Bangladesh chooses India’s Teesta river project over China’s proposal
India's offer includes a US$1 billion comprehensive management and restoration project for the Teesta River.
On Tuesday, Bangladesh Prime Minister Sheikh Hasina announced that her country would accept India’s proposal to develop the Teesta River basin, effectively declining a competing offer from China. This decision was disclosed during a press conference at her office, Ganabhavan, following her state visit to India on June 21 and 22.
What does this mean for India?
According to Gautam Lahiri, senior journalist and Bangladesh Commentator, “It shows the Hasina government acknowledges the concern of India on giving away the Teesta Project to China. The area where the development of Teesta will take place is near to India’s chicken neck border with China.”
“To oversee the project a new Assistant High commissioner consulate is being opened,” Lahiri added.
“Bangladesh is also concerned about the loan condition of China. She has clearly said ” to decide the project we have to see the conditionality of the Chinese Line of Credit (LOC) and also the repayment capacity of Bangladesh.”
” It is true that Indian LOC is more soft loan than China. Once the project is implemented problems of sharing of water will be resolved. And, on Ganges River water even if the Chief Minister of West Bengal puts a spanner the old agreement will continue to be operational,” opines Lahiri.
What did India offer?
India’s offer includes a US$1 billion comprehensive management and restoration project for the Teesta River. During the press conference, PM Hasina detailed her extensive discussions in New Delhi, emphasizing the potential of this development project to permanently resolve the river water sharing issue.
Background
The Bangladesh leader is also scheduled to visit Beijing on July 8 at the invitation of Chinese President Xi Jinping. Despite this upcoming visit, she highlighted her government’s commitment to selecting the best loan offer, considering Bangladesh’s repayment capacity. “As India has offered to develop the Teesta River basin, this development project has the potential to permanently resolve the river water sharing issue,” she stated.
She also expressed her intention to engage with West Bengal Chief Minister Mamata Banerjee on issues related to the Teesta River and the Ganges water sharing agreement, which is due for renewal in 2026. The Ganges Waters Treaty, signed for a 30-year period in 1996, will remain valid even if not renewed in 2026, ensuring the continuation of water sharing during the lean season.
Chief Minister Banerjee has expressed her concerns to Indian Prime Minister Narendra Modi about the central government’s unilateral initiatives on river water projects without consulting the state government. According to the Indian Constitution, water sharing is a state subject, requiring the consent of the concerned state government for any agreements.
PM Hasina acknowledged the importance of Chief Minister Banerjee’s point about the need for regular dredging of the Ganges River to prevent silting and maintain navigability. She also raised the issue of upstream water withdrawal, which poses a problem for Bangladesh as a lower riparian state. Allegations have surfaced that China is also withdrawing water in the upstream reaches of the rivers.
Regarding her views on China, PM Hasina reaffirmed Bangladesh’s foreign policy of “friendship towards all and malice towards none,” as laid down by the Father of the Nation, Bangabandhu.
In conclusion, PM Hasina emphasized that the Teesta basin development project is an old initiative of Bangladesh, and the country’s decision to accept India’s proposal aligns with their broader developmental goals. She noted that India would soon send a technical team to study the project, marking a significant step forward in bilateral cooperation.