India is set to increase its first credit line to $862 million from $800 million for Bangladesh to meet extra expenses of two projects.

The extra $62 million funding will be required to finance an increased expenditure on the Khulna-Mongla and the Kalaura-Shabazpur railway line projects, the Indian High Commission said in a statement yesterday.

Both India and Bangladesh agreed on the deal.

EXIM Bank of India and Economic Relations Division signed an agreement to raise the amount of the first credit line, according to the statement.

Earlier, India extended $1 billion-line of credit to Bangladesh in January 2010 for a range of projects in the railways, communications, infrastructure and other sectors. 

Of the amount, $200 million was converted to grant which has been fully disbursed, according to the statement.