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The North Eastern Region comprises eight States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. It covers an area of around 2,62,500 sq. kms, representing approx 8 per cent of the total area of the country and has a population (2001 census) of 39.04 million i.e., around 3.80 per cent the country’s population. The Region has a unique geographical configuration with 98 per cent of its borders shared with neighbouring countries of Bhutan, China (Tibet), Myanmar and Bangladesh. Geographical contiguity with the rest of the country is through a narrow 20 km wide ‘chicken’s neck’ corridor near Siliguri.
Despite being rich in natural resources with fertile land, rich forests and substantial mineral and hydrocarbon deposits, development in the North Eastern Region has lagged behind the rest of the country due to historical reasons. This caused a set back to investment in the region, particularly private investment, affecting development. The Government has, therefore, taken a number of initiatives in the recent past to bring these States at par with other States.
Special strategies have been formulated for removal of bottlenecks, provision of basic minimum services and creation of a development friendly environment. The handicap of resource-constraint has been met through special dispensation for the States in the Region. All the eight constituent States of NER are treated as Special Category States. Ninety percent of their Plan allocations are treated as grant and ten percent as loan by the Central Government (from 2005-06 onwards the loan component is to be raised by respective States). Moreover, they are permitted to use up to twenty percent of the Central Assistance for non-plan expenditure. The development concerns of these States are pursued through their respective five year and Annual Plans as well as those of the Union Ministries and Central Agencies. In addition, projects of interstate nature in the region are funded through the North Eastern Council, which has separate additional budget for the purpose.
In order to further sharpen the focus on the development of the Region, a dedicated Ministry of Development of North Eastern Region has been set up by the Union Government. The National Common Minimum Programme of the Central Government spells out the agenda for the North East which provides: “All North Eastern States will be given special assistance to upgrade and expand infrastructure” and “the North Eastern Council will be strengthened and given professional support”.
The major activity of the Ministry is the operation of the Non-lapsable Central Pool of Resources (NLCPR). The Pool was created from the unspent balance out of the mandatory provision of 10 per cent of Gross Budgetary Support earmarked for the North Eastern Region in the budget of central Ministries/Departments. The broad objective of the NLCPR scheme is to ensure speedy development of socio-economic infrastructure in the NER by increasing the flow of funds for the new infrastructure projects. Projects for the development of socio-economic infrastructure such as power, roads & bridges, education, health, water supply and sanitation, sports and tourism etc. are considered for providing support under the Pool. So far a total of 663 such projects have been sanctioned at an approved cost of Rs. 4151 crore under NLCPR. As a result of the Government’s Policy towards NER, the budgetary provision for the Region in the central plan of various central Ministries/Departments has steadily increased from Rs.3211 crore in 1998-99 to 9306 crore during 2005-06. The actual expenditure in the Region has risen from 6.63 per cent in 1998-99 to about 8.5 per cent in 2003-04. A number of innovative schemes, programmes and projects are being launched by various Ministries/Departments for the rapid growth and development of the Region.
The North Eastern Council (NEC) in keeping with the mandate under the NCMP, the NEC has been restructured. The Prime Minister set the tone for the reconstituted NEC while addressing its first Meeting on April 12, 2005. He called upon the Council to focus on the twin issues of development and security. He desired that income level of rural families have to be substantially enhanced by harnessing the vast potential of the Region in the fields of Agriculture, Horticulture, Medicinal and Aromatic Herbs, Bamboo, Water Resources, Power Resources and Minerals
A Committee has been appointed by the Chairman, NEC to draw up a Blue Print for formulation of a Comprehensive time bound Road Map for Speedy Socio-Economic Upliftment of the NER. The “North East Vision - 2020” document is being prepared taking into account the heightened consciousness of the people in the NER, their aspirations, needs and sensitivities. It would encompass all the key sectors of the economy and the vast resource potential of the Region.
The Ministry has also taken a major initiative to seek International Cooperation for Development of the Northeastern Region. Under this initiative, 5 core Sectors were identified for preparing Vision Documents in order to facilitate Externally Aided Projects (EAPs). They include Integrated Road Project, Urban Development Project, Trade and Investment Creation Initiative, Water Resource Development and Integrated Energy Project. The Urban Development Project and the Integrated Road Project have already started with the technical assistance grant from the Asian Development Bank (ADB) of US $ 2 million and US $ 0.8 million respectively. Consultants have started the work and the blueprints are expected to be ready soon. ADB has indicated a back up loan of US $ 400 million and US $ 200 million respectively for these Projects. While other projects are in the process of discussion with multilateral agencies, an agreement has been signed with the ADB for Trade and Investment Creation initiative during 2004-05. This initiative is likely to result in a large number of EAPs in the Northeast Region, enhancing the resource-flow to the Region substantially. This will also bring institutional reform as well as modern project management technology in various sectors.
To facilitate private investment on the basis of public-private partnership, the Ministry has decided to launch a Project Development Fund. The objective of this Fund would be to develop projects with a high potential and to pose them before potential investors. The Region has considerable potential in hydroelectricity, mineral based industries including hydrocarbon, tourism and bio-technology etc.
The NER is well placed to take advantage of the Look East Policy of the Central Government. It has a great potential as an important tourist destination. It is also one of the two hotspots of biodiversity in the country. It is expected that with the efforts of the Ministry of DoNER, the Region would be able to achieve its full potential of economic prosperity and consequently social harmony.
*Inputs from Ministry of Development of North Eastern Region
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