For all of Bangladesh's posturing on linking trade issues with the proposed Myanmar-Bangladesh-India gas pipeline, there are clear indications that Dhaka is awaiting signals from New Delhi to be part of the project.

Earlier this month India and Myanmar held bilateral talks to study alternative routes for the pipeline and modes of monetising the Indian share of gas from Block A-1 and A-3 offshore Arakan (Rakhine) state in Myanmar, with Bangladesh showing no eagerness to push ahead with the trilateral understanding reached in January.

But, since then, Bangladesh has given clear indications of wanting to rejoin the project, which clearly holds commercial advantage for the country.

"There was a trilateral declaration (in January) and then out of the three partners two decided to hold bilateral discussions (in July). Now they have to return to the other party to state what is their intention," said Bangladesh Energy Advisor Mahmudur Rahman, who has taken charge recently.

"Frankly, how do I know whether they have already not signed some agreement?" Rahman told some select Indian journalists on a visit.

The official sought to explain away Bangladesh's non-participation in the New Delhi talks by citing lack of proper and timely invitation from the Indian side, which is not accepted by Indian officials here.

Emphasising that he has a "businesslike approach to the whole issue", Rahman said, "Every country has a right to look into its interests and find the better options. I believe Myanmar and India are between themselves trying to find a better solution."

At the same time, Rahman clarified that "we are open to negotiations as our position is to secure maximum advantage from it like the other parties".

Apart from the trade issues, commercial considerations such as a transit fee that Bangladesh is seeking are seen as a major hindrance to their participation in the estimated $2 billion project.

Statements by Bangladesh ministers in the past have indicated expectations of a transit fee in the range of $125 million to $500 million per annum.

Indian officials keen to link the pipeline directly from Myanmar to India bypassing Bangladesh, through an estimated 897-km route, are of the view that the cost of covering an additional 100 km for doing so would be recovered by the savings on the transit fee.

On Bangladesh's keenness to mix trade issues with the pipeline project to improve the imbalance in bilateral trade, Indian officials in Dhaka clarified that already several moves were under way to resolve issues on this front.

"This includes India's offer of bilateral free trade agreement on the lines of the India-Sri Lanka FTA," a senior official pointed out.

"India does not want to mix trade issues with the viability of the pipeline project as efforts are already on to resolve the commercial issues," the official said.

Pre-feasibility study on the pipeline through Bangladesh has highlighted the advantages, as both India and Bangladesh would be able to use it for transmission of gas from surplus to deficit regions.

"In addition, the route through Bangladesh is more accessible than the alternative route through Tripura," K.A. Saleque, director operations of Gas Transmission Company, the sole gas transmission company of Bangladesh, told.

Saleque, who was part of the commercial and technical feasibility committee set up by the three countries, is of the view that a "pipeline across Bangladesh is definitely the most feasible and cost effective option".

Already Bangladesh is busy widening its gas transmission network linking the gas fields to the markets through a hub in Ashuganj, which would also handle supplies from the Myanmar pipeline when it materialises.48