India-Bangladesh Friendship Pipeline: A Boon for Energy Cooperation

In a significant step towards strengthening bilateral ties and addressing energy needs, Prime Minister Narendra Modi and Bangladesh Prime Minister Sheikh Hasina jointly inaugurated the 131.5 km long India-Bangladesh Friendship Pipeline in March 2023. This groundbreaking project connects Siliguri in North Bengal to Parbatipur in Bangladesh’s Dinajpur province.

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1. A Cost-Effective and Efficient Solution

2. Key Benefits for Both Nations

3. Addressing Bangladesh’s Energy Needs

4. A Temporary Halt to Expansion

A Cost-Effective and Efficient Solution

Constructed at a cost of ₹377 crore, the pipeline is the first cross-border energy pipeline between India and Bangladesh. It will transport up to 1 million tonnes per annum of high-speed diesel from the Numaligarh refinery in Assam to the Bangladesh Petroleum Corporation’s Parbatipur depot.

Key Benefits for Both Nations

The pipeline offers several advantages for both India and Bangladesh:

Reduced Transportation Costs: Bangladesh will benefit from a significant reduction in diesel transportation costs, estimated at 50%.
Faster Delivery: The pipeline will cut transportation time from several days to just one hour, compared to the current rail route.
Sustainable and Efficient: It provides a sustainable, reliable, cost-effective, and environment-friendly mode of transporting diesel.
Enhanced Energy Cooperation: The pipeline strengthens energy cooperation between the two countries, fostering a stronger bilateral relationship.

Addressing Bangladesh’s Energy Needs

The pipeline is particularly crucial for Bangladesh, which faces an energy crisis and relies heavily on diesel to power its key textile industry. India’s efforts to assist Bangladesh in meeting its energy needs also aim to reduce the country’s dependence on China, whose investments in Bangladesh’s energy sector are substantial.

A Temporary Halt to Expansion

While the pipeline has proven to be a valuable asset, the Indian government has recently decided to halt a proposed extension beyond Parbatipur, citing the current political instability in Bangladesh. However, the fuel transport deal between the two countries remains in force for 15 years, with an option for further extension.

The India-Bangladesh Friendship Pipeline stands as a testament to the growing cooperation between the two nations in the energy sector. As the pipeline continues to operate and deliver benefits, it is expected to play a vital role in strengthening the bilateral relationship and addressing the region’s energy challenges.