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India loans Burma $10 million for Kaladan project
February 2, 2007: India has extended to Burma a soft loan of 10 million US dollars at an annual interest of 2.5 percent to cover the expenses of its share of the Kaladan multi-modal transport project connecting its Sittwe and Kaletwa ports with Mizoram.
A meeting was held in the Prime Minister's office on January 19 to study the detailed project report prepared by the Rail India Technical and Engineering Services (Rites). It was attended by the principal secretary to the Prime Minister and the foreign secretary.
"The total estimated amount for the Kaladan project is pegged at Rs 860.95 crore. Myanmar had to provide 10 million US dollars as its share. Since Myanmar was unwilling to invest the money, India agreed to provide a soft loan at about 2.5 per cent annual interest," sources in the PMO said.
"The Ministry of Finance has confirmed the amount being sanctioned," sources said adding, "The Centre is keen to have an alternative route to the sea from the Northeast."
The Kaladan multi-purpose project will link Mizoram with Burma. It begins from Burma's Sittwe port up the Kaladan or Kolodyne River that flows through Mizoram to the small port of Paletwa in Burma, covering a distance of 222 km.
India has to spend US $ 103 million on developing the Sittwe Port under the Kaladan project which will take three years to complete. Mizoram will emerge as the hub and development of the port would be of significant strategic value.
Sittwe Port is 160-kilomteres from Mizoram, and is located in West Burma, on the mouth of the Kaladan River and on Bay of Bengal.
Sources: Mizzima