Speech at the '43^rd Meeting of the North Eastern Council' on 14^th July, 2000

I would like to thank (Lt Gen Sinha) the Governor of Assam for inviting me to the 43^rd meeting of the NEC. Though I had something to do with the formation of the NEC many years ago, this is the first time I am attending one of its meetings. My long association with the North East naturally attracts me to all the activities for the region.

It is a beautiful part of the country, with its mighty rivers, lush green forests, rolling hills to the south and high mountains to the North. It is a rich tapestry of cultural and ethnic groups which have, over the centuries, enriched India in many ways.

Though well-endowed with natural resources, the North Eastern Region has remained under-developed partly due to its difficult terrain and long distances. Communication is still the main problem.

When the North East was reorganized in the early seventies, a number of different administrative units were formed. But it was recognised that an integrated development of roads, communications, power, water transport, etc. would benefit all the units. The NEC had its origin in this concept.

The Council’s mandate was to act as an advisory body, empowered to discuss matters of common interest and recommend to the concerned state/union Government appropriate action in this regard. This Council acts as a regional planning body for the formulation, implementation and monitoring of plan schemes.

Over the years, there have been significant changes in the overall environment in view of which the functions of NEC now include, in addition to zonal planning, implementation and monitoring, development of infrastructure and manpower, including educational and vocational training and employment of the youth.

The infrastructure development projects of the NEC, I understood, include linking of all states of the region atleast by two roads. Construction of bridge and connecting the roads and providing pucca bridges where there are kutccha ones, is also getting the attention of the Government. Development of hydro electric power is the other priority. Doyang and Ranganadi hydro power projects are the main projects developed by the NEC.

As you know, the central Govt. pays special attention to the provisions of funds for the development of the North Eastern region. I remember that the 10^th Finance Commission had given special consideration to the North East while deciding on the sharing of taxes and grants in its recommendations. These are non-plan funds. On the plan side, States in the North Eastern Region are treated as Special Category States, and the funding pattern for these states is therefore, much more favourable as compared to other states. As I have already said, funds are provided to the North Eastern Council for projects of inter-state importance. In addition to these, for the last two years projects and schemes are also being financed through Non-lapsable Central Pool of Resources. An amount of Rs 542 crores has been released during the last two years.

The works relating to NEC projects are implemented by the state agencies or by central public sector undertakings. It needs to be pointed out many of these projects have taken more than the scheduled time. This has also led to cost over runs. In some cases the cost has gone up many fold.

I am told that while planning projects, the estimates are not always based on the current level of prices. Sometimes, cost estimates are not correct. EFC/PIB memos prepared for the projects do not meet all requirements. The Planning agencies need to check these estimates to save from time and cost over runs. Hence it is necessary that before submitting the proposals for consideration and investment, a thorough check is made. Once a reliable project report has been prepared, you should press for an early approval to avoid any delay in the implementation of the projects.

It is found that quite a few of the old projects are pending for some reason or the other. This not only delays the commissioning of the project but also results in cost over run. The NEC should pay attention to such projects by providing funds for these projects so that the intended benefit could be derived from such projects. These projects need to be completed on a priority basis.

In the course of its long journey, the NEC has constructed a net work of roads in the North Eastern States. These roads were handed over to the state Governments for maintenance. It has been seen that the state Governments are not maintaining these roads, due to which they are in a very bad condition. Other infrastructure projects, like hospitals, colleges etc. are also facing the same problem. This needs urgent attention, as huge investment has been made in creating this infrastructure.

The funds provided to the NEC in the Annual Plans have not been fully utilized, which needs your special attention. During 1997-98, as against the allocation of Rs 406.50 crores actual expenditure was Rs 319.37 crores. For 1998-99, an outlay of Rs 471 crores was approved but the actual expenditure was Rs 368.55 crores. Similarly, for 1999-2000, Rs 450 crores was approved but the actual expenditure was Rs 412.76 crores only. Unless funds provided are fully utilised, there will always be a gap between targets and actual achievements. The Government of India is giving funds for the NEC and the State Governments for the development of the region, and it is but reasonable to expect that they will work together for the formulation of plans. Proper coordination between the States and the NEC would help in faster development of the region. It would be in the fitness of things that before finalising the schemes the State Governments and the NEC discuss the plans and their financing.

The North Eastern States have not been able to implement plans for the agricultural and industrial development of the region. Though their economy is predominantly agricultural, they have not been able to exploit the rich potential for agriculture, horticulture and floriculture. The farmers need to be acquainted with the latest farm technology. Industrial development is also lacking. One of the options for the region is to develop indigenously developed technology for processing of farm produce in the region. Marketing of such products would require the attention of the agencies working in the field. The basic requirements are peace, infrastructure and a conducive environments.

I would emphasize that it should be the endeavour of the NEC to have a vision of their region for the year 2020. A perspective plan to projecting the goals for the future would make it possible for the development schemes and projects taken up for execution to be dovetailed in the perspective plan. Such a plan should consider how to consolidate fiscal health, so that the expenditure on non-plan items is met out of states’ own funds, and the entire Government of India assistance is available for plan development.

In the end I would once again like to impress upon the distinguished leaders of the region to work in close cooperation with the NEC for the faster development of the region.