The only access to these seven states is through the Siliguri Corridor, a narrow strip of Indian territory wedged between Nepal and Bangladesh.

Routing all cargo destined for the northeast through this corridor causes significant transportation delays and cost overheads.

The USD 500 million Kaladan project was hence conceived as an alternative, aimed at accelerating infrastructure and economic development in both India and Myanmar.

In April 2017, India handed over the operation of completed Sittwe port and Inland Water Terminal at Paletwa to Myanmar.

The USD 120 Million port is being funded through a long-term interest-free credit line from India.