Sittwe Port Agreement

News Excerpt: 

After the Chabahar Port in Iran, India has gained the right to operate a second overseas port, Sittwe, in Myanmar.

About the news:

  • The Ministry of External Affairs (MEA) has approved a proposal for India Ports Global (IPGL) to take over the operations of the entire port located on the Kaladan River.
  • IPGL is 100 percent owned by the Ministry of Ports, Shipping and Waterways, Government of India.
  • In the Indian Ocean, China and India are engaged in a struggle to expand their economic influence. Ports have become highly significant in this rivalry. China, in particular, has been aggressively seeking to acquire operating rights for numerous ports.


  • Kaladan project is aimed at connecting the port of Kolkata with the port of Sittwe in Rakhine or Arakan State which would then be connected to Mizoram by road and the Kaladan river which flows by Paletwa.
  • The Kaladan Multi Modal Transit Transport Project was jointly identified by India and Myanmar to create a multi-modal mode of transport for shipment of cargo from the eastern ports of India to Myanmar as well as to the North-Eastern part of India through Myanmar. 
  • This project, which will connect Sittwe Port in Myanmar to the India-Myanmar border, is expected to contribute to the economic development of the North-Eastern States of India, by opening up the sea route for the products. 
  • It also provides a strategic link to the North-East, thereby reducing pressure on the Siliguri Corridor. 
  • In the absence of an alternate route, the development of this project not only serves the economic, commercial and strategic interests of India, but also contributes to the development of Myanmar, and its economic integration with India. 
  • Since the project is of political and strategic significance, it was decided to execute this project through India's grant assistance to Myanmar.

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