Geopolitical Insights

India needs to pursue equal partnership with Bangladesh

Gautam Adani, founder and chairman of India’s Adani Group, meets former Prime Minister Sheikh Hasina at Gono Bhaban on July 15, 2023. PHOTO: X/Gautam Adani

India is often portrayed as Bangladesh's closest ally. The two nations share a strategic partnership grounded in shared history, economic interdependence and strong cultural ties. However, this relationship has frequently been characterised by a power imbalance, with India being in a position to exert dominance over Bangladesh. If Bangladesh and India are to forge a more equitable friendship, three existing bilateral issues need to be addressed.

A vexing issue that has been in deadlock for decades is the disadvantages imposed on Bangladesh for being a lower riparian state. Even though the recent floods cannot solely be attributed to India opening the Dumbur dam, the situation serves as an eye-opener on our water-sharing agreements (or lack thereof), flood management capacity, and the need for bilateral negotiations where both countries can mitigate the damages from heavy rainfall without harming the other. Teesta River's water-sharing agreement is one example. If current trends continue, the Teesta water shortage could lower Bangladesh's rice production by roughly 8 percent by 2030 and 14 percent by 2050. This scarcity raises production costs and risks for farmers and also triggers social issues such as migration, displacement, and poverty.

Even though Sheikh Hasina's government allowed India several benefits, including the upcoming railway line that will allow the transport of goods and travel of passengers (including military personnel) from India to its seven northeastern states via Bangladesh, Dhaka continues to be sidelined. Under Hasina's government, Dhaka had not been able to leverage its concessions to India to make progress with Teesta or other shared rivers. The interim government now has an opportunity to address this issue and build strong political consensus for a more equitable and sustainable water-sharing and flood mitigation arrangement between the two neighbours.

The second issue is the border killings between India and Bangladesh. Despite the close friendship between the two countries, the border is riddled with mindless deaths of Bangladeshis at the hands of the Indian Border Security Forces (BSF). Ain o Salish Kendra, a human rights organisation in Bangladesh, conservatively reported that between 2013 and 2023, 332 people were killed by the BSF, averaging 30 deaths per year. Aside from the killings, the BSF has also subjected Bangladeshis at the border to gruesome torture and abductions. It makes little sense for two countries that share exemplary ties to allow such lethality on their border. Although the leadership in India pledged zero deaths, this reality is yet to materialise as state promises are unaligned with BSF actions at the border. If the previous home advisor's words are an indication, the Bangladesh Border Guard (BGB) will no longer remain passive and retreat in border conflicts in the face of aggression from the Indian side. But more importantly, it is pertinent for the interim government to address the crisis and catalyse strong political will from its Indian counterparts to end the killings and bring to book the BSF soldiers who engaged in prior misconduct that led to the loss of lives and lifelong injuries of Bangladeshis.

A third contentious point that requires a comprehensive reassessment is Adani's Godda power plant in Jharkhand which charges Bangladesh an exorbitant, above-market rate. The deal was initiated back in 2015 by Modi—who Adani's chairman is close to—and signed in 2017 with Hasina's blessing, despite the deal not being favourable for Bangladesh, as reported by The Washington Post.

Even though a report by the non-profit AdaniWatch suggested Bangladesh might have at least two ways to exit the contract, it turns out that Adani made sure to insert clauses that prevent Bangladesh from leaving even if Adani breaches the contract. First, private coal-fired power plants in India can export electricity if only India has a power surplus, which it currently does not. Second, the contract states that the Bangladesh Power Development Board (BPDB) must pay a levy of taxes and duties that Adani itself is exempt from, especially since it was declared a Special Economic Zone (SEZ). BPDB was supposed to be officially informed of these changes for a price adjustment within 30 days, but Adani failed to do so. BPDB still went ahead with the contract, even fast-tracking it under the political compulsion of the Hasina government. Unfortunately, as The Daily Star pointed out, Bangladesh can only leave if Adani's breach of contract negatively impacts the latter's ability to produce electricity. As it stands, making unethical profits off the backs of Bangladeshi tax-payers will not be harming Adani's bottom line anytime soon.

Despite the ironclad agreement, there may be a way out. Unresolved disputes may be "settled in accordance with the Rules of Arbitration of the Singapore International Arbitration Centre, 2016, 6th Edition," according to a lawyer interviewed by The Daily Star. If such a pathway can be pursued, the interim government may probe into the matter to identify any scopes for dispute resolution. Getting out of this contract or renegotiating the prices would drastically minimise costs in a country that is already plagued with debts and dwindling foreign reserves.

Whether it's our riparian rights, contentious border killings, or power deals designed to empty Bangladesh's coffers, it is true that Bangladesh often gets the short end of the stick. But Bangladesh can leverage its advantage as a zone of influence for great power politics and make use of its concessions to its upper riparian neighbour to ensure the sustainable prosperity of its land and people. It is also in the best interest of both India and Bangladesh to ensure the survival and thriving of their long-lasting exemplary friendship—with transparency and broad political consensus benefitting both countries equally.


Afia Ibnat is a political analyst and executive member of a local non-profit. She can be reached at afiaibnatwork@gmail.com.


Views expressed in this article are the author's own.


We welcome your contributions and analysis of global events. To submit articles to our weekly page, Geopolitical Insights, please send an email to ds.geopoliticalinsights@gmail.com.


Follow The Daily Star Opinion on Facebook for the latest opinions, commentaries and analyses by experts and professionals. To contribute your article or letter to The Daily Star Opinion, see our guidelines for submission.

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India needs to pursue equal partnership with Bangladesh

Gautam Adani, founder and chairman of India’s Adani Group, meets former Prime Minister Sheikh Hasina at Gono Bhaban on July 15, 2023. PHOTO: X/Gautam Adani

India is often portrayed as Bangladesh's closest ally. The two nations share a strategic partnership grounded in shared history, economic interdependence and strong cultural ties. However, this relationship has frequently been characterised by a power imbalance, with India being in a position to exert dominance over Bangladesh. If Bangladesh and India are to forge a more equitable friendship, three existing bilateral issues need to be addressed.

A vexing issue that has been in deadlock for decades is the disadvantages imposed on Bangladesh for being a lower riparian state. Even though the recent floods cannot solely be attributed to India opening the Dumbur dam, the situation serves as an eye-opener on our water-sharing agreements (or lack thereof), flood management capacity, and the need for bilateral negotiations where both countries can mitigate the damages from heavy rainfall without harming the other. Teesta River's water-sharing agreement is one example. If current trends continue, the Teesta water shortage could lower Bangladesh's rice production by roughly 8 percent by 2030 and 14 percent by 2050. This scarcity raises production costs and risks for farmers and also triggers social issues such as migration, displacement, and poverty.

Even though Sheikh Hasina's government allowed India several benefits, including the upcoming railway line that will allow the transport of goods and travel of passengers (including military personnel) from India to its seven northeastern states via Bangladesh, Dhaka continues to be sidelined. Under Hasina's government, Dhaka had not been able to leverage its concessions to India to make progress with Teesta or other shared rivers. The interim government now has an opportunity to address this issue and build strong political consensus for a more equitable and sustainable water-sharing and flood mitigation arrangement between the two neighbours.

The second issue is the border killings between India and Bangladesh. Despite the close friendship between the two countries, the border is riddled with mindless deaths of Bangladeshis at the hands of the Indian Border Security Forces (BSF). Ain o Salish Kendra, a human rights organisation in Bangladesh, conservatively reported that between 2013 and 2023, 332 people were killed by the BSF, averaging 30 deaths per year. Aside from the killings, the BSF has also subjected Bangladeshis at the border to gruesome torture and abductions. It makes little sense for two countries that share exemplary ties to allow such lethality on their border. Although the leadership in India pledged zero deaths, this reality is yet to materialise as state promises are unaligned with BSF actions at the border. If the previous home advisor's words are an indication, the Bangladesh Border Guard (BGB) will no longer remain passive and retreat in border conflicts in the face of aggression from the Indian side. But more importantly, it is pertinent for the interim government to address the crisis and catalyse strong political will from its Indian counterparts to end the killings and bring to book the BSF soldiers who engaged in prior misconduct that led to the loss of lives and lifelong injuries of Bangladeshis.

A third contentious point that requires a comprehensive reassessment is Adani's Godda power plant in Jharkhand which charges Bangladesh an exorbitant, above-market rate. The deal was initiated back in 2015 by Modi—who Adani's chairman is close to—and signed in 2017 with Hasina's blessing, despite the deal not being favourable for Bangladesh, as reported by The Washington Post.

Even though a report by the non-profit AdaniWatch suggested Bangladesh might have at least two ways to exit the contract, it turns out that Adani made sure to insert clauses that prevent Bangladesh from leaving even if Adani breaches the contract. First, private coal-fired power plants in India can export electricity if only India has a power surplus, which it currently does not. Second, the contract states that the Bangladesh Power Development Board (BPDB) must pay a levy of taxes and duties that Adani itself is exempt from, especially since it was declared a Special Economic Zone (SEZ). BPDB was supposed to be officially informed of these changes for a price adjustment within 30 days, but Adani failed to do so. BPDB still went ahead with the contract, even fast-tracking it under the political compulsion of the Hasina government. Unfortunately, as The Daily Star pointed out, Bangladesh can only leave if Adani's breach of contract negatively impacts the latter's ability to produce electricity. As it stands, making unethical profits off the backs of Bangladeshi tax-payers will not be harming Adani's bottom line anytime soon.

Despite the ironclad agreement, there may be a way out. Unresolved disputes may be "settled in accordance with the Rules of Arbitration of the Singapore International Arbitration Centre, 2016, 6th Edition," according to a lawyer interviewed by The Daily Star. If such a pathway can be pursued, the interim government may probe into the matter to identify any scopes for dispute resolution. Getting out of this contract or renegotiating the prices would drastically minimise costs in a country that is already plagued with debts and dwindling foreign reserves.

Whether it's our riparian rights, contentious border killings, or power deals designed to empty Bangladesh's coffers, it is true that Bangladesh often gets the short end of the stick. But Bangladesh can leverage its advantage as a zone of influence for great power politics and make use of its concessions to its upper riparian neighbour to ensure the sustainable prosperity of its land and people. It is also in the best interest of both India and Bangladesh to ensure the survival and thriving of their long-lasting exemplary friendship—with transparency and broad political consensus benefitting both countries equally.


Afia Ibnat is a political analyst and executive member of a local non-profit. She can be reached at afiaibnatwork@gmail.com.


Views expressed in this article are the author's own.


We welcome your contributions and analysis of global events. To submit articles to our weekly page, Geopolitical Insights, please send an email to ds.geopoliticalinsights@gmail.com.


Follow The Daily Star Opinion on Facebook for the latest opinions, commentaries and analyses by experts and professionals. To contribute your article or letter to The Daily Star Opinion, see our guidelines for submission.

Comments

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