India, Myanmar sign four economic agreements

The Indo-Myanmar bilateral relations received further impetus when both the countries on Tuesday signed four new economic cooperation agreements continuing their decade long policy of expanding partnership.

The Union Minister of State for Commerce and Power, Shri Jairam Ramesh and the Myanmar Minister for National Planning and Economic Development, Mr. U Soe Tha signed the agreement at the Myanmar capital Yangon (Rangoon).

In one of the major agreements of Bilateral Investment Promotion Agreement (BIPA), both the countries agreed to augment greater money flow. The agreement provides a framework for the resolution of disputes, for promotion and protection of investment, for extending national treatment and most-favoured-nation treatment, for repatriation of investment and returns and for entry and sojourn of technical and managerial personnel.

The second one is a credit line agreement between the Exim Bank of India and the Myanmar Foreign Trade Bank for $ 64 million for financing three 230 kv transmission lines in Myanmar to be executed by the Power Grid Corporation of India.

To expand the power distribution network in Myanmar Exim Bank of India and the Myanmar Trade Bank entered into a $ 20 million dollar contract for financing the establishment of an aluminium conductor steel reinforced (ACSR) wire manufacturing facility.

United Bank of India and the Myanmar Economic Bank have also signed a pact for providing the banking arrangement for the implementation of the border trade agreement between the two governments that takes place at Moreh (in Manipur) at present.

To accelerate border trade, Jairam Ramesh also took up the issue of expansion of trade centres to Avangkhu and Lungwa in Nagaland, Zowkhathar in Mizoram, Pangsau Pass in Arunachal Pradesh and Behiang, Skip and Tusom in Manipur.

The minister also suggested the issue of normal trade across the border without any restriction or specification of commodities. At present the border trade is only restricted to 22 permitted items.

Jairam Ramesh also expressed India’s great interest in participating in developing the hydel power potential on the Chindwin River in Myanmar. India is already involved in similar projects with Bhutan and Nepal.