Cost of Kaladan multi modal transport project in Myanmar escalates to Rs2,904 cr
15 Oct 2015
The union cabinet chaired by Prime Minister Narendra Modi on Wednesday gave its approval for the revised cost estimate (RCE) of Rs2,904.04 crore for the Kaladan multi modal transit transport project in Myanmar.
The project involves development of a waterway route from Sittwe Port in Myanmar to Kaletwa (225 km) along the Kaladan River and thereafter a roadway from Kaletwa to the India-Myanmar border (62 kms).
State-owned RITES Limited had prepared the detailed project reports (DPR) for the waterways component comprising port and inland waterways terminal (IWT) in April 2003 and the road component in March 2005.
The cabinet had approved the project at a cost of Rs535.91 crore in its meeting held in March 2008.
Once implemented, the project will provide an alternate access route to India's North East 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 as well, says an official release.
The Kaladan multi modal transit transport project was jointly identified by 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 parts 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. Since the project is of political and strategic significance, it was decided to execute it through India's grant assistance to Myanmar.