North East Development

India’s North East Development: Issues and Perspectives

1.      Introduction

2.      Basic Deficits

3.      Development Initiatives

4.      NEC

5.      NLCPR

6.      MoDONER

7.      Development of trade and exports

8.      International Funds for NER

9.      Critical Areas Development under 12^th FYPDevelopment of trade and exports

10.  Special Package for North-East Region During Twelfth Plan

11.  Vision 2020

12.   LEP

1.      Introduction:

·         Though the potential of NER is more, the development is much less compare to the rest of the region.

·         The GoI took special care in addressing the other Autonomy, Insurgency, Extremists issues through its development initiatives.

·         Developments got more progress after Administrative powers are envisaged under Schedule six and Part IX and Part IXA of the constitution in NER.

2.      Basic Deficits of NER:

·         The High-Level Commission appointed by the then Prime Minister in its report submitted in 1997 (India, 1997) has stated that there are four basic deficits confronting the North East:

1. Basic needs deficit;

2. Infrastructure deficit;

3. Resource deficit; and

4. Two-way deficit of understanding with the rest of the country.

.

3.      Development Initiatives:

·         GoI with supplementary development efforts of states in NER made several initiatives. They are:

      1. North Eastern Council(NEC)

      2. Non-Lapsable central pool of Resources(NLCPR) 

      3.Hill Area Development Program(HADP)

      4. Border Area Development Program(BADP)

 5. Special Central Assistance (SCA)

6. Special Plan Assistance(SPA)

7. Backward Region Grant Fund (BRGF)

8. Setting up of Min of Development of North East Region (MoDONER)

4.      North Eastern Council:

·         Constituted in 1971 by an act of parliament- North Eastern Councils Act, 1917.

·         Most important regional planning and advisory body of the central government.

·         Consists of Governors and Chief ministers of the 8 states and three members nominated by the prime minister.

·         Formulates and forwards proposals to Union, especially regarding the regional plan, efficient placement of land use activities and infrastructure across large area of land.

·         Reviews and Recommends Projects/Schemes included in the regional plan and how they should be executed and managed.

·         Reviews the progress of expenditure and recommends the Union on financial assistance for the implementation of the any project.

·         Recommends State/Central on necessary surveys/investigations of the projects for the inclusion of new projects in the regional plan.

·         Reviews measures taken by the states to maintain security and public order and recommends further necessary measured.

·         The act amended in 2002 to include more functions under the council in implementation and coordination of schemes/Projects.

5.      Non-Lapsable Central Pool of Resources(NLCPR):

·         Created by GoI in 1998 to support infrastructure development projects in NER.

·         The funds acquire from the unspent balance out of the mandatory provisions of 10% of Gross Budgetary support (GBS) made for NER from the budget of central ministries.

·         Unutilized portions of funds earmarked by non-exempted ministries (From10% of GBS) surrendered at the close of every FY into NLCPR.

·         MoDONER sanctions infra projects of NER out of those NLCPR funds as per priority of states and Backwardness.

6.      Min of Development of North East Region (MoDONER):

·         Created in 2001 and granted status in 2004 as full-fledgedministry.

·         Purpose- Facilitate relations and works between central ministries, Departments and states of NER regard to economic development.

·         Improves functions of Infra, Eco friendly Investments for sustainable peace and stability.

·         Takes care of issues of Planning, Execution, Monitoring of Schemes/Projects.

·         According to the Business Rules 1961, the NEC and NLCPR were included as subjects of DONER. Others follow.

1.      Road Works financed by central as whole or part of NER.

2.      Planning of Roads and Inland waterways transport.

3.      HADP and BADP in NER.

4.      North Eastern Development Finance Institution.

5.      North Eastern Regional Agricultural Marketing Corporation Ltd.

6.      The Sikkim Mining Corporation.

7.      The North Eastern Handlooms and Handicrafts Development Corporation.

7.      Development of Trade and Exports in NER:

·         PM’s Action Plan for NE- Introduced in 2000 under Dept. of Commerce for Monitoring/Implementation of measures of Developmental of Trade&Exports.

·         Monitoring/Implementations of the Recommendations of Task Force on Development of Border Trade and Inter-Country Trade from NER setup on the  recommendations of ‘Shukla Committee’.

·         The task force will have functions given below:

1.      To deal with all matters relating to exports/imports from/to NE.

2.      To promote exports from NER and esp. for boosting trade with neighboring countries.

3.      To implement PM’s Action Plan.

4.      To service the empowered committee constituted under PM’s Action Plan

5.      To administer the export development fund for the NER.

8.      International Funds for NE:

(i)                 ADB: Asian Development Bank

North Eastern State Roads Project (NESRP)

·         The objective of the Project proposal is to upgrade about 1,300 kilometers of roads, including the construction of 5,500 meters of bridges and construction of 4,700 meters of Causeway Irish crossings.

·         An additional Technical Assistance has been mobilized by the Ministry from the Asian Development Bank (ADB) which aims at building capacities of State PWDs by introducing (i) computer-based road asset management tools and (ii) state-of-the art project management techniques prior to the implementation of NESRP.

North Eastern Urban Development Project (NEUDP)

·         The North Eastern Urban Development Project (NEUDP) – (Phase-1) seeks to improve urban infrastructure in five capital cities viz. Agartala, Aizawl, Gangtok, Kohima and Shillong.

·         The Asian Development Bank (ADB)’s Technical Assistance for the North Eastern Urban Development Project (NEUDP) – (Phase-II) covering Guwahati, Imphal, Itanagar and Dibrugarh, is also scheduled.

North Eastern States Trade Investment Creation Initiative Project

·         The Project seeks to develop a trade and investment framework that will enable North Eastern India to better position itself to participate in global and regional markets and to reap the considerable gains from specialization, agglomeration economies and globalization.

·          A draft Report has been prepared and has been circulated to the States and Central Ministries for their comments.

(ii)               World Bank

Natural Resources, Water & Environment Nexus for Development and Growth

·         The objective of the study is to develop a vision for the development and management ofwater and related natural resource/environmental issues in the Northeast for sustainable andequitable growth.

North East Region Livelihoods Project (NERLP)

·         The Ministry have initiated discussions with the World Bank on the feasibility of a North-EastRegion Livelihoods Project (NERLP). The project proposal is based on the IFAD assisted NERCommunity Resource Management Project (NERCRMP) which has been successfully implementedin two district each of Meghalaya, Assam and Manipur.

·         A Preliminary Project Report for NERLPwas prepared by the Ministry in consultation with the Planning Commission and referred to the WorldBank through DEA. The World Bank has since agreed to develop and assist in implementation ofthe proposed project. The World Bank has fielded a Mission in December, 2006 to carry out apreliminary assessment and develop the project.

9.      Critical Areas Development under 12^th FYP:

Roads	1. East–West Corridor (670 KM in Assam) by NHAI. 2. All stretches of SARDP-NE connecting State Capitals/District Headquarters, (including NH-39 and NH-53 in Manipur, NH-31A in Sikkim). 3. Strategic border roads, 4. Trans-Arunachal Highway along with identified district connectivity. 5. Roads connecting Kaladan Multi-modal Transit Transport Project, 6. Important bridges include Dhola–Sadia over Brahmaputra and all other crucial bridges on the major road projects. 7. Four-lane highway from Tizit in the north to Dimapur via Tuli–Jalukie–Khelma (proposed by the State Government for survey in investigationand DPR preparation, and so on).
Railways	1. Broad Gauge (line conversion)—connecting Guwahati–Dibrughar–Tinsukia, Rangia– Murkongselek Bridge (rail-cum-road) across Brahmaputra at Bogibeel. 2. BG route from New Moinaguri to Jogighopa. 3. BG route from Lumding–Silchar and Kumarghat–Agartala–Samboom. 4. New lines: Agartala–Akhura, Tetelia–Byrnihat– Shillong, Harmuti–Itanagar, Silchar–Jiribam– Imphal (Tupul).
Airways	Major works for upgradation of airports are: • Guwahati, Dibrugarh, Silchar, Agartala, Shillong, Imphal and Dimapur; and • New airports at Itanagar, Ceithu (Kohima), Pakyong (Gangtok). In addition, there are smaller airports, ALGs to be upgraded in Arunachal Pradesh.
Inland Waterways	IWT development in the Brahmaputra andBarak National Waterway.
Power	1. Long-term health of power sector seriously undermined (losses `70,000 crore per year). However, aggregate technical and commercial (AT&C) losses are slowly coming down. State Governments must push distribution reform. 2. Hydropower development seriously hindered by forest and environment clearance procedures. Need to look at special dispensation for these States, especially Arunachal Pradesh. 3. A time-bound plan to operationalizedevelopment and evacuation of hydropower from NER required. Road connectivity an issue for expeditious project completion. 4. Given limited connectivity of NER with otherparts of the country (through Siliguri corridor),access through Bangladesh needs to be explored. 5. Electricity tariffs not being revised to reflect risingcosts. Regulators are being held back fromallowing justified tariff increases.
Agriculture and Allied Sectors	1. The growth has to be more rapid and inclusive; the focus has to be on better  performance in agriculture, irrigation, drinking water health services, better education in the rural and remote areas, rural connectivity, improved delivery system and governance. Farm-based economic activities—Horticulture, Animal Husbandry, Fisheries, Poultry, and so on, have to be the prime drivers. 2. Post-harvest management and marketing infrastructure required to be attended to by dovetailing of programmes/schemes between Central Ministries and the State Governments for filling up gaps in infrastructure. 3. There has to be continued emphasis on creation of employment opportunities. During 11th plan, there is a general feeling of improvement in the security and law and order scenario. Efforts needed. The initiatives so far have created some momentum of development. This to be continued with all possible support from the Centre.
Water Management/Flood Moderation	North East Water Resource Authority for flood moderation is pending for a long time. Erosion particularly in the Brahmaputra Valley and Barak Valley is a major concern expressed by the State of Assam in various forums. It has to be recognized as a national issue. There is no scheme to take care of the impact of large-scale erosion which is a recurring feature in the State. This needs to be attended seriously.
Education/Skill Development/Health	1. Focus on quality of education. Investment in teachers’ training and evaluation. Use distance education infrastructure for quick completion in the North-East. 2. Social, gender and regional gaps in education need special attention. Special emphasis on capacity building and skill development with focus on curriculum is needed. State-specific approach for creation of opportunities for employment generation may be taken up. Reforms in vocational education to ensure employability in the changing market would help. 3. Development and operationalization of PPP models in school and higher education and focus on increase in seats in medical colleges, nursing
Textile	1. Major Schemes of Min Of Textiles Includes Handlooms(IHDS, Mill Gate Pricing Scheme etc), Power looms(TUST, TMTT,NIFT etc), Sericulture(CDP, HRD, Seed organization etc.,), Handicrafts(AHVY, Comprehensive welfare schemes, Design and technical Upgradation scheme etc.,), 2. New Schemes: i. Comprehensive Handloom Development Scheme. ii. North Eastern Textile Promotion Scheme. iii Scheme for Usage of Geotextiles in North Eastern States. iv. Scheme for promoting Agro textiles in North East

10.  Special Package for North-East Region During Twelfth Plan for tourism:

·         The Min of Tourismextends financial assistance to the State Governments/Union Territory Administrationsincluding the States of the North Eastern Region, for tourism related projects which areidentified every year in consultation and interaction with them under the followingschemes.

1. Product Infrastructure Development of Destinations/Circuits

2. Assistance to Large Revenue Generating Projects

3. Information Technology

4. Fairs/Festival and Events

·         Specifically, media campaigns are launched to promote the entire NER.

·         The Min ofTourism provides complimentary space to the North Eastern States in India pavilions set upat major international travel fairs & exhibitions.

·         Further, In relaxation of CCS (LTC) Rules1988, the GoI has decided to permit Government servants to travel by air to NER on LTC as follows:-

(i) Group A and Group B Central Government employees will be entitled to travel by Air from their place of posting or nearest airport to a city in the NER or nearest airport.

(ii) Other categories of employees will be entitled to travel by air to a city in the NER from Guwahati orKolkata.

(iii)             All Central Government employees will be allowed conversion of one block of Home Town LTC into LTC for destinations in NER.

11.  VISION 2020:

·         Released in 2008, On implementation of the document 17 thematic Working Groups were constituted comprising various Ministries, state governments of NER and sectoral experts.

·         Salient Features of the VISION 2020 Document Follow:

1.      Improve Indices of development of the region to catch up with the rest of the region.

2.      Structural transformation of economies of NE states by effecting significant changes in development strategies to achieve higher growth rates of GSDP to equal to national averages.

3.      Poverty eradication based on participatory planning and with private sector participation for growth.

4.      Maximizing self-Governance by building capacity of the people, Institutions and traditional/Local institutions to enable participation in growth process.

5.      Harnessing available local resources for development.

6.      Strengthening of infrastructure.

7.      Expand Trade and commerce.

8.      Effective governance for establishment and harmony.

12.  Look East Policy on NER:

·         promoting industrialdevelopment and investment in the Northeast and projecting the region as a\ potential driver of the LEP.

·         With the growing realization of the urgency of thedevelopment of the Northeast and its strategic importance to further advance theobjectives of the Look East policy, India has adopted a three-pronged approach of –offering incentives, developing infrastructure, and marketing the asset.

·         Thailand: Important sectors identified for Thai investment are – agro-business and foodprocessing industries, energy, communications, and tourism. India’sNortheast is very rich in these resource and, therefore, offers huge potential forlocal industrial development and economic growth.

·         Agro-based and food processing sectors have been identified as one of the mostimportant areas of Thai investment as the region offers immense opportunities interms of raw-material for these industries and also in terms of an extremely largemarket to the Thai Small and Medium Enterprises (SMEs), which are engaged inthese industries.

·         Connecting china with Thailand through road via NE

·         China: Promotion of Border Trade at Nathu La Pass in Sikkim.

·         Bangladesh: Bus Service from Kolkata to Agartala via Dhaka; Access to Chittagong Port; Proper implementation of Water Transit and Trade(WTT)

·         Myanmar: Implementation of Kadalan Multimodal Transit project; Regular trade status both the sides; Expanding Indo-Myanmar trade agreement; Banking systems with foreign exchange in borders; Construction of roads in Rhi-Tidim, Rhi-Falam.

(In the article I avoided numbers, Data = Less useful in the last Minutes)

END

(In case of any Wrong data, infos are deeply regretted. Correction and return intimation are welcomed.

Name: Marudavanan.S

References:

1.      Vision 2020 Document/ MoDONER.

2.      pib.nic.in.

3.      12^th FYP.