Cabinet note on India-Bangladesh trade
Much effort has already been put in developing the coastal trade between India and Bangladesh by the two countries. In fact, in June, the modalities of coastal shipping were discussed and finalised by the two countries at a delegation-level talks with Ban
The Shipping Ministry is likely to float a draft cabinet note by November for implementing coastal shipping between India and Bangladesh, an initiative that will boost trade between both the neighbours.
“In November, Draft Cabinet Note would be circulated for comments for implementing the coastal shipping between India and Bangladesh," Shipping Ministry said in a presentation to PM Narendra Modi.
Outlining plans for the growth of the sector, it has said approval of the Cabinet on the proposal will be sought by December.
The development follows the Indian government last month announcing that a basic understanding on commencement of coastal shipping has been arrived at between both the nations.
The Ministry has said the modalities of coastal shipping were discussed and finalised by the two countries at a delegation-level talks with Bangladesh side on June 24.
“It was decided that both the countries should follow River Sea Vessels (RSV)-IV classification for the Coastal Vessels and also that third party insurance cover of at least Rs 60 crore would be applicable to the individual coastal vessels,” the presentation said.
It said the Indian side already has RSV-IV coastal vessels and GIC and its subsidiaries provide for required insurance cover as well.
“However, the Bangladesh side does not have any certification standards nor do their insurance companies provide the required insurance cover. Bangladesh side will be getting their coastal vessels classified to RSV-IV standards and have also requested their government insurance company to provide insurance cover to coastal shipping,” it said, adding that the process is likely to be completed by Bangladesh by next month.
Last month, the government had said trial runs between ports in the two countries were slated by October 14 for coastal shipping.
The Chittagong port is 150 km off Agartala, the capital of Tripura state, and more than 350 km away from Kolkata via Bangladesh, while distance between Tripura and Kolkata is about 1,650 km through the rugged hilly terrain.