Mizoram Gov’t eyes resumption of Kaladan Project under Arakan Army control

By Admin 14 Mar 2026

DMG Newsroom

14 March 2026, Kyauktaw

The Mizoram state government in India has expressed its hope to resume the Kaladan Multi-Modal Transit Transport Project (KMMTTP) in Arakan State, currently under the control of the Arakan Army (AA).

Mizoram Chief Minister Lalduhoma shared this outlook during a Mizoram State Assembly budget session on March 11.

He noted that while businesses are already utilizing the Kaladan project route for trade, it remains unofficial and without formal government authorization, making it difficult to regulate or take action under current circumstances.

Recognizing the ground reality, the Chief Minister stated that the majority of areas encompassing the Kaladan project are now under Arakan Army administration, and the Mizoram government has established a positive relationship with the group.

“The Myanmar government no longer controls the areas where the Kaladan project is located; they are now under the Arakan Army. Therefore, Mizoram maintains a good relationship with the Arakan Army. The Arakan Army itself is also waiting for the right time to officially open the Kaladan highway,” the Chief Minister said.

The Indian government initiated the Kaladan project as a strategic gateway to connect India’s landlocked Northeast to the east, west, and south via a new maritime outlet through Myanmar.

The project involves both sea and land routes: a 158-km waterway along the Kaladan River and a 129-km highway connecting Paletwa in Chin State to Zorinpui in Mizoram. Construction by Indian firms began in 2015, extending from Zorinpui to Setpyitpyin Village in Paletwa. However, progress was halted in 2018, 2019, and 2020 due to intense regional conflict.

Currently, the Mizoram government has expressed concerns regarding the increasing number of residents and merchants from Arakan State entering Mizoram via this route.

To manage these border movements, a coordination effort involving district administration, police, Assam Rifles, Border Security Forces (BSF), and civil society organizations will be implemented.

To prepare for the eventual reopening of the project, the Chief Minister announced the formation of an “Impact Study Group” to be led by a member of parliament.

The Kaladan project remains a vital cooperative venture between India and Myanmar, aimed at transporting goods from Sittwe Port in Arakan State through the Kaladan River to Paletwa and onwards to Mizoram.

Local merchants believe that the project’s completion will boost trade between India, Arakan, and Chin states, significantly benefiting the regional economy.

“If this route becomes functional, we will be able to import goods efficiently, and India will also find it easier to source products. If transportation costs drop, both sides will see substantial profits. The sooner it is completed, the better,” said an Arakanese merchant operating near the India border.

Currently, Arakanese merchants face high commodity prices in Arakan State as they must pay taxes to both the Arakan Army and the Mizoram government when transporting goods from India.

Analysts monitoring foreign projects in Arakan State observe that India is shifting its policy to prioritize ground realities by recognizing the Arakan Army as a major power.

“India is no longer dealing solely with the Myanmar military regime; it has acknowledged the Arakan Army as a powerful entity. This clearly shows India accepts that the Arakan Army will play a decisive role in the future politics of Arakan State,” one analyst remarked.

He added, “To secure a $500 million investment and ensure the survival of Northeast India’s trade lifeline, India has no choice but to work with the Arakan Army, who effectively controls the territory.”

Furthermore, India is building a strategic understanding and stronger ties with the Arakan Army to balance China’s influence in Arakan State.

However, some analysts warn that the junta may increase military pressure and airstrikes on Arakan State, fearing the project will proceed solely under Arakan Army control.

“The Mizoram government has stated that the Arakan Army controls the project area. While the project is slated for 2027, the original contracts were signed with the NLD government. The junta is now under pressure, and fearing that India will deal directly with the Arakan Army, they have intensified attacks in Arakan State even more than in Northern Shan State,” analyzed Captain Zin Yaw, a participant in the Civil Disobedience Movement (CDM).

The Kaladan Multi-Modal Transit Transport Project was initially agreed upon by the Indian and Myanmar governments in April 2008 with a total estimated cost of $484 million.

While infrastructure at Sittwe Port and the waterways through Ponnagyun, Kyauktaw, and Paletwa has been upgraded, the Arakan Army is currently working on road construction from Paletwa to the Indian border.