India to provide USD 500mn line of credit to Myanmar

Nay Pyi Taw, May 28 (PTI) Embarking on a "new journey" of bilateral cooperation, India today extended a USD 500 million line of credit to Myanmar as it signed 15 agreements in fields like trade, energy and connectivity with this resource-rich nation, which pledged not to allow its territory to be used by terrorists to target India. On a historic visit to Myanmar, the first by an Indian Prime Minister in 25 years, Manmohan Singh held extensive talks with Myanmar President Thein Sein, drawing up a roadmap for future course of bilateral ties. After their talks, the two countries signed a raft of agreements to boost energy supplies from Myanmar to energy-hungry India, enhance trade and cross-border rail, shipping and road links that go beyond bilateralism to cover Thailand. After being greeted with a ceremonial guard of honour here, Singh first held restricted talks with President Sein and then the two leaders led their sides to a larger format of discussions that saw them undertaking a comprehensive review of the bilateral ties and outlining a roadmap for the future. "We have embarked on a new journey of bilateral cooperation," Singh told Thein Sein, adding "we are committed to strengthening our economic and development partnership." Under the Memorandum of Understanding signed between Export-Import Bank of India and Myanmar Foreign Trade Bank, India will extend to Myanmar a concessional credit line of USD 500 million which will be utilised in infrastructure development projects, including in agriculture, irrigation, rail transport and power in Myanmar, said a joint statement issued after Singh-Sein talks held at the Presidential Palace. During the meeting, Singh also announced an annual assistance of USD 25 million over the next five years for all-round economic development of border areas in Naga Self Administered Zone and Chin province of Myanmar bordering northeast Indian states of Nagaland and Mizoram. Indian officials said meeting the developmental needs of Myanmar's border areas will go a long way in addressing Indian security concerns as several northeast Indian insurgent groups, including ULFA, NSCN (K), operate from Myanmar. Briefing media persons, Foreign Secretary Ranjan Mathai said the Prime Minister raised the insurgency issue in the context of India's security concerns, to which the Myanmar President vowed that no Indian insurgent or terrorist would be allowed to use his country's territory to target India. The substantive outcome of the Prime Minister's visit was reflected in the signing of 15 agreements -- 12 between the two governments and state-backed entities and three involving the Indian private sector. One agreement relates to air services under which even private carriers of India could fly to Myanmar and it has a provision which will allow the flights of the airlines of the two countries to pick up passengers from Myanmar on their way to destinations in third countries of South East Asia and elsewhere, which could make the services more attractive, Mathai said. As India eyes large untapped potential gas and oil resources of Myanmar, Indian private company Jubilant Energy signed an agreement with two Myanmarese entities, including a state-owned, to explore oil in an onshore block on Irrawady delta, not far from Yangon, which would add to its capacity as the company already has an offshore block in its kitty. Besides, the Foreign Secretary said, India is looking at energy-scouting opportunities for its companies as "we believe Myanmar has a very large untapped potential for gas and oil". Pointing out that Myanmar was the first country to explore and find oil in this region, Mathai said "if more gas and oil blocks emerge, the old idea of an energy pipeline from Myanmar to India could be revived". The Prime Minister conveyed to President Sein that better connectivity with Myanmar is one of the thrust areas in ties. India responded positively to a request by Myanmar for assistance in upgrading of Kalewa-Yargi road in Myanmar into a highway by the year 2016 while Myanmar would undertake to tone up Yargi-Monywa stretch into highway standard, which would finally help in connecting by road Moreh in Manipur (India) to Mae Sot in Thailand in a trilateral project. It would also help facilitate introduction of the much-publicised passenger bus service between Imphal, capital of Manipur state, and Mandalay, Myanmar's second largest city. Myanmar has also sought Indian help in repairing 71 bridges on Tamu-Kalewa-Kalemyo road in the area. The two sides, however, only expressed the intent to get the Imphal-Mandalay bus link after constructing the road beyond Kalewa at the earliest. Asked why no accord could be signed on the bus service, Mathai said because there was no road constructed for that and the two sides decided that necessary infrastructure would be put in place before operationalising the service. Under the MoU for border area development, the joint statement said both sides identified the need for special focus on prosperity of people in these areas by undertaking both infrastructure development and micro-economic needs, including upgrade of roads and construction of schools, health centres and bridges and agriculture and related activities. The Prime Minister announced India's assistance, including technological support, supply of quality seeds and help to farmers in finding market for their product, in commercial production of cardamom in Naga Self Administered Zone in Myanmar. Besides the government involvement in development projects, two leading private companies of India JK Paper Industries and Kirloskar would set up a paper mill and a pump manufacturing plants in Myanmar for which two separate MoUs were signed. The Prime Minister commended the President of Myanmar on the "path-breaking" reform measures taken by his government towards greater democratisation and national reconciliation and ongoing efforts for political, economic and social reform, which included negotiation of preliminary peace agreements with several ethnic groups as well as dialogue with various democratic political parties, including National League for Democracy led by Aung San Suu Kyi. He also expressed appreciation for the free, fair and peaceful conduct of the recent by-elections. The Prime Minister expressed India's readiness to extend all necessary assistance in accelerating Myanmar's democratic transition and developing the capacity of democratic institutions such as Parliament, National Human Rights Commission and the media. PTI