discussed all issues of bilateral cooperation and agreed to take appropriate steps to strengthen relations of the two countries."
When asked about the tri-nation gas pipeline, Hemayetuddin said Aiyar briefed the foreign minister about Indian plans to set up the gas pipeline and informed about several options regarding transport of gas from Myanmar.
The options include pipeline through Bangladesh, pipeline through deep-sea of Bay and transportation of gas from Myanmar through Bangladesh by converting it into liquefied petroleum gas (LPG), he added.
The foreign secretary said foreign minister listened to the Indian views on the issue and they exchanged views about the benefits of the gas pipeline to the two sides.
Replying to a question regarding the satisfaction of the ministers with the talks, he said "If the two ministers express satisfaction, it is obvious that they are satisfied."
"There were certain issues (relating to gas pipeline) that needed to be clarified or sorted out, and I think there has been some progress on that," he added.
On a query about Aiyar's meeting with the prime minister, the foreign secretary said all bilateral issues were discussed in a cordial atmosphere. He said the prime minister is looking forward to have bilateral meeting with Indian Prime Minister Dr Manmohan Singh on the sidelines of the 13th Saarc summit here in November.
"We believe that the meeting between the two prime ministers would positively contribute to our bilateral relations," he said. Aiyar's visit is timely, particularly in the wake of the recent visit to Dhaka by Natwar Singh, he added.
In reply to a question Hemayetuddin said the Indo-Bangladesh JRC meeting would be held in Dhaka on September 19-20 as Indian Water Resources Minister Priay Ranjan Das Munshi is expected to arrive here on September 18.
Talking to foreign office correspondents after the meeting with Morshed Khan, Aiyar said, "I also wish to state that there are other areas of cooperation in the Hydrocarbon sector."
Answering a question, he said the views have been expressed categorically in the tri-lateral press statement issued from Yangoon. The statement appreciated the high importance of the pipeline to energy security and economic development of the entire region.
The Indian minister arrived in Dhaka early yesterday morning on a British Airways flight from London.
On arrival at the airport, he told the press that Bangladesh has the potential to contribute in creating energy security in the Indian sub-continent. "The region is looking to creating energy security and Bangladesh has the energy potential," he said.
Foreign Ministry Advisor Reaz Rahman, Foreign Secretary Hemayetuddin and Veena Sikri Indian high commissioner in Dhaka and other high officials from Indian petroleum ministry were present during the meeting.
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