India May Link More Diesel to Bangladesh's Stalled Projects

The fate of these projects remains in doubt as political ties between New Delhi and the government led by Prime Minister Tarique Rahman remain unsettled. There is no confirmed date for Rahman's proposed visit to India, the source said.

"India is keen to go ahead with the projects as it has to be also watchful of China's aspirations in Bangladesh," a second source said. A deeper Chinese presence in ports, connectivity and industrial infrastructure could strengthen Beijing's strategic footprint in India's immediate neighbourhood.

"We are hopeful that as the Rahman government settles in, it will appreciate the mutually beneficial ties between the two countries and the things would move smoother. Concessions are not always made unilaterally," the first source added.

India's continued sheltering of former Prime Minister Sheikh Hasina, who fled to India on August 5, 2024, after anti-government agitators targeted her residence, has been a source of tension with Rahman and his Bangladesh Nationalist Party. The BNP has repeatedly sought Hasina's extradition and criticised New Delhi for allowing her to remain. Hasina's decision to hold a press conference earlier this month where she strongly criticised the BNP strained ties further.

Earlier this month, the Ministry of External Affairs confirmed it had received Bangladesh's request for additional diesel and was examining it. "We have an ongoing arrangement with Bangladesh on diesel supply. An additional request will be examined while keeping in mind our own requirement, refining capacity and also the availability of diesel here," MEA Spokesperson Randhir Jaiswal said at a news briefing.