NEC funds cut to slow down projects

Spl Correspondent NEW DELHI, Jan 8 – Drastic slashing of North Eastern Council (NEC) funds is feared to slow down development projects in the region with Chief Minister Tarun Gogoi reiterating that the Government of India should consider releasing the entire NEC liability in one single instalment. This act, Gogoi explained, would enable the NE States to complete all ongoing projects during the current fiscal itself. Gogoi, who was addressing the 57th meeting of the NEC on Wednesday, referring to the drastic fund cuts said that the working group on the 11th Five Year Plan had proposed a Plan-size of Rs 12,450 crore, but the Planning Commission has agreed to an allocation of Rs 7,394 crore only.“The allocation is inadequate to meet the hopes and aspirations of the region,” said Gogoi, adding that with this allocation, it will not be possible to initiate new development activities through the NEC.Adding further, he said there were few projects in power, transport and communication sectors, for which revised SFC and EFC sanctions are pending. “I would impress on the NEC to simply the procedure for SFC and EFC. Some of the important projects prioritised during the 10th Plan period but could not be sanctioned may also be considered on a priority basis during the 11th Plan period,” he said.The North Eastern Region (NER) is home to 39 million people, of which, 68 per cent live in Assam alone. Considering the area, location, population and economic status, the State requires investment of a much larger amount during the period. The quantum of funds for Assam at least should be 25 per cent of the total NEC allocation during the 11th Plan, the Chief Minister said.Supporting the proposal to identify the power development, institution development and capacity development as thrust areas for sustained support, Gogoi pointed out that the Council should also support development of industrial infrastructure and capacity building in the various fields like agro-processing, bamboo products, rubber and handloom and handicrafts.He sought support for setting up a bamboo park in Assam through CBTC.On the draft report of the task force on management of 10 per cent Gross Budgetary Support (GBS), the Chief Minister highlighted some of the suggestions made by his government. Assam advocated that 50 per cent of the resources of the NEC should be earmarked for various States in proportion to their population and the balance 50 per cent may be allocated on the basis of backwardness and disparities.It is also agreed that the 10 per cent of GBS shall not be treated as the ceiling and in case any State has more requirement, it may be accommodated without the 10 per cent criteria.The States should be intimated the respective shares of the 10 per cent GBS by each ministry so that they can make their own proposals.Touching on the sensitive issue of project monitoring and evaluation, Gogoi said such monitoring should be done either by Central ministries or by the State Government. NEC and DoNER may, however, monitor and evaluate the schemes implemented with the trust funds provided by them.As regard the relationship between NEC and DoNER, Gogoi said that there should be total transparency about the procedures of sanctioning and allocation of funds to various States. The allocation made is informed to the States in advance of the Plans to be prepared by each of them, he suggested. source: assam tribune