New Delhi (PTI): The government on Thursday approved a Rs 535.91 crore multi-modal transit transport project in Myanmar, which India will use for improving access to the North-Eastern states.

The Union Cabinet sanctioned the funds under the 'Aid to Myanmar' project for the upgradation of Sittwe Port and Kaladan Waterway. The money will also be used for construction of a road from Setpyitpyin (Kaletwa) to the India-Myanmar border.

"The project will provide an access to Mizoram and to other North-Eastern states as well as an outlet to the sea," an official spokesperson told reporters after the Cabinet meeting.

The project, to be executed by the Inland Waterways Authority of India, also involves construction and improvement of 117 km road on the Indian side from India-Myanmar border.

The government approved signing of the Framework Agreement and Protocol on Facilitation of Transit Transport and Protocol on Maintenance and Administration to facilitate the project.