Ministry of Development of North Eastern Region

Government of India Ministry of Development of North Eastern Region ******

MINUTES OF THE 4th MEETING OF THE INTER-MINISTERIAL GROUP (IMG) CHAIRED BY MS. JAYATI CHANDRA, SECRETARY, DONER ON (a) DEVELOPMENT OF ROAD AND PORT PROJECTS IN MYANMAR AND (b) IMPROVEMENT OF ROAD CONNECTIVITY AND CUSTOMS FACILITIES AT INDO-MYANMAR BORDER.

Date : 23rd February, 2011 Venue : Committee Room, M/DONER. Officers Present : List annexed (Annexe-I)

1. Kaladan Project and related issues

(i) Kaladan Multi-modal Project – all aspects in Myanmar – Presentation by IWAI.

(ii) Linking road 100 km in Mizoram under SARDP-NE.

(iii) Improvement of NH-54 from Silchar – Lawngtalai – Aizawl to Tuipang to provide seamless connectivity.

(iv) New Land Custom Station at Indo-Myanmar border in Mizoram for Kaladan

(v) (2, 3, 4 & 5 to be completed in sync for Kaladan Project to deliver value).

(vi) How does Mizoram prepare itself for Kaladan.

Project components of Kaladan:

(i) Fairway development/ Sea-dredging in Sittwe port area (ii) Construction of Port/IWT terminals at Sittwe

of 13 (iii) Fairway development/Dredging on Sittwe - Paletwa stretch of Kaladan river (158 Km) (iv) Construction of IWT Terminal at Paletwa (v) Construction of 6 IWT vessels (300 ton each) (vi) Highway (129 kms) from Paletwa to Indo-Myanmar Border.

Stretch Mode Distance (in km)

Kolkata- Sittwe Sea route 539 Sittwe- Paletwa* IWT (Kaladan) 158 Paletwa-Kaletwa-Indo Myanmar Road 129 border* Total 826 * Post DPR review

Project cost of port and IWT component – Rs.342.41 crore Likely date of completion of IWT component – December, 2013

Progress so far:

IWT & Port Component

(i) Government of Myanmar has provided land for setting up contractor’s camp and land for construction at Sittwe during September 2010. Clearances / permissions for import of construction equipments & Materials as well as for opening of bank account has been received by the Contractor during October 2010.

(ii) Construction activity at Sittwe started in December 2010.

(iii) Preparation of detailed design & working drawings by the Contractor is in progress.

(iv) Site office has been established at Sittwe in the space provided by Govt. of Myanmar.

(v) Contractor has mobilised men and materials to the site and construction work started in December 2010.

(vi) MEA to finalize arrangements for construction of the highway link from IWT terminal at Paletwa to the Indo-Myanmar border.

of 13 (vii) Necessary land at Paletwa is to be allotted by Govt. of Myanmar for construction of IWT Terminal. Requirement of land identified and submitted to Govt. of Myanmar by IWAI in February 2011.

Road component in Myanmar

Upon review of the project, the road component has increased by 67 km from Paletwa to Kaletwa. Preparation of DPR for new section of road from Paletwa to Kaletwa by M/s IRCON Infrastructure & Services Ltd has commenced in November, 2010. Field works in progress. On the Kaletwa-Indian Border road stretch, MEA is studying the cost estimate given by Myanmar Government.

Road construction is being done by Myanmar. Only consultancy help being provided by India.

Road component will be completed also by December, 2013.

Road Component in Mizoram - 100 km Linking road (Lawngtlai to Indo-Myanmar border) in Mizoram under SARDP-NE Phase-A.

Tenders have been awarded. Implementing agency is Mizoram PWD. Date of completion of March, 2013. In the 31st meeting of the High Powered Committee of SARDP-NE, an improved technical specification was approved specially for this road. It would enhance the costs though not substantially. Approval of new cost estimates would be obtained by MORTH. It is important to note that as this road and the road in Myanmar from Paletwa to the Indo-Myanmar border is a single seamless connection, the specifications have to be the same in the Mynamar portion as well. Hence, MORTH should get in touch with IRCON who are making the DPR for the Paletwa – Indo-Myanmar border road and ensure that the same specifications are used on both sides of the border.

Thus it is seen that the port and IWT portion, Paletwa-Indo-Myanmar road and Indo-Myanmar border to Lawngtalai (100 km new road) in Mizoram will be completed by December, 2013. It is essential that all three aspects progress as per the time schedule.

Proposed location of new Land Custom Station

A new Land Custom Station will have to be set up in the Indo-Myanmar border for Kaladan. The two relevant issues are:

(i) Consensus on the suitable location of the new LCS on the Indo-Myanmar border

(ii) MEA to take up with Myanmar agreement on the location of the LCS on the Myanmar side in the next meeting of the Indo-Myanmar Joint Trade Commission.

of 13 In order to ensure effective control, the LCS should be located on the border where the Paletwa road and the Kaladan road meet. A location at Mobu which is 3 km away from the actual border was selected initially by Mizoram Government for LCS. As the location is 3 km away, it is not suitable. Mizoram Government has now suggested a spot called Zokhachaia, however, all relevant stakeholders should agree on the spot. It was decided that a joint visit of the following stakeholders to the border to finalise the location of the Land Custom Station should be undertaken at the earliest. The concerned departments are:

(i) Department of Commerce

(ii) Department of Revenue

(iii) Regional Office of MORTH

(iv) MEA

(v) Govt. of Mizoram

Govt. of Mizoram will organise the use of the helicopter for site visit.

The completion of the Kaladan project, both in Myanmar and India is likely to result in influx of vehicle and migratory persons in Mizoram. The Government of Mizoram needs to prepare infrastructure to manage this influx by minimising the environmental and social impact. Items such as fuel supply, road side amenities, yards may have to be prepared. It was decided that the Mizoram Government should prepare a report on the preparedness of the State for the Kaladan project.

Two laning of NH-54, Tuipang-Lawngtlai-Aizawl-Silchar has been covered under Phase-A of SARDP-NE.

Major Issues to be resolved are:

 Alignment of international road from Paletwa to Mizoram on Indo- Myanmar border

 Mizoram border to Lawngtlai

 The location of the LCS.

of 13 2. Study on border trade by Research and Information System (RIS) (under MEA). A presentation was made by RIS on the draft report. The study should be completed as early as possible. RIS team will visit some of the Land Custom Stations. All states were requested to extend all cooperation to the team. The details will be intimated later.

3. Zawkhathar LCS – trade volume, infrastructure, connectivity

The LCS at Zawkhathar is functional though the trade is very limited. The connecting road between Zawkhathar and Champhai is in poor condition. Due to absence of broad-band facility, banking services are hampered. The value of investment in Zawkhathar can be realised only when the Rih-Tidim road is completed.

The residential quarters for staff deployed at Zawkhathar are at a distance of 15 km approx. (on currently very bad road). This kind of lapse in not locating the two within easy reach of each other is to be avoided in future.

4. Rih-Tidim road in Myanmar

During the visit of the Chairman, State Peace and Development Council of Myanmar to India in July, 2010, it was decided that the construction and revamping of the Rhi-Tiddim road in Myanmar will be financed through grant assistance of US$ 60 million from India. This road will promote trade and travel links between Myanmar and Mizoram and help in optimizing the investment made in the Zawkhathar LCS. The Rih-Tidim Road in Myanmar is essential to get value out of the investment already made for developing LCS facilities at Zawkhathar.

IRCON has prepared the estimate of the 80 km Rih-Tidim road at Rs.298 crore. The matter is before the Committee of Non-Plan Expenditure (CNE) of MEA. The construction will be completed within three years of the requisite approval.

The Rih-Tidim road will connect to Monywa and onwards to Mandalay. In effect, it will provide connection between Zawkhathar in Mizoram and Mandalay.

5. Rih-Falam road in Myanmar

MEA is not pursuing the Rih-Falam road presently.

of 13 6. Tri-lateral Highway – Moreh – Bagan – Myesot

Following the visit of the Senior General, Myanmar in 2010 to India, it had been decided to take up the DPR preparation work for the Tri-lateral Highway. The RITES team is in Myanmar presently. There was not much progress on the Tri- lateral Highway so far as the alignment was not being finalised by Myanmar. Myanmar will construct the road.

7. Land Custom Stations Issues

(i) Avankhug LCS – creation of facilities through ASIDE scheme by Nagaland

(ii) Avankhug LCS – connecting road by Nagaland Government.

(iii) Avankhug LCS – notification by Department of Revenue The Indo-Myanmar Joint Statement of 27th July, 2010 has stated that “the two sides agreed to put in place the necessary infrastructure to make these points {Moreh-Tamu (Manipur), Zawkhathar-Rih (Mizoram) and Avankhug-Somra (Nagaland)} viable and business friendly” (para 29)……. “They agreed that trade at border trade points should be further enhanced to boost the immense potential that exists in bilateral trade. This would also directly benefit the North-East States of India” (para 28).

(i) Infrastructure development for trade point at Avankhug LCS by Nagaland Government - Preparation of Master Plan for development of Avankhug by Nagaland for funding under ASIDE scheme of Deptt. of Commerce.

(ii) Construction of approach road from Phokhungri to Avankhug by Nagaland.

(iii) Infrastructure development for trade point at Somra, the corresponding point in Myanmar.

There has been no progress on this issue for six months since the 3rd meeting of the IMG in August, 2010. The sanction of funds under ASIDE by Department of Commerce will be done only after the linking road is made by the Government of Nagaland. Notification by Department of Revenue will be done only after there is basic minimum infrastructure for trading available.

The development of Avankhug LCS hinges on the completion of the link road for which NEC had released Rs.11 crore to Nagaland PWD in 10 th Plan. Nagaland has not completed the road till today and instead requested for enhanced estimate.

of 13 NEC should prepare proposal for revised estimate so that it can be appraised as per procedure. The Nagaland Government should take up the completion of the road on priority basis.

Secretary directed that all facilities in the LCS being proposed including staff quarters should be in a single location. She referred to the problems in Zawkhathar, Mizoram where the staff quarters are almost 10 km away from the LCS complex. Nagaland Government was requested to take note of the fact.

Representative of MEA informed that Somra town in Myanmar is quite well- developed but there is no LCS facility. Myanmar Government has proposed to India if Border Haat can be started at Avankhug-Somra. This appear to be a good proposition to start a Border Haat which could benefit the local people pending the creation of facilities for LCS. LCS and Border Haat could continue simultaneously in Avankhug. The meeting felt that it would be desirable if discussion on Border Haat for Avankhug is also taken up by MEA with Myanmar so that a trading point is available for Nagaland on the Indo-Myanmar border. Presently, Nagaland has no international trading point.

8. Moreh ICP – progress & completion schedule Project cost Rs.136 crore (including land cost). 38.38 acres acquired and taken possession by Assam Rifles on behalf of MHA. Assam Rifles has taken up compensation of barbed ware fencing. Compensation paid to land owners. Detailed Engineering Report under preparation. Preparation of Environment Impact Assessment for Moreh has been started by RITES who are the project consultant. No time limit presently for completion.

Kawarpuchiah ICP - Government of Mizoram has identified land and suggested that it may be taken over by the MHA for setting up the ICP. This land is situated along a riverine border with Bangladesh, with no connectivity at present with Bangladesh. A bridge would need to be built across the river to connect the two countries. However, since no land border with Bangladesh in Kawarpuchiah exists, it has been decided that an inter-ministerial visit by an official of MHA, representatives of M/s RITES, MEA, Customs, the BSF, the CPWD etc. to assess the suitability of land and to work out the issues of connectivity, security, enhancement of formal trade etc. would be undertaken.

Principal Resident Commissioner, Mizoram stated that the selected location is on a confluence of Thega and Karnaphuli river. Bangladesh has made a road from Thekabazar to Rangamati in its side. He urged that the site for the LCS be confirmed by all stakeholders and the necessary steps for the location of bridge should also be decided.

9. Food testing facility (i) Food testing facility in Mizoram/Zawkhathar

of 13 (ii) Food testing facility at Moreh.

It is essential to take appropriate steps to ensure that food testing in the land borders of NER States is conducted smoothly and without delay for smooth import and export. At present, food items imported in Moreh LCS are sent to Guwahati for testing which takes a long time. The betel nut imported from Myanmar through Moreh is tested and analysed at Public Health Lab, Guwahati as per the notification issued by DGHS. This takes a month or more.

Moreh - Manipur Government has informed that as per PFA Act & Rules, food testing for imported food items (from Myanmar to Manipur) are to be carried out at the Lab at Central Food Lab., Kolkata. The State Health Deptt has requested DGHS vide letter dated 27.1.2010 to allow the State Food Testing Lab at Imphal under Medical Directorate, to analyze imported food items, so that the analysis report is available in a short period.

Manipur has two Food Testing Labs (FTL) – State Food Testing Lab at Imphal and a non-functional Lab at Moreh (equipment stored and unused). The State Health Department of Manipur has requested DGHS vide letter dated 27.1.2010 to allow the State Food Testing Lab at Imphal to analyse imported food items, so that the analysis report is available in a short period. The Manipur Government is reporting the same status on this issue for the past year. The State Government has not done any follow up on this matter with DGHS or FSSAI since January, 2010. The Ministry of DONER has addressed the State Government several times on getting food testing facilities in place for smooth import/export.

In Mizoram, there is no food testing facility at all. Mizoram is going to have three import/export points:

 Zawkhathar

 Kwarpuchiah

 On the Indo-Myanmar border at the Kaladan

The State Government of Mizoram was asked to take steps for food testing facility by taking guidance from DGHS and FSSAI.

Manipur and Mizoram should take firm step for establishing the infrastructure, recruiting Public Analyst and obtaining the required accreditation and notification from the competent authority for food testing facilities in a time bound manner. Funds under ASIDE and FSSAI can be used for this purpose.

Facilities for Plant Quarantine under the Directorate of Plan Protection Quarantine and Storage, Department of Agriculture & Cooperation in the Land Custom Stations – Plant Quarantine Stations are presently functional in:

of 13  Guwahati airport

 Agartala – not at the border though

 Zawkhathar – it is mend by the State Government

 Moreh – approval for new quarantine station recently received

It is not known if all the other functioning LCSs in NER have Plant Quarantine facilities.

10. Proposals for new border haat on Myanmar border on the lines of Indo- Bangladesh border. On the Indo-Bangladesh border, two Border Haats are going to be started soon in Meghalaya. Based on the experience, it is expected that more Border Haats on the NE border will be bi-laterally taken up. It was felt that a similar exercise should be done on the Indo-Myanmar border. The following places have been identified by the States for border haats on Indo-Myanmar border:

Nagaland

 Avankhug, District Phek

 Pangsha, District Tuensang

 Chemoho, District Mon

Mizoram

 Mizoram has not identified any place so far. They were requested to identify.

Manipur

 New Samtal, District Chandel (Manipur) and Thenjen (Myanmar)

 Kongkanthana, District Ukhrul

 Behiang, District Churachandpur

of 13  Letter to Chief Secretaries requesting list of border haats on Indo-Myanmar – exact location on Indian side and preferred location, name of place on Myanmar side

Arunachal Pradesh

(a) China

 Bumla, District Tawang

 Kibitho, District Anjaw

 Taksing, District Upper Subansiri

 Mechuka, District West Siang

 Geling, District East Siang

(b) Bhutan

 Dongsengmang, District Tawang

 Blating, District Tawang

(c) Myanmar

 Pangsau Pass (Nampong), District Changlang

Ministry of DONER will request the State Governments of Mizoram, Nagaland, Arunachal Pradesh and Manipur to formally send their proposal for Border Haats which can be taken up with MEA.

11. Border trade and MFN trade at Moreh and Zawkhathar – simultaneous conduct

of 13  DGFT had clarified (vide Policy Circular No. 53 (RE–99)/1997-2002 Dated: 29.02.2000) that in addition to the provisions contained in the above mentioned Public Notices, the ‘normal trade’ in all other commodities between two countries through Land Customs Station at Moreh is also permitted subject to payment of custom duties as applicable on international trade with any other country of the world.

 OM No.570/04/2003-LC dated 18.10.2010 of Shri M Satish Kumar Reddy, Director (ICD), Central Board of Excise & Customs, Department of Revenue on “Conversion of border trade into normal trade at Indo-Myanmar Border Trade Points.”

“The undersigned is directed to refer to DoC OM No.9/3/2009-FT(EA) dated 28.9.2010 on the above subject and to state that Moreh and Zawkhathar Land Customs Stations have been notified under Section 7 of the Customs Act, 1962 without any restriction regarding the mode of trade. Notification 9/95 Cus. As amended by Notification 62/2010 Customs allows a concessional rate of duty of 5% ad valorem only on 40 items specified in the notification. However, normal trade can take place through the above LCSs as per the prevailing Foreign Trade Policy provisions and on payment of duty at applicable rates.”

Thus, while border trade is carried out at a concessional duty of 5% on 40 identified items, normal trade has also been permitted in Moreh and Zawkhathar. This item will be dropped in future meetings.

12. Opening of Pangsau Pass LCS

It was informed by Principal Secretary (Power and Coordination), Govt. of Arunachal Pradesh that a Cabinet Note has been moved by the Ministry of Home Affairs for opening the Stillwell Road. Neither DONER nor MEA has not received the copy so far.

13. Bus service between Imphal and Mandalay This issue has been discussed in the last three meetings of this Inter- Ministerial Group – 8.4.2010, 3.5.2010 and 12.8.2010 and today’s meeting. There has been no appreciable developments and MORTH, the nodal Ministry for such agreements, has not taken the matter forward. Manipur Government has prepared a comprehensive proposal which has been submitted long ago to MORTH.

This Ministry has received an OM from MORTH stating that Ministry of DONER should consult MEA and MHA for the necessary clearances. It was made clear that MORTH is the nodal agency and a proposal for the bus service should be prepared by it in consultation with the State Government of Manipur and presented before the MEA who can then decide to take it up for bi-lateral negotiation with

of 13 Myanmar. There are precedences such as Agartala-Dhaka, Agartala-Kolkata and Lahore-Amritsar bus services. Ministry of DONER is not the suitable Ministry for taking any clearances for the proposed road service. MORTH is advised accordingly.

The meeting ended with vote of thanks to the Chair......

of 13 Annexe-I LIST OF PARTICIPANTS OF THE 4TH IMG MEETING CHAIRED SECRETARY, DONER ON (a) DEVELOPMENT OF ROAD AND PORT PROJECTS IN MYANMAR AND (b) IMPROVEMENT OF ROAD CONNECTIVITY AND CUSTOMS FACILITIES AT INDO-MYANMAR BORDER.

Sl. No. Name & Designation Ministry/Deptt./Org. 1. Ms. Jayati Chandra, Secretary, M/DONER ………………. In the Chair

2. Shri Hari Krishna Paliwal, Principal Secy. Govt. of Arunachal Pradesh 3. Shri S.P.Singh, Principal Resident Govt. of Mizoram Commissioner 4. Ms. Jayashree Mukherjee, Jt. Secy. Min. of DoNER

5. Dr. D. Bhalla. Principal Resident Commissioner Govt. of Nagaland 6. Shri M.S. Sodhi, Adviser (T&C) NEC

7. Shri Brajesh Mishra, Director Min. of DoNER

8. Shri Verinder Kaul, Superintending Engineer M/o RT&H

9. Shri Rambir Singh, Director BM, MHA

10. Shri S.D.Kaushik, D.S. M/o Shipping

11. Shri Jagjeet Kumar, U.S. D/o Commerce

12. Shri P.C. Pande, U.S. M/o C & I, Deptt. Of Commerce

13. Ms. Anju Ranjan, U.S. (Myanmar) M/o External Affair

14. Dr. Biswajit Dhar, DG RIS

15. Shri Prabir De Fellow RIS

16. Shri A. Selva Kumar, Project Manager I.W.A.I.

17. Ms. N. Kulkarani Devi, Jt. Dir. Planning Deptt. Govt. of Manipur

18. Knohie Mere, P.R.O. Govt. of Nagaland 19. Shri S.K.Nandi, Jt. R.O. Govt. of Tripura

......