The Union Cabinet has approved a revised cost of 2,904 crore rupees for the Kaladan Multi Modal Transit Transport Project in Myanmar. Communication and IT Minister Ravi Shankar Prasad told this at a press conference which was held after the Cabinet meeting in New Delhi yesterday. He said, the decision will help in the development of North Eastern region.<br/><br/>The Kaladan Multi Modal Transit Transport Project will provide a viable alternative to the existing overstretched route via Siliguri in West Bengal, popularly known as the Chicken's Neck. The project was jointly identified by India and Myanmar to create a multi-modal mode of transport for shipment of cargo from the eastern ports of India to Myanmar. <br/><br/>This project, which will connect Sittwe Port in Myanmar to the India-Myanmar border, is expected to contribute to the economic development of the North-Eastern States of India, by opening up the sea route for the products. It also provides a strategic link to the North-East, thereby reducing pressure on the Siliguri Corridor. <br/><br/>The project, when completed will first link the Kolkata port to the port to the port of Sittwe in Myanmar across the Bay of Bengal, a distance of 539 k.m. From Sittwe, the route will continue over river Kaladan to the western Myanmarese town of Paletwa, 158 km. away. <br/><br/>Paletwa will then be connected to the India -Myanmar Border by a 110-km-long road. In the absence of an alternate route, the development of this project not only serves the economic, commercial and strategic interests of India, but also contributes to the development of North-Eastern states of India and its economic integration with South East Asia.<br/><br/><br/>Among other decisions, the Cabinet Committee on Economic Affairs gave its nod for special banking arrangement for a loan of seven thousand crore rupees for payment of outstanding subsidy to fertilizer companies during 2014-15.