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India, Bangladesh Review Line of Credit, Discuss Power Grid Access

India and Bangladesh held high-level talks focusing on key areas of economic cooperation. The discussions centered on reviewing the existing Line of Credit and exploring Bangladesh's participation in India's power exchange market, which already serves Bhutan and Nepal. Officials also examined how Bangladesh could gain insights from India's digital financial infrastructure, including systems like Aadhaar. Additionally, the talks occurred alongside ongoing energy cooperation, with Bangladesh set to import significant additional quantities of diesel from India through established pipelines.

Key Points: India-Bangladesh Talks: LOC Review, Power Exchange, Digital Finance

  • Review of bilateral Line of Credit
  • Bangladesh's potential entry into India's power exchange market
  • Learning from India's digital finance systems like Aadhaar
  • Strengthening transport, energy, and digital connectivity
  • Additional diesel imports from India
2 min read

India, Bangladesh focus on LOC, power exchange market

India and Bangladesh discuss reviewing Line of Credit, Bangladesh joining India's power exchange market, and insights into India's digital financial systems.

"We mainly discussed three things... reviewing the Line of Credit... India's market-based power exchange grid... and India's financial digital system - Rashed Al Mahmud Titumir"

Dhaka, March 17

India and Bangladesh on Monday discussed the review of the Line of Credit and Bangladesh's participation in India's power exchange market. They also talked about how Bangladesh can gain insights from India's digital financial system.

High Commissioner Pranay Verma paid a courtesy call on Rashed Al Mahmud Titumir, Adviser (Ministry of Finance and Ministry of Planning) in the Prime Minister's Office on 16 March 2026.

They discussed various aspects of India-Bangladesh economic cooperation, including ways to strengthen transport, energy and digital connectivity between the two countries. They also explored new areas for future collaboration in people-centric domains aligned with the respective developmental priorities of the two countries based on mutual interest and mutual benefit.

"We mainly discussed three things. First, we talked about reviewing the Line of Credit (LOC) between Bangladesh and India on the basis of mutual interest, and both sides agreed on this. Second, we discussed India's market-based power exchange grid, from which Bhutan and Nepal already buy electricity, and whether Bangladesh could join that as well. Besides that, we discussed India's financial digital system--such as Aadhaar card and other operations--and we discussed how we can gain insights from that. These three topics were the main focus of our discussion", Rashed Al Mahmud Titumir, told ANI over the phone.

Earlier on March 15, an official said that Bangladesh will import an additional 45,000 tons of diesel from India by April.

"Recently, 5,000 tons of diesel arrived in Bangladesh from India, and we will receive another 5,000 tons around the 18th or 19th of March in Bangladesh from India", Md. Murshed Hossain Azad, General Manager (Commercial & Operations) of Bangladesh Petroleum Corporation (BPC) told ANI over the phone.

"We have received a proposal to import an additional 40,000 tons of diesel from India. Once the procedural work is completed--that is, the opening of the LC and other formalities--this 40,000 tons of diesel will also arrive in Bangladesh by April," he added.

Between India and Bangladesh, diesel was previously imported from India by train wagons until the India-Bangladesh Friendship Pipeline was launched. Then, in March 2023, the then Prime Minister of Bangladesh, Sheikh Hasina, and the Prime Minister, Narendra Modi, inaugurated this Bangladesh-India Friendship Pipeline, and since then, diesel has been imported from India through this pipeline.

- ANI

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Reader Comments

S
Sarah B
As someone who has worked in cross-border trade, the focus on transport and digital connectivity is crucial. Simplifying logistics between the two countries can unlock huge economic potential. Hope they also address the bureaucratic delays that still plague many joint projects.
P
Priya S
Mutual benefit is the key phrase here. The diesel supply via the friendship pipeline is a tangible example of cooperation that helps both sides. Learning from India's digital public infrastructure (DPI) like Aadhaar and UPI can really help Bangladesh's development. Win-win!
R
Rohit P
Good steps, but we must ensure our own energy needs are met first. With summer approaching, our own power demand will peak. While helping neighbors is good, domestic requirements should remain the top priority. The power exchange should have safeguards.
M
Meera T
This is what true diplomacy looks like - focusing on connectivity, energy, and digital finance. It builds much stronger ties than just political statements. The Line of Credit review shows a mature, forward-looking partnership. More of this in our foreign policy, please!
D
David E
The people-centric focus mentioned is important. Ultimately, these agreements should improve lives on both sides of the border. Sharing expertise in digital finance can empower millions in Bangladesh, just as it has done here. Practical cooperation over politics any day.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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