If approved, by New Delhi's Cabinet, India plans to build up Burma's Sittwe port and make the Kaladan River navigable to bring trade and commerce to Burma's landlocked northeastern states.
The port project is the latest in a string of cooperation efforts between New Delhi and the military regime in Burma.
The international group Human Rights Watch has criticized India's continued investment in Burma. The rights organization says India is helping to prop up Burma's military government.
Indian officials have said that they do not believe in exporting ideologies, and that it is up to the people of Burma to decide what type of government they want to have.
Some form of military government has ruled Burma since 1962. Western nations are critical of Burma for its lack of democratic reforms and its crackdown on the political opposition.
Information for this article has been provided by AFP