A senior Bangladeshi official says India has approved a $750 million loan to Bangladesh to develop ports, railways and other infrastructure ahead of a visit to Dhaka by the Indian prime minister.

Bangladeshi economic relations division chief Musharraf Hossain Bhuiyan says the Indian government approved the disbursement of the money as part of a 2010 agreement offering Bangladesh a $1 billion credit line. Bangladeshi media reported the comments of the finance ministry official on Sunday.

Indian Prime Minister Manmohan Singh begins a two-day visit to Bangladesh on Tuesday. He is due to hold talks with his Bangladeshi counterpart, Sheikh Hasina, on a range of issues, including implementation of last year's loan agreement.

Other issues on their agenda include water rights along major rivers shared by both nations, and proposals to swap disputed enclaves along parts of the Indian-Bangladeshi border.