By IANS,
New Delhi : Lauding Myanmar’s “transition towards democratic government”, India Friday announced $500 million for a host of developmental projects for the Southeast Asian nation, decided to expand security cooperation, ease border trade and scale up energy investment.
Amid Myanmar’s deepening ties with China despite some problems over the suspension of a China-backed dam, New Delhi rolled out the red carpet for Myanmar President U. Thein Sein, who was accorded a ceremonial reception at Rashtrapati Bhavan, the presidential palace.
Manmohan Singh held talks with Myanmar’s reformist president, who is on his maiden visit to India after taking office six months ago, on a host of issues, including the intensification of economic, energy and security cooperation between the two countries.
Marking a major upsurge in bilateral ties, Manmohan Singh announced a $500 million line-of-credit to Myanmar for a slew of development projects, including irrigation, taking the total soft loan assistance to over $800 million.
After the talks, the two sides signed a pact on upgradation of the Yangon Children’s Hospital and Sittwe General Hospital. Another pact was signed for a programme of cooperation in science and technology from 2012 to 2015.
In an important step, the two sides agreed on “enhancing effective cooperation and coordination between the security forces of the two countries in tackling the deadly menace of insurgency and terrorism”, the joint statement said.
The leaders of the two countries reiterated that their territories would not be allowed for insurgent activities directed against each other.
In the energy sector, where China has stolen a march over India, Myanmar invited “further investment from Indian state-run and private sector companies in off-shore and on-shore blocks and construction of natural gas pipelines”.
India also announced a raft of capacity building projects that include the setting up of an Advanced Centre for Agricultural Research and Education (ACARE) in Yezin, a Rice Bio Park and an IT training institute in Mandalay. Officials from the two countries have been asked to look at expanding air links, railway, ferry and bus services. Both sides agreed to speed up the launch of ferry services on the Kolkata-Yangon and Chennai-Yangon routes.
The two decided to speed up the construction of the India-aided $120 million Sittwe deep water port, planned as a trade gateway for India’s northeastern states to Southeast Asia, with a view to making it operational by June 2013. They agreed to start the road component of the the Kaladan Multi-modal Transit Transport Project and to open an additional border trade point on the India-Myanmar border.
Significantly, Manmohan Singh congratulated Thein Sein on steps taken by him to spur “the transition towards democratic government” and offered all necessary assistance in further strengthening this democratic transition “in an inclusive and broadbased manner”.
Manmohan Singh welcomed the ongoing efforts at political, economic and social reform in Myanmar and “expressed readiness to share India’s own experiences in evolving parliamentary rules, procedures and practices”, said the statement.
New Delhi has invited the speaker of the Pyithu Hluttaw (the lower house of Myanmar’s parliament) to lead a delegation here in December for talks with Indian parliamentarians.
The embrace of reforms by Myanmar’s military-backed civilian government has cleared the space for India’s deepening of strategic, economic and political ties with Myanmar. It is not, however, clear whether New Delhi will use its leverage with Western powers to persuade them to lift sanctions against Myanmar to help spur its democratic transformation.
The Thein Sein visit coincided with his government releasing around 200 political prisoners as part of a general amnesty, bolstering the new regime’s reformist credentials. Thein Sein has taken a slew of steps, including the release of Aung San Suu Kyi from house arrest and launching a dialogue with her, that has struck a chord both domestically and internationally.