Drastic cut in NEC budget to stall projects

GUWAHATI, Feb 4 ? Contrary to the ruling BJP?s ?India shining? slogan, the North Eastern region is left with no other option but to dim with the Central Government resorting to drastic cut of annual plan outlay of North Eastern Council (NEC) for the fiscal 2003-04 and 2004-05. With the annual plan of the NEC getting pruned all the NEC funded 10 th Plan period projects in the region will be severely affected.

Sensing the trouble ahead, Assam Chief Minister Tarun Gogoi and Tripura Chief Minister Manik Sarkar have dashed protest letters to Prime Minister Atal Behari Vajpayee urging him to use his good office to restore the volume of annual outlay of the NEC as was approved by the Planning Commission initially. Both the Chief Ministers pointed out that it would send a wrong signal to the people of the region.

Assam Minister of State for Planning and Development Himanta Bishwa Sharma today informed that as per the information received by the State Government from the NEC Secretariate in Shillong, the Central Government has reduced the NEC annual outlay for the current financial year of 2003-04 to only Rs 395.29 crore giving a jolt to the development projects in the entire North East. The Planning Commission had initially approved allocation of Rs 750 crore for 2003-04 for the NEC but the Finance Ministry budgeted only Rs 500 crore for the Council.

However, the Secretary of DONER vide DO letter No. 3/1/2003-DoNER dated 07/01/04 intimated the NEC that its budget for the year 2003-04 has been further reduced from Rs 500 crore to Rs 395.29 crore. This is despite the reality that the NEC had already sanctioned Rs 396.30 crore as against different projects allocated to N-E States.

As if it was not enough to spell the doom for on-going NEC funded projects in the region, the BJP-led NDA Government resorted to butchering of NEC allocation for the year 2004-05 also. For the year 2004-05, the NEC proposes allocation of Rs 1000 crore.

The discussion for annual Plan 2004-05 for DONER which encompasses both Non-lapsable Central Pool of Resources (NLCPR and the NEC, was held on December 17, 2003 between Adviser (SP-NE), Planning Commission and officials of DONER and the NEC. The proposal of the NEC to allocate Rs 1000 crore was agreed to. Unfortunately, the Finance Ministry has allocated only Rs 500 crore for 2004-05.

In view of the drastic cut imposed by the Finance Ministry, NEC will not be able to entertain any more proposal for further release of fund till end of March 2004 including funds required for on-going works. The NEC has informed the States that the completion date fixed for several ongoing projects will be severely affected due to cut in budget provision.

?Unless the budget outlay is enhanced in line with recommendation of the Planning Commission, new schemes approved for the region during the 10th Plan will remain a non-starter,? the NEC stated in its letter to State Governments of North Eastern region.

?Alarmed at the development, all the State Governments of the region has called upon the Chairman of the NEC, Lt Gen (retd) Ajai Singh to convene an urgent meeting of the Council to discuss the issue,? Sharma said. The Minister informed that road projects, Karbi Langpi Hydel Project and the cold storage projects of Assam would be severely affected because of the cut on NEC budget by the Centre.

The Planning Commission had approved total Rs 3600 crore for the NEC during the entire Tenth Plan period. However, so far the Centre has sanctioned only Rs 1100 crore during the first three years of the 10th five-year Plan, the Minister informed.

 
 
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The Northeast Vigil website ran from 1999 to 2009. It is not operated or maintained anymore. It has been put up here solely for archival sentiments. This site has over 6,000 news items that are of value to academics, researchers and journalists.

Subir Ghosh
Notice
The Northeast Vigil website ran from 1999 to 2009. It is not operated or maintained anymore. It has been put up here solely for archival sentiments. This site has over 6,000 news items that are of value to academics, researchers and journalists.

Subir Ghosh