NEW DELHI, Aug 29 (BSS): The government of India and the World Bank today signed a $107 million credit agreement for the Mizoram State Roads-II Regional Transport Connectivity Project to improve transport connectivity in the state of Mizoram and help open up the potential for regional trade among neighboring countries.
The project will enhance Mizoram's road linkage with Bangladesh, as well as Myanmar.
A press release of the WB said here connectivity is crucial for a distant hill state such as Mizoram which, like the other northeastern states, is geographically isolated from the mainland.
Long and difficult transportation routes over predominantly mountainous terrain have long hampered trade and development. The Mizoram State Roads Project helped build or rehabilitate over 400 kilometers of the state's core road network, reducing travel time by half, and triggering significant socioeconomic benefits in the project area.
The link to Bangladesh will facilitate greater bilateral trade in the northeastern region of India. The link to the border with Myanmar will facilitate connectivity to Myanmar and the rest of East Asia and beyond.
The impacts on trade and employment will be felt at two levels, intra-state and between Mizoram and neighboring states and countries, namely Bangladesh and Myanmar.
According to estimates, annual intra-regional trade in the region can more than double from $16 billion to $38 billion annually, if barriers to trading with neighbors are removed. According to another estimate, investments in transport infrastructure could reduce trade costs by more than 20 per cent in India, and 12.5 per cent in Bangladesh.
"The project will enhance connectivity for Mizoram to Bangladesh and Myanmar and also facilitate trade," said Nilaya Mitash, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India.
Being strategically located between Myanmar and Bangladesh, a better connected Mizoram can open up huge trade potentials for the entire northeastern region of India with South and East Asian countries.
