But this route passes through hilly terrain with steep roads and multiple hairpin bends.

Dhaka had earlier expressed reservations on the transit facility on grounds of security and also wanted a quid pro quo with India on being allowed access to Nepal and Bhutan.

The Bangladeshi minister said that his government has no problem to allow India and other neighbouring countries to use Chittagong international port, which is just 75 km from southern Tripura.

India and other South Asian nations have sought access to Chittagong port because of its location in order to cut huge transport costs and time.

'Ports of Bangladesh and India can not be called 'our port or your port'. All ports are now everybody's ports for economic interest of concerned countries,' said Khan, adding that all Bangladeshi ports are being upgraded and increasing their strength.

Bangladesh government has also agreed in principle to allow India to use its waterways to transport heavy machines for Oil and Natural Gas Corporation (ONGC) upcoming 740 MW power project in southern Tripura.

'Bangladeshi waterways can be used to ferry the heavy machines for the power project,' the commerce minister said.

Prime Minister Manmohan Singh had laid the foundation stone in October 2005 for the Rs.50 billion Palatana power project.

The fate of the mega power project was hanging in balance as transportation of heavy machinery, including turbines, by road through the mountainous northeastern states was extremely difficult.

If Bangladesh gives permission, ONGC will be able to ship power generation equipment from the Haldia Port in West Bengal to Bangladesh and then to Tripura.