In a major setback for China, Thailand has claimed on Friday that alongside China, India, the US, and Australia are keen on taking up the Kra Canal project in the Southern part of the country.

The project would help China in solving its 'Malacca Dilemma' as it had opened the South China Sea to the Indian Ocean, bypassing the Strait of Malacca. China has been interested to 120-km mega canal cutting through the isthmus of Kra, an ANI report stated.

Meanwhile, an Economic Times report  stated, "India has been worried earlier that if China constructs the canal PLA Navy will have direct access to the Andaman Sea bypassing Malacca Straits"

Thai Nation Power Party MP Songklod Thipparat said in a local interview, "They want to sign a memorandum of understanding with us," adding, "Foreign embassies have contacted us to get the latest status on the project."

He also said, "More than 30 foreign firms have shown an interest in investing or supplying us with financial and technical support to build the canal."

"The feasibility study of the project, initiated by PM Prayut Chan-o-cha, is almost completed and will soon be submitted to the Parliament for a debate," the Economic Times report added.