A meeting of the Cabinet approved the draft of the ‘Agreement on Coastal Shipping between the Government of People’s Republic of Bangladesh and the Government of the Republic of India’ on Monday.
Prime Minister Sheikh Hasina presided over the meeting.
After the meeting, Cabinet Secretary Md Musharraf Hossain Bhuiyan told reporters: “The agreement is now ready for signing after the Cabinet approval.”
“It is expected that the agreement will be signed when Indian Prime Minister Narendra Modi will visit Bangladesh.”
The accord, which will allow River Sea Vessels (RSV) to carry cargo between the two countries, was ratified at the shipping secretary-level talks held on Apr 20-22 in New Delhi.
Bangladesh expects the arrangement to enhance its economic cooperation and linkages with India.
Bhuiyan said the agreement, once in force, will allow Bangladesh and India to use each other’s river routes.
“The two countries will get equal opportunities in cargo ship operations,” he added.
The agreement will be in place for five years with the provision of automatic renewal.
The secretary said one side had to give the other a six-month notice if it wanted to cancel the agreement.