India clarifies its position on ‘grant cut’

Indian High Commission in Dhaka has clarified New Delhi’s position about reports that the new government has cut the sum of grants to Bangladesh this fiscal from what it provided in the last fiscal.

A High Commission spokesperson said last fiscal had witnessed a sharp rise in the grant as India disbursed its promised aid to Bangladesh from the $1 billion Line of Credit.

Bangladesh media, quoting Indian newspapers, carried reports that the Narendra Modi government has reduced the grants for Bangladesh this year.

There were scepticisms about the prospect of Dhaka-Delhi ties under a government headed by Modi.

But he sent his External Affairs Minister Sushma Swaraj to Dhaka last month for her first stand-alone visit to any country.

And she gave a strong message that her government would not only continue but also build upon the momentum of the relations.

The High Commission’s spokesperson pointed out the allocations made for Bangladesh were INR 60 million in 2010-11, 30 million in 2011-12, 300 million in 2012-13, 5800 million in 2013-14, and 3500 million in 2014-15.

The spokesperson said last fiscal witnessed an increase “to cater for the disbursement of $100 million grant” as part of India’s decision to convert $200 million, out of the $ 1 billion Credit Line, into grant.

The spokesperson made the general statement in response to a question asked by journalists.

Out of the $200 million grant announced in 2012, $50 million was disbursed in 2012-13 fiscal and $100 million in last fiscal.

The spokesperson said the budgetary provision therefore made for Bangladesh in the last fiscal year was “the fulfilment of a specific commitment” made to Bangladesh.

The High Commission also mentioned that the Indian government attached the “highest importance” to its relations with Bangladesh.