Bangladesh (Commonwealth Union)_ The establishment of the India-Bangladesh Friendship Diesel Pipeline marks a significant milestone in the relationship between the two nations. Stretching 130 km from Siliguri in West Bengal, India, to Parbatipur in Dinajpur district of Bangladesh, the pipeline boasts a capacity of 2 million tonnes per annum and will serve as a dependable fuel source for Bangladesh. Furthermore, it will also strengthen the economic and energy ties between the two countries.
In a virtual ceremony, Indian Prime Minister Shri Narendra Modi and Bangladesh Prime Minister Sheikh Hasina jointly inaugurated the India-Bangladesh Friendship Pipeline (IBFP), which had its foundation stone laid by both leaders back in September 2018. Further, the Numaligarh Refinery Limited has been providing petroleum products to Bangladesh since 2015, and this marks the second cross-border energy pipeline between India and its neighboring countries.
India-Bangladesh relations are distinguished by their collaboration in the power and energy sectors, and the IBFP is a prime example of this. As the first cross-border energy pipeline between the two nations, the pipeline has the capacity to transport 1 million metric tons per annum (MMTPA) of High-Speed Diesel (HSD) to Bangladesh. Further, its implementation will augment the already robust connectivity between the two countries. This will also strengthen the bonds between the people of both nations.
Bangladesh is India’s major development partner as well as its most significant trade partner in the region. The opening of the Friendship Pipeline will augment the existing energy partnership between the two nations, leading to more growth in Bangladesh, especially in the agriculture sector. Constructed using an Indian Line of Credit (LoC) worth roughly INR 3.46 billion, the Indo-Bangladesh Friendship Pipeline (IBFPL) stretching 131.5 km will facilitate the export of diesel from India to Bangladesh.
Further, the construction and maintenance of the pipeline will generate employment opportunities in both countries, especially in the areas of construction and maintenance. However, there are concerns regarding the potential environmental impact of the project, as it passes through ecologically sensitive regions such as forests and wetlands that could be negatively impacted by the pipeline’s operation and construction. It is crucial that the project be executed in an environmentally sustainable way, with proper consideration for the welfare of local communities.
The Prime Minister expressed gratitude to Prime Minister Sheikh Hasina for providing unrelenting guidance on the project and conveyed his desire to sustain collaborative efforts with her for the betterment of the citizens of both nations. According to Prime Minister Sheikh Hasina, the launch of the “India-Bangladesh Friendship Pipeline” is a momentous event in the advancement of both friendly nations. She said, “I believe this partnership pipeline is a milestone achievement in the development of cooperation between our two friendly countries.”
Both Bangladesh and India will be responsible for operating their respective parts of the pipeline. In the initial three years, Bangladesh will import 250,000 tonnes of diesel annually, followed by 300,000 tonnes annually from the 4th to the 6th year, 350,000 tonnes annually from the 7th to the 10th year, and 400,000 tonnes annually from the 11th year. Presently, Bangladesh employs railway wagons to import 22 thousand tons of diesel per month, and the contract can be extended beyond the current term. This cross-border pipeline for importing petroleum products from India will assist in the development of petroleum reserves in the northern region of Bangladesh to meet the increasing demand in that area.
Both India and Bangladesh have signed multiple agreements in recent years, covering areas such as trade, security, and energy, indicating a growing recognition that collaboration and cooperation are essential to realizing the full potential of their relationship. The India-Bangladesh Friendship Diesel Pipeline serves as a significant step towards the strengthening of economic and energy relations between the two nations, demonstrating the increasing cooperation and trust between them. Further, it has the potential to further enhance their bilateral relations, creating new opportunities for trade and investment.
