Paper no. 2664	09-Apr.-2008
INDO-MYANMAR RELATIONS: Visit of Senior General Maung Aye  by C. S. Kuppuswamy The signing of agreement on the Kaladan Muti Modal Transit Transport Project during the five day visit of Vice Senior General Maung Aye to India from 2 to 6 April 2008 can be considered a landmark in the growing relations between India and Myanmar.  Gen Maung Aye was accompanied by a high level delegation including members of the business community.  In addition to his engagements in Delhi, he had visited Bhopal, Sanchi, Jamnagar, Bangalore, Varanasi, Sarnath and Gaya.  While at Delhi Manug Aye had called on the Indian President and the Prime Minister.   The signing of the agreements, which included the Agreement and two Protocols of the Kaladan Muti Modal Transit Transport Project and the Double Taxation Avoidance Agreement, between the two nations took place on 02 April 2008.  He had talks with Vice President Hamid Ansari and Prime Minister Manmohan Singh.  The External Affairs Minister, the Army Chief of Staff and the Leader of the Opposition had also called on him during this visit.  The Kaladan Muti Model Transit Transport Project, as it is called, will use waterway and roadway.  The estimated investment of $135 million for this project has been reportedly sanctioned by the Union Cabinet from the “Aid to Myanmar Project”.  The project involves:  The development of Sittwe Port (also known Akyab) in Myanmar strategically located in the Bay of Bengal.  A media report indicates that India has been given the right to “build, operate and use” this port.  The city of Sittwe is located just off the Kaladan river and is being developed as an offshore hub for Myanmar’s Gas. The Kaladan river, which begins from the Lushai Hills of Myanmar flows through Mizoram in India and turns back to Myanmar before joining the sea at the Sittwe Port.  This river will be used to link Mobu in Mizoram to the Sittwe port in Myanmar The Kaladan river is generally navigable.  Thus the linkage is to be established both by waterway and roadway. The project is slated to be completed in 5 years, though the two sides expect its implementation a year ahead of schedule. The benefits that will accrue are:  The land locked North-Eastern States of India will have direct access to International Trade as well as trade exchanges with other parts of the country.  Dependence on the narrow “Siliguri Corridor” will no longer be there. Pulses from Myanmar now going to Singapore and then coming to India, will be shipped directly to India (Chennai and Kolkata) on completion of this project. The road links within Mizoram will be improved to facilitate easy movement of goods. The bilateral trade (between India and Myanmar) currently around $900 million will be boosted substantially on completion of this project. Mizoram will be largely benefited by sending its abundant supply of bamboo to other parts of India and abroad and also in receiving goods (such as rice) directly from Kolkata instead of being transported through Assam via existing rail and road links. Conclusion  India has played its cards better this time as there were earlier reports of China taking over the development of the Sittwe Port. India lost out to China on utilization of Myanmar gas from A1 & A3 blocks of the Rakhine reserves despite earlier assurances. India has also been complimented by the International Media in persuading the military junta to facilitate the last visit of UN envoy Ibrahim Gambari to Myanmar. There are also reports to show that some fissures are developing within the military hierarchy. As of now the military will have a major role to play in any new form of govt. that may be in power Hence cultivating the military junta from an overall perspective and improvement in relations will be beneficial both from trade and security points of view.
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