India grants $500m line of credit to neighbour
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On the second day of Indian Prime Minister Manmohan Singh's visit, India and Myanmar in an unprecedented move signed a slew of agreements and MoUs covering almost all aspects of their bilateral ties.
These agreements promise to bring the two neighbouring countries closer than ever before and to not allow their territories to be used by terrorists.
One of the most significant MoUs concerned the granting of US$500 million in credit by India, which Myanmar will use to upgrade its agriculture, irrigation, rail network and electric power system.
After the signing ceremony Prime Minister Manmohan Singh said the MoU and agreements will usher in a new era of cooperation for mutual development. He said India’s economic growth was there to help Myanmar to march further on its path of progress.
The most ambitious project to be undertaken jointly by the two countries along with Thailand involves the construction of a road from Moreh to Mae Sot in Thailand via Myanmar.
A land customs station will be opened at Zorinpui in Mizoram to promote border trade between Mizoram and Myanmar. The border trade points on the Indian side will have banking facilities.
A host of other projects will be taken up on both sides of the India-Myanmar border which will upgrade roads and highways, construct schools and health centres, bridges and promote agriculture related training activities.
India has decided to help Myanmar in higher education and has offered scholarships and fellowships to Myamarese researchers.
The agreements signed by both the countries have attracted barely disguised criticism from Beijing.
Meanwhile, private Indian companies have started moving in but the volume of their investment is negligible compared even to those of Thailand and Singapore. India is the fourth largest trade partner of Myanmar next to Thailand, China and Singapore.
Mamash Ghosh
