NEW INITIATIVES
TO ACCELERATE GROWTH IN NORTH- EAST
The Government of
India launched a major initiative to bridge the infrastructural
gaps in the north-eastern region by setting up a separate department.
The Department of Development of North Eastern Region (DONER)
which came into being just over a year back has embarked on a
policy of total transparency and efficient monitoring to accelerate
the process of development in the region.
The Department was
created to act as a catalyst in stimulating the development process
and focus on increasing opportunities for productive employment,
strengthening infrastructure particularly connectivity and communication
together with ensuring accountability in the implementation of
projects. It is also envisaged to create synergy and ensure convergence
of programmes by coordinating the efforts of both Central agencies
and State Governments.
During the year,
the Department also initiated a major drive to focus attention
of multilateral and bilateral aid-agencies for which workshops
are being organised to draw attention to the potential and problems
of the region. To attract investments in the region, the Department
was instrumental in organising summits in Mumbai and Delhi to
provide interface between corporate sector and representatives
from the North Eastern States. Realizing the inherent strength
of the region, the corporate sector has shown keen interest in
the developmental programmes of the region..
Emphasis has also
been laid on the establishment of reliable communication net work.
487block level community information Centres have been planned
to connect the region via v-sat with rest of the World. Of them
more than 400 are already functional. To make the region more
accessible and to reduce travel time in the region, all the State
capitals and other important cities are being provided better
air travel facility and for this department has agreed to subsidize
the flights being undertaken in the region.
Other major initiatives
of the Department include approval of forward looking industrial
policy for the new member of North Eastern Council, Sikkim, accelerated
clearance and implementation of projects covered under Non Lapsable
Central Pool of Resources and capacity building of officials in
the region. The new industrial policy for Sikkim will have excise
and income tax exemption for ten years to new units and units
undertaking susbstantial expansion. Central Assistance for Growth
Centre scheme is being raised to Rs 15 crore.
NLCPR
Accruals to Non Lapsable
Central Pool of Resources have been sorted out. Already 162 projects
worth Rs.3093 crore are under implementation. The fund release
mechanism streamlined and simplified. States are therefore in
a better position utilize funds within financial year.
TRANSPARENCY
To establish a more
transparent system guidelines to administer NLCPR have been set
out for the first time. Project identification is being taken
up in partnership with states with states advised to prioritize
project proposals. A Web site for the Department has been launched
which carries all up-dated and requisite information for investors
and public
CLOSE MONITORING OF PROGRESS
Field inspections
of projects have been intensified and each State being visited
at least once in two months by the officials of the Department
and their reports being put on web site. The release of fund is
also being monitored rigorously. Releases are being made only
after earlier fund’s utilization has been checked and verified.
29 projects in North
East taken up for audit during implementation itself by Comptroller
and Auditor General (CAG) at the request of DONER. States have
been advised to publicize project details. Time frame for completion
of projects given and area Officers for each state earmarked.
NEC
Inter-state infrastructure
projects in health, power and other sectors with regional impacts
undertaken. Xth Plan outlay finalized at Rs. 3500 crores, a substantial
increase over Rs. 1979 crores of IXth Plan.
Focus on completing
ongoing works and monitoring in close cooperation with State Governments.
COORDINATING AND FACILITATING
ROLE
Earmarking of Minimum
10% of Gross Budgetary Support by other central ministries/departments
being monitored. Percentage of central expenditure in NER has
gone up from about 5% in 1997-98 to 7.3% in 2001-02. Review of
other department’s projects/programmes in NER initiated to bring
about convergence and synergy. Cultural Exchange Programme for
about 5000 students funded; Entrepreneurship Development Programme
conducted for North Eastern States.
CREATING CONDUCIVE BUSINESS ENVIRONMENT
Mumbai conference
brought a high level delegation from NER States led by Chief Ministers,
face to face with captains of Indian Industry. Creating investment
climate. It has been decided to make it an annual feature.
Indian Chamber of
Commerce has started opening state wise offices in the region.
Fostering close relationship with state governments in facilitating
investments.
OTHER IMPORTANT INITIATIVES
Efforts are on to
augmenting facilities at 12 existing airports to improve region’s
connectivity. Provisions have been made for four 50-seater aircrafts
in the region. Shillong, Itanager and Guwahati have been connected
to Kolkata by Optical Fibre Network. 1450 KMs extension is in
the pipeline.
