The Hindu : Tamil Nadu / Chennai News : India, Myanmar trade project in final stage

Online edition of India's National Newspaper
Wednesday, Mar 14, 2007
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Tamil Nadu

Tamil Nadu - Chennai

India, Myanmar trade project in final stage

Staff Reporter

Trade can be done directly with South-East Asian countries

BUILDING ECONOMIC BRIDGES: Myanmar's Ambassador to India U. Kyi Thein inaugurates the roadshow on `SME India 2007' in Chennai on Tuesday. Indo-Myanmar Chamber of Commerce and Industry president G.L. Goenka (right) is also in the picture. — P hoto: S. Thanthoni

CHENNAI: India and Myanmar are putting the final touches to a joint project, which will enable the northeastern States to conduct trade directly with South-East Asia through Myanmar's Sittwe port, bypassing Bangladesh.

In the last week of March, Myanmar's Deputy Minister of Transport Tint Swe will lead a delegation to New Delhi for discussions to finalise the details.

Addressing a seminar organised by the Indo Myanmar Chamber of Commerce and Industry and the India-ASEAN-Sri Lanka Chamber of Commerce and Industry, Myanmar's Ambassador to India U. Kyi Thein said the project would also boost the bilateral relationship. "The seven sister states [of the north-east] can use it to facilitate trade to Myanmar and beyond," he said.

Indian investment

India is investing $103 million to develop the Sittwe port on Myanmar's northern coast, about 160 km from Mizoram. Myanmar committed $10 million for the venture, which is part of the Kaladan Multipurpose project.

Three-part scheme

Describing the three-part scheme, Mr. Thein said it involved the development of the Sittwe port, a waterway along the Kaladan river linking the port to the city of Kaletwa and a 70-km road link from there to Mizoram.

Earlier in the day, India's Minister for the Development of the North-East Region Mani Shankar Aiyar also emphasised the importance of the Sittwe project.

With the unreliability of transit routes through Bangladesh, the north-eastern states are forced to use the "chicken neck" corridor of Siliguri as their sole connection to the rest of the country.

Stress on sea route

"We need to develop a sea route to bypass Bangladesh. The Sittwe port will be an exit point to mainland India. It is only 12 hours from Haldia, 36 from Vishakapatnam and 48 from Tuticorin," he said.

Gas pipeline

Speaking about the proposed Indo-Myanmarese gas pipeline, Mr. Thein said negotiations were still on.

By April or May, Myanmar was likely to tell India how much natural gas it was willing to produce and sell.

The Indian Government was expected to make a final decision on the pipeline project subsequently, he said.

Increase exports

Mr. Thein urged India to increase its exports to Myanmar, pointing out that the balance of trade was skewed. "We have to promote border trade, normal [maritime] trade and transit trade from both sides to reach the target of $1 billion bilateral trade," he said.

The IMCCI will organise a Small and Medium Enterprises India 2007 exhibition from November 25 to 28 in Yangon to explore business opportunities in Myanmar.

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