Dhaka, Bangladesh (BBN) - India will supply 10 broad gauge diesel electric locomotives by July 2013 to help improve services of the Bangladesh Railway (BR), officials said.
Khalilur Rahman, additional director general (rolling stock) of BR and VK Jain, executive director of RITES Limited signed a deal in this connection at the Railway Bhaban in the capital Dhaka on Tuesday.
RITES Limited, an Indian government enterprise, provides comprehensive engineering, consultancy and project management services for the transport infrastructure sector under single roof.
Railways Minister Suranjit Sengupta, Railways Secretary Fazle Kabir and the acting Indian High Commissioner Sanjay Bhattacharya were also present at the ceremony.
“We want to procure the locomotives as soon as possible to strengthen our railway sector,” Suranjit said while speaking on the occasion.
Under the deal, the contractors will handover the locomotives to BR in five phases within a period of 18 months effective from the signing date.
The minister also urged the Indian company to provide the engines in the stipulated time.
The locomotives are being purchased under the $1 billion credit given by India to Bangladesh for different infrastructures development, BR Director General (DG) Abu Taher said during the agreement signing ceremony.
Of the total amount, BDT 2.46 billion will come from the Indian credit while the rest will be provided by the Bangladesh government.
The DG termed the occasion a historic one, saying that they can maintain the time schedules of all trains if more locomotives can be added to the existing ones.
BBN/SSR/AD-01Feb12-7:20 am (BST)