According to a report by Nava Thakuria, a journalist based in Guwahati and published on Borderlens.com, India’s ambitious Kaladan Multi-Modal Transit Transport Corridor Project, aimed at connecting a port in Myanmar’s Rakhine/Arakan State with India’s northeastern states, is facing significant delays due to the ongoing political turmoil in Myanmar.
Originally agreed upon in 2008 as part of India’s “Look East Policy,” and later revamped under the Act East Policy, the project is designed to enhance regional trade and connectivity between India and Myanmar.
The project aims to establish a transportation corridor from the Sittwe Port in Rakhine State, Myanmar, to the landlocked northeastern states of India, notably Mizoram. Cargo from Kolkata, Chennai, and other international ports would be shipped to Sittwe, then transported via the Kaladan River to Paletwa in Myanmar’s Chin State. From there, the goods would be transported by road to the Indian border at Zorinpui, before continuing along National Highway 54 to other parts of eastern India.
However, the road to completion has been fraught with delays. While the Sittwe port and Paletwa jetty have been modernized, construction of the crucial 100-kilometer highway connecting Paletwa to Zorinpui remains incomplete. Originally planned for completion by 2014 with a budget of Rs 536 crore, the cost of the project has now ballooned to over Rs 3,200 crore due to security and political challenges. With the latest deadline set for July 2025, further delays are anticipated as Myanmar remains embroiled in what has been described as a civil war-like situation.
The root of the crisis lies in Myanmar’s political instability. While the Myanmar military junta, led by Min Aung Hlaing, retains control of Sittwe, much of the surrounding Rakhine and Chin States has fallen under the control of the Arakan Army (AA), an ethnic armed group that has gained significant ground in recent months. The Arakan Army’s military gains have included the capture of Paletwa, which poses a direct challenge to the completion of the Kaladan project.
The situation in Myanmar has caused widespread disruptions across the country. Resistance forces, including ethnic militias, now control substantial portions of the country. As the junta loses ground, Myanmar is experiencing a wave of conflict, with 25% of its territory currently considered a conflict zone. The Arakan Army has seized control of 15 of the 17 townships in Rakhine State, including crucial military bases and the junta’s Western Command headquarters.
India’s northeast shares a porous 1,643-kilometer border with Myanmar, making the region susceptible to cross-border insurgency and smuggling. In an effort to safeguard its interests and ensure the success of the Kaladan project, New Delhi has sought to engage both the military junta and ethnic armed groups like the Arakan Army. Recently, Indian diplomats in Yangon, led by Ambassador Abhay Thakur, have visited Myanmar to assess the situation and promote bilateral cooperation. The Indian government has also hosted meetings with ethnic groups, including the Arakan Army, to discuss the project’s future.
During his visit in January 2023, Ambassador Thakur reviewed operations at the Sittwe port, which has handled over 150 cargo vessels since its inauguration in May 2023. These shipments have largely been comprised of essential supplies, including food, medicine, and construction materials. Thakur emphasized the importance of restoring peace and stability in Myanmar to unlock the full potential of the Kaladan Corridor, which would boost trade and connectivity between India and Southeast Asia.
Despite these efforts, the political instability in Myanmar continues to pose significant challenges. As the Arakan Army consolidates its hold over the region, it remains uncertain when the construction of the Paletwa-Zorinpui highway will be completed, and when the full trade corridor will be operational. The unrest is not only delaying critical infrastructure development but also complicating regional security and trade dynamics.