Fuelling Friendship: India-Bangladesh friendship pipeline takes forward bilateral partnership
The India-Bangladesh Friendship Diesel Pipeline has been a significant development in the relationship between India and Bangladesh. The pipeline is set to connect Siliguri in West Bengal, India, to Parbatipur in Dinajpur district of Bangladesh, over a distance of 130 km. With a capacity of 2 million tonnes per annum, the pipeline will be a reliable source of fuel for Bangladesh, while also deepening economic and energy ties between the two countries.
Prime Minister Narendra Modi and his Bangladeshi counterpart Sheikh Hasina will inaugurate the India-Bangladesh Friendship Pipeline on March 18, 2023 at 1700 Hrs (IST) via video-conferencing.
The Pipeline has the capacity to transport 1 Million Metric Ton Per Annum (MMTPA) of High-Speed Diesel (HSD). It will supply high-speed diesel initially to seven districts in northern Bangladesh, the statement said.
The pipeline project has been in the works for several years, and its inauguration marks a significant milestone in the bilateral relations between India and Bangladesh. It is a clear indication of the growing cooperation and trust between the two countries and has the potential to strengthen their economic and energy ties further.
One of the primary benefits of the pipeline is the reduction in transportation costs and improvement in fuel efficiency. Currently, Bangladesh imports a significant amount of fuel from Singapore and the Middle East, which incurs high transportation costs. The pipeline will provide a cost-effective alternative for Bangladesh, which will ultimately benefit consumers in the country.
The pipeline will also provide a reliable source of energy for Bangladesh, which has been struggling with frequent power shortages. The country has been heavily dependent on natural gas and coal for its energy needs, but the supply has been unable to keep up with the growing demand. The pipeline will provide a much-needed alternative source of fuel, which will help to alleviate the energy crisis in the country.
Furthermore, the pipeline is expected to enhance trade relations between the two countries, particularly in the energy sector. India is a major exporter of refined petroleum products, and the pipeline will provide Bangladesh with a reliable source of high-quality fuel. In turn, Bangladesh can export surplus power to India, which will help to address India's growing demand for energy. This will deepen economic ties between the two countries and open up new opportunities for trade and investment.
The pipeline has the potential to create a win-win situation for both countries. India will benefit from increased trade with Bangladesh, while Bangladesh will benefit from access to reliable and cost-effective sources of fuel. The pipeline will also create new jobs in both countries, particularly in the construction and maintenance of the pipeline.
However, despite the positive implications of the pipeline, there are concerns about the potential environmental impact of the project. The pipeline passes through sensitive ecological areas, including forests and wetlands, which could be adversely affected by the construction and operation of the pipeline. It is important that the project is implemented in an environmentally sustainable manner, and that the interests of local communities are safeguarded.
The pipeline is a clear indication of the growing cooperation between India and Bangladesh and their commitment to strengthening their bilateral relations. It is a significant step towards deepening economic and energy ties between the two countries and has the potential to create new opportunities for trade and investment.
The pipeline project is also significant from a geopolitical perspective. China has been making significant inroads in South Asia, and India and Bangladesh have been working together to counter China's influence in the region. The pipeline project is a clear indication of the growing strategic partnership between India and Bangladesh and their commitment to countering China's influence in the region.
Moreover, the pipeline project is not an isolated event, but part of a broader trend of increased cooperation and collaboration between India and Bangladesh. In recent years, the two countries have signed several agreements on issues such as trade, security, and energy. This reflects a growing recognition on both sides that cooperation and collaboration are the keys to unlocking the full potential of their relationship.
The India-Bangladesh Friendship Diesel Pipeline is a significant step towards deepening the economic and energy ties between the two countries. It is a clear indication of the growing cooperation and trust between India and Bangladesh and has the potential to strengthen their bilateral relations further.
The author is a Senior Partner at SFC Asia (Social Friendly), a boutique consulting firm based out of South Asia.
