Context: 

This article is based on the news “Kaladan project of India ‘almost dead’ after Paletwa fell to Arakan Army: senior Myanmar Opposition leader” which was published in the Hindu. The Arakan Army, a rebel group in Myanmar, captured Paletwa (an important site in the Kaladan project) near the Mizoram border in January 2024, making the Kaladan project almost dead.

Present Political & Economic Turmoil in Kaladan Project

• Cost and viability: The Kaladan multimodal project has faced cost overruns, and its long-term economic viability remains a question, especially with competition from other regional initiatives.
• Political Instability: The conflict of interest in the population of Rakhine State divided among Buddhist Arakanese, Rohingyas, and non-Rohingyas Muslims, Christians, and other communities created political turmoil and human rights concerns leading to instability in Myanmar.

About Kaladan Project

• Kaladan project is a Multi-Modal transit transport project between India and Myanmar.
• Aim: To create a multi-modal route connecting the eastern seaport of Kolkata with Mizoram, through Myanmar.

• Background and Current Status Of Kaladan Project

  • In 1991, the project was launched under “Act East Policy”.
  • Both countries signed the Koladan multimodal project agreement in 2008 and its construction started in 2010 with a deadline of 2014, which got extended till 2024.
  • Issues such as constructing hydroelectric projects on the Kaladan River, Rohingyas, Covid outbreak led to delays in the project.

• Component Of Kaladan Project

• • Sea Route: From Kolkatta to Sittwe port in Myanmar (539 km).
  • Inland waterway: From Sittwe port to Paletwa in Myanmar via the Kaladan River (158 km)
  • Road: From Paletwa to the India-Myanmar border and then to Mizoram (110 km).

Kaladan Project Map

Significance Of Kaladan Project

• Reduced Distance: The Kaladan project will significantly reduce the distance between Kolkatta and Mizoram compared to the existing land route through Bangladesh. 
  • This will lead to faster and cheaper transportation of goods.
• Strategic Importance: The project also has strategic importance for India as it provides an alternative route to its northeastern states, bypassing the narrow Siliguri Corridor, also known as the “Chicken’s Neck”.
• Economic Development: The project is expected to boost the economic development of India’s northeastern states by providing them with better access to international trade.

News Source: The Hindu

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