DHAKA, 6 September 2005 — India and Bangladesh yesterday agreed to go ahead with a proposed $1 billion tri-nation gas pipeline despite differences over the implementation of the project.
Indian Minister for Petroleum and Natural Gas Mani Shankar Aiyar’s visit to Bangladesh yesterday was dominated by talks on the pipeline but both sides stuck to their demands for joining the project.
Aiyar said the two sides had “constructive dialogue and “considerable satisfaction” on the pipeline issues.
But Mahmudur Rahman, Bangladesh’s deputy minister for energy and mineral resources, said a deal had not emerged because India would not agree to link the pipeline to three trade-related concessions sought by Dhaka.
“The purpose of Aiyar’s visit was not specifically centered on energy issue only. Discussions covered wide-range of Bangladesh-India relations and expansion of cooperation…It was a goodwill visit, and I think that the purpose has been served,” Bangladesh’s Foreign Secretary Hemayetuddin told reporters.
Bangladesh insisted on three conditions for allowing India to transport gas from Myanmar through its territory, including access to transit routes to Nepal and Bhutan through Indian soil.
India, however, asked Bangladesh not to tag bilateral issues to the energy project.
Aiyar arrived here yesterday for a daylong goodwill visit at the invitation of Foreign Minister M. Morshed Khan. He met Prime Minister Khaleda Zia, Morshed Khan, Finance Minister Saifur Rahman and Mahmudur Rahman.
“The dialogue was constructive and satisfactory and we’re moving forward,” Aiyar told journalists.
He said he had briefed Bangladeshi leaders on New Delhi’s position on the pipeline and other options India was mulling in case Bangladesh failed to join the project.
Officials said India had asked Bangladesh to discuss its three demands at an appropriate forum. Rahman admitted to differences between the two sides and said India had raised objection to linking bilateral issues to the pipeline.
Rahman argued at the meeting that the demands put forward by Bangladesh were essential for the growth of the country’s economy.
Aiyar said he would convey Bangladesh’s position to the Indian government.
“I’ve generally stated my views and heard the Bangladesh foreign minister...I also wish to state that there are other areas of cooperation,” Aiyar said after his meeting with Morshed.
Hemayetuddin told a briefing that the discussions had ended on a positive note, but that Dhaka had not shifted from its three demands.
Bangladesh wants permission to transfer electricity from Nepal and Bhutan through India, transit rights through India for supply of goods from the two Himalayan countries and measures by India to correct the bilateral trade imbalance. Aiyar arrived here with a sprained leg and was immediately taken to Apollo Hospital. He attended all his meetings in a wheelchair. He is expected to return to Delhi late yesterday by a special flight.
Initially, Aiyar was scheduled to make a two-day goodwill visit from yesterday but this was deferred by two days. In a last minute change, Aiyar traveled to Bangladesh yesterday but shortened his visit. — Additional input from IANS.
