India’s Kaladan project ‘almost dead’ after Paletwa fell to Arakan Army: senior Myanmar Opposition leader

India's Kaladan Multi-Modal Transit Transport Project faces setback as rebel group captures important town in Myanmar.

One of India’s flagship connectivity projects that was aimed at enhancing road and maritime connection with Southeast Asia has faced a definite setback after an important town in Myanmar was captured recently by a rebel group, a senior figure of Myanmar’s Opposition has stated. Speaking to The Hindu, the source said that the Kaladan Multi-Modal Transit Transport Project (KMTTP) has “almost died” after the rebel Arakan Army (AA) captured the Paletwa township near Mizoram border in January.

“There is no way that any connectivity project can take place in Rakhine State right now as the AA has established control in almost all the major towns and supply routes. As a result, the Kaladan project too has almost died as Paletwa is essential for this project and Paletwa is no longer in control of the military junta,” said the senior Opposition figure from Myanmar.

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KMTTP was 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. But the restive province has witnessed serious clashes between the Myanmar military and the rebel AA. The source said the AA has established control over Mrauk-U, Kyauktaw, Minbya, Thandwe, and major roads connecting these towns. AA has also captured Ann township which has Myanmar Army’s Western Command headquarters.

Kaladan project, which was estimated to cost around $500 million has been delayed for multiple reasons, including the Rohingya crisis that erupted in 2017. However, while the Rohingya crisis is rooted in religious and ethnic differences between the junta in Naypyidaw and Muslim Rohingyas, the conflict between the AA and the Myanmar military junta is not based on religious differences but fuelled by a nationalist aspiration of the Buddhist Arakanese population of the region which has been demanding a confederated or independent status. The population of Rakhine State is divided among the Buddhist Arakanese, Rohingyas and non-Rohingya Muslims, Christians, and other communities.

The fight between the AA and the junta’s forces reached a crucial turn on January 15 when the rebel forces captured Paletwa. This move has also roused concern of a tripartite conflict involving the junta’s forces, the AA, and rebels of the Chin State as Paletwa has been traditionally a Chin-majority township.

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