Dhaka to forego bank guarantee

Bangladesh has decided to do away with the practice of insistence on bank guarantee on each consignment of transit cargo from India to Ashuganj river port in Bangladesh.

India has welcomed this decision as this would reduce the transportation cost and encourage cargo movement on the route from northeastern India to Bangladesh.

Bangladesh extended the gesture after India had accepted the former's proposal for the transit fees on goods from northeastern India to Ashuganj port during a meeting of shipping secretaries of the two countries here [New Delhi] on Monday, an official statement said here yesterday.

The two countries also agreed to help each other, seeking the World Bank's assistance for dredging rivers under the Bangladesh-India inland water protocol routes to ensure adequate depth in upper reaches of common rivers.

It was agreed that Bangladesh will submit a proposal for dredging of rivers in its territory, including the ones under the inland water protocol routes, to the WB and inform India of its plea for financial help.

It was also suggested by the Indian side that as the submission of proposal to the WB and its eventual execution may take some time, the existing Joint Technical Committee (JTC), as an interim measure, may identify and prioritise the route requiring dredging to achieve the depth needed throughout the year and propose a suitable funding option within three months.