The Hindu : National : Funds allocated for alternative route to Myanmar

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Friday, Mar 28, 2008
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Funds allocated for alternative route to Myanmar

Special Correspondent

NEW DELHI: In an indication that India’s attempt to develop an alternative route to the northeast from Myanmar is nearing fruition, the Union Cabinet on Thursday approved the sanctioning of funds for upgrading Myanmar’s Sittwe port and Kaladan waterway as well as construction of a road up to the India-Myanmar border. The allocation of Rs. 535.91 crore under the ‘aid to Myanmar’ route will also cater to the construction and improvement of a 117-km road from the Myanmar border to National Highway 54.

With Bangladesh continuing to mull over India’s request to grant it access to the north-east through the Chittagong port, the access from Myanmar would ease New Delhi’s unease over a single, narrow access through a narrow corridor via West Bengal.

As Myanmar is endowed with substantial hydrocarbon deposits and in case Indian companies bag oil blocks, a pipeline could be built along the route if shipment to the eastern coast is economically unviable.

The stalled talks moved forward after External Affairs Minister Pranab Mukherjee took the initiative to reframe the proposal.

The revised offer overcame Myanmar’s sensitivities by proposing the transfer of the port to Myanmar after it is made suitable for larger vessels. Earlier, India was keen on developing the port and then operating it for some time.

Petroleum Minister Murli Deora and Minister of State for Commerce Jairam Ramesh also visited Myanmar to discuss the proposal and convince Myanmar that it was a win-win situation for both countries.

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