India will provide a grant of about Tk 320 crore to Bangladesh to implement several projects and initiatives including construction of rail track between Akhaura and Agartala--part of a proposed transit route.

This was announced on Wednesday in the Bangladesh-India joint statement issued after Indian Prime Minister Manmohan Singh's two-day visit to Dhaka.

The statement did not mention the amount of the grant. However, a high official of foreign ministry

said it would be over Rs 200 crore (around Tk 320 crore).

The grant will also be used for the construction of state-of-the-art India-Bangladesh Culture Centre in Dhaka; undertaking a feasibility study for upgradation of Dhaka-Chittagong railway line; new Indian scholarship to 100 students at graduate, post graduate and doctoral/ research levels; setting up of an IT lab in a model school in each of the 64 districts in Bangladesh; setting up of IT centres at Bangladesh Public Administration Training Centre, Military Institute of Science and Technology and Bangladesh Police Academy; and provision of solar lanterns to 2800 families affected by the cyclone Sidr.

Earlier India approved a credit line of $1 billion for Bangladesh, of which $750 million is ready for disbursement.

Prime Minister Sheikh Hasina discussed the utilisation of the loan with her Indian counterpart. They expressed satisfaction with the utilisation, noted the statement.

The two premiers directed the officials concerned to complete all necessary formalities for speedy implementation of projects taken under the credit line to ensure people can gain benefit at an early date.