Sheikh Hasina visit: India announces $4.5 bn credit for Bangladesh projects

$500 mn set aside for Bangladesh military, total allocation for Dhaka crosses $8 bn in six years

Prime Minister Narendra Modi on Saturday said India had always stood for Bangladesh's prosperity and committed $500 million credit for the country's defence.

"India has always stood for the prosperity of Bangladesh and its people. We are a long-standing and trusted development partner of Bangladesh. India and Bangladesh are also determined that the fruits of our cooperation must reach our people," Modi said in a joint address to the media with visiting Bangladesh Prime Minister Sheikh Hasina.

Modi said India wanted to build cooperation in new areas with Bangladesh "especially in some high-technology sectors which would include working in the fields of electronics, IT, cyber security, space explorations and civil nuclear energy".

He announced a new concession line of credit of $4.5 billion for the implementation of core projects of Bangladesh that "brings our resources allocation for Bangladesh to more than $8 billion over more than past six years".

He also announced that Bangladesh would be given "a line of credit $500 million for Bangladesh's defence procurement, which will be guided by Bangladesh needs".

Hasina is on a four-day trip to India during which the two countries are expected to sign more than 20 agreements to boost bilateral ties.

However, the much-delayed pact on the Teesta water sharing remained elusive for the two sides. Admitting that the pact was "important" for India-Bangladesh ties, Modi assured India's commitment to the issue.

He said an "early solution can and will be found" to the Teesta water sharing issue.

After their restricted meeting, the two leaders were joined by their respective delegations.