Dhaka, Delhi sign first defence deal under $500m LoC

GBNEWS24DESK//

Bangladesh and India have signed the first contract under $500 Line of Credit (LoC), which India finds an “important first step” in strengthening defence cooperation between the two countries.

“I think the first contract under the defence Line of Credit was signed earlier this week. I’m sure you have been following this closely. It was a modest amount but it was an important first step,” said Indian Foreign Secretary Vinay Kwatra in New Delhi on Tuesday night.

The Indian foreign secretary said it may be a defence LoC but it is also a part of the development partnership framework.

“Our effort is that this will open up a path for further engagement between the two countries in the field of defence and security and take our cooperation further,” he added.

Prime Minister Sheikh Hasina, now visiting India, and her Indian counterpart Narendra Modi expressed satisfaction at the “intensification” of bilateral defence ties.

They also agreed on early finalisation of projects under the Line of Credit for defence, which would be beneficial for both countries, according to the joint statement issued after the bilateral talks between the two leaders.

India welcomed the finalisation of “initial procurement plans” for vehicles for the Bangladesh Armed Forces in this regard and looked forward to enhancing bilateral defence ties.

The Indian side reiterated its request for implementing the 2019 MoU for providing a coastal radar system for greater maritime security at an early date.

At the 4th Bangladesh-India annual defence dialogue held in New Delhi in August, both sides emphasised the need for working closely to implement the $500 million Line of Credit extended from India for defence items.

Bangladesh and India, at the dialogue, expressed commitment to elevating engagements between their armed forces and reviewed the progress of bilateral defence cooperation initiatives.