India's Modi in Bangladesh to Conclude Land Swap Agreement

Indian Prime Minister Narendra Modi was in neighboring Bangladesh on Saturday for a visit during which he and his hosts are expected to conclude a landmark land swap agreement to settle a long-running border dispute.

India's Parliament recently ratified the deal, which was reached in 1974. It calls for the transfer of 111 border enclaves to Bangladesh in exchange for 51 that will become part of India. More than 50,000 residents will get citizenship after the agreement is implemented.

Relations between India and its smaller neighbor have significantly improved after Bangladeshi Prime Minister Sheikh Hasina promised that her administration would not allow India's separatist insurgents to use the porous 4,000-kilometer (2,500-mile) border to carry out raids in India.

Aided by India, Bangladesh gained independence from Pakistan following a bloody nine-month war in 1971.

Hasina and Modi, whose two-day visit began Saturday, are expected to sign and exchange the ratification documents for the land swap agreement, said Bangladeshi Foreign Affairs Minister A.H. Mahmood Ali.

A number of other agreements covering trade, security and connectivity are also expected to be signed, as well a framework for combating human trafficking, counterfeit currency and cooperation for the sea-based "blue economy."

Officials said India could offer a $2 billion line of credit to Bangladesh for infrastructure development inside the country.

Ali said Bangladesh was focusing on better connectivity with India by introducing new bus service with Indian states. India faces difficulties reaching its isolated and impoverished northeastern region, and any passage through Bangladesh could cut hundreds of kilometers (miles) to get to those areas.

Energy-starved Bangladesh is also looking forward to importing 600 megawatts of electricity from India, in addition to the 500 megawatts it currently imports, Ali said.

Separately, Bangladesh signed two memoranda of understanding Saturday with two Indian companies to set up power plants for producing 4,600 megawatts of electricity, authorities said in a statement.

The state-run Power Development Board signed the deals, which are worth $5.5 billion, with Indian companies Adani Power Limited and Reliance Group, the statement said.

Adani Power Limited will invest $2.5 billion to set up a coal-based power plant with a capacity of 1,600 megawatts of power, according to the statement. The Reliance Group will set up another gas-fired power plant with capacity of 3,000 megawatts of power, investing $3 billion.