The Hindu Business Line : India, Myanmar sign pact on Kaladan project

New Delhi, April 2 The recent Cabinet approval for the Rs 536-crore Kaladan Multi-Modal Transit-cum-Transport Project providing other parts of India access to Mizoram and to other North-East States as well as an outlet for the North-East States to the sea was given an impetus today with the signing of agreement with Myanmar Government.

Official sources told Business Line here that this alternative route is crucial in view of long distance involved and the severe pressure exerted on the extant Siliguri Corridor. Further, it accords another alternative route to counter Bangladesh’s continued reluctance in providing India transit rights through its territory to the North-East.

An agreement to kick-start the Kaladan multi-modal transit-cum-transport project was signed by the representatives of the Ministry of External Affairs of India and the Ministry of Foreign Affairs from the Government of Myanmar in the presence of the Prime Minister, Dr Manmohan Singh, and the visiting Senior General, Mr Maunge Aye, of Myanmar on Wednesday. The Inland Waterway Authority of India would be Project Development Consultant.

The project would link Kolkata-to-Sittwe-to-Kaleutuwa-to-Myanmar Border (in Mizroam). Besides development of 225-km waterway, the project envisages construction of two roads viz., NHI54 to Border of 117 km and Kaleutwa to Boaorder of 52 km. Since the proposed route would whittle down both time as well as distance of movement of goods, the costs are likely to go down and availability of goods to augment in the region. The sources said that while promoting trade and commerce to the North East States, the project is likely to promote their economic development and reduce insurgency in the area distinctly.

Clearing reservations

When contacted, the Minister of State for Commerce, Mr Jairam Ramesh, said that it was the single-minded pursuit by the Prime Minister Dr Singh and the Union External Affairs Minister, Mr Pranab Mukherjee, that despite six years on the drawing board the project was cleared recently.

He said that when Myanmar held some reservations on executing the project on a BOT (build, operate and transfer) basis “we changed the paradigm from BOT to BTU (build, transfer and use). He said this is the most significant project to be undertaken as it opens up connectivity between India and the North East via Mizoram. It also provides the North-East into a web of connectivity with South East Asia and as such it is a strategic one of immense geopolitical importance”. He said the project has been cleared in the face of bureaucratic nitpicking and by reservations from the Planning Commission and the Finance Ministry.

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