India’s ambitious Kaladan Multi-Modal Transit Transport Corridor Project, which seeks to connect the country’s northeastern states to the Indian Ocean through Myanmar, is facing severe delays due to ongoing political instability in Myanmar. The delays are threatening not only the completion of the project but also the broader goals of enhanced regional trade and connectivity between India and Southeast Asia.
The Kaladan project, initially launched in 2008 under India’s “Look East Policy” and later revived under the Act East Policy, aims to create a vital transportation corridor linking the Sittwe Port in Myanmar’s Rakhine State with India’s landlocked northeastern states, especially Mizoram. The plan involves shipping cargo from Indian ports such as Kolkata and Chennai to Sittwe, where goods would then be transported by river along the Kaladan River to Paletwa in Myanmar’s Chin State. From there, a critical 100-kilometer highway would carry goods to Zorinpui on the Indian border before continuing along National Highway 54.
While the Sittwe port and the Paletwa jetty have been upgraded, construction of the crucial Paletwa-Zorinpui highway has been significantly delayed. Originally expected to be completed by 2014 at a cost of Rs 536 crore, the project’s budget has skyrocketed to over Rs 3,200 crore due to security challenges and ongoing political unrest. The latest deadline for completion has been set for July 2025, though additional delays are expected as Myanmar’s political crisis shows no signs of abating.
At the heart of the delay is the political turmoil within Myanmar, which remains embroiled in a civil war-like conflict. The Myanmar military junta, led by General Min Aung Hlaing, controls key regions, including Sittwe, but much of Rakhine and Chin States have fallen under the control of the Arakan Army (AA), a powerful ethnic insurgent group. The capture of Paletwa by the AA in recent months has posed a direct challenge to the Kaladan project’s completion. As the Arakan Army solidifies its control in the region, security risks continue to hinder construction efforts, further escalating the project’s cost and timelines.
Myanmar’s conflict has left nearly 25% of the country’s territory classified as a conflict zone, and much of the country is under the control of resistance forces, including ethnic militias. The Arakan Army’s dominance in Rakhine State has also intensified tensions, capturing strategic military bases and weakening the Myanmar military’s foothold in the region. As a result, Myanmar’s ability to restore peace and stability remains uncertain, and the completion of the Kaladan corridor becomes ever more challenging.
The delay of this critical infrastructure project is of particular concern to India, which shares a 1,643-kilometer porous border with Myanmar. The region has long been vulnerable to cross-border insurgency, smuggling, and illegal activities. The Kaladan project is seen as a way to bolster regional security, stimulate economic growth, and improve connectivity between India and Southeast Asia, helping to counter Chinese influence in the region. However, the security risks posed by Myanmar’s unrest make it difficult to ensure smooth progress.
Recognizing the urgency of the situation, India has actively engaged both the Myanmar military junta and ethnic groups such as the Arakan Army to safeguard its interests. Ambassador Abhay Thakur led diplomatic efforts in January 2023, visiting Myanmar to assess the progress of the project and promote bilateral cooperation. During his visit, Thakur inspected operations at the Sittwe port, which handled more than 150 cargo vessels by May 2023, delivering essential supplies like food, medicine, and construction materials. Thakur emphasized the importance of restoring peace and stability in Myanmar, stressing that the success of the Kaladan project hinges on a return to normalcy in the region.
Both India and Myanmar stand to benefit immensely from the completion of the Kaladan Multi-Modal Corridor. For India, the project would provide direct access to Southeast Asia, boosting regional trade, economic growth, and strategic influence. Myanmar, on the other hand, would gain improved infrastructure, greater connectivity with its neighboring countries, and an influx of investments, contributing to its own economic development.
However, without peace and stability, these benefits remain out of reach. The ongoing political crisis in Myanmar not only threatens the completion of the Kaladan Corridor but also exacerbates regional security concerns, hindering broader regional integration. As such, restoring peace in Myanmar is critical not only for the success of the Kaladan project but also for ensuring long-term stability in the region. Both nations must work together to address the challenges posed by the conflict, as stability in Myanmar is key to realizing the full potential of the Kaladan Corridor and strengthening India-Myanmar relations for years to come.
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