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ImplementationoftheKaladanMultiModalTransitTransportProjectinMyanmarattheRevisedCostEstimateofRs2904.04Crore

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PressInformationBureau
GovernmentofIndia
Cabinet
14October201514:00IST

ImplementationoftheKaladanMultiModalTransitTransportProjectinMyanmarattheRevisedCostEstimateof
Rs2904.04Crore

TheUnionCabinetchairedbythePrimeMinisterShriNarendraModi,todaygaveitsapprovalfortheRevised
CostEstimate(RCE)ofRs.2904.04croresfortheKaladanMultiModalTransitTransportProjectinMyanmar.
TheprojectwillprovideanalternateaccessroutetotheNorthEasternregionofIndiaandcontributetowardsthe
region's economic development. Being a key connectivity project, it will promote economic, commercial and
strategiclinksbetweenIndiaandMyanmar.
Background:
TheKaladanMultiModalTransitTransportProjectwasjointlyidentifiedbytheIndiaandMyanmartocreatea
multimodalmodeoftransportforshipmentofcargofromtheeasternportsofIndiatoMyanmaraswellastothe
NorthEasternpartofIndiathroughMyanmar.Thisproject,whichwillconnectSittwePortinMyanmartothe
IndiaMyanmar border, is expected to contribute to the economic development of the NorthEastern States of
India,byopeningupthesearoutefortheproducts.ItalsoprovidesastrategiclinktotheNorthEast,thereby
reducingpressureontheSiliguriCorridor.Intheabsenceofanalternateroute,thedevelopmentofthisproject
notonlyservestheeconomic,commercialandstrategicinterestsofIndia,butalsocontributestothedevelopment
ofMyanmar,anditseconomicintegrationwithIndia.Sincetheprojectisofpoliticalandstrategicsignificance,it
wasdecidedtoexecuteitthroughIndia'sgrantassistancetoMyanmar.
FollowingpreparationoftheDetailedProjectReports(DPR)forthewaterwayscomponentcomprisingPortand
InlandWaterwaysTerminal(IWT)inApril2003andtheroadcomponentinMarch2005,M/sRITESLimited,a
Public Sector Undertaking under the Ministry of Railways, suggested a waterway route from Sittwe Port to
Kaletwa (225 kms) along the Kaladan River and thereafter a roadway from Kaletwa to the IndiaMyanmar
border(62kms).TheCabinetapprovedtheprojectatacostofRs.535.91croresinitsmeetingheldinMarch
2008.
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