Context:
- India and Bangladesh had inked a Memorandum of Understanding (MoU) in June 2015 – during Prime Minister Narendra Modi’s visit to Bangladesh – for cooperation on establishing Indian SEZs in Bangladesh.
- The plan was to develop Indian SEZs at Mirsarai (1,005 acres), Bheramara (about 480 acres) and Mongla (200 acres).
- The construction of these SEZs and Indian investment in the zones were to be facilitated through concessional Line of Credit extended by India to Bangladesh.
What’s the issue?
- Indian companies have cited various constraints including inadequate infrastructure and lack of uninterrupted power supply” at Mongla, Bheramara and Mirsarai – the sites in Bangladesh for the proposed Indian SEZs.
- For better connectivity and business prospects, they sought alternative sites close to the Chittagong Port and the capital city of Dhaka – similar to those been allocated by Bangladesh for Chinese SEZs.