India keen to extend fuel transport agreement via Bangladesh

The Indian government has been eyeing to extend the agreement to transport fuel to three of its south-eastern states - Tripura, Mizoram and Manipur - through Bangladesh.

According to officials linked to the developments, the deal that allows Indian fuel retailers to avoid the mountainous route through Silchar in Assam expires on 30 November, Livemint reported.

The only rail link connecting Assam's Dima Hasao district with Mizoram, Manipur and Tripura and the rest of the country was washed away after heavy rain and landslides earlier this year.

One of the officials said, "In case of any disruption at Silchar, we will get through the India-Bangladesh side. That (option) is there till 30 November. 

"We are working to solidify and extend the deal for LPG and fuel transport. So instead of going through Silchar and the hilly areas which are prone to landslides, we can pass through Bangladesh straight to the Tripura border," he said.

The official also said New Delhi is expected to discuss the matter with Dhaka. Under the deal, the OMC transporting the fuel pays toll tax to the Bangladesh authorities in lieu of using the route. "If the fuel comes to Tripura via this route, we can supply to Mizoram and Manipur more reliably," he added.

State-run Indian Oil Corp. Ltd (IOCL) had first sent seven tankers carrying 84,000 litres of kerosene and diesel from Guwahati, to Tripura via Bangladesh in 2016 after heavy rains cut off Tripura's road links to Assam, where the supply originates. It was done under a short-term agreement.

Last month IOCL signed the pact, which expires in November and said that the company would again do trial runs for transporting fuels.

Replying to a query, a spokesperson of IOCL said, "MoU for movement of Petroleum products from Assam to Tripura / Mizoram, via Bangladesh is valid till 30 November 2022. We propose to get the MoU further extended with a provision for further extension on mutual consent."

"In this regard, we shall be requesting the concerned department in Govt of Bangladesh in coordination with Indian Embassy in Bangladesh and MoPNG, GOI, " the spokesperson said.

So far, the arrangement has been adopted for short periods, largely during the monsoon and post-monsoon periods, when the usual interstate route is inundated. But the government now wants to extend the usage of the Bangladesh route so that trucks and tankers could enter the neighbouring country through Dawki in Meghalaya, the official said.

Queries sent to the spokespeople for the ministry of petroleum and natural gas, ministry of external affairs and Bangladesh High Commission remained unanswered at press time.

The floods in Assam have disrupted fuel supplies to Mizoram and Tripura. Earlier this year, both states were reeling under a fuel crisis due to the snapping of an arterial railway line and National Highway 6 connecting Tripura and Assam amid the floods. As a result, both had to resort to the rationing of petroleum products in May.

Talks for extending the pact come at a time India and Bangladesh are looking at strengthening their ties. Bangladeshi PM Sheikh Hasina visited India this week when the two countries signed seven agreements for cooperation in areas ranging from sharing river water to space and unveiled new connectivity and energy initiatives.

Indian Prime Minister Narendra Modi and Bangladesh PM Sheikh Hasina also reviewed progress on the India-Bangladesh friendship pipeline, which will help move high-speed diesel to northern Bangladesh from India.