By IRNA
New Delhi : The revised offer approved by External Affairs Minister Pranab Mukherjee overcomes Myanmar’s sensitivities on developing the Sittwe port which could serve as an alternative gateway to north-eastern States.
The new package envisages immediate transfer of the port to Myanmar after it is made suitable for larger vessels, Doordarshan news website reported here.
Earlier, India wanted to develop the port and operate it for some time before transfer.
There was lack of response from Myanmar on this issue.
India is engaged with Myanmar on stepping up trade through more land routes as part of its Look-East policy.
Mukherjee is keen that the north-east States benefited in the process.
As Bangladesh is mulling India’s request for transit rights for goods from the mainland to the north-east, the proposed multimodal route through Myanmar offers an attractive substitute.
It could continue as an alternative route even if Dhaka grants India transit rights and access to the Chittagong port.
The USD 120-million project envisages upgrading the port and a linked waterway to upper Myanmar.
India has proposed RITES as the prime contractor for the project, which is expected to be completed in three years from the date of approval.
“The connectivity of the rest of India with the north-east and north-east Asia would improve significantly if this project becomes a reality. Myanmar will benefit from additional revenues collected through goods going to India. It will also have a 225-km-long navigable waterway in the bargain”, said Minister of State for Commerce Jairam Ramesh.
At a meeting with Myanmar Ambassador, he proposed an addition of 18 items to the existing trade list, including life-saving drugs, fertilizers and cotton fabrics.
Myanmar also has hydrocarbon deposits and Indian companies are competing with Chinese and south-east Asian companies for off-shore exploration rights. India could build a pipeline to transport the oil to the north-east or ship it to the eastern coast.
Ramesh said that with the rise in trade he hoped that Myanmar would give a positive reply to the additional access points as well as to expansion of the list of tradable items from 22 to 40.