Energy is an important area where this partnership has potential to grow. The operationalisation of the first unit of the supercritical coal-fired thermal power plant at Rampal, Khulna, set up at an estimated cost of $2 billion, with $1.6 billion as Indian Development and Economic Assistance under Concessional Financing Scheme, could help ease the ongoing energy crisis in Bangladesh. An investment in coal appears out of sync given the climate constraints. However, there is a real need to provide a guard rail given escalating energy prices.
Going forward, India should focus its energy partnership on the transition to a low-carbon economy. Signs of this shift have been evident in the discussions between Narendra Modi and Hasina, and India Inc‘s engagement with the visiting leader.
For Dhaka, water-sharing has always had an outsized importance, which has served to fuel anti-India sentiments. While an agreement on the Teesta waters continues to be a work in progress, India has demonstrated its commitment by addressing the river water-sharing as a broader issue – there are 54 rivers the two countries share – including working out an agreement on Kushiyara.
India has made it clear it views Bangladesh’s growth as an opportunity, and will be part of this endeavour. The seven agreements showcase a broad-based engagement, as do the other issues discussed that include New Delhi helping Dhaka to maintain its own in a region that ‘interests’ China.