Indian Finance Minister and influential Congress leader Pranab Mukherjee paid a courtesy call on Prime Minister Sheikh Hasina at the Gano Bhaban yesterday afternoon.

They discussed a wide of range of bilateral issues, said PM's Press Secretary Abul KalamAzad.

The Indian minister apprised the PM of the one billion dollar credit to be given to Bangladesh for implementing various infrastructure development projects.

Azad said the issues discussed at the meeting included quick implementation of the joint declaration of the two countries on Dahagram and Angarpota

FROM PAGE 1 enclaves, food procurement, strengthening railway connectivity and increasing regional connectivity involving Nepal and Bhutan.

Indian High Commissioner in Dhaka Rajeet Mitter and other officials of the commission accompanied Pranab.

From Bangladesh side, Finance Minister AMA Muhith, Foreign Minister Dipu Moni, Advisers to the PM Gowher Rizvi, Mashiur Rahman, Ambassador at-large M Ziauddin and Bangladesh High Commissioner in New Delhi Tariq A Karim were present at the meeting.

Pranab came to Dhaka on a four-hour visit to witness the signing of the credit agreement. The Indian credit will be utilised for a range of projects including development of communication infrastructure.

Meanwhile, Muhith described as "utterly false" the opposition contention that the rate of interest of Indian credit is higher than that of the World Bank and ADB.

Muhith, who sat beside his Indian counterpart at the press conference after the signing of the loan agreement, said they have signed similar agreement in the past with 5 percent interest and repayment period of 15 years.

Calling the terms and conditions of the Indian credit

as good, he said interest rate is 1.75 percent and commitment charge is 0.5 percent.

Muhith wondered how the opposition statement was made. “This is utterly false,” he said.

He said the size of the credit is more than double the assistance Bangladesh received from India over the last 40 years.

Muhith, who held a meeting with Pranab, said they covered the areas of trade, power, food and the loan agreement.

He said border markets will start functioning very shordy. The two countries signed MoU on the power sector and Bangladesh will get power from India in 2012.

On the issue of transit, Muhith said Bangladesh is going to be an important transit country in South Asia making transit between Bangladesh and India, Bangladesh and Bhutan, Bangladesh and Nepal, and perhaps Bangladesh and Myanmar and Bangladesh and China through Myanmar.

Asked about Indian investment in Bangladesh, he said that in terms of principles, opportunity for foreign investment in Bangladesh is very good. “But difficulty is in implementation," Muhith said, adding the Board of Investment is trying to improve it.