Cabinet clears Myanmar transport project’s revised estimate

New Delhi, Oct 14 (IANS) The union cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Revised Cost Estimate (RCE) of Rs.2,904 crore for the Kaladan Multi Modal Transit Transport Project in Myanmar, a government statement said.

The Kaladan Multi Modal Transit Transport Project is aimed at the economic development of India’s northeastern region by providing an alternate access route. It will also promote economic, commercial and strategic links with Myanmar.

The project being executed with India’s grant assistance will connect Sittwe port in Myanmar and open a sea route. It will also establish a strategic link to India’s northeastern region and reduce pressure on the Siliguri Corridor, the statement added.

Another major benefit of the project is the furthering of Myanmar’s economic integration with India along with political and strategic significance, the statement added.

In 2008, the project cost was pegged at Rs.535.91 crore when it was first approved by the cabinet, which got revised on Wednesday.

The detailed project report incorporated waterways and road component in the project in 2003 and 2005.

The Indian Railways subsidiary Rail India Technical and Economic Service (RITES) suggested a 225-km waterway route from Sittwe port to Kaletwa along Kaladan river preceeded by a 62-km roadway from Kaletwa to the India-Myanmar border.

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