Dhaka: Bangladesh and India will fix the transit fees as per WTO rules in exchange for facilitating connectivity for India's land-locked northeastern states, Finance Minister AMA Muhith has said.
"During the visit of the Indian Prime Minister, the issue (transit fee) was discussed...the two countries will now finalise the arrangement over the fees in line with the WTO rules," Muhith said on Sunday.
Speaking at a business conference on Dhaka, he said the transit fees would include the infrastructure development costs as well for the sub-regional connectivity involving Bhutan and Nepal in line with talks between Prime Minister Narendra Modi and his counterpart Sheikh Hasina.
According to the summit outcome, Bangladesh could have direct routes to Nepal and Bhutan while India would get access to its isolated northeastern region, virtually opening a new horizon of sub-regional economic connectivity.
Muhith's comments cleared speculation among foreign policy experts and business analysts about the connectivity arrangements reached between Dhaka and New Delhi during Modi's maiden tour to Bangladesh early in June.
Meanwhile, former premier and Bangladesh Nationalist Party chief Khaleda Zia said Dhaka must impose transit fees in exchange for providing the neighbour the connectivity facility to its North-East using Bangladesh territory.
Muhith, however, explained Bangladesh's position as regards the calculations on the fee saying referring to Bangladesh-Bhutan connectivity "as an example".
"In this case the road has to be reconstructed alongside installing power-transmission line. There is some cost involvement here. With this a charge will be included," he said.
Asked by a businessman whether Chittagong and Mongla seaports were ready to be used as transit, Muhith said the south-eastern Chittagong port was already in use for the transit and "we are developing the (south-western) Mongla port for importing coal. Nearly one year will be needed for visibility of transit activities."
Transit through Bangladesh for India was earlier seen as a contentious issue as BNP and its rightwing allies were opposed to providing the facility for "security and economic concerns".
But during Modi's Dhaka visit the party appeared to have be softened its stubborn stance on transit to India saying "we have no objection to giving transit to India, but India should pay fees for using Bangladeshi territory".
BNP, known for its anti-India stance, had welcomed Modi's Dhaka visit and after much speculation the BNP chief Khaleda Zia made a courtesy call on him at his hotel suit.
Hasina, who is now on a visit to UK, on Monday told a civic rally in London that it is vital for Bangladesh to be on good terms with its neighbours and speed up development efforts.
"Our goal is to take the country forward cashing in on the importance of Bangladesh's geographical position in South Asia," she said.
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