Over the last few months, Dhaka and New Delhi have been discussing a new loan framework and its amount and conditionalities, the report said.
Since 2010, according to The Daily Star, India committed $7.36 billion in loan to Bangladesh. Of this, Bangladesh has been able to utilise only $1.73 billion, or 23 percent of the commitment, till April this year.
The conditions of the existing Indian Line of Credit (LoC) are very strict. For example, around 65-75 percent of goods or services for each project must be procured from India, causing delay in project implementation, according to officials.
Appointment of Indian contractors along with bureaucratic red-tape on both sides also limits the project’s progress, the report noted.
