SINGAPORE, June 8: A Pan-Regional airline catering to the religious tourism circuit in India, Thailand, Sri Lanka and Bangladesh is the first of many joint initiatives to be undertaken by the four countries in the coming months. This is part of an economic cooperation agreement signed in Bangkok on Friday.

Speaking to this correspondent on the phone from Bangkok, Minister of State for Health Salim Sherwani, who is likely to be given the External Affairs portfolio in a few days, described the agreement signed on Friday by ministers from all the four countries as ``historic.''

The pact, known as BISTEC (Bangladesh-India-Sri Lanka-Thailand Economic Cooperation) mooted by Thailand three years ago, will ``help all the signatory countries to synergise their resources and technical strengths so as to give a boost to their economies,'' he said.

Myanmar, which had expressed interest in joining the alliance, has been granted observer status, and will be inducted as a full-fledged member later. The airline, ``which is still at a conceptual stage'', will be known as Bistec Airlines, he said. ``Through this initiative, which we call a religion-cum-pleasure concept, we want to set an example of regional cooperation. Many agreements are signed on paper, but never fructify into projects. This one will be different. We want to prove to the world that we mean business.''

The BISTEC secretariat in Thailand, which includes officials from all member countries, has been assigned the job of drawing up a concept paper in the next three to four months, the minister said. ``Once the modalities of the concept have been drawn up, we will approach our respective governments for the necessary sanctions,'' he said. While the External Affairs Ministry will take the lead, other relevant departments such as Civil Aviation and Tourism, will also be asked to vet it and provide inputs, he added.

Although mooted by the government, the airline will not be a public sector initiative, the minister clarified. ``Thailand was opposed to the idea of national carriers dominating the alliance. So we have kept it open for the private sector,'' he said. However, national carriers like Air India will be free to hold equity in the regional airline, he said. Asked whether the new airline would not mean competition for existing airlines in member countries, Sherwani said that this would not happen as Bistec Airlines would be ``confined to the religious route, including pilgrim spots like Bodhgaya and so on.''

The project is seen not merely as an airline joint venture but ``one that will have economic spin-offs in terms of bringing in tourist dollars and upgrading our hotel industry, at the same time improving our aviation infrastructure such as runways.''

Future BISTEC initiatives could encompass areas like marine technology, horticulture (mooted by Thailand) or computer software projects (where India has an edge). The precursor of BISTEC was ISTSC (the India Sri Lanka Thailand Sub-Continent Economic Cooperation), which was mooted at the Joint Commission meeting in January 1996 attended by then External Affairs Minister Pranab Mukherjee. Thailand had put forward a detailed outline of its terms of reference for a study which could be undertaken by the Asian Development Bank, about how better economic cooperation could be achieved between Thailand, India and Sri Lanka. Although India and Sri Lanka reacted positively to the growth triangle concept, Bangladesh dragged its feet. However, Dhaka appears to have had a change of heart and is now an enthusiastic member of BISTEC.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.