Modi announces Line of Credit of USD 4.5 billion to Bangladesh; no pact on Teesta

New Delhi: India on Saturday extended a credit line of $ 4.5 billion to Bangladesh to help it to implement development projects.

"I am happy to announce a new concessional Line of Credit of 4.5 billion dollars for the implementation of projects in priority sectors for Bangladesh. This brings our resource allocation for Bangladesh to more than eight billion dollars over the past six years," Prime Minister Modi said at a joint press conference at Hyderabad House in New Delhi.

Prime Minister Modi also announced a $500 million credit line to support Bangladesh's defence-related procurements.

"I am also happy to announce a Line of Credit of US dollars 500 million to support Bangladesh's defence-related procurement. In implementing this line of credit, we will be guided by Bangladesh's needs and priorities," Prime Minister Modi said.

India and Bangladesh signed 22 Memorandums of Understanding (MoUs) and one financial agreement following delegation level talks between the two sides here.

No pact on the sharing of water of the river Teesta was signed between the two nations.

The Teesta river runs through both Bengal and Bangladesh and if a treaty is signed it would allow for equal share of water.

"I am very happy that the Chief Minister of West Bengal is my guest today. Her feeling for Bangladesh is as warm as my own. I assure you and the people of Bangladesh of our continuing efforts on Teesta. It's only my government and your government that can and will find an early solution to Teesta water sharing issue," Prime Minister Modi said.

Prime Minister Sheikh Hasina said India's support would help resolve all issues, including Teesta, expeditiously.

The Bangladesh Prime Minister is on a four-day visit to India.