New Delhi: Aware of the Chinese inroads, the Ministry of External Affairs (MEA) has confirmed to a parliamentary committee that all Indian projects in Myanmar will be completed, albeit at a slow speed. According to the ministry, the current political turmoil and the security situation have negatively impacted the pace of progress of key Indian projects underway in Myanmar.
The most affected one is the Kaladan Multi-Modal Transit Transport which has achieved physical progress of only 10 per cent.
India’s Approach to Development Cooperation
Development cooperation is a key instrument in India’s foreign policy. The scope and reach of development cooperation have seen a considerable expansion in the past few years that includes grant assistance, Lines of Credit (LoC), technical consultancy, disaster relief, humanitarian aid, educational scholarships and a range of capacity-building programmes including short-term civilian and military training courses which have been growing consistently encompassing the geographical reach and sectoral coverage. Developmental cooperation with the partner countries is mainly being executed through instruments like grant assistance, line of credit (LoC) and concessional financing schemes.
Aid to Myanmar
An allocation of Rs 400 crore was made under this head during budget estimate (BE) 2023-24. However, it was reduced to Rs 370 and Rs 250 crore at the revised estimate (RE) 2023-24 and BE 2024-25, respectively, a drop of 37.5 per cent.
"The ensuing political turmoil and security situation have negatively impacted the pace of progress of key projects in Myanmar. However, the project works are not paused and are ongoing. With elections announced in 2025, and support being obtained from both the Government of Myanmar (GoM) and the resistance forces, project work will continue, albeit at a slower pace,” MEA said.
Impact on Ongoing Projects
Regarding the impact of ongoing political turmoil on India's developmental projects in Myanmar, the ministry said the current political turmoil has adversely impacted the developmental projects in Myanmar. "Our Mission is working in close coordination with all stakeholders including the Government of Myanmar and implementing agencies as well as local groups, to ensure steady progress in the implementation of the projects All stakeholders are currently engaged to pursue execution of ongoing projects despite security challenges," it said.