BANGLADESH

Bangladesh has extended the water transit protocol with India for a year and now considering a long-term deal on the issue, said shipping secretary Abdul Mannan Hawlader on Monday.

"The trade treaty with India has been extended for three years on Mar 29. Under this the water transit protocol has been renewed for a year," the shipping secretary told reporters at the shipping ministry on Monday.

He said the renewal was made effective from Apr 1.

The trade treaty signed in 1972 with provision for renewal after three years was expired on Mar 31.

The water transit protocol was first signed in 1980 under a bilateral trade agreement which facilitated 'mutually beneficial arrangements' for the use of the waterways for commerce.

Shipping secretary said India wanted to renew the water transit protocol for three years in line with the bilateral trade treaty.

"The two countries will hold a meeting on the issue soon. If the outcome is positive there is a possibility of a long-term protocol renewal," he added.

Under the protocol, India uses Bangladesh's internal river routes for transporting goods from western part to its eastern states.

At present, Bangladesh receives Tk 55 million a year in fees from India under the protocol. "There is a possibility the fee will increase in future," shipping secretary said.

Mentioning that Bangladesh's cement industry would have faced problems if the protocol was not renewed, Hawlader said, "Local cement factories import almost 80 percent of its raw material from India through river routes."

Earlier in the day, Indian high commissioner to Bangladesh Pankaj Saran paid a courtesy call on shipping minister Shajahan Khan at his office.

Asked about the meeting, Hawlader said they discussed bilateral issues.