CNN Central News & Network-ITDC India Epress/ITDC News Bhopal: China’s growing presence at Mongla port raises India’s strategic concerns
Amid the strategic competition between India and China in South Asia, an important development has emerged around Bangladesh’s Mongla port. Bangladesh has signed a $335.78 million, or about Rs 3,200 crore, loan agreement with China’s Export-Import Bank for the expansion and modernisation of the port. The development is being seen as strategically significant for India because Mongla port is located about 80 kilometres from the Indian border.
Port capacity to increase with China’s support: Under the agreement, two container terminals and dedicated yards for cargo movement will be built at Mongla port. According to reports, China will provide the loan at an interest rate of 2 percent for a period of 20 years. This also includes an initial five-year relief period. Mongla is Bangladesh’s second major seaport after Chattogram. Its modernisation is aimed at increasing the country’s cargo handling and trade capacity.
Economic zone was earlier proposed for India: An important aspect of this development is that a plan had earlier been prepared to develop an economic zone for India on 110 acres of land near the port. However, Bangladesh’s then interim government cancelled the project. It said the Indian company could not start construction work within the stipulated time. China subsequently showed interest in economic activities and port development possibilities in the same area. This has increased India’s concerns over China’s economic and strategic presence in the region.
Why is the issue important for India? Mongla port is located near the Bay of Bengal. China’s growing economic role in this region could affect India’s maritime security and regional strategy. However, investment in the development of a port does not automatically mean military access or control. Bangladesh also faces the challenge of maintaining a balance in its geographical, trade and security ties with India while increasing economic cooperation with China.
Hashtags: #WorldInternational #Bhopal #Mongla #Port #China #India #GrowingPresence #StrategicConcerns #Bangladesh #ChinaSGrowingPresence
