New Delhi: India on Wednesday increased the project cost of Kaladan Multi Modal Transit Transport Project about six times which will benefit both the North East and the neighbourng Maynamar. This was announced by the Union Minister for IT Ravindra Prasad after the cabinet meeting which approved the same.
Justifying six fold increase from the original cost estimate,Prasad said that the main component of the port project is due to the doubling of the connected road network. The road has been doubled from two lane to four lanes necessitating high cost, he said.
The project will provide an alternate access route to North Eastern region of India and contribute towards the region’s economic development. Being a key connectivity project, it will promote economic, commercial and strategic links between India and Myanmar. The Kaladan Multi Modal Transit Transport Project was jointly identified by the India and Myanmar to create a multi-modal mode of transport for shipment of cargo from the eastern ports of India to Myanmar as well as to the North Eastern part of India through Myanmar. This project, which will connect Sittwe Port in Myanmar to the India-Myanmar border, is expected to contribute to the economic development of the North Eastern States of India, by opening up the sea route for the products. It also provides a strategic link to the North East, thereby reducing pressure on the Siliguri Corridor. In the absence of an alternate route, the development of this project not only serves the economic, commercial and strategic interests of India, but also contributes to the development of Myanmar, and its economic integration with India.
The Cabinet had approved the project at a cost of Rs. 535.91 crores in its meeting held in March 2008. Initially India had tried to persuade Bangladesh to offer transport and transit rights to the NE states but Bangladesh then refused to grant such rights, including access to its Chittagong port, less than 200 km away from Agartala. The project is being piloted and funded by Ministry of External Affairs.
According to a 2008 agreement between the two nations, the MEA proposed to revive this route to establish easy access to North East.Apart from trade and commerce, the project has immense importance in ensuring India’s political and military interests in the region rivalling China.
