Key 'Act East' project on creating shipping corridor misses deadline

A key project of the Narendra Modi government's 'Act East' policy to provide a multi-modal transport corridor for shipment of cargo from the eastern ports of India to Myanmar as well as to the northeast is far from reality owing to financial crisis faced by a joint venture partner and adverse security scenario in the project area.

While the waterways component of the Kaladan Multi-modal Transit Transport Project (KMTTP) has been completed in 2017, the progress in the roadways component is only 3% when the deadline for completion is May 2020. It may take another three years to complete, the government has informed a Parliamentary panel.

The Ministry of External Affairs had conceptualised the Rs 2,904.04-crore KMTTP to create a multi-modal transport corridor for shipment of cargo from the eastern ports of India to Myanmar as well as the north-eastern parts of India via Myanmar.

The project included a 158-km waterway component in Kaladan River from Sittwe to Paletwa in Myanmar and a 109-km road component from Paletwa to Zorinpuri on the Indo-Myanmar border in Mizoram.

With the project missing its deadline, the Parliamentary Standing Committee on Home Affairs has expressed its displeasure over the physical progress of the road component, saying it is "not at all satisfactory". It said this indicated "failure of proper planning, monitoring and supervision".

Acknowledging that the project is an "integral" part of the Act East Policy and will contribute to the economic development in the whole region, the panel in its report on Ministry of Development of North-Eastern Region's Demands for Grants said that the reasons for the delay should be addressed soon and project should be completed at the earliest so that "connectivity woes" of the northeast are resolved.

According to the report, the Inland Waterways Authority of India is the project development consultant for waterways component and Ircon Infrastructure Services Ltd acts as the project management consultant for the road component.

The 158 km waterway component was awarded to Essar Project (India) Ltd in 2010 and the originally approved works were completed in May 2017 following which a port operator has been appointed for operation and maintenance of the waterways component on February 1 this year. The Port has been handed over to the Myanmar government.

The road component was allocated to a joint venture of M/s EPIL and M/s C&C Construction Ltd in March 2017. "Acute financial crisis faced JV partner M/s C&C Construction Ltd, delayed action by JV partner M/s EPIL, non-availability of access to the project site from India-Myanmar border and adverse security situation in the project area are the main reasons for delays in the project," the Ministry has told the panel while also admitting that the progress is "not at all satisfactory".

The panel noted, "only recently necessary clearance for movement of men and material through Mizoram has been obtained and work has resumed. It is likely to take another three years (2023-24) for completion of the project."