India, Myanmar ink pacts for co-operation, development
A new onshore oil block that will be explored by Jubilant Technologies, a paper mill to be set up by JK Mills and a pump plant by Kirloskar are the immediate business gains of Prime Minister Manmohan Singh’s visit to Myanmar, the first by an Indian Prime Minister in 25 years.
A joint statement by the two governments listed a host of other measures to bring India and Myanmar closer together. These included initiatives in economic cooperation, connectivity, development cooperation, trade and investment promotion, capacity building and human resource development, culture & people-to-people contacts, and academic exchanges.
Gaps in connectivity and physical infrastructural linkage with Myanmar in the highways, railways and civil aviation sectors are to be filled.
| KEY TAKEAWAYS |
| * Setting up an information technology institute. India would supply the equipment, identify a suitable partner institute in India for exchange programmes and knowledge sharing. S Ramadorai, the PM's advisor on Skills Development, will be advisor |
| * An Advanced Centre for Agriculture Research and Education at Yezin Agriculture University in Myanmar to be implemented by Indian Agricultural Research Institute |
| * A rice biopark to be set up in Naypyitaw, with advice and assistance from the M S Swaminathan Research Foundation, Chennai |
| * Like the Border Haats on the India-Bangladesh border, one will be set up on a trial basis at Pangsau Pass, Arunachal Pradesh |
| * United Bank of India will open representative branches in Myanmar. India to help Myanmar in training and capacity building in the financial sector; Reserve Bank of India and the Central Bank of Myanmar to have an MoU for currency arrangements and for enhancing cooperation. State Bank of India or other banks as mutually agreed to provide technical knowhow to Myanmarese banks; |
| * Joint Trade and Investment Forum involving representatives from industry and government to enhance bilateral trade and investments to be set up; |
| * A concessional $500 mn line of credit (LC) to Myanmar was announced during the visit of President Thein Sein in October 2011. Now, MoU for operationalisation of the LC to be signed between EXIM Bank of India and the Myanmar Foreign Trade Bank. The Myanmarese side identified various areas, like agriculture and irrigation, railways, power, etc, to be covered under the LC; |
| * A number of education and cultural MoUs also signed |
The scale of most of the projects undertaken is small, in recognition of the capacities of both sides. For instance, $5 million (Rs 27 crore) per year for five years will be allocated for small developmental projects such as schools, small roads & bridges, agriculture and agro-processing projects and related training programmes in the Naga Self Administered Zone (in the Sagaing division, bordering Manipur) and the Chin State (bordering Mizoram) in Myanmar. Road connectivity that will enable the Imphal-Mandalay bus service to be operational through the year (the road is currently unusable during the rainy season) will be undertaken.
An Air Services Agreement was signed, enabling Indian carriers to combine their flights to Myanmar with other destinations in Southeast Asia and elsewhere. A working group will discuss possibilities of enhancing rail connectivity, movement of freight from India to Southeast Asia and cooperation in the railway sector.
At the political level, the Prime Minister and President Thein Sein of Myanmar assured each other that territories of either country would not be allowed to be used for activities inimical to the other. This includes insurgents of all kinds.