Centre should take up capital projects for NE development

GUWAHATI, February 17: The Central Government should take up capital projects in developing infrastructures like roads, power generation and irrigation system, rather than concentrating on spoon-feeding through long term incentives, for the sustainable development of the NE region, said business economist Gautam Prasad Barua. Barua, a former Corporate Vice-President of Williamson Magor and at present the Banking Ombudsman for NE Region, while talking to The Assam Tribune, said, when asked as to what measures he would suggest for inclusion in the Central Budget being placed in the Parliament a few days hence, for the development of NE region, that the policy of long term incentives should be replaced by a policy for capital projects in the region. Elaborating, he said that good road linkage between Khasi-Jaintia Hills and Garo Hills of Meghalaya and Bangladesh, would make Meghalaya derive maximum benefits as it would facilitate its coal export to Bangladesh. At present, Meghalaya with its coal and Assam with its tea, are the two biggest foreign exchange earners in the NE region, he said. In the case of Assam, he said, the Central Budget should concentrate on setting up of joint venture projects for generation, and more particularly for distribution and transmission of power. Because, it was due to the lack of efficient transmission and distribution systems the power generated and procured by the State could not be distributed to the customers at a reasonable cost. Power theft is also responsible for this situation, he said. Moreover, the Central Excise Duty on Assam tea also needs to be abolished to provide for a level playing field to enable the State's tea sector meet the challenge of imported tea coming from Lanka and other countries as cheaper products, said Barua. No doubt, the Central Government had earlier allocated funds for the economic development of the State and its neighbours States in the region, but the State Governments of the region need to be more responsible in matters of their governance of such funds, he said. Commenting on the measures for the development of the transport network in the region, he said that the Central Government should allocate funds for extension of the Asian Highway to link Assam and other NE States with Bangladesh, Singapore, Malaysia, Korea and other South East Asian countries. Besides, the development of Inland Water Transport system in Assam also needs to be seriously looked into. This will enable the Numaligarh Refinery to export at least one million tonnes of its refined oil products to Bangladesh, which is feverishly in search of such products. An inter-modular transport system incorporating a product pipe line project from Silchar rail head to Sylhet could also be designed to pump Assam's oil products to Bangladesh which will help the State earn a huge foreign exchange, Barua said. The entire thrust of any economic policy should be aimed at bringing about a radical change in the mind-set of the people of this region who have now been reduced into mere job-seekers. They should be taught to emerge as the ideal entrepreneurs for the other parts of the country, he said. All these could be done without interrupting the macro economic stability and affecting the sustained growth rate in the country. In the past populist elements prevented strong actions against Subsidy Raj. There was also no effective step to expand the tax base, which resulted in an increased burden of tax on the middle class. The wrong belief that economic reforms are contrary to poverty alleviation measures also needs to be done away with. In fact, these two are not the opposing concepts. The implementation of economic reform would certainly lead to poverty alleviation, generation of self-employment as well as development of infrastructure in the primary, secondary and tertiary sectors, claimed Barua while speaking out his mind on his general expectations from the Central Budget.