Bangladesh buying 300 double-decker buses under India’s second LoC

Bangladesh is buying 300 double-decker buses from India under the neighbouring nation’s second Line of Credit.

Transport regulator Bangladesh Road Transport Corporation has signed a contract with the India’s Ashok Leyland, the second largest manufacturer of commercial vehicles in India.

Road Transport and Bridges Minister Obaidul Quader, Indian High Commissioner in Dhaka Harsh Vardhan Shringla, and Road Transport and Highway Division Secretary Md Nazrul Islam witnessed the signing between the BTRC Chairman Farid Ahmed Bhuiyan and Global Head of Ashok’s International Operation Rajive Saharia in Dhaka on Tuesday.

Shringla said development cooperation has emerged as “a key pillar” of the bilateral relationship.

“From modest beginnings in the years after Bangladesh's liberation, India's development cooperation with Bangladesh has grown in size and coverage,” the envoy noted.

“With $8 billion in Lines of Credit under implementation, Bangladesh has become India’s largest development partner,” he added.

The Lines of Credit are focused on infrastructure development projects in sectors such as transport, road, rail, port, airport, power, information and communication technology, health and technical education.

In addition to the Lines of Credit, India is undertaking a number of grant projects in Bangladesh in education, health, water, culture, urban development, disaster management and many other sectors.

Bangladesh had earlier bought 300 double-decker, 100 single-decker and 50 articulated buses from India under the first Line of Credit.

The government will now buy 300 double-decker buses, 200 AC buses and 100 single-decker non-AC buses under the second Indian Line of Credit.

It will also buy 350 trucks of 16.2 tonnes and 150 trucks of 10.2 tonnes.

Ashok Leyland is a $4 billion (2017-18) company with its footprints over 50 countries and it is also one of the most fully-integrated manufacturing companies on this side of the globe.

In partnership with the IFAD Group, Ashok Leyland opened a truck assembly plant in Dhamrai, Savar last year.

IFAD has also started utilising Mongla Port for import of Ashok Leyland vehicles through the sea route under the Coastal Shipping Agreement between India and Bangladesh.

High Commissioner Shringla said a number of other Indian automotive companies, including TATA Motors and Hero Motocorp, are looking at a “long term presence” in Bangladesh.

They have invested in setting up assembly or manufacturing plants in the country.