Bangladesh will buy 300 double-decker buses from Indian motor vehicle maker Ashok Leyland under a line of credit (LoC) from New Delhi.

The cabinet committee on purchase yesterday approved a proposal for the purchase amounting to around Tk 239 crore, equivalent to $29 million.

A finance ministry official said the purchase was part of a $74.66 million project to bring in double-decker and single-decker A/C and non-A/C buses. Of the project cost, India was providing $55.83 million under a $2 billion LoC.

As per the LoC’s condition, Bangladesh Road Transport Corporation (BRTC) invited tenders in which only Indian companies could participate.

The finance ministry official also said while giving the approval, the committee wanted to know about the condition of the buses procured earlier by the BRTC.

It also wanted to know why the buses previously bought by the BRTC were not plying on the roads.

Another cabinet committee on economic affairs led by Finance Minister AMA Muhith decided to conduct an environmental study to prevent casualties from landslides.

The committee had previously directed the communications ministry to give a detailed report on the snapping of communications in Rangamati due to hill slides last year.

Later, the communications ministry formed a four-member committee which presented a report yesterday incorporating a 10-point recommendation. The decision to conduct the environmental study was taken on the basis of the report.