Presentation of Ministry of Development of North Eastern Region for The Editors Conference on Social Sector Issues DONER & Its Charter In order to sharply focus on the development of North Eastern Region, the Department of Development of North Eastern Region (DONER) set up in September, 2001. Upgraded to Ministry on 27th May, 2004. As per the Allocation of Business Rules, the Ministry deals with the following subjects: • Planning, execution and monitoring of development schemes / projects of NER including Roads, Power, Irrigation & communication • Non-lapsable Central Pool of Resources (NLCPR) • North Eastern Council (NEC) 2 Continued Border Area Development Programme (BADP) & Hill Area Development Programme ( HADP) in NER (However, the Programmes continue to be handled by MHA and Planning Commission respectively). North Eastern Development Finance Corporation (NEDFi) North Eastern Regional Agricultural Marketing Corporation (NERAMAC) North Eastern Handlooms and Handicrafts development Corporation (NEHHDC) Road Works and Inland Waterways transport in NER. 3 Major Functions Ministry’s Plan Schemes. Review of 10% earmarked GBS of Central Ministries. Facilitating GOI Initiatives/Programmes in the NE NE’s interface with GOI. Monitoring PM’s Announcements and critical projects in NER. 4 Summary Observations NER lags behind national average in pace of development and economic transformation. GSDP growth rate for the North Eastern States have picked-up during 1999-2000 to 2007-2008, but remained below the growth rate of national economy. Growth rate lower than the national economy has translated into the economic gap between the NER and that the rest of India not narrowing down at the desired pace. Though there is higher industrial growth in NE Region as compared to All India level but this has not resulted in the shrinking of primary sector and growth of secondary sector, particularly manufacturing sector has remained almost at the same level. Growth in Tertiary sector is due to continuously increase in Governments spending. 10 Flow of Plan Funds to NER Investment in NER during the 10th Five Year Plan 10th Plan Period Source of funding 2003-04 2004-05 2005-06 2006-07 5367 5702 6833 8274 9685 35861 2. NEC Plan Outlay 450 500 500 462 600 2512 3. NLCPR 550 550 650 679 700 3129 5460 6776 6787 9150 11268 39441 11827 13528 14770 18565 22253 80943 1. Assistance for State Plans 4. Central Ministries/Departments Total 2002-03 Total Investment in NER during the 11th Five Year Plan 11th Plan Period Source of funding 2007-08 (RE) 2008-09 (RE) 2009-10 (BE/AP) Total 9705 11598 14563 35865 2. NEC Plan Outlay 600 624 624 1848 3. NLCPR 700 750 750 2200 12417 14219 16342 42978 23422 27191 32278 82891 1. Assistance for State Plans 4. Central Ministries/Departments Total 13 11th PLAN (Critical parameters for growth of NER) Vision 2020 for growth of NE Region; Creation of critical infrastructure; Improvement in security, law & order and governance; Thrust on major sectors of connectivity, Power, Health, Education and Tourism, by identifying gaps therein; Emphasis on Primary Sector of economy; 14 11th PLAN (Critical parameters for growth of NER) Synergy and dovetailing of programmes/ schemes between Central Ministries and the State Governments for filling up gaps in infrastructure; Building capacity and bringing professionalism in NEC as Regional Planning Body. Involvement of Autonomous District Councils, Panchayati Raj and local Self Government institutions, Communities and Self Help Groups in various development welfare schemes. Creation of conducive and investment friendly environment through North East Industrial & Investment Promotion Policy 2007, both in Secondary and Tertiary Sectors. 15 Budget of DONER Scheme 2007-08 2008-09 2009-10 2010-11 (B.E) NLCPR 600.00 650.00 700.00 800.00 BTC 100.00 100.00 50.00 50.00 NEC 600.00 624.00 623.00 700.00 NEDFi 60.00 60.00 60.00 60.00 Capacity Building 12.00 12.50 13.00 19.50 Advert. & Pub. 6.50 6.50 6.00 7.00 EAPs 0.01 2.00 3.00 103.00 Inland Water Transport 1.49 - - - - - 0.50 1455.00 1455.00 1740.00 PMU for NESRP Total 1380.00 16 Performance of Ministry Plan Schemes 2008-09 allocations (Rs. Crore) 2009-10 expenditure (Rs. Crore) allocations (Rs. Crore) expenditure (Provisional) (Rs. Crore) Non Lapsable Central Pool of Resources (NLCPR ) 650.00 660.39 700.00 668.62 BTC Package 100.00 67.03 50.00 3.15 North Eastern Council (NEC) 624.00 611.22 623.00 621.08 Loans to North Eastern Development Finance Corporation Limited (NEDFi ) 60.00 60.00 60.00 60.00 6.50 3.54 6.00 4.89 12.50 12.22 13.00 13.36 2.00 0.73 3.00 2.50 1455.00 1415.13 1455.00 1373.60 Advertising & Publicity Capacity Building & Technical Assistance EAPs TOTAL 17 Expenditure of Central Ministries in NER (Amount in crore Rs.) YEA R 10% for NER GBS* EXPENDI ACCR Funds TURE IN UALS Release NER TO d to Amo % NLCP States R unt 1998 32,113. 2,128 -99 10 3211.31 .28 1999 35,651. 2,228 -00 46 3565.15 .57 2000 42,478. 2,920 -01 54 Projects (EAP) .49 * Excluding Externally Aided4247.85 #2001 Provisional52,186. information;. 3,802 6.63 1,189. 85 106.34 6.25 1,571. 78 409.96 6.88 1,440. 60 309.25 7.29 1,603. 19 491.57 Major Schemes and Programmes of Ministry 21 NLCPR Normal budgetary Allocation for the Scheme. Objective is to ensure speedy development of social and economic infrastructure. Provision for retention of projects (25%) from the Backward / Scheduled Areas of the State. Funding under NLCPR is on 90:10 basis. Up to 31.03.2010 1079 projects worth Rs.8149.10 crore approved and Rs.6141.61 crore released to the States. States submitted Ucs for Rs. 4933.19 crore and Rs. 1208.42 was balance with them. 22 Special Package to BTC Area Under Bodo Accord, GoI to provide financial assistance of Rs. 100 crore per annum for 5 years for socio-economic development of BTC areas. Accordingly, Ministry sanctioned 42 projects with approved / indicative cost of Rs. 476.26 crore against which Rs. 439.89 crore has been released. 17 of the 42 Projects completed. Additional Package of Rs. 250.00 crore given in August 2008. Against it fourteen (14) projects with estimated cost of Rs. 161.36 crore have been retained. 23 Utilization of NLCPR & BTC Funds (31.03.2010) State No. of Projects Total Project Cost (Cr Rs) Total Release (Cr Rs) Utilized by States (Cr Rs) Unspent Balance with States Arunachal Pradesh 118 1227.76 855.83 570.04 285.79 Assam 292 1746.06 1313.95 1020.57 293.38 BTC Area Projects 42 476.26 439.89 332.13 107.76 Manipur 115 988.84 707.93 551.01 156.92 Meghalaya 74 691.48 460.55 333.26 127.29 Mizoram 86 669.70 549.26 501.68 47.58 Nagaland 114 1030.21 809.52 674.53 134.99 Sikkim 199 674.91 518.14 466.40 51.74 Tripura 77 1098.73 907.97 797.24 110.73 4 21.41 18.46 18.46 0.00 1121 8625.36 6581.50 5265.32 24 1316.18 Common to NER Total NORTH EASTERN COUNCIL (NEC) SECTOR-WISE OUTLAY AND EXPENDITURE Xth PLAN (Rs.in crore) Sl. No Sector 1 Agriculture and Allied 2 Power and Water Development 3 Industry and Tourism 4 Transport and Communication 5 Medical & Health 6 Allocation Expenditure 90.85 78.13 218.63 201.49 76.01 76.83 1461.02 1465.44 361.76 358.00 Human Resource Development & Employment 98.21 105.59 7 Externally Aided Project 89.50 98.60 8 Science & Technology 94.96 91.63 9 Information & Public Relation 8.54 7.95 12.02 12.02 2511.50 2495.67 10 Evaluation & Monitoring Total 28 NEC SECTOR-WISE OUTLAY AND EXPENDITURE IN FIRST THREE YEARS OF XI PLAN (2007-08, 2008-09 & 2009-10) Sl. Sectors 1 Agriculture & Allied Programme 2 Power Development 3 Renewable Resources Energy 4 Allocation (Rs.in crore) Expenditure 42.75 36.55 232.45 270.12 1.00 1.73 Water Development 61.10 74.50 5 Industries 23.46 24.09 6 Tourism 21.50 17.93 7 Transport & Communication 1234.76 1170.43 8 Medical & Health 71.70 66.17 9 Human Resource Development & Employment 75.16 54.23 10 Externally Aided Project 25.50 25.75 11 Science & Technology 36.66 37.41 12 Information & Public Relation 9.50 5.88 13 Evaluation & Monitoring 12.46 4.74 1848.00 1789.52 Total 29 North Eastern State Roads Project (NESRP) ADB assisted project to be implemented in 6 NE States – Assam, Manipur, Meghalaya, Mizoram, Sikkim & Tripura The project objective is to improve 522.6 Kms of identified roads including bridges and causeways in 6 NE States, capacity building of the implementing agencies, i.e., State PWDs, efficient management of road assets. Total Project cost – Rs.1463.14 Crore. ADB loan- about 70% of project cost. GoI to contribute remaining project cost. EFC meeting held on 7.1.2010 recommended the project. Action initiated for obtaining CCEA’s approval. Will be implemented in 2 Tranche 32 Technical Assistance & Capacity Building Skill upgradation of youth for employment and selfemployment. Capacity building of State officials for better service delivery. Reputed institutes like IIM, NIFM, EPIL, NIFT, DOEACC, CIPET, ITDC, Indo-German Tools, etc. engaged for various trainings. About 12,000 youth and officials trained during 2009-10. 34 Advertising & Publicity Mainstreaming and Positive projection of the Region. Trade Expositions, Business Meets: An estimated investment of Rs. 15180 crore mobolized. Seminars. Cultural Shows. Youth Festivals. 35 Enterprises of the Ministry 36 North Eastern Handicrafts and Handlooms Development Corporation (NEHHDC) PSU of the Ministry set up in 1977. Objective is to provide support and exposure to artisans and unique crafts of NER. Organizes exhibitions and craft fairs all over the country. Capacity building and marketing support to artisans. 33% increase in turnover in 2008-09. Turnover in 2009-10 Rs. 13.94 crore (upto February 2010). 37 North Eastern Regional Agricultural Marketing Corporation Limited (NERAMAC) Incorporated on 31st March 1982 Objective - to help farmers of NE Region in procurement/ marketing of agro-horticultural commodities Activities include procuring, processing and marketing of agri, horti and minor forest produces. Processing units Fruit Juice Concentration Plant at Nalkata, Tripura Cashew Processing Unit at Agartala, Tripura. Integrated Ginger Processing Plant at EPIP, Byrnihat, Meghalaya Total turnover during 2008-09 – Rs. 3593.04 lac an increase of about 23 % over 2007-08. 38 North Eastern Development Finance Corporation (NEDFi) (Amount in Rs. crores) Parameters 2006-07 2007-08 2008-09 255.25 281.21 308.08 31.2 36.58 52.83 15.61 24.34 29.68 No. of Projects 300 169 173 Amount Sanctioned 139 279 267 94 116 184 750 1635 854 Direct Employment Generation 3525 2541 2305 Balance Outstanding 267 331 426 4.93 2.35 3.73 Net Worth Income Net Profit Amount Disbursed Capital Formation Net NPA (%) 2009-10 59.20# 34.51# 188 332 192 1093 1504 521 - 39 NEDFi – Achievements in Micro Finance (Amount in Rs. lakh) FY 08-09 FY 09-10* Cum. as on 03/10 Amount Sanctioned 1510 1688.50 6759.59 Amount Disbursed 1229 1688.40 5748.72 20 25 398 3147 3103 13280 23638 16774 100141 No. of Women Beneficiaries 21253 (89.9%) 14437 (86.06%) 74684 (74.57%) No. of SC/ST Beneficiaries 6825 (28.9%) 7190 (42.86%) 36180 (36.13%) No. of Projects Assisted No. of Groups/SHGs/JLGs No. of Beneficiaries Capacity Building/Training: 12 programmes with 210 participants (* As in March 10) 40 RECENT INITIATIVES BY DONER 1. NEC and Power Grid Corporation have jointly funded preparation of DPRs for transmission, sub-transmission and distribution network which is likely to cost around Rs.10,000 crore. 2. Development Seminars focusing on backward districts of the region held in cooperation with the State Governments: Bishnupur & Senapati in Manipur West Garo Hills in Meghalaya Karbi Anglong and North Cachar hills in Assam Mon, Tuensang, Kiphire and Longleng in Nagaland 3. Review of Central Schemes for their suitability for NER for seven selected Ministries. 4. Supplementary loan obtained from International Fund for Agricultural Development for expansion of North Eastern Regional Community Resource Management Project for Upland Areas (NERCORMP) in Assam, Manipur and Meghalaya. 5. Master Plan for tourism being prepared by NEC through Tata Consultancy Services. 41 Infrastructure - POWER Action Taken NEC and PowerGrid Corporation have joing funded preparation of DPRs for transmission, sub-transmission and distribution network which is likely to cost around Rs.10,000 crore. PGCIL to invest more in the trunk transmission lines to improve inter and intra-region connectivity. About 100 projects for hydro power development awarded in Arunachal Pradesh. Two gas based projects – Palatana and Monarchawk coming up in Tripura. Bongaingaon Thermal Power Project being implemented by NTPC. Foundation stone laid by Hon’ble Prime Minister for Pare (110 MW) and Dibang (3000 MW) Power Projects in Arunachal Pradesh. 42 Infrastructure - Roads SARDP-NE The key objective of SARDP-NE is to strengthen the intra-region road connectivity in the North East. The States Capitals would be connected by at least twolane road to the National Highways. Similarly, District Headquarter towns which are not already connected or covered under other schemes are also proposed to be covered under SARDP-NE. Components: Total covers construction/improvement/DPR preparation of 9740 km in three phases: • Phase-A 2596 km • Phase-B 4825 km (only approved for DPR so far) • Arunachal Pradesh Package 2319 km • Total approved cost so far Rs.27644 crore Implementation by State PWDs, BRO, NHAI Likely completion 2017 43 Infrastructure - Roads PMGSY - Connectivity Status (as on 31st March 2008) S. No State 1000+ 500+ 250+ Eligible Balance Eligible Balance Eligible Balance 49 5 127 30 290 123 7323 1834 4862 2722 0 0 1 Aru. Prad. 2 Assam 3 Manipur 80 8 211 89 363 276 4 Meghalaya 9 3 150 67 597 537 5 Mizoram 32 1 104 44 115 89 6 Nagaland 24 0 44 3 48 22 7 Sikkim 16 0 138 0 164 108 8 Tripura 169 10 606 42 1177 310 Total 7702 1861 6242 2997 2754 1465 45 Infrastructure - Railways National Projects of Railways in NER • • • • • • • • • • Bhairabhi – Sairang New Line (Assam – Mizoram, 51.38 kms) Bogibeel Bridge with linking lines (Assam, over Brahmaputra, 73 kms) Dimapur – Zubza (Kohima) New Line (Nagaland and Assam, 88 kms) Jiribam - Tupul - Imphal New Line (Manipur, 97.9 kms) Lumding – Silchar – Jiribam and Badarpur – Kumarghat Gauge Conversion (Assam-Manipur and Assam-Tripura, 367 kms) Rangia-Murkongselek with linked fingers Gauge Conversion (Assam, 510.3 kms) Azra – Byrnihat New Line (Assam-Meghalaya, 30 kms) Agartala – Sabroom New Line (Tripura, 110 kms) Sevoke-Rangpo New Line (West Bengal-Sikkim, 52.7 kms) Byrnihat – Shillong (Meghalaya - announced in 46 Railway Budget Speech of 2010) Infrastructure - Inland Water Transport Developments • Indo-Bangladesh IWT Protocol on Trade and Transit extended upto March, 2011. • During the visit of PM of Bangladesh, Sheikh Hasina, to India, in December 2009, it was agreed that Ashuganj in Bangladesh and Silghat in India shall be declared ports of call. • Kaladan Multi-Modal Transit Transport Facility between Myanmar and India being constructed. Expected to be completed by 2014. Will provide alternate sea routes through Myanmar from eastern sea ports of India. • Brahmaputra river from Dhubri to Sadiya (891 kms) declared as National Waterway-II. • Barak river from Lakhipur to Bhanga (121 kms) to be declared as National Waterway-VI – is under process. 47 Infrastructure - Civil Aviation Actions 1. Comprehensive study to be taken up by DGCA on all aviation related issues in NER. Study will be funded by NEC. 2. NEC has been giving viability gap funding to Air since 2002 for operating intra-NER services. Arrangement will continue upto 2011. 3. Up-gradation of operational airports being done by Airport Authority of India with financial support by NEC (60:40). All works almost completed. 4. Greenfield airport for Sikkim at Pakyong, Gangtok will be completed by January, 2012. 5. 48 48 Ministry of DONER is in discussion with Ministry of Civil Infrastructure - Civil Aviation Actions 6. NEC is going to fund AAI for construction of airport at Tezu, Arunachal Pradesh. 7. Ministry of Defence is constructing Advance Landing Grounds in eight locations in Arunachal Pradesh. 8. However, number of flights and airlines serving the region has improved considerably. Improvement in connectivity in terms of number of aircrafts and points 49 Look East Policy and the North East Objective of Look East Policy vis-à-vis the North East is to leverage its 96% international boundary and cultural and historical ties with East and South-East Asia for trade, commerce and cultural relations. Look East has entered the lexicon of the North East Region and Central Ministries have been sensitized. Recent Initiatives: Opening of Nathula Pass in Sikkim for Border Trade. Agreement on Kaladan Multimodal Transport Project with Myanmar. Commencement of Agartala – Dhaka – Kolkata bus service. Exchanges of trade and cultural delegations between North Eastern States and neighbouring countries particularly Bangladesh, Thailand and Myanmar are on the rise. 50 Thank You 51