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"India for 'pragmatic' ties with Myanmar"

By Our Special Correspondent

"The Hindu" Newspaper
Date March 3, 1999.

New Delhi, March 2: India and Myanmar have just concluded intensive
discussions to give fresh direction to their growing relationship in the
economic, political and security spheres.
The Foreign Secretary, Mr. K. Raghunath, who was in Yangon recently,
addressed the entire canvas of the Indo-Myanmar relationship, with
cooperation in sectors of power, hydrocarbons, railways, highway
construction, border trade and counterinsurgency emerging as priority
issues.
Highly placed sources pointed out that India seeks to build a
"pragmatic" relationship with number of commonalities in the economic
and security spheres", the sources said, adding that the contentious
issue of "human rights" were therefore avoided.
India sees Myanmar as bridge to link it with the Association of South
East Asian Nations (ASEAN) via a land corridor.
Not surprisingly, the Border Road Organization is working feverishly to
build a key strategic highway in Myanmar. Nearly 35 percent of the
border road from Tamu across More (Moreh) in Manipur to Kalemyo, a major
hub of Myanmar's national road network, has been completed. This
construction will link National Highway 39 to the road network in
Myanmar. "There are long term plans of establishing a land corridor from
Myanmar to South East Asia and construction of this road needs to be
seen within this larger framework of establishing crucial cross-border
linkages with the region", the sources said. This road is expected to be
completed in year 2000.
India is also open to tapping power from one of Myanmar's major power
projects in its northwest. Sources pointed out that a Myanmarese nod for
selling surplus electricity may be possible as Yangon has been advised
by key international participants in the project to look at India's
market in order to cut down costs. Myanmar's relatively small economy,
they say, will find it hard to absorb some of the power from its
mega-projects.
India sees a promising future in a tie-up with Myanmar in the railway
sector. In fact, a railway equipment contract has been recently signed
by the two sides. "Trans in Myanmar run on meter gauge and their rolling
stock is similar to the one in India. This increases the scope for

working together", a source said. The Projects and Equipment Corporation
of India has also signed a $2 million trade agreement with Myanmar
recently.
On the hydrocarbon front, India sees Yangon as an emerging player in
fulfilling its long-term energy security needs. Myanmar has significant
gas reserves in the Arakan region, which can be piped either to India or
South East Asia. The gas can be transferred to India along a corridor
through Bangladesh, provided Dhaka does not object to this passage on
political grounds. India is keen that future energy ties up along its
eastern rim are undertaken within the framework of the BIMSTEC grouping
which has Myanmar and Bangladesh as key partners.
India and Myanmar held detailed discussion on opening up border trade
further. While the More (Moreh)-Tamu route along the Manipur-Myanmar
segment has been opened. New Delhi is keen that a nod for another exit
route in Mizoram is obtained.
Focussing on the hi-technology sector, India has offered scholarships
to students from Myanmar to study computer engineering in India. These
scholarships are part a larger arrangement between India and the ASEAN.
India and Myanmar have decided to look at new ways to improve
cooperation against cross border militancy. India has a major stake in
seeking Myanmar's help to counter the North East insurgents. The United
Liberation Front of Asom (ULFA), for instance, has reportedly
established close contacts with rebel organizations in Myanmar including
the Karen National Union (KNU) and the Arakan Liberation Party.


Related News
?US energy major outline $2-billion initial investment programme?
?Unocal targets Bengal in Indian push?

By our Special Correspondent

New Delhi, April 10: The United States-based Unocal on Friday confirmed
its $2billion investment plan for West Bengal.
The company launched the ?Project Energy Renaissance,? an integrated
regional energy solution to develop anchor market in West Bengal and
link it to natural gas supplies from neighbouring countries like
gas-rich Bangladesh and Myanmar and from the North-Eastern state of
Tripura. The company expects to start work by 2003. As part of the PER
project, the multinational will lay pipelines to supply around 14
million cubic metre per day of natural gas to industrial centres in West
Bengal and once sufficient reserves are established, the pipeline would
be extended from West Bengal to Andhra Pradesh.
Under the project, Unocal will also erect a 1,500-MW combined-cycle
power plant and a 2,350-tonne per day capacity fertilizer plant in
Haldia with Paharpur Cooling Towers of Calcutta.
According to company sources, Unocal has already received all the
necessary clearance to execute its project plans and was only awaiting
gas supply to be bought from Bangladesh by them. ?Once we find the
required quantity of gas that will make PER viable, the work on the
project will commence,? they said.
Unocal has already initiated massive exploration activities in
Bangladesh. ?We know there is potential but until and unless the
reserves are proven, we cannot go ahead with West Bengal project. We are
however, sure of gas reserves,? they maintained.

The company sees India as the potential customer of its gas finds in
the neighbouring region as demand for gas is set to grow 7 per cent a
year between 2001 and 2011 from 1.3 TCF to 2.2 TCF. ?The primary demand
will be from the power sector, which will approximately comprise 60 per
cent of the market.
The American company had participated in the July 15, 1997, bid round
and submitted bids on 4 blocks out of the 12 oil and gas exploration
blocks offered by Bangladesh. Unocal also acquired 50 per cent interest
in a production-sharing agreement in north-east Bangladesh from
Occidental Petroleum Corporation. The three blocks included are in the
Jalalabad field in Sylhet. The company believes that this area has
tremendous potential, which can be linked to a ready market.
Interestingly, the company had in 1976 erected a well at Kutubdia but
abandoned it at that time due to lack of market.
The sources also said the company supports the efforts of the
governments in the region India, Bangladesh and Pakistan?for the
possibility of cross-border energy projects and has positioned itself to
provide gas resources to such efforts. ? While indigenous demand must
first be met, such projects can provide an economic stimulus to the area
and assist in developing infrastructure in the region,? they said.
In Tripura, Unocal is evaluating the size and commercial viability of
gas resources in the state. Once adequate reserves are identified, the
gas will be transported to West Bengal. India?s natural gas reserve is
estimated at 21.5 trillion cubic feet of which more than 80 per cent is
located in the North-East. Unocal is contemplating joint ventures with
the Oil and Natural Gas Corporation for exploration in Tripura. Unocal
along with Total, PTTEP and Moge is involved in developing the Yadana
gas field in Myanmar. Total is the operator of the project with a 31.24
per cent holding, while Unocal holds 28.26 per cent stake. The reserve
is estimated at 5 TCF, which is not sufficient to make the West Bengal
project viable.
Sources said a minimum reserve of 7 TCF of gas is required for any
commitment. Until new reserves are proven and developed, transportation
of gas from Myanmar will, therefore, not be feasible.

?THE ASIAN AGE?
Date April 11, 1998.