India may condition extra diesel supply on Bangladesh project progress

India is reportedly weighing Bangladesh's request for increased diesel supplies, potentially tying any additional fuel exports to progress on infrastructure projects financed through India's Line of Credit (LoC).

Several LoC-funded projects between the two nations have stalled, creating uncertainty around their completion. New Delhi's approach signals it may use energy trade as leverage to push Dhaka toward advancing these initiatives.

The move reflects India's strategy to balance its energy export commitments with ensuring returns on its development financing in Bangladesh.