NEW DELHI, June 8 ? In keeping with the policy of rewarding insurgency affected States that have opted for peace, Prime Minister, Atal Behari Vajpayee today extended a ?peace bonus? to Nagaland announcing conversion of Rs 365 crore ?ways and means? loan to a one-time grant. The sop announced through a written statement on Sunday may also be aimed at boosting the prospect of BJP in the two northeastern States of Mizoram and Arunachal Pradesh, which are going to polls. Nagaland incidentally is the second north-eastern State after Mizoram to be rewarded with a ?peace bonus.?
?Recognising the substantial progress that has been made in the peace process in Jammu and Kashmir, Nagaland and Mizoram, the Centre has taken several new steps to encourage economic activity and to enlarge employment there. J&K has had a peaceful election, the Naga peace process has also attained momentum. This needs to be sustained, ?the statement said, adding that the key to an enduring peace is all-round and sustainable development.
?I am glad, therefore, to note that Jammu and Kashmir has presented a zero-deficit Budget. This is significant coming as it does after deficit Budget?s born of strife and insurgency. This has been made possible by a Central assistance of Rs 2,950 crore, that I have sanctioned for the State. This is also an increase in Central assistance to J&K in 2003-2004 of Rs 750 crore,? the statement said.
?Similarly, I have now decided to extend a ?peace bonus? to Nagaland. An amount of Rs 365 crore, extended to Nagaland as ways and means loans, will now be converted into a ?one time grant?. This will enable the State to meet all its past liabilities. It will also result in an annual interest saving of Rs 44 crore by the State. Nagaland should now be able to devote its efforts to schemes and policies aimed at poverty alleviation and balanced economic development, it was announced.
?In the year 2000, I had announced a somewhat similar package to Mizoram. This involved conversion of Rs 100 crore of loan owed to the Government of India into an outright grant. This has imparted a degree of stability to the State?s finances and given major impetus to developmental efforts,? Vajpayee said in the statement.
?There is only one key to an enduring peace process, it is sustainable development,? the Prime Minister said. The one-time grant may also be Prime Minister?s way of thanking the people of Nagaland for throwing out the Congress party from power and electing an NDA-supported alliance. The BJP, which is a partner in Democratic Alliance of Nagaland (DAN), has for the first time tasted power in the Christian-dominated State.
This analysis holds water because two of the other north-eastern States of Assam and Manipur, both of which are Congress-ruled States and passing through their worst financial crisis, continue to clamour for such bonus in vain. Assam for instance since past couple of years has been running from pillar to post in Delhi seeking a similar one-time loan waive to tide over its crisis. Its external debt estimated at over Rs 10,000 crore last year and increasing has left the State Government in a tight spot.
Realising that the Centre may not be willing to play ball, Assam Government even diluted its demand for a one-time waiver to moratorium on repayment but the Central Government doesn?t seem interested. As on March 31, last year, Assam?s outstanding loan was estimated at Rs 3,625.46 crore, while Manipur had an outstanding of Rs 431.01 crore. Significantly, the Prime Minister?s announcement also has strong political overtones with the BJP eyeing Arunachal Pradesh, which goes to poll next year. In Mizoram, it is expected to put its might behind MNF in keeping Congress away from power.