Billions in Indian LoCs

We are shocked by a report in this daily that has found that out of the USD 3 billion line of credit from India, only half a billion has been utilised in the last seven years! We are confounded by this amoebic pace of utilisation for projects that are geared towards major infrastructural development and economic growth. Such unfathomable hold up in utilisation of the funds is attributed to delays at every stage—project selection, approval, signing of loan deal, bidding prices and complexities in land acquisition. These are routine steps of any government project and it is a mystery why there should be such systematic procrastination.

This is indeed a discouraging picture given that another USD 4.5 billion LoC from India is in the pipeline. If the first two LoCs have been so grossly underutilised for seven years, how long will it take for the third LoC to be made use of?

It is unacceptable that projects as crucial as construction of the Dhaka-Tongi-Joydevpur dual gauge rail line and building of the Khulna-Mongla rail line and a bridge over the Rupsa river have been delayed because of difficulties in acquiring land. Many projects have not started merely because the body that is authorised to approve them—Executive Committee of the National Economic Council (ECNEC)—has not given the go-ahead.

We are mystified by the fact that these bottlenecks have been allowed to go unaddressed. It is high time that the concerned ministries unravel the reasons behind such procrastination that has resulted in crucial development projects taking a backseat. With the latest LoC promising huge benefits in terms of power generation and economic activity, there is no time to lose.