Dhaka’s Strategic Reassessment: Ten India-Linked Projects Cancelled Amid National Security Review

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In a decisive policy shift, the Hasina administration has cancelled ten India-linked projects—several of which were tied to lines of credit (LoCs) and defence cooperation—while placing a number of others under comprehensive review. The move, though framed as an economic and administrative reassessment, carries clear national security and strategic implications for Bangladesh’s regional posture.

Security Rationale Behind the Reassessment

Sources within Dhaka’s policymaking circles indicate that the reviews were driven by concerns over strategic dependency, sovereignty of infrastructure, and security of critical assets. Several connectivity projects—including the Tripura–Chattogram rail link, Agartala–Akhaura railway, and Ashuganj–Agartala corridor—were seen as offering India logistical leverage over Bangladesh’s transport network, particularly in the eastern sector.

The Feni River Water Management Project and similar hydrological agreements were also reconsidered amid rising apprehension over cross-border water control and its implications for food and human security in Bangladesh’s south-eastern regions.

Maritime and Defence Dimensions

Of particular note is the cancellation of the proposed procurement of an ocean-going tugboat from India’s Garden Reach Shipbuilders and Engineers (GRSE), which had been negotiated under a defence Line of Credit (LoC). Although the platform itself was non-combatant in nature, its acquisition under a foreign-financed defence framework raised questions within strategic circles about long-term dependency, maintenance sovereignty, and operational discretion in naval logistics.

Bangladesh’s naval modernisation programme has, over the past decade, increasingly emphasised indigenous support infrastructure and diversified procurement sources, reflecting lessons drawn from earlier asymmetric dependencies. The cancellation of the GRSE deal may therefore be interpreted as part of a broader effort to consolidate maritime autonomy within the Bangladesh Navy’s support and sustainment capabilities.

Energy and Infrastructure: Economic Security Meets Strategic Autonomy

The Adani Power electricity import agreement—currently under review—has become emblematic of Dhaka’s evolving energy security doctrine. Policymakers now appear focused on balancing cross-border energy cooperation with domestic generation and regional diversification, ensuring resilience against price volatility and single-source exposure.

Similarly, projects such as the India Economic Zones (Mongla and Mirsharai) and the Farakka Barrage financial cooperation framework have been shelved, underscoring a shift towards greater control over critical infrastructure financing.

Implications for Bangladesh’s Regional Security Posture

From a national security standpoint, the cancellations reflect a maturing strategic outlook within Dhaka—one that prioritises sovereignty in decision-making and multi-vector engagement over legacy alignments. While the Hasina government continues to express commitment to friendly relations with India, the decisions signal an insistence on mutual respect and strategic balance, particularly in sectors touching defence, energy, and critical logistics.

As Bangladesh recalibrates its regional engagements, the emphasis appears to be on developing self-reliant security capabilities, strengthening national command over dual-use infrastructure, and preserving strategic flexibility amid a shifting South Asian security landscape.

BDMilitary Team’s Assessment

Bangladesh’s decision to cancel or review several India-linked projects represents more than bureaucratic adjustment—it signifies a strategic course correction aimed at reinforcing national autonomy across critical sectors. From a defence and security perspective, this recalibration aligns with a growing understanding within Dhaka’s strategic community that overexposure to a single partner—particularly in areas tied to sovereignty-sensitive domains—can erode long-term operational flexibility.

The cancelled GRSE ocean-going tugboat deal, though modest in scale, is emblematic of this shift. The Bangladesh Navy’s procurement strategy increasingly seeks platforms that come with unrestricted operational rights, local sustainment options, and transferable technologies. A move towards suppliers offering greater transparency and customisation aligns with the service’s “Blue-Water Vision,” which emphasises independent support capacity over foreign credit dependency.

In the broader picture, Bangladesh is signalling its intention to remain strategically equidistant between regional powers. While India remains a vital neighbour, Dhaka’s recent moves suggest a preference for pragmatic diversification—balancing relationships with China, Turkey, the United Kingdom, and Western defence industries. This ensures both strategic hedging and technological diversity in future capability development.

Economically, the reassessment dovetails with security imperatives. Controlling the financing, ownership, and maintenance of infrastructure—especially ports, energy grids, and water systems—directly supports national resilience. In modern hybrid security contexts, these assets are as crucial as conventional defence platforms.

Ultimately, the cancellations should not be viewed as anti-Indian, but as pro-Bangladeshi in orientation. They mark a transition from aid-driven cooperation to interest-based partnership, signalling that Dhaka intends to define its defence and development trajectory on its own strategic terms.

Annex: Cancelled and Reviewed India-Linked Projects (2016–2024)

Project/Agreement Name	Sector	Year Signed	Current Status	Remarks
Tripura–Chattogram Rail Connectivity Project	Transport / Rail	2017	Cancelled	Strategic corridor providing India transit access via Bangladesh.
Agartala–Akhaura Rail Expansion	Transport / Rail	2018	Cancelled	Connectivity link under Indian LoC; halted amid security review.
Ashuganj–Agartala Corridor Project	Transport / Road	2016	Cancelled	Considered sensitive for cross-border logistics control.
Feni River Water Management Project	Water / Environment	2019	Cancelled	Cancelled due to sovereignty and ecological concerns.
Kushiyara River Water Sharing Project	Water / Environment	2022	Active	Only major water-sharing deal still maintained.
Road & Maritime Use of Chattogram Port Agreement	Transport / Maritime	2018	Cancelled	Access arrangement withdrawn pending review of security implications.
Farakka Barrage Financial Cooperation Framework	Infrastructure / Water	2023	Cancelled	Financing and technical cooperation terminated.
Sylhet–Shillong Connectivity Project	Transport / Road	2020	Cancelled	Cancelled on national security and economic viability grounds.
Petroleum Pipeline Management Project	Energy	2019	Cancelled	Concerns raised over pricing control and dependency.
Indian Economic Zones (Mongla and Mirsharai)	Industrial / Economic	2019	Cancelled	Indian LoC-based zone shelved to prioritise domestic investment.
Adani Power Electricity Import Deal	Energy	2017	Under Review	Cost structure and import dependency under reassessment.
Gas Pipeline Agreement	Energy	1999	Renewed / Under Review	Renewal negotiations ongoing.
Teesta River Water Sharing Agreement	Water / Environment	2011	Under Discussion	No final agreement reached; politically sensitive.
GRSE Ocean-Going Tugboat for Bangladesh Navy	Defence / Maritime	2024	Cancelled	Cancelled under Defence LoC; reflects maritime autonomy policy.