India relaxes condition
India yesterday relaxed a major condition on using its $1 billion credit to Bangladesh to expedite the implementation of various projects with this loan.
A major hurdle to implementing the projects was the condition of purchasing 85 per cent of supply from Indian origin, allowing Bangladesh sourcing only 15 per cent from the local market.
But India has agreed to allow Bangladesh more room for local sourcing, which would be determined on the basis of the nature and requirements of the projects.
The decision was reached at a high-level official meeting between the two countries, held at the Economic Relations Division (ERD) in the city's Sher-e-Bangla Nagar.
The meeting also decided to finalise three more project deals under the credit line in next month.
"India will do everything possible to expedite the project implementation and bridge the other related differences," ERD Secretary Iqbal Mahmood told BSS.
The Indian team was led by Radhika Lokesh, a joint-secretary of external affairs ministry, while ERD Additional Secretary Arostoo Khan headed the Bangladesh side.
Bangladesh struck the billion-dollar credit deal with India on August 6 in 2010 for developing infrastructures, mostly in the communications sector.
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