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This project will reduce the distance from [[Kolkata]] to [[Sittwe]] by approximately {{convert|1328|km|abbr=on}} and will reduce the need to transport goods through the narrow [[Siliguri]] corridor, also known as [[Chicken's Neck (India)|Chicken's Neck]].
Initially India had tried to persuade [[Bangladesh]] to offer transport and transit rights to the northeastern states.<ref>{{Cite journal |last=Egreteau |first=Renaud |date=2011 |title=A Passage to Burma? India, Development and Democratization in Myanmar |url=https://www.tandfonline.com/doi/abs/10.1080/13569775.2011.619771|journal=Contemporary Politics|volume=17|issue=4|doi=10.1080/13569775.2011.619771 |pages=467–486 |s2cid=153496597|url-access=subscription }}</ref> However, [[Bangladesh]] has consistently refused to grant such rights, including access to its [[Chittagong]] port, which is less than {{convert|200|km|abbr=on}} away from [[Agartala]], the capital of [[Tripura]].<ref>{{cite news|last=Phukan|first=Papori|title=Kaladan Multi-Modal Project In Myanmar|url=http://manipuronline.com/look-east-policy/kaladan-multi-modal-project-in-myanmar/2010/12/19|access-date=11 August 2012|newspaper=Manipur Online|archive-date=16 June 2012|archive-url=https://web.archive.org/web/20120616121801/http://manipuronline.com/look-east-policy/kaladan-multi-modal-project-in-myanmar/2010/12/19|url-status=dead}}</ref>
The project is being piloted and funded by the [[Ministry of External Affairs (India)]]. The preliminary feasibility studies were carried out by [[RITES|Rail India Technical and Economic Services (RITES)]]. Construction work on [[Sittwe]] port and the boat jetty in [[Paletwa]], as well as the dredging work, will be executed by the [[Inland Waterways Authority of India]] (IWAI), with Essar Projects Ltd, a division of the [[Essar Group]] appointed in May 2010 as the main contractor.<ref>{{cite web |work=Arakan Rivers |title=Kaladan Multi-Modal Transit Transport Project|url=http://www.arakanrivers.net/?page_id=135 |access-date=11 August 2012|archive-url=https://web.archive.org/web/20120529113016/http://www.arakanrivers.net/?page_id=135 |archive-date=29 May 2012 |url-status=dead}}</ref>
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In 2019, India and Myanmar launched [[Operation Sunrise (2019)|Operation Sunrise]], a joint military effort to dismantle insurgent group camps, especially the Arakan Army, threatening the Kaladan Project.<ref>{{Cite web |date=2019-06-17 |title=Operation Sunrise: India-Myanmar target insurgent groups camp in North East |url=https://www.indiatoday.in/india/story/operation-sunrise-india-myanmar-target-insurgent-groups-camp-in-north-east-1550835-2019-06-17 |access-date=2025-04-11 |website=India Today |language=en}}</ref>
India plans to open the Kaladan project by 2027.<ref> [https://myanmar-now.org/mm/news/65443/ ၂၀၂၇ တွင် အသက်ဝင်မည့် အိန္ဒိယ၏ ကုလားတန်စီမံကိန်းနှင့် AA ၏ အခန်းကဏ္ဍ (The role of Arakan Army in the implementation of India's 2027 Kaladan plan)]. [[Myanmar Now]]. July 24, 2025.</ref>
==Route==
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