~ Vaishali Basu Sharma ~
India has been trying to pragmatically implement the framework of global connectivity through regional linkages, through various connectivity programs with Southeast Asian countries. As a strong civilizational state with greater capabilities and broader visions, India is expected to surge ahead with this goal. Conjoining the Southeast Asian region, which is widely separated based on ‘territoriality’, was the main theme of India’s ‘Look East Policy’. That in itself has paid rich dividends. As the “Look East Policy” was rebranded into the “Act East Policy” to emphasize a more proactive and action-oriented approach, the strategic significance of the Kaladan Multi-Modal Transit Transport Project (KMTTP) increased manifold. According to the Ministry of External Affairs, Government of India, the project “aims to provide connectivity between India and Myanmar from ports on India’s eastern seaboard to Myanmar’s Sittwe port and further to Northeast India through Myanmar using sea, river and road transport modes to facilitate movement of goods”.
Geographically, Myanmar is a gateway to Southeast Asia and can be a central hub for the exchange of goods, services and technology. Myanmar, which is the land bridge between India and South East Asia is widely neglected in terms of ‘connectivity’. The strategic significance of the Kaladan Multi-Modal Transit Transport Project in enhancing connectivity between India and Myanmar cannot be emphasized enough. It aims at connecting the land and the Maritime Bordering Areas through a multimodal transportation project under the Nodal agencies of the Ministry of External Affairs on the Indian Side and the Ministry of Foreign Affairs on the Myanmar side.
Valued at $484 million, it links Mizoram’s capital, Aizawl, to Myanmar’s Sittwe port. As part of this initiative, a highway connects Aizawl to Paletwa, a town in western Myanmar, just over 100km from the Mizoram border. The project will also connect Kolkata port to Sittwe port in Myanmar’s Rakhine via the Bay of Bengal. An inland waterway will link Sittwe to Paletwa, and a road will extend further from Paletwa to Zorinpui in Mizoram. From Paletwa to Sittwe port, goods will also be transported along the Kaladan River, with the port having been developed by India. From Sittwe, cargo can be forwarded to further destinations. This route serves as an alternative to the land route through the Siliguri corridor used by the northeastern states.
The project, when completed, will provide an alternative route to the already overburdened and overstretched Siliguri corridor in West Bengal, popularly known as the Chicken’s Neck. The KMTTP project also enables India to bypass Bangladesh for transporting goods from Kolkata to the Northeast.Upon completion of the road, waterway, and port project, the Northeast will be significantly closer to mainland India. The current distance from Lawngtlai in Mizoram to the Haldia port in Kolkata via the Siliguri corridor is about 1,880 kilometres. The development of National Highway 502A (NH 502A), which is a crucial part of the KMTTP Lwangtlai will be connected to the Indo-Myanmar border, then to Paletwa by highway, and finally to Sittwe via the waterway, reducing the distance to roughly 930 kilometres. This shortened route will save both time and costs in the movement of goods between mainland India, Mizoram, and the Northeast.
However, the bilateral project of India and Myanmar passes through the Rakhine state of Myanmar, inhabited by the Rohingyas, where the related issues of violence have hampered the potential of the project. Lately, there has been growing concern that the ongoing civil war in Myanmar could further impact the KMTTP. The escalating conflict, particularly in regions like Rakhine and Chin states, poses significant security challenges. It poses a threat to India’s efforts to reduce reliance on the strategically crucial Siliguri corridor, which links the Northeast region to the rest of the country. With most of Rakhine now under Arakan Army (AA) control, only the regional capital Sittwe and the small port city of Maungdaw remain under government authority. The AA has taken control of key areas along the Kaladan River, which is crucial for the project’s road component. In fact, Paletwa, a key point along the KMTTP has witnessed fierce battles between the AA and the military junta.
With repeated ceasefire failures and a seemingly absent political solution to the civil war, speculation looms large that progress on the KMTTP could be potentially delayed or hindered.
Undoubtedly, connectivity projects in conflict zones are difficult to implement and even more difficult to sustain. Yet to India’s credit, it has managed to operationalise the project partly. Despite negative speculation, most parts of the project are finished—including the construction of Sittwe Port, a river terminal at Paletwa, and the dredging of the 158-kilometre segment of the Kaladan River. On the Indian side, the extension of the Aizawl-Saiha National Highway to the Indo-Myanmar border at Zorinpui is nearly complete. India also handed over six cargo vessels worth $81.29 million on 26 June 2017. Each vessel has a cargo capacity of 300 tonnes. These vessels will be used for the transportation of goods from Sittwe to Paletwa.
It is only the Paletwa-Zorinpui (in Mizoram) highway which is yet to be constructed. But efforts are ongoing to expedite its completion. It appears that a consortium of five Myanmarese firms has signed an agreement with the Indian Railway Construction Company (IRCON) for the completion of the highway. According to northeast expert Rajeev Bhattacharyya, “India realised that the project could not be completed without the support of the Arakan Army. Subsequently, several meetings were held between functionaries of the Arakan Army and Indian government officials to hammer out a solution. The Arakan Army reportedly assured India that it was not against the project, but only wanted to protect the interests of the local people.”
In significant acknowledgement from the Arakan Army, considering the ongoing conflict and the strategic importance of the Paletwa-Zorinpui highway for the project, Twan Mrat Naing, the Commander-in-Chief of the Arakan Army, emphasized the importance of securing and stabilizing Paletwa for the successful and safe implementation of the Kaladan project. His statement highlights the critical role that stability in the region plays in ensuring the project’s progress.
On January 16-17, 2025, the Indian Ambassador to Myanmar, Abhay Thakur, reviewed the operations of the Kaladan Project at the Sittwe Port, a crucial component of the KMTTP. Since its inauguration in May 2023, the port has handled over 150 vessels transporting a variety of cargo. During his visit, Ambassador Thakur met with local leadership, including the Chief Minister of Rakhine State, to discuss bilateral development initiatives. As the Ambassador emphasized the importance of an early return to peace and stability in the region, which is necessary for maximizing the potential of the Kaladan Project, his review underscores India’s commitment to the successful implementation of the Kaladan Project and its role in fostering regional connectivity and development.
Connectivity of India and Southeast Asia through the Kaladan Project of India-Myanmar will prove beneficial for the overall development and integration of the region from a global perspective, minimising the country-wise disparity in the region. It opens up new markets and business opportunities, benefiting both India and Southeast Asian countries. Reducing dependency on traditional routes, the Kaladan project is a pivotal initiative that drives regional development, economic integration, and strategic cooperation between India and Southeast Asia. By enhancing access to global trade routes, the project reduces regional disparities and promotes balanced development and integration on a global scale. Overall, the Kaladan Project.
Author is
Vaishali Basu Sharma, an analyst on geopolitical and macroeconomic issues. She can be reached at [email protected]
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