Study proposes creation of North-East Corridor

An A.T. Kearney-FICCI study has proposed the creation of a North-Eastern Corridor to tap the full potential of connectivity proposals under implementation between India and its Eastern neighbours, including Bangladesh, Bhutan, Nepal and Myanmar.

The North-Eastern region, spread over nine per cent of the country’s total land mass, contributes only 3 per cent to the country’s GDP.

The region is now aspiring to change this narrative, riding on various trade and connectivity proposals floated by sub-regional or regional groupings, such as BBIN (Bangladesh, Bhutan, India, Nepal), BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation), etc. The recently submitted study mapped a total of 476 freight-carrying routes in the region. Of the total, 90 routes, connected to all seven North-East State capitals, and contribute 80 per cent of the total freight flow in the region. The North-Eastern Corridor will be connected to the upcoming East-West Corridor.

India is building two road corridors stretching over 7,300 km connecting the length and breadth of the country. The 3,000-km East-West Corridor, will connect Porbandar in Gujarat to Assam via the ‘Chicken’s Neck’(Siliguri Corridor) in West Bengal.

Efficient road infrastructure, coupled with rail connectivity, will convert the North-East into India’s window to trade with neighbours and large parts of South Asia.

The country has already undertaken a programme to connect all State capitals in the North-East by broad-gauge rail by 2020. This is over and above an additional 750-km rail projects undertaken in the region.

According to the North-Eastern Railway, work is progressing in full swing to connect Aizawl (Mizoram) and Imphal (Manipur) by rail in the next two years.

India has already established broad-gauge connectivity up to Agartala in Tripura, encircling Bangladesh and covering Silchar in the Barak Valley region in Assam.

The line has now been extended to Sabroom, Tripura, near the Bangladesh border.

By 2020, the line will extend to Chittagong port, barely 80-odd km from the Bangladesh border. The National Highways and Infrastructure Development Corporation has just awarded a ₹122-crore contract to build a 450-metre bridge over the Feni river, to ensure connectivity to the port.

This will help natural gas-rich Tripura to attract investments and trigger growth. A long-standing advocate for regional connectivity and cooperation, Tripura now exports 100MW of electricity to Bangladesh daily. The exports are expected to be stepped up to 160MW soon.

Meanwhile, the Assam government plans to convert Assam into a trade and investment hub of the North-East, riding on regional connectivity projects.

In May, Assam had set up ‘Act East’ Department headed by a former Joint Secretary (ASEAN) in the External Affairs Ministry. Consultancy firm PwC has been entrusted with drawing up an Assam Act East Policy.

Steps have also been initiated to set up a State-level think tank to take the cooperation agenda forward.

Bangladesh recently opened a consulate in Guwahati, with Bhutan also considering opening one in the city.

According to Prabir De, Coordinator, India ASEAN Centre at Delhi-based think tank RIS (Research and Information System for Developing Countries), Air India may soon launch a Guwahati-Dhaka service.

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