PARLIAMENT OF INDIA RAJYA SABHA 162
DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON HOME AFFAIRS
ONE HUNDRED AND SIXTY SECOND REPORT ON DEMANDS FOR GRANTS (2012-2013) OF MINISTRY OF DEVELOPMENT OF NORTH EASTERN REGION
(PRESENTED TO RAJYA SABHA ON 7TH MAY 2012) (LAID ON THE TABLE OF LOK SABHA ON 7TH MAY, 2012)
RAJYA SABHA SECRETARIAT NEW DELHI MAY, 2012/VAISAKHA, 1934 (SAKA) 107
Website:http://rajyasabha.nic.in E-mail:[email protected] C.S.(H.A.)-316
PARLIAMENT OF INDIA RAJYA SABHA
DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON HOME AFFAIRS
ONE HUNDRED AND SIXTY SECOND REPORT ON DEMANDS FOR GRANTS (2012-2013) OF MINISTRY OF DEVELOPMENT OF NORTH EASTERN REGION
(PRESENTED TO RAJYA SABHA ON 7TH MAY, 2012) (LAID ON THE TABLE OF LOK SABHA ON 7TH MAY, 2012)
RAJYA SABHA SECRETARIAT NEW DELHI
MAY, 2012/VAISAKHA, 1934 (SAKA)
CONTENTS
PAGES
1. COMPOSITION OF THE COMMITTEE ...... (i)-(ii)
2. PREFACE ...... (iii)
3. REPORT ...... 1—40 Chapter-I – Overview ...... 1—4
Chapter-II – Overall assessment of Demands for Grants ...... 5—29
Chapter-III – Issues, Schemes, Policies and Programmes ...... 30—40
4. OBSERVATIONS/CONCLUSIONS/RECOMMENDATIONS — AT A GLANCE ...... 41—49
5. RELEVANT MINUTES OF THE MEETINGS OF THE COMMITTEE ...... 51—64
COMPOSITION OF THE COMMITTEE (re-constituted w.e.f. 31st August, 2011)
1. Shri M. Venkaiah Naidu — Chairman RAJYA SABHA 2. Shri Rishang Keishing 3. Dr. N. Janardhana Reddy ∑4. Vacant *5. Vacant 6. Shri Prasanta Chatterjee 7. Shri Tariq Anwar 8. Dr. V. Maitreyan 9. Shri D. Raja 10. Shri Javed Akhtar
LOK SABHA 11. Shri L.K. Advani 12. Shri Sansuma Khunggur Bwiswmuthiary 13. Shri Khagen Das 14. Dr. Kakali Ghosh Dastidar 15. Shri Ramen Deka 16. Shri Lagadapati Raja Gopal 17. Shri Mohammad Asrarul Haque 18. Shri Naveen Jindal 19. Shri Jitender Singh Malik 20. Shri Babulal Marandi 21. Shri Baijayant Panda 22. Shri Lalubhai B. Patel 23. Shri Natubhai Gomanbhai Patel 24. Dr. Nilesh N. Rane #25. Shri Navjot Singh Siddhu 26. Shri Adhi Sankar 27. Shri Hamdullah Sayeed 28. Shri Neeraj Shekhar 29. Shri Ravneet Singh 30. Shri Harsh Vardhan 31. Shri Dinesh Chandra Yadav ∑ Consequent upon expiration of term of Shri S.S. Ahluwalia as member of Rajya Sabha on 2nd April, 2012. * Consequent upon resignation of Shri Naresh Chandra Agrawal as member of Rajya Sabha w.e.f. 13th March, 2012. # Shri Navjot Singh Siddhu nominated w.e.f. 3 January, 2012 vice Shri Bishnu Pada Ray who was nominated to the Committee on Rural Development.
(i) (ii)
SECRETARIAT Shri P.P.K. Ramacharyulu, Joint Secretary Shri A.K. Gandhi, Director Shri D.K. Mishra, Joint Director Shri Bhupendra Bhaskar, Assistant Director Shri Sanjeev Khokhar, Committee Officer Shri Anurag Ranjan, Committee Officer PREFACE
I, the Chairman of the Department-related Parliamentary Standing Committee on Home Affairs, having been authorized by the Committee to submit the report on its behalf, do hereby present this One-Hundred and Sixty Second Report on Demands for Grants (2012-13) relating to the Ministry of Development of North Eastern Region (DoNER). 2. Under Rule 272 of the Rules of Procedure and Conduct of Business in the Council of States, the Department-related Parliamentary Standing Committee on Home Affairs is mandated to consider the Demands for Grants of the related Ministries, and make report thereon. In pursuance thereof, the Committee heard the presentation of the Secretary, and other officials of the Ministry of DoNER as well as officers of the Implementing Ministries/Departments/Agencies in its sittings held on 11th and 18th April, 2012 and examined the Demands for Grants (2012-13) of that Ministry. 3. During the course of discussion on 11th April, 2012, the Committee noticed that some Ministries/Departments did not send their representatives, while some other Ministries/Departments sent junior rank officers. The Committee could not get satisfactory replies on the queries/issues raised by it from the implementing Ministries/Departments/Agencies. The officers did not come fully prepared after a thorough review of the schemes, in the meeting. The Committee took serious exception to this as this resulted in loss of time. The Committee had to postpone the meeting. The Committee also brought this matter to the notice of Cabinet Secretary and asked him to instruct the Ministries/Departments/Agencies to send their officers, not below the rank of Joint Secretary after a thorough review of their respective plans/schemes/projects implemented by them. The Committee takes a serious note of this lackadaisical approach of the implementing Ministries/ Agencies and directs that such a situation should not arise in future. 4. The Committee considered and adopted the Report in its sitting held on 3rd May, 2012. 5. The Committee, while making its observations/recommendations, has relied mainly upon the following papers received from the Ministry of DoNER:– (i) Detailed Demands for Grants of the Ministry for the year 2012-2013; (ii) Explanatory Notes on the Demands for Grants (2012-2013); (iii) Outcome Budget (2012-2013) of the Ministry; (iv) Annual Report (2010-2011) of the Ministry; (v) Written replies furnished by the Ministry to the Questionnaires sent to it by the Committee; (vi) Presentation made by the Secretary of the Ministry and oral evidence; (vii) Oral and written clarifications given by the Ministry to the points/issues raised by the Members in the meeting of the Committee. 6. FFor facility of reference and convenience, the observations and recommendations of the Committee have been printed in bold letters in the body of the Report.
M. VENKAIAH NAIDU NEW DELHI; Chairman, 3rd May, 2012 Department-related Parliamentary Standing Committee on Home Affairs.
(iii)
1
REPORT
Chapter-I
1.1 OVERVIEW 1.1.1 The North-Eastern Region of India comprises of eight States viz. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura, covering an area of 2.62 lakh sq. km i.e. 7.9% of total geographical area of the country with a total population of 39 million accounting for 3.8% of total population of India. The NER of India is land-locked characterised by their unique culture, diversity of ethnic groups, rich natural resources and flora and fauna with long international borders and only a chicken neck corridor connecting it with mainland India. The economy of the North-East has a distinct identity due to its peculiar physical, economic and socio- cultural dimensions but the irony of the fact is that despite its rich natural endowments, the region represents one of the least developed-economically and industrially–regions of the country. It is due to hilly and inhospitable terrains, porous borders, highly inadequate connectivity, limited air services, inadequate rail links and weak telecommunication infrastructure. In view of being a strategically and geo-politically sensitive frontier, Government of India is emphasizing on bridging the gaps in infrastructure, communication, health, education and other integral areas of development of the region so as to bring it at par with the rest of the country. 1.1.2 With an objective to fast track economic growth of the region, the Department of North East Region was formed in September, 2001 which was upgraded to the status of a Ministry in 2004 to push further socio-economic development of the region. This Ministry, rather than an administrative unit, acts as a facilitator between the Central Ministries/Departments and the State Governments of the North Eastern Region for economic development including removal of infrastructural bottlenecks, provision of basic minimum services, creating an environment for private investment and to remove impediments to lasting peace and security in the region. 1.1.3 The Ministry implements the work mandated in the Allocation of Business Rules, 1961, through the formulation of appropriate policies, and implementation of specific Plan Programmes. The Government of India (Allocation of Business) Rules, 1961, mandate the Ministry of DoNER with the following functions:– (i) Matters relating to the planning, execution and monitoring of developmental schemes and projects of North Eastern Region including those in the sectors of power, irrigation, roads and communications; (ii) Hill Area Development Programme and Border Area Development Programme in North Eastern Region;* (iii) Non-Lapsable Central Pool of Resources for North Eastern Region (NLCPR); (iv) North Eastern Council (NEC); (v) North East Development Finance Corporation (NEDFi); (vi) North Eastern Regional Agricultural Marketing Corporation Limited (NERAMAC); (vii) North Eastern Handloom and Handicrafts Development Corporation (NEHHDC);
* Included in the original mandate of the Ministry of DoNER but has not been transferred from Planning Commission and MHA, respectively. 2
(viii) Road works financed in whole or in part by the Central Government in the North Eastern Region; and (ix) Planning of road and inland waterways transport in the North Eastern Region. 1.1.4 The Ministry of Development of North Eastern Region seeks to achieve the following goals: (i) Accelerating the pace of socio-economic development in the North Eastern Region; (ii) Synergizing the efforts of Central/State Governments/Other Stakeholders for balanced development of the Region; (iii) Integrated and holistic planning for the region, taking into account the heightened consciousness of the people of the region, their aspirations, needs and sensitivities; (iv) Evolving a common approach for all the agencies working for the development of the region; and (v) Formulating appropriate policies for the rapid development of the region. 1.1.5 The North Eastern Council (NEC) is an organization set up under the Ministry which functions as a Regional Planning Body for the region. The NEC also implements various Plan Schemes in the region. It was constituted under the NEC Act, 1971 for securing the balanced development of the North East. The Minister in charge of the Ministry of Development of North Eastern Region is the ex-officio Chairman of NEC. Its members include the Governors and the Chief Ministers of the eight Member States of the region and three Members nominated by the President of India. 1.1.6 The Ministry of DoNER implements the following Plan Schemes: (i) Advocacy and Publicity; (ii) Technical Assistance and Capacity Building; (iii) North Eastern States Road Project (externally aided project assisted by Asian Development Bank); (iv) Assistance to North Eastern Development Finance Corporation Ltd. (NEDFi); (v) North East Road Project Management Unit; (vi) North Eastern Region Livelihood Project (NERLP) with World Bank assistance (externally aided project); and (vii) Non-Lapsable Central Pool of Resources for North Eastern Region (NLCPR)-Central. 1.1.7 Besides the above, the following Schemes funded under the additional central assistance are also under implementation in the form of assistance to the State Plans: (i) Non-Lapsable Central Pool of Resources for North Eastern Region (NLCPR); (ii) Plan Schemes of the North Eastern Council (NEC); (iii) Infrastructure development projects under the special package for Bodoland Territorial Council (BTC); (iv) Development of cities and roads in the North Eastern States (externally aided projects); and 3
(v) Schemes for creation and upgradation of infrastructure facilities, specially in Arunachal Pradesh and other border areas in the North Eastern Areas, under the Social and Infrastructure Development Fund (SIDF).
1.1.8 There are two Public Sector Enterprises (PSEs) under the administrative control of the Ministry, viz., the North Eastern Handicrafts and Handloom Development Corporation Ltd. (NEHHDC) and the North Eastern Regional Agricultural Marketing Corporation Ltd. (NERAMAC). The objective of NEHHDC is development and procurement of handicrafts and handloom items of artisans and weavers in the region. Its authorized and paid up capital is Rs. 2 crore. The mandate of NERAMAC is procurement and marketing agriculture and horticulture produce from the NE Region. It has an authorized capital of Rs. 10 crore and paid up capital of Rs. 7.62 crore. Government extends Non-Plan assistance to both these Corporations.
1.1.9 The Government provides Interest-free loan to the North Eastern Development Finance Corporation Ltd. (NEDFi), a financial institution which, inter alia provides credit and other facilities to industrial enterprises, infrastructure projects, agro-horticulture units etc. in the region for promotion, expansion and modernisation.
1.2 NON-LAPSABLE CENTRAL POOL OF RESOURCES FOR NORTH EASTERN REGION (NLCPR)
1.2.1 All the States in the NER are Special Category States, whose development plans are centrally financed on the basis of 90% Grant and 10% Loan. Further, the Special Category States are allowed to use up to 20% of the central assistance for Non-plan expenditure.
1.2.2 In October 1996, the then Prime Minister announced “New Initiatives for North Eastern Region” and stipulated that at least 10% of the Budget(s) of the Central Ministries/Departments will be earmarked for the development of North Eastern States. A preliminary exercise undertaken by the Planning Commission revealed that the expenditure on the North East by some Union Ministries during 1997-98 fell short of the stipulated 10% of the Gross Budgetary Support (GBS) for that year. Planning Commission thereafter explored the possibility of creating a Central Pool of Resources for the North East out of the unspent amount of stipulated 10% of GBS to support infrastructure development projects in the North East. Since 1998-99, all non-exempted Ministries/Departments of Government of India are required to earmark at least 10% of their GBS for the development of North Eastern States for creation of both economic and social infrastructure such as power, roads and bridges, education, health, water supply and sanitation, etc. in the region. The unutilized portion of the 10% Plan allocation made by Ministries/ Departments is credited at the end of each financial year in a reserve fund in the Public Account titled ‘Central Resource Pool for Development of North Eastern Region’ which in administrative parlance is known as the Non-Lapsable Central Pool of Resources (NLCPR). The funds from this Pool are budgeted for financing new infrastructure projects/schemes in the region under the NLCPR Plan Scheme.
1.2.3 The NLCPR is meant for infrastructure development in almost all the major socio- economic development sectors. The NLCPR scheme is to ensure speedy development of infrastructure in the North Eastern Region by increasing the flow of budgetary financing for new infrastructure projects/schemes. Both physical and social infrastructure sectors are considered for providing support under the Central Pool, with projects in physical infrastructure sector receiving priority. For this purpose, projects are sanctioned for State as well as Central sectors. However, the funds available under the Central Pool are not meant to supplement the normal Plan programmes either of the State Governments or Union Ministries/ Departments/Agencies. 4
1.3 NON-LAPSABLE CENTRAL POOL OF RESOURCES FOR NORTH EASTERN REGION – CENTRAL (NLCPR-CENTRAL) 1.3.1 The Union Cabinet, on 11th August 2011, approved for introduction of a new Central Sector Plan Scheme titled “Non-Lapsable Central Pool of Resources–Central (NLCPR-Central)”. This plan scheme has been formulated with the objective of enhancing effective and optimal utilization of funds in the NLCPR Pool towards development of the North Eastern States. The scheme is not meant to supplement the existing schemes, but to fill critical gaps in the existing developmental programmes or schemes. As a Central sector plan scheme, projects of Union Ministries/ Departments pertaining to subjects listed in the Union and Concurrent Lists can be proposed for funding under the scheme. Expenditure incurred under the NLCPR-Central scheme will be debited to the NLCPR Pool. The guidelines for the scheme have been circulated to concerned Union Ministries/Departments, inviting them to propose appropriate projects. The Governments of North Eastern States and North Eastern Council have also been kept informed about the procedure by which they may pose projects under the scheme. 5
Chapter-II
OVERALL ASSESSMENT OF DEMANDS FOR GRANTS
2.1 The Ministry of Development of North Eastern Region (DoNER) has one Demand i.e. Demand No. 28 and for the financial year 2012-13, a total of Rs. 1929.33 crore has been allocated to the Ministry, out of which Rs. 1905.00 crore is for plan schemes and Rs. 24.33 crore for non- plan schemes. 2.1.1 The budgetary provisions against the actual expenditure of 2010-11 and variation between BE 2011-12, BE 2012-13 and RE 2011-12 and BE 2012-13 in percentage terms are given below:
BUDGET AT A GLANCE (Comparative analysis) (Rs. in crore) Actual BE RE BE Variation Variation 2010-11 2011-12 2011-12 2012-13 between BE between RE (2011-12) and (2011-12) and BE (2012-13) BE (2012-13) Plan 1618.85 1741.00 1641.00 1905.00 +164.00 +264.00 (+9.4%) (16.08%) Non-Plan 21.68 21.58 23.27 24.33 +2.75 +1.06 (+12.7%) (+4.5%) Total 1640.53 1762.58 1664.27 1929.33 +166.75 +265.06 (+9.5%) (+15.9%)
2.1.2 The break-up of Actuals for 2010-11, BE 2011-12, RE 2011-12 and BE 2012-13 in respect of the major schemes of the Ministry are given in the following Tables:–
Plan schemes (Rs. in crore) Actual BE RE BE Variation Variation 2010-11 2011-12 2011-12 2012-13 between BE between RE (2011-12) and (2011-12) and BE (2012-13) BE (2012-13) 1234 5 6
NLCPR 805.78 800.00 800.00 880.00 +80.00 +80.00 (+10%) (+10%) NEC 601.53 633.00 633.00 691.00 +58.00 +58.00 (9.16%) (9.16%)
5 6
1234 5 6 Bodoland Territorial 50.00 50.00 50.00 50.00 — — Council North Eastern 60.00 60.00 60.00 60.00 — — Development Finance Corporation Ltd. (NEDFi) Advertising and 7.00 7.00 7.00 7.00 — — Publicity Capacity Building and 17.72 20.00 20.00 20.00 — — Technical Assistance NER Livelihood 0.01 35.00 2.65 35.00 — +32.35 Project (1220%) North East States 0.00 68.00 0.35 45.00 -23.00 +44.65 Road Investment (-33%) (12757%) Programme (NESRIP)-EAP Social and 0.00 170.00 170.00 170.00 — — Infrastructure Development Fund [SIDF]
TOTAL 736.26 1043.00 943.00 1114.00 +71 +171 (+6.8%) (18.13%) Non-Plan Schemes (Rs. in crore) Actual BE RE BE Variation Variation 2010-11 2011-12 2011-12 2012-13 between BE between RE (2011-12) and (2011-12) and BE (2012-13) BE (2012-13) Secretariat Services 17.68 17.58 19.27 20.33 +2.75 +1.06 (+15.64%) (+5.5%) Loan to North 2.00 2.00 2.00 2.00 — — Eastern Handicrafts and Handloom Development Corporation (NEHHDC) Loans to North 2.00 2.00 2.00 2.00 — — Eastern Regional Agricultural Marketing Corporation (NERAMAC)
TOTAL 21. 68 21.58 23.27 24.33 2.75 1.06 (+)12.74% (+)4.55 % 7
2.1.3 The Committee observes that during 2012-13 there has been increase in plan outlay as compared to 2010-11 and 2011-12 under ‘NLCPR’, ‘NEC’, ‘ ‘NER Livelihood Project’ and ‘North East States Road Investment Programme’ whereas the Plan outlay under the schemes ‘Bodoland Territorial Council’ and ‘Loan to NEDFi’, ‘Advertising & Publicity’, ‘Capacity Building & Technical Assistance’, ‘Social and Infrastructure Development Fund [SIDF]’ has remained static. In the case of Non-Plan outlay, there is marginal increase in the allocation to ‘NEC Secretariat’ and ‘DoNER Secretariat’ whereas Loans to NEHHDC and NERAMAC have remained static. The Committee hopes that the earmarked plan outlay would prove sufficient for the purpose and wherever the plan outlay becomes insufficient at a later stage, the requisite amount would be enhanced at RE stage. The Committee also desires that economy measures would be adhered to as per Government of India guidelines so far non-plan outlay is concerned. The Committee also notes that the plan allocation in BE 2011-12 was substantially reduced at RE 2011-12 stage. The Committee takes a serious note of this. The Committee would, however, discuss under each scheme separately. 2.1.4 The Committee was informed that the Ministry had projected a demand of Rs. 1846.50 crore but only Rs. 1741.00 crore was allocated to it under Plan Schemes. The table given below summarises the demand projected by the Ministry of DoNER and the allocations made by the Planning Commission for BE 2012-13: Projections and Allocations Under Plan Scheme (Rs. in crore) Sl. Plan Schemes BE 2012-13 BE 2012-13 No [projected] [approved] 1 Advertising and Publicity 7.00 7.00 2 Technical Assistance and Capacity Building 19.50 20.00 3 NEC Plan Schemes 805.00 700.00 4 NER Livelihood Project 35.00 35.00 5 Non Lapsable Central Pool of Resources (NLCPR) 801.00 800.00 6 Special Package for Bodoland Territorial Council 50.00 50.00 7 NE States Road Investment Program 68.00 68.00 8 Loans to NEDFi 60.00 60.00 9 NE States Road Project Management Unit 1.00 1.00
TOTAL Plan Schemes 1846.50 1741.00
2.1.5 The Committee notes that the approved allocations in respect of NEC Plan Schemes is less than the requirements projected by the Ministry. The Ministry in its reply has stated that it would plead with the Planning Commission for enhanced allocation at the RE stage. Due to this reduction, some of the schemes may be affected.
2.1.6 The Committee, while taking note of the fact that against the projected demand of Rs. 1846.50 crore, only Rs. 1741.00 crore has been allocated under the plan scheme to the Ministry of DoNER, recommends that the Ministry of DoNER must impress upon the Planning Commission and the Ministry of Finance for allocation of Plan outlay as per the requirement to ensure the implementing of scheme/programme. 8
2.1.7 The financial targets of 2011-12 under various Plan schemes of the Ministry and achievements during April 11, 2011-February 12, 2012 are given as below: (Rupees in crore) Plan Schemes BE RE Actual* % achievement 2011-12 2011-12 2011-12 Non-Lapsable Central Pool of Resources 799.00 799.00 798.99 99.99 North Eastern Council 633.00 633.00 626.22 98.92 North Eastern Development Finance 60.00 60.00 60.00 100 Corporation Ltd. Advertising and Publicity 7.00 7.00 7.00 100 Capacity Building and Technical Assistance 20.00 20.00 19.82 99.1 NERLP: North Eastern Region Livelihood 35.00 2.65 2.64 99.62 Project NESRP: North Eastern State Road project 68.00 0.35 — 0
TOTAL 1622.00 1522.00 1514.67 99.51 *upto 31.3.2012
2.1.8 The Committee finds that during the financial year 2011-12, the plan allocation was reduced from Rs. 1622.00 crore to Rs. 1522.00 crore at RE Stage. The reduction had only been made in NERLP and NERSP from Rs. 35.00 crore to RS. 2.65 crore and Rs. 68.00 crore to Rs. 0.35 crore. 2.1.9 The Committee notes with appreciation the good financial achievement. However, the Committee takes into account the substantial reduction to two schemes of NERLP & NESRP at RE Stage which would have affected these two schemes.
2.2 COMPERATIVE STUDY OF TENTH AND ELEVENTH FIVE YEAR PLANS 2.2.1 The actual expenditure made during Tenth Five Year Plan was Rs. 5767.58 crore against the allocation to the tune of Rs. 5800.00 crore of the Ministry of Development of North Eastern Region total Rs. 14409.08 crore. The allocation made under various Schemes for the Eleventh Plan are as given below: (Rs. in crore) Plan Schemes Allocations Tenth Plan Eleventh Allocations made in the expenditure Plan in Eleventh Plan Tenth Plan proposals i.e., 2007-08 to 2011-12 (RE) Eleventh Plan 12345 Non Lapsable Central Pool of 3129.17 3119.00 6000.00 3585.00 Resources (NLCPR) North Eastern Council (NEC) 2511.50 2494.88 6000.00 3247.00 Loans to North Eastern Development 109.11 109.11 500.00 300.00 Finance Corporation Limited (NEDFi) Advertising and Publicity 20.00 16.74 50.00 33.00 9
12345 Capacity Building and Technical 27.00 23.84 100.00 75.22 Assistance Development of roads in NE States 0.01 – 1562.80 71.36 Schemes of Bodoland Territorial Council – – 191.28 350.00 NERLP – – 5.00 41.15
TOTAL 5800.80* 5767.58* 14409.08 7705.22 * Includes Rs. 4.01 crore in respect of the “Sikkim Mining Corporation”. 2.2.2 The Committee observes that against the total plan allocation made to the tune of Rs. 5800.00 crore in Tenth Five Year Plan, the actual expenditure was to the tune of Rs. 5767.58 crore; which can be termed satisfactory. However, during the Eleventh Five Year Plan against the Plan proposals of Rs. 14409.08 crore, the actual allocation has been confined at the level of Rs. 7705.22 crore. The drastic reductions in respect of NLCPR, NEC, Development of roads in NE States do not present good picture on the approach of the Government so far as development of NE States is concerned. This only indicates that either the Ministry of DoNER could not justify its proposals or after making proposals it was not able to implement the proposals. In both cases, the looser has been the laggard NE region. The Committee feels that reduction in the plan allocation in NE region defeated set target of the Government to put the socio-economic development of region on fast track. The Committee would, however, deal each scheme separately later in the report.
2.3 TWELFTH PLAN PROPOSALS 2.3.1 Ministry of DoNER has conveyed to the Planning Commission, the scheme-wise projections for Twelfth Plan, as per details given below: (Rs. in crore) Sl. Description Proposed outlay No. for Twelfth Plan [2012-2017] 12 3 A. Central Sector Schemes 1 Advertising and Publicity 40.00 2 Capacity Building & Technical Assistance 141.00 3 NER Livelihood Project (World Bank assisted) 670.00 4 North Eastern States Road Investment Programme (ADB assisted) 1400.00 5 North Eastern State Road Project Management Unit 28.00 6 Loan to North Eastern Development Finance Corporation Ltd. (NEDFi) 350.00 7 Non-Lapsable Central Pool of Resources for North Eastern Region (NLCPR)-CENTRAL 3419.70# 8 North Eastern Climate Change Adaptation Project [assisted by German Govt. and a German Bank]# 457.90 Central Sector Schemes : Total [A] 6506.60 # New Scheme under formulation 10
12 3 B. State Sector Schemes 1 Non-Lapsable Central Pool of Resources for North Eastern Region 5300.00 (NLCPR) 2 NEC Schemes 7394.00@ 3 Special Package to the Bodoland Territorial Council 245.00 State Sector Schemes - Total [B] 12939.00 State Sector Schemes Total = [A] + [B] 19445.60
@M/DoNER has subsequently requested Planning Commission to increase the outlay to Rs. 13027.38 crore.
2.3.2 The Committee strongly believes that the Ministry has made ambitious plans and recommends the Planning Commission to approve the proposals of Twelfth Five Year Plan as forwarded by the Ministry of DoNER.
2.4 NORTH-EASTERN COUNCIL
2.4.1 The North Eastern Council (NEC) was set up under the NEC Act 1971, to foster balanced and integrated economic development of seven constituent member States. By the amendment of NEC Act in 2002, Sikkim has been added as its eighth member. It functions as a regional planning body for its constituent States. It is also mandated to maintain security and public order. The Council plays an advisory role in areas of interest that are common to all its constituent States such as economic and social planning, transport, communications, power and flood control. Besides ensuring effective coordination, it is also mandated to put forward proposals for developmental schemes and projects submitted by the States to the Centre.
2.4.2 In addition, the NEC provides financial assistance to member States. The Minister of DoNER is the Chairman of the NEC. There are two full time nominated Members posted at Shillong and Member (North East) of the Planning Commission is also Ex-Officio member of the North Eastern Council.
2.4.3 The Plan Schemes of the North Eastern Council are covered under Major Heads 2552 and 3601 [under the Revenue Head] and Major Head 4552 [Capital Head]. In line with the agreed pattern of assistance, 90% is given as Grant and 10% to be mobilized by State Governments concerned except in special cases where the pattern of assistance is 100% grant. 2.4.4 The following is the plan allocation for the North East Council: (Rs. in crore) BE 2011-12 RE 2011-12 BE 2012-13 Major Plan Non- Total Plan Non- Total Plan Non- Total Head Plan Plan Plan
2552 103.00 – 103.00 103.00 – 103.00 108.00 – 108.00
3601 530.00 – 530.00 530.00 – 530.00 583.00 – 583.00
TOTAL 633.00 – 633.00 633.00 – 633.00 691.00 – 691.00 11
2.4.5 When enquired about the projected demand of the Ministry for 2011-12 under plan scheme and the justification for allocation of enhanced allocation of Rs.691 crore in BE 2012-13 under the Major Heads 2552 and 3601 as compared to Rs. 633.00 crore in RE 2011-2012, the Ministry replied as follows: “The allotted fund for 2011-12 under plan scheme is Rs.700.00 crore. The enhanced allocation in BE 2012-13 under MH – 2552 and 3601 as compared to RE 2011-12 was to liquidate the liabilities created during Eleventh Five Year Plan and also to take up new schemes during Twelfth Five Year Plan. The fund under MH-2552 is a 100% grants-in-aid given to various agencies/institutions/organizations in NER. Whereas, the fund under MH- 3601 is given to State Govt. of NE Region in the ratio of 90 : 10 (i.e. 90% Grant and 10% as State share). The allotted fund under both heads is expected to be utilized fully.” 2.4.6 The projected demand of NEC in the Budget for 2011-12 was Rs. 805.00 Crores however; the amount agreed to by the Planning Commission was Rs. 700.00 Crores. The amount utilized under the NEC Plan till 31st December, 2011 was Rs.503.80 Crores (71.98%). 2.4.7 Regarding the general trend of spending the allocated fund in the last quarter of the financial year and steps taken during the last financial year to improve the spacing of expenditure by NEC, the Ministry has replied as follows: Last Financial year Total Allocated amount = Rs. 70000.00 lakhs (2010-2011) (Rs. in lakhs) Quarter of Actual Amount Cummulative Percentage (%) Cummulative the Released during Amount of Quarterly fund Percentage Financial Year the period Released released (based on of fund Rs. 70000.00 lakhs) released (%) 1st Quarter 14876.00 14876.00 21.25 21.25 2nd Quarter 16096.46 30972.46 22.99 44.25 3rd Quarter 15622.73 46595.19 22.32 66.56 4th Quarter 21267.15 67862.34 30.38 96.95
TOTAL 67862.34 96.95
Current Financial year Total Allocated amount = Rs 70000.00 lakhs (2011-2012) (Rs. in lakhs) Quarter Actual Amount Cummulative Percentage (%) Cummulative of the Released during Amount of Quarterly fund Percentage Financial the period Released released (based on of fund Year Rs. 70000.00 lakhs) released (%) 1st Quarter 23723 23723 33.90 33.90 2nd Quarter 14150 37873 20.20 54.10 3rd Quarter 10325 48198 14.75 68.85 4th Quarter 20616 68814 29.45 98.30
TOTAL 68814 98.30 12
2.4.8 The Ministry of DoNER maintained that review of expenditure under the schemes was continuously monitored. The outcome of the steps so taken is that only 31.15 % of the allotted fund remained to be utilized during the last quarter of the year 2011-12 and 29.45 % of the allotted funds were released during the last quarter of the financial year, which is less than the prescribed percentage of 35% fixed by the Ministry of Finance for the last quarter. 2.4.9 The Ministry also informed that in order to ensure coordination amongst all the 8 Member States for balanced development of the region, the Members of the Council meet atleast twice a year to discuss issues of common interest and policy matters for the balanced economic development of the 8 Member States. The Governors and Chief Ministers are Members of the Council in addition to 2 (two) nominated Members and also the Member (NE), Planning Commission. Thus, the North Eastern Council is a regional planning body exercising its mandatory role in the development of the North Eastern Region. 2.4.10 About the achievements of the schemes, the Minisrty stated that since inception of the NEC, the Schemes under the various Sectors have been instrumental in meeting various gap areas from the regional perspective. It is a noteworthy fact that the Schemes under NEC are normally formulated with the needs and priorities of the region in focus and, hence, they meet the aspirations of the people of the region. However, sometimes, the delay and ineffectiveness of the Implementing Departments/Agencies create impediments on the way of achieving the desired results and targets. The NEC has strengthened its monitoring and inspection mechanism to tackle this problem. However, the success of NEC efforts in this regard depends heavily on the cooperation from the State Governments. Further, the NEC mechanism is also crucially dependent on the audit mechanism of the Central and State Governments. 2.4.11 The Committee observes that allocated amount in BE 2012-13 under Major Heads 2552 and 3601 is intended to liquidate the liabilities created during Eleventh Five Year Plan and to take up new Schemes during Twelfth Five Year Plan. The Committee hopes that the earmarked allocation would meet gap areas from the regional economic development perceptive and would achieve desired results and physical targets. The Committee also hopes that the Ministry of DoNER would act as a facilitator and co-ordinator between the NE States and Central Government and the resilient NEC Monitoring mechanism would be quite helpful in achieving the financial and physical targets without any procrastination. 2.4.12 The Committee desires that no scheme should suffer for want of fund. The Committee also recommends that the Planning Commission and the Ministry of Finance to approve projected demands of NEC during the Twelfth Five Year Plans.
2.5 CONSTRUCTION/IMPROVEMENT OF ROADS OF ECONOMIC IMPORTANCE
Budget 2011-12 Revised 2011-12 BE 2012-13 Major Plan Non- Total Plan Non- Total Plan Non- Total Head Plan Plan Plan 4552 5.00 – 5.00 5.00 – 5.00 7.00 – 7.00
2.5.1 The scheme is carried out in the North Eastern Region through the Border Roads Organisation (BRO), which undertakes construction and also focuses on completing on-going road schemes. The Committee sought to know the criteria which have been adopted by the Ministry for identifying roads of economic importance and the details of such roads as identified, the Ministry of DoNER informed that the roads which are not interstate in nature and provide economic importance are categorized as economic importance road. In the past, most of the economically 13 important roads were undertaken by BRO. Presently there is only one project which is being undertaken by BRO in Manipur. 2.5.2 The Committee was informed that the projected demand during the year 2011-12 was Rs. 5.00 cores against road of economic importance and the total outlay of Rs. 5.00 crore shall be utilised by March, 2012. 2.5.3 The road project in Manipur executed by BRO is Mahadev Tolloi-Pfutsero road. Out of the total length of 78.00 kms, 63.00 kms. formation and 61.00 kms. pavement was completed and the balance works was proposed for transfer to the State Government for completion of the balance work. However, the State Govt. has not taken over the road so far. Recently the Ministry of Defence has retained the projects and asked BRO to take over the road again and to complete the balance works. Accordingly, Rs. 7.00 crore has been kept as outlay of 2012-13. NEC undertakes review meetings from time to time with BRO to review the physical and financial progress for timely implementation of the project. 2.5.4 The Committee understands that economic importance roads are sine-qua-non for overall progress of the NE region. The Committee, however, wonders that work of construction of Mahadev-Tolloi-Pfutsero road still remain incomplete for want of takers i.e. denial by State Government of Manipur for completion of projects. The Committee does not understand why the State Government of Manipur refused to implement the project. All the States should cooperate to implement the projects for an even development in NE Region. Now that the Ministry of Defence has asked BRO to complete the balance work, the Committee hopes that the remaining work of the undertaken projects would be completed during current financial year for which Rs.7.00 crore has been earmarked.
2.6 NON PLAN LOANS TO NORTH EASTERN HANDICRAFTS AND HANDLOOMS DEVELOPMENT CORPORATION (NEHHDC) 2.6.1 The Corporation was set up with the objectives of promotion and development of handicrafts and handlooms in the North Eastern Region. These objectives are to be achieved by providing training, design, development of marketing facilities, etc. to artisans/weavers of the North Eastern Region. The Corporation procures handicrafts and handloom goods from weavers, artisans, entrepreneurs, producers and designers and market the same through its chain of emporia located at Shillong, Guwahati, Kolkata, New Delhi and Bangalore and Sales Promotion Office at Chennai as well as through exhibitions, Crafts Fairs, North East Trade Expo, etc. 2.6.2 When enquired as to why the allocation to North Eastern Handicrafts and Handlooms Development Corporation for non-plan loan has remained the same at the level of Rs. 2.00 crore in BE and RE 2011-12 and BE 2012-13 and whether the earmarked amount is sufficient to meet the requirements, the Ministry replied that the Ministry of Finance have not been inclined to increase the budgetary allocation (Non-Plan) for the NEHHDC, despite the Ministry’s request for higher allocations. A higher budgetary allocation would have certainly be helpful in implementing the revival plan of the Corporation. The Committee was further informed that the Corporation helped in developing and promoting inputs for products and design development, training and upgradation of technology and provides marketing infrastructure of the finished products by the following means: Integrated Design and Technical Development Projects 2.6.3 Under this programme 30-50 artisans are trained in the development of new and innovative handicrafts design at cluster level under the guidance of qualified designers and master craftsman for duration of 4-6 months. Besides, the Corporation also conducts 15-day workshops and one/two day seminars to help the artisans, weavers and entrepreneurs in the Handloom and Handicraft sector. 14
Design Bank 2.6.4 The Handicrafts Design Bank has been set up in Guwahati. The Design Bank develops designs in soft and hard copy formats for existing, new and languishing designs for distribution among users groups at nominal fees.
Marketing 2.6.5 The Corporation undertakes marketing of Handicrafts and Handlooms items of the North Eastern Region to provide direct support to the artisans and weavers of the Region. 2.6.6 The Corporation procures handicrafts and handlooms from artisans and weavers across the Region and markets the same through its chain of Purbashree emporia located at Shillong, Guwahati, Kolkata, New Delhi, Bangalore and Sale Promotion Office at Chennai. 2.6.7 It also undertakes sale of the handicrafts and handlooms on behalf of the crafts persons and weavers through emporia, exhibitions, fairs and other national and international marketing events. 2.6.8 It provides platform to crafts persons, weavers and entrepreneurs at various marketing events, viz. North East Crafts Fairs, North East Trade Expos, Exhibitions, Gandhi Shilp Bazaars, Indian Handicrafts and Gifts Fairs etc by providing stalls and other related support.
Capacity Building Programme 2.6.9 The Corporation also conducts Capacity Building Programmes to provide training which help weavers and artisans with new inputs with the help of qualified Designers. 2.6.10 The Ministry apprised the Committee the details of the beneficiaries during last three years and help provided to weaker sections and women by the Corporation. 2.6.11 The details of beneficiaries during the last three years is given below :
Sl. No. Description of Activity 2008-09 2009-10 2010-11
1 No of artisans/weavers benefited out of 2,912 3,200 3,000 Corporation’s marketing activities viz. exhibitions, North East Trade Expo, North East Crafts Fairs etc.
2 No of artisans benefited out of Corporation’s 450 340 500 awareness, advocacy and publicity activities viz. Seminars, Workshops/Design Workshops etc.
3 No of man days generated out of Corporation’s 35,000 36,200 35,500 sourcing and procurement activities.
2.6.12 It was intimated that nearly 70% artisans and weavers belong to the SC/ST/OBC category. The Corporation has, to a large extent, been able to help the weaker sections and women, through developmental efforts. The Ministry proposes to provide a separate budget in future for enabling the Corporation to be socially responsible towards the weaker sections and empowerment of women.
2.6.13 On being asked about the impact of the promotional activities of the Corporation, the Ministry stated that the promotional activities of the Corporation positively impact the lives of the crafts persons as they are provided a platform to showcase and market their products in various parts of the country through the Exhibitions and Crafts Fairs organized by the Corporation. The 15 artisans and weavers are also benefited as the Corporation procures handicrafts and handlooms directly from them, thus sustaining the economic activities in the region. People in the rest of the country outside the North East Region are able to appreciate and acquire Handicrafts and Handlooms products which are on display and sale at over 80 Exhibitions and Trade Expos etc. organized by the Corporation in different parts of the country. The Ministry further stated that the Corporation intends to enter the high end segment of the markets which will improve margins. Tie up with other national bodies like TRIFED and Central Cottage Industries Corporation is also underway. In order to ensure that the Corporation adequately addresses its mandate, a revival plan has been firmed up in the Ministry and is under submission to the Board of Reconstruction of Public Sector Enterprises (BRPSE). The Committee was also informed that though the Corporation has not so far adopted gender budgeting, the majority of the beneficiaries of its activities are women, specially belonging to the weaker sections of the society. 2.6.14 The Committee underlines the pioneer role of NEHHDC in promotion and development of handicrafts and handloom in NER. Therefore, the first and the foremost priority of the Government in this sector should be higher budgetary provision for implementing the revival plan of the corporation. A token provision of Non-plan loan to the tune of Rs. 2.00 crore in RE 2011-12 as well as in BE 2012-13 is certainly not going to serve the intended purpose. The Committee hails the promotional role of NEHHDC in developing and proclaiming inputs for products and design developments, upgradation of technology and providing marketing infrastructure of the finished products which ultimately results in better benefits to weavers and artisans of the region. The Committee, therefore, strongly recommends that the Ministry of DoNER should leave no stone unturned in persuading the Planning Commission and the Ministry of Finance for allocating higher budgetary provision for revival scheme of the Corporation. The Committee hopes that the Corporation would get the green signal for revival plan which is presently under active consideration of the Board of Reconstruction of Public Sector Enterprises (BRPSE). 2.7 LOAN TO NORTH EASTERN REGIONAL AGRICULTURAL MARKETING CORPORATION (NERAMAC) 2.7.1 The Committee was informed that NERAMAC is playing a significant role by sourcing, procuring and marketing cash crops like ginger, fresh pineapple, cashew nut, etc. from the farmers and growers of the North Eastern Region. These operations have helped farmers in getting a better price. The Corporation provides marketing support by procuring processed products manufactured by the FPO registered units spread all over the region, for supply through its own outlets and also to end users/other buyers. The Corporation also promotes their products by participating in various exhibitions at State and National levels thereby helping and introducing a wide range of exotic processed food products of NER. 2.7.2 The Committee was informed that NERAMAC has initiated involvement of various stakeholders particularly small scale sector in processing and value addition, thereby playing a greater role in marketing exotic products of North East mainly kiwi fruit, passion fruit, etc. through Public Private Partnership(PPP). NERAMAC is also involved in different mission supplies and procurement like Post Harvest Technology Mission, National Horticulture Mission, Bamboo Mission, etc. in different States of India and other Centrally Sponsored Schemes like ICDS, etc. in association with and total backup facilities of both nationally and internationally reputed companies in implementation of such schemes. 2.7.3 On being asked about the financial health of the Corporation, the Ministry informed that NERAMAC is a profit making Corporation from the fiscal year 2007-08. Till the financial year 2006-07, it was making losses. It started earning profits from the financial year 2007-08 and the net profit for the financial year 2010-11 was Rs. 1.47 crore. 16
2.7.4 The Ministry further informed about the efforts made to encourage food processing units in the region and creation of a world class infrastructure for marketing agricultural and allied goods. It stated that NERAMAC has conducted a series of workshops and training programs on food processing with the financial assistance of North Eastern Council and Ministry of Food Processing Industries. In these programs, many women and unemployed youths had participated and some of them had started their own units. NERAMAC also buy horticultural produces like kiwi, passion fruit etc. from farmers and hand them over to these units to process under PPP mode, which helps these units increase their capacity. Initiative has been taken by NERAMAC for following projects which are in the pipeline at different stages to come up in the north east under NLCPR scheme of Government of India: (i) Cashew Processing Plant at Mankachar, Assam – in the implementation stage (ii) Restructuring of Fruit Juice Concentrate Plant at Nalkata to a multi fruit processing plant – submitted to the Government of India by Govt. of Tripura (iii) Setting up of a Multi fruit processing Plant at Silchar Assam – submitted to the Government of India by Govt of Assam (iv) Setting up of a Quality assurance and Central Packaging facility at Chaigaon, Assam – DPR submitted to Government of Assam and proposal being sent by the Government of Assam to the Government of India. (v) Setting up of a Cashew Processing Plant in Tripura – Concept note submitted to Government of Tripura for listing 2.7.5 On being enquired about the projected demand of the Ministry under this Head in BE 2012-13 and reason for keeping the allocation to the tune of Rs. 2.00 crore constant in BE and RE 2011-12, the Ministry replied that in BE 2012-13, the projected demand was Rs.2.00 crore and Ministry of Finance have not been inclined to increase the budgetary allocation (Non-Plan) for NERAMAC, despite the Ministry’s request for higher allocations. It was further stated that a higher budgetary allocation would be helpful for implementing the growth plan of the Corporation. 2.7.6 About improving marketing infrastructure for agricultural and value added agricultural products and future plans in this regard, the Ministry stated that NERAMAC proposes to set up a Quality Assurance and Central Packaging Unit. This unit will help the processing units pack their products in different kinds of packaging depending upon the product and market demand. At present there are no packaging facilities for the units to pack their products and the unit will be a one point solution for all packaging problems that will contribute enormously for the development of food processing industry. This unit will also help add value to the horticultural produces to make different products like juice, squash, jam, pickles, candies, dehydrated products etc. under a COMMON BRAND for effective marketing. 2.7.7 The Committee commends the pivotal role of NERAMAC in encouraging food processing units in NER and providing basic infrastructure for marketing of agricultural and allied products. The Committee also feels that involvement of NERAMAC in Post-Harvest Technology Mission, National Horticulture Mission and Bamboo Mission makes it necessary to expand the horizon of its activities. Although NERAMAC continues to be a profit-making organization with net profit of Rs. 1.47 crore during 2010-11 but meagre provision of Rs. 2.00 crore in RE 2011-12 and BE 2012-13 is not sufficient for growth plan of the organization. The Committee, therefore, recommends that the Ministry of DoNER may pursue for higher budgetary allocation to the organization for its exponential growth. 2.7.8 The Committee is, however, constrained to express its displeasure to note that despite its recommendation made in 145th Report (Demands for Grants 2010-11) for early implementation of setting up cashew Processing Plant at Markachar, Assam, modernising 17 and restructuring of Fruit Juice Concentration Plant at Nalkata; Tripura; setting up of a Multi Fruit Processing Plant at Silchar; setting up central Packaging Centre at Chaigaon in Assam under NLCPR Scheme of Government of India, they are still in the pipeline at different stages. Therefore, the projects should be completed without further delay.
2.8 NORTH EASTERN DEVELOPMENT FINANCE CORPORATION LIMITED (NEDFi) 2.8.1 NEDFi is the premier development finance institution of the NER which functions under the administrative control of the Ministry of DoNER. With the passage of the time, NEDFi has positioned itself as a lending institution besides as an agency providing other support services to the new entrepreneurs of the region, to acquire competitive edge. The Corporation has taken several skill development initiatives for regional development in addition to its core business of providing term finance to industry and infrastructure. The Corporation has been able to extend financial assistance to projects spread all over the eight North Eastern States in consonance with the market demand, in a wide spectrum of sectors, e.g., power, hospitality sector, infrastructure, etc. 2.8.2 When asked about the projected demand of the Ministry for this Head in Budget 2012-13 and reasons for allocation to NEDFi under Plan Scheme remaining static at Rs. 60 crore from BE 2011-12, the Ministry informed that NEDFi has forwarded its Business Plan for the Twelfth Plan Period to the Ministry of DoNER. The fund requirement during the Twelfth Plan Period (2012-17), to keep up with the projected sanctions of Rs. 6410 crore and disbursement of Rs. 4690 crore, is Rs. 5184 crores. Against this, the Corporation requested the Ministry of DoNER for interest free loan of Rs. 1000 crores for the period 2012-17. However, the projected demand of the Ministry of DoNER for this Head in Budget 2012-13 is Rs.70 crore. 2.8.3 With the implementation of North Eastern Industrial and Investment Promotion Policy (NEIIPP), 2007, there is a buoyancy in the market and new projects in infrastructure sectors, power, cement, steel, oil and gas, tea, healthcare, tourism and hospitality, higher education and technical institutes, etc. are coming up with large capital requirements. Being in the fore-front of financing in the Region, the Corporation has been receiving ever increasing demand for financial assistance for new projects. Although NEDFi has an ambitious growth plan to expand its business by at least 25-30 per cent on year-on-year basis, the same will be constrained by its limited resources. The revised disbursement target of NEDFi for the Financial Year 2012-13 is Rs.485 crore The Corporation is projecting internal generation of around Rs.290 crore, market borrowing of Rs.125 crore and soft loan of Rs.70 crore from the Ministry of DoNER. 2.8.4 In the Financial Year 2010-11, NEDFi has sanctioned an amount of Rs.421.39 crore covering 198 projects and during Financial Year 2011-12, the sanctioned amount is expected to touch Rs.450 crore spread over all the 8-States of North-East India. The total disbursement for the year 2010-11 was Rs.281.38 crore whereas during Financial Year 2011-12 as on date, the amount disbursed is Rs.302.45 crore which is expected to touch Rs. 330 crore. at the end of the current financial year end. During the last two years, under its microfinance scheme, NEDFi has sanctioned and disbursed an amount of Rs.89.18 crore and Rs.89.14 crore respectively. 2.8.5 NEDFi has identified the Micro and Small Enterprises (MSE) Sector, specially to help the first generation entrepreneurs, as its priority sector for assistance. The Corporation has designed several need based schemes like North East Entrepreneurs Development Scheme (NEEDS), Women Enterprise Development Scheme (WEDS), Scheme for Northeast Handloom and Handicrafts (SNEHH), Jute Enterprise Development Scheme (JEDS), Initiative for Development of Entrepreneurs in Agriculture (IDEA), etc. The Corporation is also giving top priority to Micro Finance to bring micro-credit to the grass root level in the rural areas. 2.8.6 When the Committee enquired as to how the Corporation identifies the units which are in need of finance and how far it has been successful in terms of financing industrial, infrastructural 18 and agro-horticultural projects in the region, the Ministry replied that the identification of need for finance is done either through receipt of enquires from walk-in customers at the Corporation’s head office in Guwahati or through its ten Branch offices located at Agartala, Aizawl, Shillong, Itanagar, Dimapur, Imphal, Gangtok, Namchi, Tinsukia and Silchar. Other points of contact are through seven Representative Offices located in Kokrajhar, Goalpara, Sibsagar in Assam, Tura in Meghalaya, Kohima in Nagaland and Udaipur and Dharmanagar in Tripura. 2.8.7 The Committee was informed that over the years, NEDFi has been able to mobilize capital investment of around Rs. 9000 crore by sanctioning 2388 projects with loan amount of Rs. 2355 crore (as on 31.12.2011). More than 26000 employment opportunities have been created in the Region with the organization’s direct assistance scheme. The Corporation was initially set up exclusively for support of industrial and infrastructure projects in the North-Eastern Region. However, keeping in view the agro-horticulture potential in the Region, the Primary Sector was brought under the mandate of NEDFi in the year 2000. 2.8.8 Along with awareness and training through its R&D Centre on Medicinal & Aromatic plants (MAP), NEDFi is financing Medicinal & Aromatic Plant cultivation and processing units in the region which are selling their produce to buyers outside the region. NEDFi is also creating awareness about Bio-diesel viz. Jatropha cultivation and production of bio-diesel in the region. 2.8.9 According to the Ministry, the future strategies are adopted to improve performance of this Corporation. NEDFi is now poised for rapid growth and looks forward to make wider and deeper market penetration in the years ahead and reach a higher orbit of productivity and excellence. 2.8.10 The Committee observes that North Eastern Development Finance Corporation Limited (NEDFi) plays a significant role as lending institution. Since the corporation has been receiving ever increasing demand for financial assistance for new projects, it has ambitious growth plan to expand its business to 30 per cent on year to year basis. The Committee notes that the corporation is projecting internal resource generation of around Rs. 290.00 crore, marketing borrowing of Rs. 125.00 crore and soft loan of Rs. 30.00 crore from Ministry of DoNER. The Committee also notes that limited resources at its disposal is posing a big constraint to meet the commitment of revised disbursement target to the tune of Rs. 485.00 crore during the financial year 2012-13. The Committee recommends that adequate fund may be provided to NEDFi at RE stage to carry out its activities smoothly. 2.8.11 The Committee is given to understand that the corporation has fund requirement of Rs. 5184 crore during the Twelfth Five Year Plan to meet the projected sanctions of Rs. 6410.00 crore and disbursement of Rs. 4690.00 crore. The corporation has further requested for interest-free loan to the tune of Rs. 1000.00 crore from the Government during Twelfth Five Year Plan. Keeping in view the pivotal role of NEDFi, the Committee recommends that the Government should consider interest-free loan to the tune of Rs. 1000.00 crore for ensuring NEDFi to meet its financial and physical targets during the Twelfth Five Year Plan starting from current financial year.
2.9 NON-LAPSABLE CENTRAL POOL OF RESOURCES (NLCPR) (Rs. in crore)
Budget 2011-12 Revised 2011-12 Budget 2012-13 Major Plan Non- Total Plan Non- Total Plan Non- Total Head Plan Plan Plan
3601 800.00 – 800.00 800.00 – 800.00 880.00 – 880.00 19
2.9.1 The broad objective of the NLCPR scheme is to ensure speedy development of infrastructure in the North Eastern Region by increasing the flow of finance for specific infrastructure projects/schemes in the region. Further elaborating on this aspect, the Ministry in its written reply stated that the main focus of the scheme is to fund the infrastructure projects for the priority sectors like road and bridges, power, water supply, education, health, tourism and sports with the aim to achieve economic sustainability of the region. 2.9.2 According to the outcome budget 2012-13, since its inception in April, 1998 to 31.12.2011, 1328 projects have been sanctioned for implementation under the Non-Lapsable Central Pool of Resources (NSCPR) Scheme and Fifty-two (52) projects have been sanctioned under Special BTC Package. The total approved cost of these projects is Rs. 11280.99 crore. Rs. 8072.82 crore have been released for implementation of these projects. 2.9.3 When the Ministry was asked about the status of projects which have been completed till 31.03.2012, it was informed that 1337 infrastructure projects worth Rs. 10863.29 crore were approved out of which 645 projects worth Rs. 3531.00 crore have been completed which is 48.24% of the total number of projects sanctioned. During the last three years 356 projects have been sanctioned and out of those, one project has been completed, 64 projects were due for completion and 63 projects have been delayed. It was further stated that the reason for the delay is delay in utilization and transfer of funds to implementing agencies by the State Governments. In most cases, funds were not utilized in prescribed time limit of 12 months. Moreover, there is slow physical progress of the works than the targets given in Detailed Project Reports (DPRs). It was further stated that instances of delay in acquiring land for projects are also frequent. Law and order situation, insurgency problem, delay in awarding the work/tenders are some other reasons for slow progress in completion of projects. 2.9.4 The Committee was informed that the projected requirement of funds for the year 2011-12 was Rs.800.00 crore against which Ministry have received budget allocation of the Rs. 799.00 crore for NLCPR Scheme and Rs 1.00 crore as professional charges for consultancy, third party monitoring, impact assessment etc. The Ministry also informed that allocation of Rs. 879.00 crore in BE 2012-13 is 10% higher than BE 2011-12. There are about 729 ongoing projects wherein grants of about Rs. 2309.00 crore are yet to be released. Also, there are projects retained from current financial year (to the tune of the Rs. 1989.43 crore) and previous year which are at various stages of sanction which will require 1st installment of funds on their sanction. Hence, higher allocation will be required to make releases for these projects for their implementation. 2.9.5 The Committee understands the tremendous role of NLCPR Scheme in developing infrastructure of NE region to ensure economic sustainability of the region. However, the Committee is constrained to express its displeasure to observe that till 31st March, 2012 a total of 1337.00 infrastructure projects worth Rs. 10863.29 crore were approved out of which only 645 projects worth Rs. 3531.00 have been completed which is just 48.24 per cent. The Committee further observes that several projects taken up since 1998-99 under NLCPR are lagging behind. For example three projects out of seventy projects on roads and bridges in Arunachal Pradesh; eighty four projects out of two hundred ten projects on roads and bridges in Assam; one project out of fourteen projects on health and seventeen projects out of forty six projects on water supply in Manipur; and five projects out of twenty three projects on education in Meghalaya have been completed. The performance is not convincing at all. 2.9.6 The Committee is not in agreement with the argument put forth for the delay in completion of projects under NLCPR viz. delay in utilization and transfer of funds to implementing agencies by the State Government, problem being faced in acquisition of land, law and order situation including insurgency; delay in awarding the work/tender. The 20
Committee is of the considered view that the Ministry of DoNER, as co-ordinator and facilitator must resolve issues concerning timely implementation of projects. For this, Ministry of DoNER should review the existing monitoring mechanism, which appears to tbe only on papers to ensure it to be more result oriented. The Ministry should also persuade all the State Governments in NE to co-operate in the implementation of NLCPR Schemes in the interest of economic development of the region. 2.9.7 The Committee is given to understand that there are about 729 on-going projects wherein grant of about Rs. 2309.00 crore is to be released for which higher allocation will be required. The Committee, therefore, recommends that the Planning Commission and the Ministry of Finance Should assess the requirement of fund under NLCPR and accordingly accord approval of required fund.
2.10 BODOLAND TERRITORIAL COUNCIL (BTC) 2.10.1 The following is the allocation made for BTC in BE and RE 2010-11 and BE 2012-13:– (Rs. in crore)
BE 2011-12 RE 2011-12 BE 2012-13 Major Plan Non- Total Plan Non- Total Plan Non- Total Head Plan Plan Plan
3601 50.00 – 50.00 50.00 – 50.00 50.00 – 50.00
2.10.2 As per the Memorandum of Settlement (MOS) signed between Government of India and Bodo Liberation Tigers (BLT) in the year 2003, the Government of India had agreed to provide financial assistance of Rs. 100 crore per annum for 5 years (Rs. 500 crore) for projects to develop the socio economic infrastructure in Bodo Territorial Council (BTC) areas over and above the normal plan assistance to the State of Assam. 2.10.3 With regard to the projected demand under this Head and the problems being faced by the Council in initiating developmental activities in the BTC area, the Ministry furnished the following reply: “The projected demand under this Head was Rs. 50 crore. No specific instance has so far been reported by the BTC with regard to problems being faced by the council in initiating developmental activities in the BTC area.”The Committee was further informed that an amount of Rs. 15.09 crore was released till 31.12.2011. However, as on 20.03.12 the entire budgeted grant of Rs. 50.00 crore has been fully released against the allocation made in 2011-12 under this Head. and it is anticipated that the allocated amount would be sufficient for the financial year 2012-13 for the intended purpose. 2.10.4 As regards the status report on the development projects being undertaken in BTC area alongwith targets fixed and achieved so far, Ministry stated that under BTC projects, for which Rs. 500 crore was earmarked, forty two (42) projects at an approved cost of Rs. 476.27 crore have been sanctioned against which Rs. 450.77 crore has been released. Utilisation Certificates for an amount of Rs. 409.88 crore have been received. Twenty Six (26) projects at an estimated cost of Rs. 248.94 crore have been completed so far. The Ministry further stated that an additional BTC package of Rs. 250 crore was approved under which nineteen (19) projects at an estimated cost of Rs. 243.20 crore have been retained. Fifteen (15) projects at an approved cost of Rs. 188.97 crore have been sanctioned and an amount of Rs. 89.39 crore released. DPRs along with other required documents/clarifications for the remaining four (4) projects are awaited from the Government of Assam. 21
2.10.5 The Committee notes that out of sanctioned amount of Rs. 476.27 crore, an amount of Rs. 450.77 crore has been released. However, utilization certificates for an amount of Rs. 409.88 crore only have been received. The Committee recommends that BTC/State Government may be asked to submit utilization certificates in respect of the balance amount at the earliest and the issue of completion of remaining 16 projects be followed up proactively. The Committee welcomes additional BTC package of Rs. 250.00 crore and recommends that work on sanctioned 15 projects be completed at the earliest. The Committee further recommends that the State Government of Assam may be persuaded to expedite DPRs on the four remaining projects so that work on these projects could be started soon.
2.11 ADVERTISING AND PUBLICITY 2.11.1 The following table indicates the allocation made in BE and RE 2011-12 and BE 2012-13. (Rs. in crore) BE 2011-12 RE 2011-12 BE 2012-13 Major Plan Non- Total Plan Non- Total Plan Non- Total Head Plan Plan Plan 2250 7.00 – 7.00 7.00 – 7.00 7.00 – 7.00
2.11.2 The Plan Scheme of Advertising and Publicity has been formulated to project the inherent potential and achievements of the North Eastern Region and to create an awareness of its unique and distinctive features. It also seeks to highlight the role of the Government in facilitating development processes through appropriate strategies in the Region. On being enquired about the plan and strategy for allocation of fund under the scheme and initiatives taken to ensure that scheme under Advertising and Publicity are completed during the same financial year, the Ministry replied that a meeting of the stakeholders was chaired by Secretary, DoNER on 18.04.2011 and based on the discussions the following actions emerged:- (i) To reaffirm the simple message that “NER is as integral part of India” is to be addressed. (ii) The fact that “safety” and “Law and order” in most parts of NER are not more or less matters of concern than in most parts of the country is to be highlighted. (iii) A most basic factor that should be addressed for Advocacy within the Region is the knowledge of various Development Schemes of Central Government, the education and job opportunities that exist in the whole country and abroad. 2.11.3 The Ministry informed that during the year 2011-2012, an amount of Rs. 7.00 crore was provided under the scheme, which has been utilised fully. On being enquired about proposals for the year 2012-13, the Ministry informed that the same are not been received in bulk. However, as per the existing practice, the proposals are regularly received in the Ministry and are processed for financial assistance keeping in view their importance for the region, relevance of the project/ courses and cost involved in it. 2.11.4 With regard to impact of events/programmes taken up under the Scheme during the last two years, the Ministry of DoNER informed that the tangible impact is visible from the number of events the Ministry supported during the last two years as a facilitator of events of socio-cultural importance leading to generation of interests, enthusiasm and development of expertise among more and more people in the region to organize various events and realize its potentials which could not 22 have been possible without the financial interventions under the scheme. The Ministry also released publicity material in the form of advertisements in print media all over India about the six Centres of Excellence of the NE region in the fields of medicine, education etc. which remained lesser known in other parts of India despite their laudable presence in the region. Another media campaign involving telecast of two video clips all over India on (i) Cultural Uniqueness of the North Eastern Region and (ii) North Eastern Region as Tourist destination evoked interest and have been able to spread a positive and encouraging message about the region and removal of wrong and negative perceptions. 2.11.5 The Committee notes that the outcome budget 2012-13 of the Ministry also mentions that physical outputs in respect of Advertising and Publicity are not measurable/quantifiable. The Committee is not convinced with the submission of the Ministry. The Committee recommends that suitable mechanism may be evolved to ensure that physical outputs could be measurable in every Plan Scheme not specifically the scheme under reference. 2.11.6 On being asked as to whether the Ministry has taken any initiative to attract domestic as well as foreign tourists in the North East Region, the Ministry replied that on the instance of the Ministry of DoNER, Government of India allowed the government servants to travel to NER on LTC in lieu of Home Town in relaxation of LTC Rules since 02.05.2008 to attract tourists in the region. With a view that people come to know about beautiful meadows and hills, lush green forests, gargling rivers and rivulets, rich bio-diversity, unique festivals, traditional customs, music, dances, handicrafts etc. of the North East and also with the objective to improve the socio- economic conditions of the people in the region and eco-friendly nature of the tourism industry, such relaxation in the scheme was advocated by this Ministry. The concession is available upto 1.5.2012 at present. Keeping in view the positive impact of the initiative, this Ministry has recommended to Department of Personnel and Training to extend the facility/concession further for two years beyond 01.05.2012. 2.11.7 The Committee notes that the Ministry has recommended for extension of LTC facility in lieu of Home Town beyond 1st May, 2012. The Committee also notes with appreciation that the facility has further been extended for years. The Committee, however, desires that relaxation in the matter of performing air journey by any airlines other than Air India, as has been extended in case of LTC visit to J&K, may also be extended to meet the demand of seats in flights.
2.12 TECHNICAL ASSISTANCE AND CAPACITY BUILDING 2.12.1 The basic objective of this Plan scheme is strengthening of human resources and entrepreneurial skills in sectors that are critical for the development of the NE region. The target group under this scheme is the youth from the North East Region with the special focus on girls and women. The youth are imparted training for development of their entrepreneurial skills and create opportunities for employment or self-employment in different sectors. Officers in the State Government/Organisations are also covered under the scheme. 2.12.2 The following allocations have been made for Technical Assistance and Capacity Building in BE and RE 2011-12 and BE 2012-13. (Rs. in crore) BE 2011-12 RE 2011-12 BE 2012-13 Major Plan Non- Total Plan Non- Total Plan Non- Total Head Plan Plan Plan 2250 20.00 – 20.00 20.00 – 20.00 20.00 – 20.00 23
2.12.3 The Plan Scheme of Technical Assistance and Capacity Building is meant for bridging the gap in the technical and managerial skill requirements in the North Eastern Region. Under this plan scheme of the Ministry, the basic strategy has been to select important development sectors, identify the gaps and select relevant training institutes to build customized programmes as per training needs relevant to the North Eastern Region. The Ministry has informed that against the BE provisions in 2010-11 of Rs.19.50 crore, actual expenditure remained confined to Rs.17.72 crore because the balance amount was re-appropriated to meet the requirement of Salary Head in the Ministry of DoNER. 2.12.4 During Financial Year 2011-12, the Budget allocation under the Plan Scheme was Rs.20 crore. Upto December, 2011, an amount of Rs.12.35 crore was spent. However, by the end of Financial Year 2011-12, the entire amount was being spent. The Ministry has further informed that demand of Rs.23 crore was projected under the Plan Scheme during FY 2012-13, against which an amount of Rs.20 crore has been earmarked in BE. As the ongoing projects are being continued in next financial year also, there is likelihood that the allocation will suffice the requirement of this Scheme. However, special efforts are being made to identify apex industries imparting training in skill development areas so that more and more projects may be taken up. Requirement of additional budget, if needed, will be projected during RE stage based on the performance of the scheme. 2.12.5 The Ministry has further informed that the proposal for setting up of Pilot Training Institute at Lilabari was dropped after reviewing the case in September, 2010. It was agreed that AAI and NEC can have a partnership whereby the proposed land at Lilabari can be used by AAI for setting up a Composite Training facility for ground level staff for navigation and Aircraft maintenance, if AAI/MoCA so wishes. Regarding setting up of flying school, the Ministry has informed that Expression of Interest (EoI) was floated by the AAI. Reply of Ministry of Civil Aviation/AAI is still awaited. 2.12.6 On being enquired about progress made in the matter of setting up a composite training facility for ground level staff for navigation and aircraft maintenance in partnership with AAI, the Ministry has informed that it has now been recommended to establish “Aviation Manpower Training Institute” at Lilabari at an estimated cost of Rs. 50.00 crore. The training courses that could be imparted have also been identified. According to the Ministry, a co-ordination meeting will be called to chalk out further course of action in the matter. 2.12.7 The Committee has also been given to understand that a number of activities were undertaken during the year 2011-12. Training in managerial skills and enhancing competencies for the Government officials of NE States were organized at IIT Guwahati and NIFM, Faridabad. Training for the youth in vocational and various other trades were also organized at IITTM, Gwalior, CIPET, Chennai, Indo-Danish Tool Room at Jamshedpur, Central Tool Room and Training Centre, Bhubaneswar, etc. However, according to the Ministry, the outcome of these training programmes can not be measured in quantitative terms. The training programmes sponsored by the Ministry are quite useful as it not only provides beneficiary an insight into the latest technological advancements but also enhances their capabilities and skills. The Ministry further maintained that the impact of these trainings will be visible after some time when the skilled man power from the North East initiate new business enterprise or takes up new employment. 2.12.8 The Committee notes that the demand of Rs 23.00 crore for the scheme has been curtailed to Rs. 20.00 crore during the year 2012-13. According to the Ministry, the allocation could suffice the requirement. The Committee recommends that additional fund may be sought, if required, at RE stage, so that the scheme does not suffer for want of funds. The Committee would also like to suggest that other institutions such as LBSNAA, Mussourie, IIMs, ISTM, Delhi may also be approached for imparting training on development of administration and managerial skills. 24
2.12.9 The Committee notes with displeasure that despite its recommendation in its One Hundred and Thirty third, One Hundred Forty First and One Hundred Forty Fifth Reports for early setting up of Pilot Training Institute at Lilabari, Assam, the project has been dropped after a long delay. It is extremely unfortunate that the proposal has been dropped without giving substantial reasons. Now, setting up a Composite Training facility for ground level staff for navigation and Aircraft maintenance has been proposed if AAI/MoCA so wishes. The Committee is apprehensive that the new proposal may also face the same fate as there is a strong likelihood of it being caught in procedural delays. The Committee strongly recommends that the Ministry should draw a plan for setting up the training facility in a time bound manner so as to avoid inordinate delays.
2.13 NORTH EASTERN REGION LIVELIHOOD PROJECT (NERLP)-EAP (Rs. in crore) BE 2011-12 RE 2011-12 BE 2012-13 Major Plan Non- Total Plan Non- Total Plan Non- Total Head Plan Plan Plan 2552 35.00 – 35.00 2.65 – 2.65 35.00 – 35.00
2.13.1 North Eastern Region Livelihood Project (NERLP) is a major initiative for addressing the needs of employment, income and natural resource sustainability of the rural population of the NE Region. The Project is proposed to be funded through the World Bank. The objective of the North East Rural Livelihood Project (NERLP) is “To improve rural livelihoods especially that of women, unemployed youth and the most disadvantaged, in four North Eastern States”. The programmes proposed to be undertaken from 2012-13 onwards shall inter-alia try to achieve the following specific project objectives of the project : (i) Create sustainable community institutions around women Self-Help Groups (SHGs), youth groups of men and women (YG) and Community Development Groups (CDG); (ii) Build capacity of community institutions for self governance, bottom up planning, democratic functioning with transparency and accountability; (iii) Increase economic and livelihood opportunities; and (iv) Develop partnership of community institutions for natural resource management, microfinance, market linkages and sectoral economic services. 2.13.2 The proposed project has four major components viz. social empowerment, economic empowerment, partnership development and management and project management. 2.13.3 The allocation under this head was made at 35.00 crore at BE stage in 2010-11 against which the actual expenditure was only Rs. 0.01 crore. Explaining this, the Ministry submitted that for effective implementation of the project, a North East Livelihood Promotion Society (NELPS) was constituted and registered at Guwahati in May 2009. The Society started functioning from the month of December 2009, under the supervision of the Project Director. The ex-post-facto approval for the creation of Autonomous Society (NELPS) and creation of temporary post at level of Joint Secretary to the Government of India for the Project Director of NERLP was given by the Cabinet in its meeting dated 20th April, 2011. 2.13.4 During the Financial Year 2010-11, the project was at preparatory/approval stage and taking shape. Moreover, the ongoing studies and various manuals etc. were also not completed in time 25 and hence the lion’s share of allocated budget could not be utilized. Enough funds were provided in Financial Year 2009-10 to the Society. Remaining funds of Financial Year 2009-10 were utilized in Financial Year 2010-11.
2.13.5 Regarding the reasons for enhancing the plan allocation to the tune of Rs. 35.00 crore against the actual expenditure of Rs. 0.01 crore in 2010-11 and the reason for drastic reduction to the tune of Rs. 2.65 crore in RE 2011-12, the Ministry stated as under:-
“The EFC, chaired by Secretary, Department of Expenditure in its meeting held on 29.07.2011 appraised the World Bank funded North East Rural Livelihood Project at a cost of Rs. 683.2 crore ($144.4 million) and recommended it for approval by the competent authority. The Cabinet Committee on Economic Affairs (CCEA) approved the implementation of the NERLP on 16th November, 2011 at an estimated cost of Rs. 683.2 crore (US $ 144.4 million) comprising assistance as a soft loan from the World Bank of Rs. 614.8 crore ( US $130 million) and Central Government funding of Rs. 68.4 crore (US $ 14.4 million) in two selected districts each of four States of Mizoram, Nagaland, Sikkim and Tripura.
The Executive Board of World Bank approved an IDA Credit of US $130 million for the aforesaid project on December 20, 2011, on the terms negotiated with the Government of India. The loan agreement and project agreement documents were signed by representative from World Bank and Government of India (Joint Secretary, Economic Affairs for loan agreement and Project Director NELPS for project agreement) on 20th January, 2012.
The recruitment of manpower in the Regional Office and District Project Manager has been completed. However, the full scale implementation of the project could not take place in 2011-12 and it is likely to take place in 2012-13. This has resulted in the revision of plan allocation to Rs. 2.65 crore at RE stage.”
2.13.6 The Committee notes the explanation and justification tendered by the Ministry about the delay in the take off of the scheme. The scheme has been hanging fire for the last few years. Nevertheless, the Committee hopes that the scheme would be implemented vigoursly in the current financial year. The Committee recommends that fool-proof arrangements for monitoring and auditing of the scheme should be made, as an in-built mechanism, to plug leakage of funds earmarked for improving living conditions of the poor. There should be no further delay in the implementation of the scheme.
2.14 SCHEME UNDER SPECIAL FUND FOR INFRASTRUCTURE UPGRADATION IN NORTH EASTERN REGION
2.14.1 The Ministry has furnished justification for keeping the constant allocation under this Head to the tune of Rs. 170.00 crore in BE and RE 2011-12 and BE 2012-13 by stating that the process involved in sanction of projects includes identification of projects by respective State Government(s), receipt of concept notes, “in-principle”approval by the Planning Commission, preparation of Detailed Project Report(s) by the State Government(s), techno-economic approval by the respective line Ministries/Departments, holding of Standing Finance Committee(SFC) meeting under the chairmanship of Secretary DoNER, issue of Administrative approval for the projects, release of funds to the State Government(s), implementation of the project by the States, submission of Utilisation Certificates by States and further release of funds. All these procedures are time consuming and the funds are released as per time frame for completion of the projects. 26
Considering all these aspects, an amount of Rs. 170 crore was kept under B.E. and R.E. 2011-12 as well as B.E.2012-13. 2.14.2 On being asked about the overall costs of the projects to be undertaken during the year 2012-13 and the targets fixed, the Ministry has replied that the overall costs of these projects depends upon time frame for completion of these projects as per the Detailed Project Report(s) submitted by respective State(s). As such no physical targets could be fixed for the year 2012-13. However, the projects would be completed within the time frame as stipulated for these projects. The overall releases would be around Rs. 170 crore during 2012-13. 2.14.3 The Committee notes the submissions of the Ministry of DoNER with regard to timely completion of the projects, monitoring of the progress thereof as well as steps to ensure non-siphoning off of funds. The Committee desires that the financial targets should be achieved. All the projects proposed should take off and there should not be any delay.
2.15 CONSULTANCY, MONITORING, THIRD PARTY EVALUATION CHARGES ETC. UNDER NLCPR SCHEME 2.15.1 As recommended by the parliamentary Standing Committee in its 149 report provision has been made in the budget for taking up Third Party Monitoring of NLCPR project. During 2011- 12 Ministry have introduced the third party monitoring of NLCPR projects, during construction and post construction stages, as per terms and conditions of Third Party Monitoring being done under JNNURM Scheme. For the purpose, empanelled agencies of JNNURM were inquired for their readiness to take up the third party monitoring of NLCPR project in the remote areas of North Eastern Region as per terms and conditions of third party monitoring of JNNURM Scheme. Out of 20 agencies, 8 conveyed their willingness to take up the job. The details of these 8 agencies were forwarded to North Eastern States on 13.07.2011 and the States were advised to select the agency from these consultants after competitive bidding as being explained in the JNNURM Toolkit. For the purpose, Ministry of DoNER shall provide maximum Rs. 50,000 per visit per project to the selected agency. A State-wise list of projects also forwarded to all the North Eastern States for taking up the third party monitoring on 08.09.2011. The States can also take up third party monitoring of some of NLCPR projects as per their choice from the selected agency for which funds shall be provided by the Ministry. 2.15.2 The Committee was informed that during 2011-12 only Government of Arunachal Pradesh and Mizoram have invited tenders and submitted the proposals to this Ministry for concurrence to the selected agency. But since they have not completed tendering and evaluation formalities properly, they have been asked to go for tendering on 16.03.2012. The Ministry have also issued reminders to all other States on 02.02.2012 for expediting the process. 2.15.3 Giving the reasons for keeping constant allocation to the tune of Rs. 1.00 crore in BE and RE 2011-12 and in BE 2012-13, the Ministry replied that it proposes to have independent monitoring of some NLCPR projects every year. Under the mechanism State Governments can also take up some NLCPR projects for third party monitoring. During 2011-12 a list of total 91 projects was sent to State Governments for taking third party monitoring which are yet to be completed. On their completion some more projects shall be subjected to monitoring. Also, the budget can be utilized for other purposes like impact evaluation etc. Hence, provision of Rs 1.00 crore has been kept in 2012-13. 2.15.4 The Committee is pleased to note that in pursuance of its recommendation in its 149th Report, the Government has come forward with provision in the Budget for taking up Third Party monitoring of NLCPR projects during 2011-12. The Committee notes with 27 concern that a total of 91 projects were sent to State Governments for taking up third party monitoring which are yet to be completed. The Committee also recommends that all the projects should be assessed without further delay and be subjected to monitoring.
2.16 NON-LAPSABLE CENTRAL POOL OF RESOURCES (NLCPR)- CENTRAL 2.16.1 A new Central Sector Plan Scheme titled Non Lapsable Central Pool of Resources-Central [NLCPR-Central] is being implemented from the financial year, 2012-13. The Scheme would enable the Central Ministries/Departments to fund projects/schemes in the North Eastern region (a) in addition to projects taken up by them through the 10% mandatory earmarking; and (b) schemes/ projects of regional and/or national priorities by drawing funds from the NLCPR Pool. Schemes/ projects taken up under the NLCPR-Central will be implemented by Central Ministries/Departments. 2.16.2 The Scheme will be administered and monitored in the Ministry of Development of North Eastern Region (M/o DoNER) through an Inter Ministerial Central Monitoring Committee (CMC) chaired by Secretary, Ministry of DoNER which will also recommend release of funds for sanctioned/ongoing projects. 2.16.3 For the financial year 2012-13, the BE under this Scheme has been kept at Rs. 36 crore in Major Head 4552. 2.16.4 Giving justification for having a new scheme, the Ministry submitted that to improve the infrastructure in the North Eastern Region, Government have made it mandatory for all the Central Ministries, excluding exempted ones, to earmark 10% of their GBS less of externally added projects and local or events specific scheme/ projects for North Eastern States. The unspent balance of this 10% earmarked GBS is being accrued in the NLCPR Pool from which Ministry get annual budget allocation for the NLCPR Scheme. Under NLCPR scheme Ministry have so far sanctioned 1333 projects of various sectors of socio-economic importance in the North Eastern Region at a cost of Rs. 10804.02 crore. State Governments reported completion of 639 projects at a cost of 3789.07 crore. The Ministries have been successful in exhausting budgetary allocation every year barring few cases when funds were not released to avoid the parking of funds in the fag end of financial year. Since, the funding through NLCPR scheme was not sufficient to speed up the infrastructure development in NER, Ministry has introduced new scheme from financial year 2012- 13 called “NLCPR Central”. Under NLCPR-Central Scheme, the projects of regional/national priorities shall be funded through various Central Ministries on 100% grant basis. 2.16.5 The Committee welcomes the introduction of NLCPR-Central Plan Scheme. The Committee notes the justification of the scheme as in the present set up funding is not sufficient to speed up the infrastructure development in NER. The Committee hopes that all infrastructure projects would be completed within stipulated time-frame to further speed up development of NE States.
2.17 NORTH EASTERN STATES ROADS INVESTMENT PROGRAMME 2.17.1 The proposed North Eastern States Roads Investment Programme (NESRIP), a Centrally sponsored scheme is to be assisted by Asian Development Bank (ADB). The Ministry has informed that the ADB assisted NESRIP was approved by CCEA on 19th May, 2011. Loan negotiation between ADB and Government of India was held on 16-17 June, 2011 which culminated into signing of the Framework Financing Agreement for the loan amount of US $ 200 million between ADB and Government of India. ADB board has approved the loan of US $ 200 million on 18th August, 2011 and on 22nd August, 2011. ADB issued administrative approval of the tranche-1 amount of US $ 74.8 million. Loan negotiation has been completed and the loan agreement for tranche-I one would be signed when Construction Supervision Consultants (CSC) are awarded the 28 contract by the concerned States of Assam, Meghalaya and Sikkim. The Ministry has also informed that at least 30% of contract for civil works are ready for award. So far Sikkim has awarded contract for CSC and evaluation of technical bids for civil work are in progress. Assam and Meghalaya have shortlisted firms for CSC and are now in the process of evaluating Request for Proposal of these firms and the two States have issued bidding documents for civil works. 2.17.2 The ADB assisted North East States Roads Investment Programme (NESRIP) consist of 2 (two) components, an Investment Component and a Project Management and Capacity Development Component. The role of the Project Management and Capacity Development Component is to assist M/o DoNER and the State PWDs in the overall management of the Investment Programme and to strengthen the State PWDs’ capacity in project and road asset management. The Project Management and Capacity Development Component in the M/o DoNER is called the Project Management Unit (PMU) and in State PWDs it is called Project Implementation Unit (PIU). 2.17.3 A provision of Rs. 45.00 crore has been made for NESRIP in BE 2012-13. Allocation of Rs. 2.00 crore has been provided for North East Road Project Management Unit in BE 2012-13. With regard to adequacy of Rs. 45.00 crore in BE 2012-13, the Ministry informed the Committee that the allocation amount of Rs. 45.00 crore would not be sufficient as the projected requirement during 2012-13 is about Rs. 90.00 crore (20% of the estimated cost of projects in tranche-I). The Ministry proposes to approach Planning Commission and Ministry of Finance for additional allocation at RE stage. Further, according to the Ministry, the allocation for the Project Management Unit has been enhanced to Rs. 2.00 crore in BE 2012-13 from Rs. 1.00 crore in BE and RE 2011- 12 to meet additional requirement of Project Management Consultant (PMC) for which the award of contract is being finalised during the first quarter of the financial year 2012-13. 2.17.4 The Project Management Unit (PMU) is headed by Joint Secretary of M/o DoNER as Project Director and supported by individual Consultants having expertise in areas such as procurement, finance, technical, MIS and project management and monitoring. The PMU will be assisted by a consultant firm as Project Management Consultant (PMC). The Project Management Consultant (PMC), will assist (i) the Ministry/PMU in coordinating the activities of Project Implementation Units of State PWDs; (ii) the State PWDs in implementing IDCB action plans; and (iii) in carrying out design of additional subprojects. It will provide expertise in the Project Performance Monitoring and Evaluation (PPMS) design, implementation, maintenance, monitoring, and performance evaluation. 2.17.5 The Committee notes that Asian Development Bank assisted NERSIP has now taken final shape to be launched for the benefit of NE States. The Committee hopes that the projects under the scheme will be implemented in the right earnest with effective monitoring. 2.17.6 The Committee, however, expresses its concern that the project readiness activities could not progress as per the original schedule due to delays in the award of contract for Construction Supervision Consultant (CSC) by PIUs of State PWDs which is expected to be completed during first quarter of 2012-13. The Committee therefore strongly recommends that all such projects and projects which are to be freshly taken up during 1st quarter of 2012-13, should be taken up as per schedule. 2.17.7 The Committee also takes note of the inadequacy of the funds for the NERSIP which have been halved against its projected requirement. The Committee recommends that additional funds may be provided for the scheme at RE stage, if required. 2.17.8 When the Committee sought to know the present status of the East-West Corridor which was started in 2005 and was supposed to be completed in 2008-09 and which has now been 29 further extended to 2014, the representatives of Ministry of Road Transport and Highways informed that there had been problems of law and order, land acquisition, etc. The land acquisition has now, more or less, been completed. However, some of the contractors left the work in- between. They have, now, been remobilized and asked to complete the work as early as possible. 2.17.9 When enquired about the second bridge connecting the Brahamaputra River at the East-West Corridor, the Committee was informed that the Brahamaputra Bridge will be completed by December, 2013. 2.17.10 The Committee feels that the road construction in the region has been unduly delayed either on account of issues concerning land acquisition or abandoning of work by contractors. These reasons are not very convincing to the Committee. The Committee is irked by the snail’s pace in the works. The Committee recommends that strong in-built penalty clause should be incorporated in the contractual agreement. The Committee hopes that the Ministry would meet the various deadlines as promised. 30
Chapter-III
ISSUES, SCHEMES, POLICIES AND PROGRAMMES
3.1 IMPLEMENTATION OF NER PROJECTS 3.1.1 Implementation of projects in a time bound manner had been a major issue of concern for the Committee for the last many years. The Committee had been repeatedly emphasizing for timely completion of projects to avoid cost over run in its various reports. The Committee, in this regard, wanted to know the impact of initiatives taken by the Ministry of DoNER for encouraging the States for timely completion of projects such as providing incentive to good performing States in terms of completion of projects without time and cost overruns. The Ministry stated that under the Non Lapsable Central Pool of Resources (NLCPR) scheme, the State Governments reported completion of total 63 projects of total approved cost of Rs. 596.75 crore during the financial year 2010-11 and 2011-12. Out of these, 3 projects were completed without time overrun. In another 4 projects time overrun was less than one year. 3.1.2 The Committee was informed that the North Eastern Council (NEC) has been insisting upon the State Governments/implementing agencies to furnish Quarterly Progress Reports of each and every NEC funded projects. This is to ensure that the physical progress of a project is in tandem with the financial release made by NEC from time to time. The NEC has also put in place a mechanism where inspection visits are being made by NEC officials to the ongoing NEC funded projects to ensure that adequate physical progress is made by the implementing agency (ies). NEC has entrusted Evaluation Studies of NEC funded projects to various Government institutions/ agencies like WAPCOS, IIE, ICAR, Engineering and Technology Colleges, etc. Another mechanism is that of examination of the Utilization Certificates. 3.1.3 Regarding the mechanism of designated State-wise Area Officers for making bi-monthly visits to the States for review of the NLCPR scheme and field visits to the project sites, the Committee was apprised that the mechanism of State-wise Area Officers ensures that the projects in all the States are inspected and reviewed. The visits of the Area Officers are also helpful for review of the scheme with State Governments and expediting Utilization Certificate of the funds released. During 2011-12 total 33 projects have been inspected by the Officers of the Ministry. 3.1.4 The Committee notes that under the Non Lapsable Central Pool of Resources (NLCPR) scheme, the State Governments have reported completion of total 63 projects of total approval cost of Rs. 596.75 crore during the financial year 2010-11 and 2011-12. But out of these, only 3 projects were completed without time overrun while in another 4 projects time overrun was less than one year. It thus means that majority of projects ran behind schedule and there were time and cost over-runs in execution of projects, which seems to be a normal trend rather than being exceptions. The Committee observes that despite furnishing of Quarterly Progress Reports, inspection visits and examination of the Utilization Certificates, very little progress has been made in ensuring timely execution of projects. The Committee strongly feels that much is required to be done in this regard.
3.2 CONNECTIVITY Civil Aviation 3.2.1 The Committee sought to know the steps taken in association with Ministry of Civil Aviation
30 31 for development of existing airports and upgradation and operationalisation of non-operational airports in the NER within a strict time schedule. The Ministry apprised the Committee that necessary steps have been taken for Development of existing Airports and Upgradation and operationalisation of Non-operational Airports in the NER. 3.2.2 The Committee wanted to know the response of the Ministry of Civil Aviation (AAI) on Master Plan for creation of civil aviation facilities in NE Region on the lines of the Road Development Plan namely SARDP-NE and the action which has been taken by them on this master plan. The Ministry stated that development of NER on ‘Hub and Spoke Model’ is in Line with Road Development Plan namely SARDP-NE. 3.2.3 The Committee was informed that AAI has worked out the consolidated long term requirement for the development of operational, non-operational and Greenfield Airports in the NER as desired by the Ministry of DoNER. The Capital Expenditure for the Eleventh Five Year Plan (Balance), Twelfth Five Year Plan is estimated at the cost of Rs.1551 crores. During this period, AAI Plans to upgrade Guwahati International Airport as Inter-regional Hub; upgrade Agartala, Imphal and Dibrugarh as Intra-Regional Hub and further Development of Barapani (Shillong), Imphal, Agartala, Jorhat, Dibrugarh Airports. 3.2.4 The Ministry also informed that for development works at Shillong Airport, DPRs for (i) Security and safety infrastructure including Technical block cum Control Tower and (ii) Runway extension, Apron Expansion, isolation bay, Approach Lights, ILS and other ancillary works have been submitted to NEC for Grant-in-Aid of Rs. 26.7 crores and Rs. 154.8 crores respectively. Planning Commission has conveyed its approval for the project of Safety and Security Infrastructure including new Control Tower cum Technical block at a cost of Rs. 26.7 crores. There is a plan to construct three Greenfield Airports at Pakyong, Itanagar and Cheithu and to operationalize non-operational Airports – Tezu and Daparizo in Arunachal Pradesh, construction of Civil Enclaves at Passighat, Ziro and Along in Arunachal Pradesh, Tura in Meghalaya, Rupsi in Assam, Kailashar (20 seater) and Kamalpur in Tripura. 3.2.5 The Committee was further informed that Minister of Civil Aviation and the Minister of DoNER, held a meeting on 20th May, 2011. In this connection, AAI has already planned to construct three aircraft maintenance hangars at Guwahati and one each at Imphal, Dibrugarh and Agartala for airlines to base their aircraft and facilitate early morning and late night air-connectivity to and from the region. DPRs for 3 hangars at a cost of Rs.35 crores at Guwahati Airport (Planning Commission approval conveyed to NEC, work awarded) and one hangar each at Dibrugarh (cost Rs 22.37 crores) and Imphal (cost Rs 29.67 crores) have been sent to NEC for funding. DPR for hangar at Agartala Airport is being prepared for submission to NEC. 3.2.6 The Committee sought to know the progress made in making the non-functional airport at Tezu operational. The Ministry stated that the State Government has transferred Tezu Aerodrome along with additional 108 acres of land to AAI in September, 2010 for upgradation/development for ATR-72 type of operation. NEC has sanctioned an amount of Rs.79 crores during 2009-10. AAI has taken up the work. Boundary wall is under construction around newly acquired land of 108 acres. Progress of Work is 90% complete. Engineering consultant has been appointed for new terminal building, technical block cum control tower and electrical power sub-station. Preparation of Detailed Estimate is under process. Work awarded on 28.07.2011 for Runway extension, new apron along with link taxiway, strengthening of existing runway and existing apron (to be used as isolation bay) along with link taxiway and construction of new car park. Probable date of completion of all works is December, 2013. 3.2.7 The Committee was given to understand that night landing approval has been obtained for Agartala, Imphal, Guwahati, Lilabari and Dibrugarh, but right now there are no takers for night aircraft operations. With regard to the night landing facility at Silchar, the Committee was informed 32 that Silchar is a Defence airfield. Though ILS has been provided and it is also equipped with ground lighting, but it is up to the Air Force to permit the night landing operations. 3.2.8 The Committee observes that a number of works are to be done for development of existing and operational airports. Acquisition of land from IAF and State Governments are yet to be done for development of airports. At some airports certain works are only at planning stage. The Committee further observes that in some cases, approval of Planning Commission is yet to be obtained, where as in others, approval of Planning Commission has been obtained and construction work will start soon. The Committee feels that coordination for all these wide ranging activities/works requires dedicated and focussed approach on the part of the Ministry. The Committee in this context would like to suggest that the Ministry may consider to set up a special cell in the Ministry to look after these activities till the completion of works/activities. All works need to be taken up on a fast pace to catch up with the development of the rest of the country. 3.2.9 The Committee is also disappointed to note that the region has very limited night landing facilities at airports and as of now there are no takers for night aircraft operations despite night landing approval given. The Committee does not understand the reasoning given. If the facility is provided there will definitely be passengers. The Committee recommends that Government should persuade the airline operators to use night landing facility at airports. The Government may consider providing incentives to them.
Railways 3.2.10 The Committee was informed that development of Rail Infrastructure in the North East Region is a priority of the Government. With a view to strengthen the Rail Infrastructure in the North Eastern Region, 12 New Lines, 5 Gauge Conversion and 1 Doubling projects have been taken up and one project namely Agartala-Akhaura (13 km) New Line to provide connectivity to Bangladesh has been taken up in 2012-13. Out of these, following 8 New Lines and 2 Gauge Conversion projects have been taken up as ‘National Projects’ on which 75% funds are provided by Ministry of Finance as additionality:–
Sl. No. Name of the Project States covered Target date 1. Jiribam-Imphal New Line (125 km) Manipur March, 2016 2. Bogibeel Bridge with linking lines (73 km) Assam December, 2015 3. Dimapur-Zubza (Kohima) New Line (88 km) Assam and Nagaland March, 2015 (tentative) 4. Tetelia-Byrnihat New Line (21.5 km) Assam and Meghalaya March, 2014 5. Bhairabhi-Sairang New Line (51.38 km) Mizoram March, 2015 6. Agartala-Sabroom New Line (110 km) Tripura March, 2014 7. Sivok-Rangpo New Line (52.70 km) Sikkim and West Bengal December, 2015 8. Byrnihat-Shillong New Line (108.4 km) Assam and Meghalaya March, 2017 (Tentative) 9. Lumding-Silchar-Jiribam, Badarpur-Kumaraghat (Gauge conversion) (367 km) Assam and Manipur December, 2013 10. Rangia-Murkongselek with linked fingers Assam March, 2013 (Gauge Conversion) (510.30 km) 33
3.2.11 One new line project namely Kumarghat-Agartala (108 km) in the State of Tripura has already been completed and commissioned on 05.10.2008. A non-lapsable fund for railway projects in the northeast region has been created that will boost the progress of projects. All the State capitals of this region except Sikkim will get connected by rail network in the next seven years. 3.2.12 The Committee was given to understand that the work on the Byrnihat-Shillong route may take time beyond the target of March, 2016 because of problems of land acquisition. Local population are not allowing the project to take off. The Government is trying to coordinate things with the State Government. However, the project has not physically started. 3.2.13 With regard to New Maynaguri-Jogighopa line connecting Assam and West Bengal, it was stated that 45 km railway line out of 75 km has been completed. The Committee was also informed that in the remaining portion there is some land problem and court cases for enhanced compensation. Though on paper the State Government has already handed over the land, the public is not allowing the work to take place and the Railways are not being allowed to work there. 3.2.14 The Committee is disappointed to note that Byrnihat-Shillong route has not even physically started. It is unlikely to be completed by March, 2016. Similarly, work on New Maynaguri-Jogighopa is also stopped. The Committee recommends that concerted efforts may be made to sort out land acquisition issues. Efforts may also be made to convince the local people about the necessity and importance of the projects for them. 3.2.15 The Committee also recommends that steps may be taken for timely completion of all the projects, particularly the projects which have been declared as National Projects. The Committee desires that the works may be taken up on a fast track mode so that they are completed in time.
3.3 MONITORING MECHANISM 3.3.1 The Committee had earlier recommended for creation of a separate wing of the Central Vigilance Commission exclusively for North Eastern Region to oversee proper utilization of public funds for NER projects, from the vigilance angle and for a post of Joint Director, CBI for checking of misappropriation and siphoning of funds. The Ministry had referred the matter to DOP&T. The Committee desired to know the response of DOP&T to its recommendation. The Ministry of DoNER in a written reply stated as under:– “A meeting under the Chairmanship of Vigilance Commissioner, CVC was held on 21.6.2011 wherein the CVC had agreed to examine the proposal. Matter is still under examination with CVC and no further information has been received from CVC. As soon as the approval/ comments of the CVC is received in the matter, the Committee would be apprised of the response of the Government. The Department of Personnel and Training have taken up the proposal with the Department of Expenditure for creation of one post of Joint Director in CBI exclusively for NE Region who has agreed to the proposal subject to the approval of the Cabinet. The Cabinet has considered the proposal in its meeting held on 23rd March, 2012. The minutes of the meeting are awaited.” 3.3.2 As regards the progress made in setting up of a Project Formulation and Quality Management Cell (PFQM) in the NEC Secretariat, third party monitoring system and guidelines for monitoring schemes/projects, the Ministry replied as under:– “The Consultancy Evaluation Committee (CEC) for selection and recommendation of Consultants has already been constituted and out of the three consultants proposed to be appointed, one consultant in the field of civil engineering has already been appointed and put in position. Two consultants in the field of electrical engineering and managerial 34
economics have already been selected by the CEC and formal appointment letters for them will be issued very shortly. The E&M sector is presently following the provisions contained in the ‘DETAILED GUIDELINES FOR FORMULATION, SANCTION, MONITORING AND EVALUATION OF SCHEME BEING IMPLEMENTED BY THE NORTH EASTERN COUNCIL’ for monitoring of various NEC funded projects/schemes such as power projects, civil constructions, irrigation projects, etc. The initiative to have a robust monitoring mechanism in the PF & QM Cell under E&M sector, NEC Secretariat is ongoing.” 3.3.3 The Committee desired to know whether there had been cases during the year 2011-12, where 2nd and subsequent installments had to be stopped for want of physical progress in commensurate with financial expenditure and remedial steps taken in the matter, the Ministry informed that for total 15 projects, during year 2011-12, 2nd or subsequent installment was not released for want of physical progress commensurate with financial expenditure. Out of these in 3 projects the funds were released during the year after State Government achieved physical progress in commensurate with financial expenditure. 3.3.4 The Committee is not happy to note that the matter of creating of a separate wing of CVC exclusively for NER is still under examination. The Committee also notes that DoPT has taken up the proposal for creation of one post of Joint Director in CBI exclusively for NER and the cabinet had considered the proposal and the minutes of the meeting were awaited. The Committee in this background reiterates its recommendation made in 145th Report regarding setting up of a separate wing of CVC in NER. The Committee further recommends that early action may be taken in this regard. 3.3.5 The Committee also notes that there had been 15 projects for which 2nd or subsequent installment had to be stopped for want of physical progress commensurate with the financial progress. The Committee also notes that in a number of cases, State Governments have been asked to submit clarification. The State Governments may be requested to expedite their clarifications. The Committee would also like to suggest that a standard proforma or a format in this regard may be prepared so as to avoid the chances of seeking clarifications time and again. Regular meetings may be held with implementing agencies to ensure physical progress in the works.
3.4 KEY AREAS AND PROJECTS UNDER LOOK EAST POLICY Kaladan Multi-modal Project 3.4.1 Apprising the Committee about the background of the project, the Ministry stated that Inland Waterworks Authority (IWAI) is the overall Project Development Consultant for this project. The project, which is broadly based on a DPR prepared by RITES in 2003, has undergone some changes on account of the observation that water in the upper reaches of the Kaladan river is inadequate in the lean season. This prompted the decision to shift the IWT downstream to Paletwa instead of Kaletwa, increasing the road component of the project from 62 kilometres to 129 km. IWAI has appointed M/S ESSAR as the main contractor for the project for the work of development of port at Sittwe, dredging of the sea and the waterway and the development of IWT at Paletwa. The cost of this aspect of the project is Rs. 330 crores. Ministry of Construction of Myanmar had been entrusted with executing the original road component of the project (62 km from Kaletwa to Myeikwa on the India-Myanmar border). It has appointed M/s Max Myanmar for this project. MEA has appointed M/s IRCON as the nodal agency for the road component of the project. In the Joint Statement issued after the visit of Senior General Than Shwe in July, 2010, the change in the scope of the project, the inclusion of ESSAR as main contractor as well as of IRCON for the road component was reflected. Myanmar has set up an inter-ministerial Kaladan Multimodal Transport Project Coordinating Committee to facilitate the project. The last meeting of 35 the Committee, at which Vice-Chairman, IWAI and representatives of M/s IRCON, M/s Essar and M/s Scott Wilson Ltd. were also present took place on May 30, 2011. 3.4.2 Explaining about the current status of the project, the Ministry informed the Committee that a ground breaking ceremony for the project was held on 19th December, 2010 at Sittwe at which Secretary, MEA, and Chairman, IWAI were present. Land for IWT at Paletwa has been identified and allotted by Government of Myanmar. With a view to ensure seamless flow of traffic between Myanmar and India, and at the recommendation of the Ministry of Road Transport and Highways, IRCON has been awarded the contract to prepare a DPR for the entire road segment of the project in Myanmar territory according to the specifications of the road being constructed on the Indian side of the border as per National Highway standards. The consolidated report on the road segment is expected to be handed over by end June, 2012 by IRCON.
Construction of Rhi-Tiddim and Rhi-Falam Road 3.4.3 Apprising the Committee about the background of the project, the Ministry stated that the project is rooted in a bilateral MoU signed in March, 1997 on cooperation in development of roads in Myanmar along the Indo-Myanmar border. In 2000, a preliminary study was carried out of Rhi- Tiddim (80.178 kms.) and Rhi-Falam (151.5 kms.) roads by the Border Road Organization. The report prepared by BRO in 2006 was shared with Myanmar side. The Myanmar Ministry of Construction offered to build a two-lane highway at the same cost estimated by BRO for a single lane road. It was then decided that the project would be assigned to M/s Construction of Myanmar under joint supervision of Indian and Myanmar consultants and Myanmar agreed to construct the road on the basis of the existing DPR. Subsequently, the matter was revisited and M/s IRCON asked to review the Rhi-Tiddim sector. The Ministry then decided that the project would be assigned to M/s IRCON which would simultaneously update the DPR and construct/upgrade the road. 3.4.4 Regarding the Current status, the Committee was informed that in the Joint Statement issued after the visit of Senior General Than Shwe of Myanmar in July, 2010, the Ministry undertook to execute the Rhi – Tiddim project through M/s IRCON at a cost of about USD 60 million. Based on this, MEA sought CNE approval, which was accorded in June, 2011. MEA has noted that we may resort to open tendering for this project. A draft Tender document for hiring consultant for project monitoring, has been sent to Ministry of Road Transport and Highways for vetting. The comments are awaited.
Ashuganj (Bangladesh) as port of call 3.4.5 The Committee was informed that the issue of regularizing movement of bulk cargo through Ashuganj was taken up with the Bangladesh side during the visit of the Prime Minister of Bangladesh in September, 2011.The issue of Ashuganj as port of call was discussed during the Standing Committee Meeting under Protocol on Inland water Transit and Trade held in February 2012 in Dhaka. India has also offered its assistance to Bangladesh to undertake the development of Ashuganj port.
Direct bus service from Kolkata to Agartala 3.4.6 The Ministry informed the Committee that presently there is a bus service between Kolkata –Dhaka and Dhaka-Agartala. The validity of the Protocols governing the Kolkata- Agartala bus services have been extended until terminated by mutual consent of both the sides. The issue of having a direct bus service between Kolkata and Dhaka has been taken up with the Bangladesh side. It was most recently taken up during the visit of the Prime Minister of Bangladesh to Tripura in January, 2012. 36
Project on Tri-lateral highway connecting Moreh to Maesot (Thiland) via Bagan (Myanmar) 3.4.7 The Ministry informed the Committee that progress has been held up over debates on grants versus loans and over the need for a financial feasibility report. Last Joint Task Force meeting was held on 6-7 September, 2006 in New Delhi and informal consultations took place on October 30, 2008 in Bangkok, with Indian Mission in Bangkok. The agreed route of the proposed highway is Moreh (India)-Tamu-Kalewa-Chaungma-Yinmabin-Pale-Kyadet-Lingadaw-Pakokku Bagan- Kyaukpadaung-Meiktila bypass-Taungoo-Oktwin-Payagyi-Theinzayar-Thaton-Hpa-an Kawareik- Myawaddy-Mae Sot (Thailand). The total length of this highway will be approximately 1,360 km. The Ministry stated that Thailand has begun work on the Kawareik-Myawaddy section of the highway with its own resources. The Government of Myanmar has also reportedly begun work on the bridge on the Ayeyarwardy River and causeways near Kyadet with its own resources. 3.4.8 The Committee was further informed that RITES is currently working on preparing a Detailed Project Report for the Chaungma – Lingadaw section which is expected in March, 2012. In the Interim, RITES has submitted a Feasibility Study Report. Proposal for construction of Kalewa-Chaungma section (162 kms) is under consideration. RITES has also been requested to give a breakup of expenditure for the Kalewa-Yagyi sector, which forms part of the Kalewa-Chaungma road sector. The Committee was informed that ‘In- Principle’ approval for construction of the Kalewa-Yagyi sector (120 kms) with Government of India assistance is being sought from the CCS.
Improvement of Tamu-Kalemyo-Kalewa (TKK) Road in Myanmar 3.4.9 The Ministry informed that the upgradation of the 160 km long TKK road in Myanmar (across the border from Manipur) was taken up in 1997 and completed at a cost of about Rs. 120 crores in 2001. BRO was the implementing agency. Subsequently, in the same year, India and Myanmar signed an agreement for maintenance of the road for 6 years by BRO. BRO had completed the resurfacing and maintenance work of Tamu-Kyigone-Kalemyo stretch of the road in July, 2009. Following joint inspection of the road by GoM and BRO, GoM agreed to take over this section. On October 6, 2009, Myanmar Ministry of Construction formally took over the completed portion of the TKK road. The Kyigone- Kalewa stretch (28 kilometers) was to be completed and handed over before the monsoons in 2010. However, no work was undertaken due to a dispute between BRO and Border Road Development Board in MOD over the cost, with BRDB holding BRO’s request for another INR 14 crore to be excessive. This extra cost was for adding 5 cm of resurfacing to the 4 cm already envisaged on a 4.5 km stretch between Kyigone and Kalewa, which is affected by periodic flooding. 3.4.10 The Ministry also informed the Committee that MEA had earlier issued a sanction for Rs. 10.40 crores for remaining work. The local BRO unit refused to start work citing inadequacy of funds and stating that Rs.14 crores is a reasonable estimate. The release of funds has been delayed as the revised DPR cost estimates awaited Border Roads Development Board’s (BRDB’s) approval. BRDB has recently recommended release of funds to BRO to complete the project. Financial concurrence is awaited. 3.4.11 Myanmar is an important neighbour which is strategically very crucial for the country, in general, and North-East India, in particular. Strategic and trade links with Myanmar require seamless flow of traffic between Myanmar and India. Keeping the Chinese presence in the region in mind, such projects are of national importance. Besides, they can also be used for people-to-people contacts in future, after Myanmar returns to full democracy. The Committee notes the current status of the Kaladan Multi-model project and desires that the project may be completed on schedule by July, 2013. The Committee recommends that the DPR to be prepared by the IRCON for the entire road segment of 37 project in Myanmar side be prepared as per schedule. The Committee also recommends that the Government of Myanmar may be persuaded to construct the road as per national highway standards.
3.4.12 Construction of Rhi-Tiddim and Rhi-Falam Roads are a case of improper handling. The Committee is dismayed to note that the project of construction of Rhi-Tidim road had to be revisited and the project was proposed to be assigned to IRCON along with updation of DPR, while the project was earlier decided to be assigned to the Ministry of Construction of Myanmar, who agreed to build two lane highway at the same cost, which was estimated by Border Road Organization for a single lane highway. The Committee desires to know the reasons for this wide difference in the costs quoted by both sides. The Committee during discussions on Demands for Grant (2010-11) was informed that the project would span over a period of three years i.e. till 2013. Now, in the present circumstances it is highly unlikely that the project will meet its deadline. The Committee is extremely disappointed by the procedural delays, which reflect very poorly on the seriousness with which the development of the region is taken by different Ministries/Departments.
3.4.13 The committee hopes that the Government of Bangladesh will accept India’s offer of assistance for development of Ashuganj(Bangladesh) as port of call for the mutual benefit of both countries.
3.4.14 The Committee is of the view that direct bus service between Kolkata and Dhaka will benefit people of both the countries. The Committee recommends that all further necessary diplomatic steps may be taken for early start of the bus service.
3.4.15 The Committee notes the typical bureaucratic style so far as dealing with the project on tri-lateral highway connecting Moreh to Maesot (Thailand) is concerned in the light of the fact that Thailand and Myanmar have started work on their parts of the project with their own resources, while India is yet to take up the work. The Committee recommends that the Government may take immediate steps in this regard.
3.5 HYDROPOWER IN THE NORTHEAST : POTENTIAL AND HARNESSING 3.5.1 The Central Electricity Authority has identified hydropower potential in the country as 1,48,701 MW (1,45,320 MW–Above 25 MW). This includes 62604 MW of potential in North Eastern (NE) Region including 4248 MW in the State of Sikkim. The State-wise status of development of Hydro Electric Potential in the N.E. Region and Sikkim provided to the Committee by the Ministry is given below:– (As on March, 2012) Region/ Identified Capacity Capacity under Capacity Capacity State Capacity (MW) Developed construction Developed + yet to be as per Under developed reassessment Development study Total Above (MW) % (MW) (%) (MW (%) (MW) % 25 MW 1 2 3 45678 91011
Sikkim 4286 4248 570 13.42 2421 56.99 2991 70.41 1257 29.59 38
1 234567891011 NORTH EASTERN REGION Meghalaya 2394 2298 198 8.62 124 5.39 322 14.01 1976 85.99 Tripura 15 0 0 0.00 0 0.00 0.0 0.00 0.0 0.00 Manipur 1784 1761 105 5.96 0 0.00 105 5.96 1656 94.04 Assam 680 650 375 57.69 0 0.00 375 57.69 275 42.31 Nagaland 1574 1452 75 5.17 0 0.00 75 5.17 1377 94.83 Andhra Pradesh 50328 50064 405 0.81 2710 5.41 3115 6.22 46949 93.78 Mizoram 2196 2131 0 0.00 60 2.82 60 2.82 2071 97.18 Sub-Total (NER) 58971 58356 1158* 1.98 2894 4.96 4052 6.94 54304 93.06
* including one unit of Myntdu commissioned in November, 2011.
3.5.2 In response to the query of the Committee regarding steps/measures taken by the Government to exploit untapped hydro electric potential in NE Region, the Ministry stated that the following policy measures have been taken by the Government to give boost to the development of the balance hydro power potential in the region:– (A) Policy on Hydro Power Development, 2008 was notified by Government of India on 31.3.2008 which aimed to provide level playing field to private developers and also provided for a transparent selection criteria for awarding sites to private developers and also for provision of merchant sales of upto a maximum of 40% of the saleable energy. (B) National Water Policy was notified by the Government earlier in the year 2002 which stipulated that in the planning and operation of system, water allocation priority should broadly be in the order of drinking water, irrigation, hydro power, ecology, agro industries and non agriculture industries, navigation and other uses. The policy is being proposed to be revised. For that purpose, Government has prepared a Draft National Water Policy in 2012. (C) Mega Power Projects Policy has been revised, as per which the minimum qualifying capacity of thermal power plants to avail mega project benefits, has been reduced from 1000 MW to 700 MW in certain special category States of J&K, Sikkim and the seven States of North East. The corresponding qualifying threshold capacity for hydro power plants located in the States of J&K, Sikkim and the seven States of North East, for availing mega benefits has been reduced from 500 MW to 350 MW. (D) An Inter-Ministerial Group (IMG) had been constituted by Ministry of Water Resources (MoWR) on 7th August, 2009 under the Chairmanship of Secretary (WR) on the directions of Prime Minister’s Office (PMO) to evolve a suitable framework to Guide and accelerate the development of Hydropower in the North East. Ministry of Power was also represented in the Committee. Some of the major issues/constraints in the way of expeditious growth of hydro power development in the Region were identified by the Group and policy interventions were proposed in its report submitted in February, 2010. (E) A Task Force under the Chairmanship of Hon’ble Minister of Power with Deputy Chairman, Planning Commission, Minister of Water Resources, Minister of New and 39
Renewable Energy, Minister of Environment and Forests and Ministers of Power from Hydro rich States has been constituted to look into all issues relating to development of Hydro Power. 3.5.3 The Committee was also informed that in addition to the above Policy Measures, ‘Other Measures’ have also been taken for ensuring the timely completion of the projects presently under construction which include Monitoring of Ongoing Hydro Projects and monitoring of future Hydro Projects. 3.5.4 The Committee sought to know by when the hydroelectric power projects undertaken with the support of NEC, are expected to be commissioned. The Ministry has informed that the commissioning schedule in respect of HE projects under construction in the region is as follows:
Sl. Name of the Scheme State I.C. Cap. Under Comm. No. (No. x MW) Execution (MW) Latest Central Sector 1. Subansiri Lower (NHPC) Arunachal Pradesh 8x250 2000.00 2016-17 2. Kameng (NEEPCO) Arunachal Pradesh 4x150 600.00 2016-17 3. Pare (NEEPCO) Arunachal Pradesh 2x55 110.00 2014-15 4. Tuirial (NEEPCO) Mizoram 2x30 60.00 2015-16
SUB-TOTAL (Central Sector): 2770.00 State Sector 5. Myntdu* Meghalaya 2x42+1x42 126.00 2012-13 6. New Umtru Meghalaya 2x20 40.00 2014-15
SUB-TOTAL (State Sector): 166.00 Private Sector 7. Chujachen Sikkim 2x49.5 99.00 2013-14 8. Teesta St.III Sikkim 6x200 1200.00 2014-15 9. Teesta St.VI Sikkim 4x125 500.00 2015-16 10. Rangit-IV Sikkim 3x40 120.00 2014-15 11. Jorethang Loop Sikkim 2x48 96.00 2014-15 12. Bhasmey Sikkim 3x17 51.00 2014-15 13 Tashiding Sikkim 2x48.5 97.00 2014-15 14. Dikchu Sikkim 3x32 96.00 2015-16 15. Rangit-II Sikkim 2x33 66.00 2016-17 16. Rongnichu Sikkim 2x48 96.00 2015-16
SUB-TOTAL (Private Sector): 2421.00
TOTAL: 5357.00 * - One unit Commissioned in November, 2011. 40
3.5.5 North East has huge potential for development of hydro-electric power, given its unique natural advantage. The Committee is disappointed to know that as on March, 2012, 93.06% of the capacity of the region still remains untapped. Slow progress of civil works, heavy rain, frequent bandhs etc. are cited as reasons for delay. The Committee, while taking into account the handicaps faced by the agencies, still believes that they cannot explain gross under utilization of power potential in the region even after six decades of independence of the country. The policy of reducing the eligibility to avail mega project benefits from 1000 MW to 700 MW in certain special category States of J&K, Sikkim and the seven States of North East is a step in right direction. The Committee would like to recommend that revised National Water Policy be finalized at the earliest. The Committee also recommends that the issues/constraints identified by the Inter-Ministerial Group and interventions suggested by it may be examined threadbare and necessary steps may be taken in this regard. The Committee also feels that there is a need to review the factors hampering the pace of the work and find solution for the problems. Necessary steps may be taken in this direction.
3.6 PROVIDING MORE ATTRACTIVE INCENTIVES TO THE OFFICERS POSTED IN NE REGION 3.6.1 In response to the Committee’s query regarding the steps taken for providing incentives to the officers posted in NE Region, the Ministry informed the Committee that on the basis of the recommendations of 6th CPC, as accepted by the Government, the Ministry of Finance had issued revised orders on the incentives/items pertaining to SDA/ISDA, Dual HRA and Special Compensatory Allowance. It was also stated that in pursuant to the decision taken in the conference of State Chief Secretaries chaired by Cabinet Secretary on 1st and 2nd February, 2010, certain incentives for All India Services officers belonging to NE Cadres are under consideration of the Government such as (a) providing insurance cover to members of All India Services posted in North East (b) Scheme for interest subsidy on housing loan for AIS officers serving in North Eastern States. 3.6.2 The Committee recommends that an early decision on providing insurance cover and subsidized loan for housing to officials of All India Services posted in the North-East may be taken. The Committee feels that much more needs to be done in terms of service conditions so as to retain good officers in the region. 41
OBSERVATIONS/CONCLUSIONS/RECOMMENDATIONS OF THE COMMITTEE — AT A GLANCE
The Committee hopes that the earmarked plan outlay would prove sufficient for the purpose and wherever the plan outlay becomes insufficient at a later stage, the requisite amount would be enhanced at RE stage. The Committee also desires that economy measures would be adhered to as per Government of India guidelines so far non-plan outlay is concerned. The Committee also notes that the plan allocation in BE 2011-12 was substantially reduced at RE 2011-12 stage. The Committee takes a serious note of this. The Committee would, however, discuss under each scheme separately. (Para 2.1.3)
The Committee, while taking note of the fact that against the projected demand of Rs. 1846.50 crore, only Rs. 1741.00 crore has been allocated under the plan scheme to the Ministry of DoNER, recommends that the Ministry of DoNER must impress upon the Planning Commission and the Ministry of Finance for allocation of Plan outlay as per the requirement to ensure the implementing of scheme/programme. (Para 2.1.6)
The Committee notes with appreciation the good financial achievement. However, the Committee takes into account the substantial reduction to two schemes of NERLP and NESRP at RE Stage which would have affected these two schemes. (Para 2.1.9)
COMPERATIVE STUDY OF TENTH AND ELEVENTH FIVE YEAR PLANS
The Committee observes that against the total plan allocation made to the tune of Rs. 5800.00 crore in Tenth Five Year Plan, the actual expenditure was to the tune of Rs. 5767.58 crore; which can be termed satisfactory. However, during the Eleventh Five Year Plan against the Plan proposals of Rs. 14409.08 crore, the actual allocation has been confined at the level of Rs. 7705.22 crore. The drastic reductions in respect of NLCPR, NEC, Development of roads in NE States do not present good picture on the approach of the Government so far as development of NE States is concerned. This only indicates that either the Ministry of DoNER could not justify its proposals or after making proposals it was not able to implement the proposals. In both cases, the looser has been the laggard NE region. The Committee feels that reduction in the plan allocation in NE region defeated set target of the Government to put the socio-economic development of region on fast track. The Committee would, however, deal each scheme separately later in the report. (Para 2.2.2)
TWELVTH PLAN PROPOSALS
The Committee strongly believes that the Ministry has made ambitious plans and recommends the Planning Commission to approve the proposals of Twelfth Five Year Plan as forwarded by the Ministry of DoNER. (Para 2.3.2)
NORTH-EASTERN COUNCIL
The Committee observes that allocated amount in BE 2012-13 under Major Heads 2552 and 3601 is intended to liquidate the liabilities created during Eleventh Five Year Plan
41 42 and to take up new Schemes during Twelfth Five Year Plan. The Committee hopes that the earmarked allocation would meet gap areas from the regional economic development perceptive and would achieve desired results and physical targets. The Committee also hopes that the Ministry of DoNER would act as a facilitator and co-ordinator between the NE States and Central Government and the resilient NEC Monitoring mechanism would be quite helpful in achieving the financial and physical targets without any procrastination. (Para 2.4.11) The Committee desires that no scheme should suffer for want of fund. The Committee also recommends that the Planning Commission and the Ministry of Finance to approve projected demands of NEC during the Twelfth Five Year Plans. (Para 2.4.12)
CONSTRUCTION/IMPROVEMENT OF ROADS OF ECONOMIC IMPORTANCE The Committee understands that economic importance roads are sine-qua-non for overall progress of the NE region. The Committee, however, wonders that work of construction of Mahadev-Tolloi-Pfutsero road still remain incomplete for want of takers i.e. denial by State Government of Manipur for completion of projects. The Committee does not understand why the State Government of Manipur refused to implement the project. All the States should cooperate to implement the projects for an even development in NE Region. Now that the Ministry of Defence has asked BRO to complete the balance work, the Committee hopes that the remaining work of the undertaken projects would be completed during current financial year for which Rs. 7.00 crore has been earmarked. (Para 2.5.4)
NON PLAN LOANS TO NORTH EASTERN HANDICRAFTS AND HANDLOOMS DEVELOPMENT CORPORATION (NEHHDC) The Committee underlines the pioneer role of NEHHDC in promotion and development of handicrafts and handloom in NER. Therefore, the first and the foremost priority of the Government in this sector should be higher budgetary provision for implementing the revival plan of the corporation. A token provision of Non-plan loan to the tune of Rs. 2.00 crore in RE 2011-12 as well as in BE 2012-13 is certainly not going to serve the intended purpose. The Committee hails the promotional role of NEHHDC in developing and proclaiming inputs for products and design developments, upgradation of technology and providing marketing infrastructure of the finished products which ultimately results in better benefits to weavers and artisans of the region. The Committee, therefore, strongly recommends that the Ministry of DoNER should leave no stone unturned in persuading the Planning Commission and the Ministry of Finance for allocating higher budgetary provision for revival scheme of the Corporation. The Committee hopes that the Corporation would get the green signal for revival plan which is presently under active consideration of the Board of Reconstruction of Public Sector Enterprises (BRPSE). (Para 2.6.14)
LOAN TO NORTH EASTERN REGIONAL AGRICULTURAL MARKETING CORPORATION (NERAMAC) The Committee commends the pivotal role of NERAMAC in encouraging food processing units in NER and providing basic infrastructure for marketing of agricultural and allied products. The Committee also feels that involvement of NERAMAC in Post-Harvest Technology Mission, National Horticulture Mission and Bamboo Mission makes it necessary to expand the horizon of its activities. Although NERAMAC continues to be a profit-making 43 organization with net profit of Rs. 1.47 crore during 2010-11 but meagre provision of Rs. 2.00 crore in RE 2011-12 and BE 2012-13 is not sufficient for growth plan of the organization. The Committee, therefore, recommends that the Ministry of DoNER may pursue for higher budgetary allocation to the organization for its exponential growth. (Para 2.7.7) The Committee is, however, constrained to express its displeasure to note that despite its recommendation made in 145th Report (Demands for Grants 2010-11) for early implementation of setting up cashew Processing Plant at Markachar, Assam, modernising and restructuring of Fruit Juice Concentration Plant at Nalkata; Tripura; setting up of a Multi Fruit Processing Plant at Silchar; setting up central Packaging Centre at Chaigaon in Assam under NLCPR Scheme of Government of India, they are still in the pipeline at different stages. Therefore, the projects should be completed without further delay. (Para 2.7.8)
NORTH EASTERN DEVELOPMENT FINANCE CORPORATION LIMITED (NEDFi) The Committee observes that North Eastern Development Finance Corporation Limited (NEDFi) plays a significant role as lending institution. Since the corporation has been receiving ever increasing demand for financial assistance for new projects, it has ambitious growth plan to expand its business to 30 per cent on year to year basis. The Committee notes that the corporation is projecting internal resource generation of around Rs. 290.00 crore, marketing borrowing of Rs. 125.00 crore and soft loan of Rs. 30.00 crore from Ministry of DoNER. The Committee also notes that limited resources at its disposal is posing a big constraint to meet the commitment of revised disbursement target to the tune of RS. 485.00 crore during the financial year 2012-13. The Committee recommends that adequate fund may be provided to NEDFi at RE stage to carry out its activities smoothly. (Para 2.8.10) The Committee is given to understand that the corporation has fund requirement of Rs. 5184 crore during the 12th Five Year Plan to meet the projected sanctions of Rs. 6410.00 crore and disbursement of Rs. 4690.00 crore. The corporation has further requested for interest-free loan to the tune of Rs. 1000.00 crore from the Government during 12th Five Year Plan. Keeping in view the pivotal role of NEDFi, the Committee recommends that the Government should consider interest-free loan to the tune of Rs. 1000.00 crore for ensuring NEDFi to meet its financial and physical targets during the Twelfth Five Year Plan starting from current financial year. (Para 2.8.11)
NON-LAPSABLE CENTRAL POOL OF RESOURCES (NLCPR) The Committee understands the tremendous role of NLCPR Scheme in developing infrastructure of NE region to ensure economic sustainability of the region. However, the Committee is constrained to express its displeasure to observe that till 31st March, 2012 a total of 1337.00 infrastructure projects worth Rs. 10863.29 crore were approved out of which only 645 projects worth Rs. 3531.00 have been completed which is just 48.24 per cent. The Committee further observes that several projects taken up since 1998-99 under NLCPR are lagging behind. For example, three projects out of seventy projects on roads and bridges in Arunachal Pradesh; eighty four projects out of two hundred ten projects on roads and bridges in Assam; one project out of fourteen projects on health and seventeen projects out of forty six projects on water supply in Manipur; and five projects out of twenty three 44 projects on education in Meghalaya have been completed. The performance is not convincing at all. (Para 2.9.5) The Committee is not in agreement with the argument put forth for the delay in completion of projects under NLCPR viz. delay in utilization and transfer of funds to implementing agencies by the State Government, problem being faced in acquisition of land, law and order situation including insurgency; delay in awarding the work/tender. The Committee is of the considered view that the Ministry of DoNER, as co-ordinator and facilitator must resolve issues concerning timely implementation of projects. For this, Ministry of DoNER should review the existing monitoring mechanism, which appears to tbe only on papers to ensure it to be more result oriented. The Ministry should also persuade all the State Governments in NE to co-operate in the implementation of NLCPR Schemes in the interest of economic development of the region. (Para 2.9.6) The Committee is given to understand that there are about 729 on-going projects wherein grant of about Rs. 2309.00 crore is to be released for which higher allocation will be required. The Committee, therefore, recommends that the Planning Commission and the Ministry of Finance should assess the requirement of fund under NLCPR and accordingly accord approval of required fund. (Para 2.9.7)
BODOLAND TERRITORIAL COUNCIL (BTC) The Committee notes that out of sanctioned amount of Rs. 476.27 crore, an amount of Rs. 450.77 crore has been released. However, utilization certificates for an amount of Rs. 409.88 crore only have been received. The Committee recommends that BTC/State Government may be asked to submit utilization certificates in respect of the balance amount at the earliest and the issue of completion of remaining 16 projects be followed up proactively. The Committee welcomes additional BTC package of Rs. 250.00 crore and recommends that work on sanctioned 15 projects be completed at the earliest. The Committee further recommends that the State Government of Assam may be persuaded to expedite DPRs on the four remaining projects so that work on these projects could be started soon. (Para 2.10.5)
ADVERTISING AND PUBLICITY The Committee notes that the outcome budget 2012-13 of the Ministry also mentions that physical outputs in respect of Advertising and Publicity are not measurable/quantifiable. The Committee is not convinced with the submission of the Ministry. The Committee recommends that suitable mechanism may be evolved to ensure that physical outputs could be measurable in every Plan Scheme not specifically the scheme under reference. (Para 2.11.5) The Committee notes that the Ministry has recommended for extension of LTC facility in lieu of Home Town beyond 1st May, 2012. The Committee also notes with appreciation that the facility has further been extended for years. The Committee, however, desires that relaxation in the matter of performing air journey by any airlines other than Air India, as has been extended in case of LTC visit to J&K, may also be extended to meet the demand of seats in flights. (Para 2.11.7)
TECHNICAL ASSISTANCE AND CAPACITY BUILDING The Committee notes that the demand of Rs 23.00 crore for the scheme has been 45 curtailed to Rs. 20.00 crore during the year 2012-13. According to the Ministry, the allocation could suffice the requirement. The Committee recommends that additional fund may be sought, if required, at RE stage, so that the scheme does not suffer for want of funds. The Committee would also like to suggest that other institutions such as LBSNAA, Mussourie, IIMs, ISTM, Delhi may also be approached for imparting training on development of administration and managerial skills. (Para 2.12.8) The Committee notes with displeasure that despite its recommendation in its One Hundred and Thirty third, One Hundred Forty First and One Hundred Forty Fifth Reports for early setting up of Pilot Training Institute at Lilabari, Assam, the project has been dropped after a long delay. It is extremely unfortunate that the proposal has been dropped without giving substantial reasons. Now, setting up a Composite Training facility for ground level staff for navigation and Aircraft maintenance has been proposed if AAI/MoCA so wishes. The Committee is apprehensive that the new proposal may also face the same fate as there is a strong likelihood of it being caught in procedural delays. The Committee strongly recommends that the Ministry should draw a plan for setting up the training facility in a time bound manner so as to avoid inordinate delays. (Para 2.12.9)
NORTH EASTERN REGION LIVELIHOOD PROJECT (NERLP)-EAP The Committee notes the explanation and justification tendered by the Ministry about the delay in the take off of the scheme. The scheme has been hanging fire for the last few years. Nevertheless, the Committee hopes that the scheme would be implemented vigoursly in the current financial year. The Committee recommends that fool-proof arrangements for monitoring and auditing of the scheme should be made, as an in-built mechanism, to plug leakage of funds earmarked for improving living conditions of the poor. There should be no further delay in the implementation of the scheme. (Para 2.13.6)
SCHEME UNDER SPECIAL FUND FOR INFRASTRUCTURE UPGRADATION IN NORTH EASTERN REGION The Committee notes the submissions of the Ministry of DoNER with regard to timely completion of the projects, monitoring of the progress thereof as well as steps to ensure non-siphoning off of funds. The Committee desires that the financial targets should be achieved. All the projects proposed should take off and there should not be any delay. (Para 2.14.3)
CONSULTANCY, MONITORING, THIRD PARTY EVALUATION CHARGES ETC. UNDER NLCPR SCHEME The Committee is pleased to note that in pursuance of its recommendation in its 149th Report, the Government has come forward with provision in the Budget for taking up Third Party monitoring of NLCPR projects during 2011-12. The Committee notes with concern that a total of 91 projects were sent to State Governments for taking up third party monitoring which are yet to be completed. The Committee also recommends that all the projects should be assessed without further delay and be subjected to monitoring. (Para 2.15.4)
NON-LAPSABLE CENTRAL POOL OF RESOURCES (NLCPR)-CENTRAL The Committee welcomes the introduction of NLCPR-Central Plan Scheme. The 46
Committee notes the justification of the scheme as in the present set up funding is not sufficient to speed up the infrastructure development in NER. The Committee hopes that all infrastructure projects would be completed within stipulated time-frame to further speed up development of NE States. (Para 2.16.5)
NORTH EASTERN STATES ROADS INVESTMENT PROGRAMME The Committee notes that Asian Development Bank assisted NERSIP has now taken final shape to be launched for the benefit of NE States. The Committee hopes that the projects under the scheme will be implemented in the right earnest with effective monitoring. (Para 2.17.5) The Committee, however, expresses its concern that the project readiness activities could not progress as per the original schedule due to delays in the award of contract for Construction Supervision Consultant (CSC) by PIUs of State PWDs which is expected to be completed during first quarter of 2012-13. The Committee therefore strongly recommends that all such projects and projects which are to be freshly taken up during 1st quarter of 2012-13, should be taken up as per schedule. (Para 2.17.6) The Committee also takes note of the inadequacy of the funds for the NERSIP which have been halved against its projected requirement. The Committee recommends that additional funds may be provided for the scheme at RE stage, if required. (Para 2.17.7) The Committee feels that the road construction in the region has been unduly delayed either on account of issues concerning land acquisition or abandoning of work by contractors. These reasons are not very convincing to the Committee. The Committee is irked by the snail’s pace in the works. The committee recommends that strong in-built penalty clause should be incorporated in the contractual agreement. The Committee hopes that the Ministry would meet the various deadlines as promised. (Para 2.17.10)
IMPLEMENTATION OF NER PROJECTS The Committee notes that under the Non Lapsable Central Pool of Resources (NLCPR) scheme, the State Governments have reported completion of total 63 projects of total approval cost of Rs. 596.75 crore during the financial year 2010-11 and 2011-12. But out of these, only 3 projects were completed without time overrun while in another 4 projects time overrun was less than one year. It thus means that majority of projects ran behind schedule and there were time and cost over-runs in execution of projects, which seems to be a normal trend rather than being exceptions. The Committee observes that despite furnishing of Quarterly Progress Reports, inspection visits and examination of the Utilization Certificates, very little progress has been made in ensuring timely execution of projects. The Committee strongly feels that much is required to be done in this regard. (Para 3.1.4)
CONNECTIVITY Civil Aviation The Committee observes that a number of works are to be done for development of existing and operational airports. Acquisition of land from IAF and State Governments are 47 yet to be done for development of airports. At some airports certain works are only at planning stage. The Committee further observes that in some cases, approval of Planning Commission is yet to be obtained, where as in others, approval of Planning Commission has been obtained and construction work will start soon. The Committee feels that coordination for all these wide ranging activities/works requires dedicated and focussed approach on the part of the Ministry. The Committee in this context would like to suggest that the Ministry may consider to set up a special cell in the Ministry to look after these activities till the completion of works/activities. All works need to be taken up on a fast pace to catch up with the development of the rest of the country. (Para 3.2.8) The Committee is also disappointed to note that the region has very limited night landing facilities at airports and as of now there are no takers for night aircraft operations despite night landing approval given. The Committee does not understand the reasoning given. If the facility is provided there will definitely be passengers. The Committee recommends that government should persuade the airline operators to use night landing facility at airports. The Government may consider providing incentives to them. (Para 3.2.9)
Railways The Committee is disappointed to note that Byrnihat-Shillong route has not even physically started. It is unlikely to be completed by March 2016. Similarly, work on New Maynaguri-Jogighopa is also stopped. The Committee recommends that concerted efforts may be made to sort out land acquisition issues. Efforts may also be made to convince the local people about the necessity and importance of the projects for them. (Para 3.2.14) The Committee also recommends that steps may be taken for timely completion of all the projects, particularly the projects which have been declared as National Projects. The Committee desires that the works may be taken up on a fast track mode so that they are completed in time. (Para 3.2.15)
MONITORING MECHANISM The Committee is not happy to note that the matter of creating of a separate wing of CVC exclusively for NER is still under examination. The Committee also notes that DoPT has taken up the proposal for creation of one post of Joint Director in CBI exclusively for NER and the cabinet had considered the proposal and the minutes of the meeting were awaited. The Committee in this background reiterates its recommendation made in 145th Report regarding setting up of a separate wing of CVC in NER. The Committee further recommends that early action may be taken in this regard. (Para 3.3.4) The Committee also notes that there had been 15 projects for which 2nd or subsequent installment had to be stopped for want of physical progress commensurate with the financial progress. The Committee also notes that in a number of cases, State Governments have been asked to submit clarification. The State Governments may be requested to expedite their clarifications. The Committee would also like to suggest that a standard proforma or a format in this regard may be prepared so as to avoid the chances of seeking clarifications time and again. Regular meetings may be held with implementing agencies to ensure physical progress in the works. (Para 3.3.5)
KEY AREAS AND PROJECTS UNDER LOOK EAST POLICY Myanmar is an important neighbour which is strategically very crucial for the 48 country, in general, and North-east India, in particular. Strategic and trade links with Myanmar require seamless flow of traffic between Myanmar and India. Keeping the Chinese presence in the region in mind, such projects are of national importance. Besides, they can also be used for people-to-people contacts in future, after Myanmar returns to full democracy. The Committee notes the current status of the Kaladan Multi-model project and desires that the project may be completed on schedule by July, 2013. The Committee recommends that the DPR to be prepared by the IRCON for the entire road segment of project in Myanmar side be prepared as per schedule. The Committee also recommends that the Government of Myanmar may be persuaded to construct the road as per national highway standards. (Para 3.4.11) Construction of Rhi-Tiddim and Rhi-Falam Roads are a case of improper handling. The Committee is dismayed to note that the project of construction of Rhi-Tidim road had to be revisited and the project was proposed to be assigned to IRCON along with updation of DPR, while the project was earlier decided to be assigned to the Ministry of Construction of Myanmar, who agreed to build two lane highway at the same cost, which was estimated by Border Road Organization for a single lane highway. The Committee desires to know the reasons for this wide difference in the costs quoted by both sides. The Committee during discussions on Demands for Grant (2010-11) was informed that the project would span over a period of three years i.e. till 2013. Now, in the present circumstances it is highly unlikely that the project will meet its deadline. The Committee is extremely disappointed by the procedural delays, which reflect very poorly on the seriousness with which the development of the region is taken by different Ministries/Departments. (Para 3.4.12) The committee hopes that the Government of Bangladesh will accept India’s offer of assistance for development of Ashuganj(Bangladesh) as port of call for the mutual benefit of both countries. (Para 3.4.13) The Committee is of the view that direct bus service between Kolkata and Dhaka will benefit people of both the countries. The Committee recommends that all further necessary diplomatic steps may be taken for early start of the bus service. (Para 3.4.14) The Committee notes the typical bureaucratic style so far as dealing with the project on tri-lateral highway connecting Moreh to Maesot (Thailand) is concerned in the light of the fact that Thailand and Myanmar have started work on their parts of the project with their own resources, while India is yet to take up the work. The Committee recommends that the Government may take immediate steps in this regard. (Para 3.4.15)
HYDROPOWER IN THE NORTHEAST: POTENTIAL AND HARNESSING North East has huge potential for development of hydro-electric power, given its unique natural advantage. The Committee is disappointed to know that as on March, 2012, 93.06% of the capacity of the region still remains untapped. Slow progress of civil works, heavy rain, frequent bandhs etc are cited as reasons for delay. The Committee, while taking into account the handicaps faced by the agencies, still believes that they cannot explain gross under utilization of power potential in the region even after six decades of independence of the country. The policy of reducing the eligibility to avail mega project benefits from 1000 MW to 700 MW in certain special category States of J&K, Sikkim and the seven states of North East is a step in right direction. The Committee would like to recommend that revised National Water Policy be finalized at the earliest. The Committee also recommends that the issues/constraints identified by the Inter-Ministerial Group and 49 interventions suggested by it may be examined threadbare and necessary steps may be taken in this regard. The Committee also feels that there is a need to review the factors hampering the pace of the work and find solution for the problems. Necessary steps may be taken in this direction. (Para 3.5.5)
PROVIDING MORE ATTRACTIVE INCENTIVES TO THE OFFICERS POSTED IN NE REGION The Committee recommends that an early decision on providing insurance cover and subsidized loan for housing to officials of All India Services posted in the North-east may be taken. The Committee feels that much more needs to be done in terms of service conditions so as to retain good officers in the region. (Para 3.6.2)
MINUTES 52 53
XIX NINETEENTH MEETING
The Committee met at 3.00 P.M. on Wednesday, the 11th April, 2012 in Main Committee Room, Parliament House Annexe, New Delhi.
MEMBERS PRESENT 1. Shri M. Venkaiah Naidu — Chairman
RAJYA SABHA 2. Shri Prasanta Chatterjee 3. Shri Tariq Anwar 4. Dr. V. Maitreyan 5. Shri D. Raja
LOK SABHA 6. Shri L.K. Advani 7. Shri Ramen Deka 8. Shri Naveen Jindal 9. Shri Hamdullah Sayeed 10. Shri Neeraj Shekhar 11. Shri Harsh Vardhan 12. Shri Dinesh Chandra Yadav
SECRETARIAT Shri P.P.K. Ramacharyulu, Joint Secretary Shri A.K. Gandhi, Director Shri Bhupendra Bhaskar, Assistant Director Shri Sanjeev Khokhar, Committee Officer Shri Anurag Ranjan, Committee Officer
WITNESSES
Representatives of Ministry of DoNER 1. Shri Amarjeet Singh Lamba, Secretary 2. Dr. Joginder Paul Sharma, Additional Secretary 3. Ms. Jayashree Mukherjee, Joint Secretary 4. Ms. Sudha Krishnan, Joint Secretary & F.A. 5. Ms. Kirti Saxena, Economic Adviser
53 54
Representative of North Eastern Council Shri U.K. Sangma, Secretary Representatives of CPSE of Ministry of DoNER 1. Shri Jadgish Borah, Managing Director, North Eastern Handicrafts and Handlooms Development Corporation Ltd. (NEHHDC) 2. Shri Dhiraj Thakuria, Deputy General Manager, North Eastern Handicarft & Handlooms Development Corporation Ltd. (NEHHDC) Representative of North Eastern Development Finance Corporation Ltd. Shri B. Paul Muktiah, Managing Director Representative of Ministry of External Affairs Shri Harsh Vardhan Shringla, Joint Secretary (BSM) Ministry of Home Affairs 1. Shri M.C. Mehanathan, Director (NE-I) 2. Shri P.V. Sivaraman, Director (Foreigners) Representative of Ministry of Agriculture and Cooperation Dr. Gorakh Singh, Horticulture Commissioner Representative of Department of Animal Husbandry, Dairying and Fisheries Shri Sanjay Bhoosreddy, Joint Secretary Representatives of Department of School Education and Literacy Dr. Amarjeet Singh, Joint Secretary Representatives of Ministry of Railways 1. Shri Vinay Singh, Executive Director (Works), Railway Board 2. Shri A F Shevre, Chief Administrative Officer (Construction), North Frontier Railway 3. Shri V.P. Dudeja, Executive Director, Railway Board Representative of Ministry of Power Shri G. Sai Prasad, Joint Secretary Representative of Department of Personnel and Training Ms. Mamta Kundra, Joint Secretary Representative of Ministry of Road Transport and Highways Shri S.K. Verma, Chief Engineer Representative of Airports Authority of India Shri S. Raheja, Member (Planning) Representative of Ministry of Civil Aviation Shri Alok Sinha, Joint Secretary 2.0 At the outset, the Chairman welcomed the members to the sitting of the Committee. He then apprised them about the agenda of the day which was to examine the Demands for Grants (2012- 2013) of the Ministry of DoNER. [On arrival of Secretary, Ministry of DoNER and other Officers] 55
2.1 The Chairman welcomed the Secretary and other senior officers of the Ministry of DoNER and other Ministries/Departments and the Heads of the concerned organizations to the sitting. He then asked the Secretary, Ministry of DoNER to make a detailed presentation to the Committee on the Demands for Grants concerning Ministry of DoNER and asked him to focus on both the budgetary aspects and the issues concerning the major policies, programmes and projects taken up under the Ministry while making the presentation. He also asked him to focus on the ongoing Infrastructure projects and Economic Development of the North-eastern region, including the focus on programmes/projects where the targets could not be achieved or where the schemes were delayed. He recalled that the Committee held a meeting in this connection on 19th July, 2011 wherein the Committee was not satisfied with the achievements of the set targets on such projects. 2.2 The Chairman further asked the Secretary to update the Members of the Committee about targets set and achievements made under Vision 2020, achievements of the physical targets during the eleventh five year plan and targets set for Twelfth Five Years Plan for various projects, schemes and programmes. 2.3 Thereafter a presentation was made by the officials of the Ministry. The following were the highlights of the presentation: • The primary role of Ministry of DoNER is taking up issues of balanced development of the North-Eastern States with the Central Ministries or Departments, the Planning Commission and the States. The Ministry is addressing State-specific Infrastructure gaps of the region through its Scheme of Non-lapsable Central Pool of Resources. • A number of key infrastructure projects of regional character are supported by the North-Eastern Council, and as a result of joint efforts of all (Centre, States, NEC and M/DoNER) infrastructure scenario in the region is undergoing rapid transformation. As part of strategy to showcase potential of the North-Eastern States, six centres of excellence of the region have been developed. • Concerted efforts were made during 2011-12 for capacity building and for technical assistance. A variety of programmes of skills training and development of competencies in diverse sectors such as Hospitality, Tourism, Technical Courses, Apparel, IT, Finance and Accounts, Road Highways, Construction, Trades, etc., were supported and more than 3,764 youth/officials of the north-eastern region received training under this. • The utilization of funds during the year 2011-12 has been 99.1% of RE. Under the scheme of non-lapsable Central pool resources 1328 projects have been taken up for implementation with funding from the scheme and 52 projects have been sanctioned under Special Bodoland Technical Committee Package. The total approved cost of these projects is Rs.11,289 crores. • All projects are continuously monitored through periodical progress reports received from the State Governments, depicting both the financial and physical progress of the projects and also through review meetings with State Government officers and inspections by officers of the Ministry. • Planning and Development Department of each of the north-eastern State, the nodal Department for NLCPR projects, has been entrusted with field inspections of the projects through senior officers of the State and submission of inspection notes. • For each new project, State/implementing agency is to identify a nodal officer who is responsible for timely implementation of that project and submission of progress reports. Besides, State Chief Secretary has been entrusted with the responsibility of 56
holding quarterly meetings for review of each of the project and sending proceedings to the Ministry. • To encourage States for timely completion of projects, an incentive scheme has been introduced wherein every year, for a best performing State, in terms of completion of projects, an incentive in terms of retention of additional projects worth Rs. 20 crores, as per the States choice, over and above their normal allocation, is being given. • The NEC takes a broad spectrum of projects and it supported projects in agriculture and allied activities, power, irrigation, flood control and watershed management sector, tourism, transport and communication sector, medical and health, human resource development and employment, science and technology. • A revival plan for NEHHCD is under execution, however, there is lack of funds for reviving this corporation. The revival package cannot be done with the funds which have been allocated. • There is a need for up-scaling of infrastructure development in the North-East as the annual average growth rate of GSDP between 2004-05 and 2009-10 for NER (7.18 per cent) is still lower than All India level of 10.24 per cent. The share of primary sector is consistently declining in GSDP composition of NER States. Also, decline in manufacturing sector reflected its share in GSDP of region. Contribution of industries in the GSDP of NER is registering an annual average growth rate at almost 1/3rd of all India average. • There is a strong need to develop infrastructure in the NER for 2012-13, a new scheme called NLCPR-Central is envisaged to fill critical gaps in the existing development programme by funding big ticket projects. The only possible way to liquidate accruals in NLCPR is to push the development process in NER through this scheme. The scheme has the potential to absorb huge accrual under NLCPR which is about Rs. 9,500 crores as of now. 2.4 The representative of Ministry of DoNER requested the Committee to recommend additional allocations during the financial year 2012-13 for the following: (a) Additional Plan allocation of at least Rs. 200 crores so that needs of NLCPR Central can be met; (b) Increase in non-plan allocation by Rs. 4 crores so that revival plan of NEHHDC could be supported. 3.0 Thereafter, Members of the Committee raised some queries based on presentation. However, during the Course of the discussion, one of the queries of the Chairman of the Committee could not be answered by the officers of Ministry of DoNER nor by the officers of the Ministry of Road Transport and Highways. It was noticed that the NHAI which is implementing agency did not send its representative. The Committee also noticed that representatives of other Ministries such as Shipping were also not present in the meeting. The Committee took strong exception to the fact that some of the Senior Officers of the concerned Ministries/Departments were not present during the meeting of the Committee, which resulted in loss of precious time of the Committee, as the Members were unable to get satisfactory replies to their queries. 3.1 The Committee also felt that the officers who attended the meeting had come without proper review of the schemes/programmes being implemented. The Committee felt that no meaningful purpose would be served in further continuing the proceeding and therefore, decided to defer the meeting. The Committee recalled that it had held a meeting on 19th July, 2011 to review 57 the progress of implementation of the projects. In that meeting also, the officers of the Ministry of DoNER and Ministry of Road Transport could not reply to the queries of the Committee. The Committee had to adjourn the meeting half way through with the direction to the Secretary to review the progress of the schemes. 3.2 The Committee, therefore, directed that the matter may be brought to the notice of the Cabinet Secretary to ensure that all the concerned Ministries/Departments are represented by senior officers not below the rank of Joint Secretary. In the case of implementing agencies, the head of the organization or a senior officer should represent before the Committee. The Committee further directed that the officers of all the Ministries would also come fully prepared after thorough review of the schemes. 4.0 A verbatim record of the proceedings of the meeting was kept.
5.0 The Committee then adjourned at 3.55 P.M. 58
XX TWENTIETH MEETING
The Committee met at 12.00 NOON on Wednesday, the 18th April, 2012 in Main Committee Room, Parliament House Annexe, New Delhi.
MEMBERS PRESENT 1. Shri M. Venkaiah Naidu — Chairman
RAJYA SABHA 2. Shri Prasanta Chatterjee 3. Shri Tariq Anwar 4. Dr. V. Maitreyan 5. Shri D. Raja
LOK SABHA 6. Shri L.K. Advani 7. Shri Khagen Das 8. Dr. Kakali Ghosh Dastidar 9. Shri Ramen Deka 10. Shri Mohammad Asrarul Haque 11. Shri Babulal Marandi 12. Shri Hamdullah Sayeed 13. Shri Harsh Vardhan
SECRETARIAT Shri A.K. Gandhi, Director Shri D.K. Mishra, Joint Director Shri Bhupendra Bhaskar, Assistant Director Shri Sanjeev Khokhar, Committee Officer Shri Anurag Ranjan, Committee Officer
WITNESSES Representatives of Ministry of DoNER 1. Shri Amarjeet Singh Lamba, Secretary 2. Ms. Jayashree Mukherjee, Joint Secretary 3. Ms. Sudha Krishnan, Joint Secretary & F.A. 4. Ms. Kirti Saxena, Economic Adviser
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Representative of North Eastern Council Shri U.K. Sangma, Secretary Representatives of CPSE of Ministry of DoNER 1. Shri S. Bhattacharjee, Managing Director, North Eastern Regional Agricultural Marketing Corporation Ltd. (NERAMAC) 2. Shri Jagdish Borah, Managing Director, North Eastern Handicraft and Handlooms Development Corporation Ltd. (NEHHDC) Representative of North Eastern Development Finance Corporation Ltd. Shri B. Paul Muktiah, Managing Director Representative of Ministry of External Affairs Shri Harsh Vardhan Shringla, Joint Secretary (BSM) Representative of Ministry of Home Affairs Shri J.P.N. Singh, Director (NE-II) Representative of Ministry of Tourism Shri Umesh Kalra, Economic Adviser Representative of Ministry of Agriculture and Cooperation Dr. Gorakh Singh, Horticulture Commissioner Representative of Department of Animal Husbandry, Dairying and Fisheries Shri Sanjay Bhoosreddy, Joint Secretary Representative of Department of School Education and Literacy Dr. Amarjeet Singh, Joint Secretary Representatives of Ministry of Railways 1. Shri Vinay Singh, Executive Director (Works), Railway Board 2. Shri A F Shevre, Chief Administrative Officer (Construction), North Frontier Railway 3. Shri V.P. Dudeja, Executive Director, Railway Board Representative of Ministry of Power Shri G. Sai Prasad, Joint Secretary Representative of Department of Personnel and Training Ms. Mamta Kundra, Joint Secretary Representatives of Ministry of Road Transport and Highways 1. Shri Arun Kumar Sharma, Chief Engineer 2. Shri S.K. Verma, Chief Engineer Representative of Airport Authority of India Shri S. Raheja, Member (Planning) Representative of Ministry of Civil Aviation Shri Alok Sinha, Joint Secretary Representative of Ministry of Shipping Shri Dinesh R. Patil, Director 60
Representative of Inland Waterways Authority of India Shri R.P. Khare, Director Representatives of Department of Telecommunication 1. Shri I.S. Sastry, Joint Administrator (USOF) 2. Shri Kaushal Kishore, Joint Administrator (F), USO Fund Representative of Bharat Sanchar Nigam Limited Shri P.K. Pande, General Manager Representatives of Border Road Development Board 1. Dr. V.K. Yadav, Additional Director General 2. Brig. B.S. Kataria, Deputy Director General Representative of Electronics and Information Technology Dr. B.K. Murthy, Scientist “G” Representative of National Highways Authority of India Shri M.P. Sharma, Chief General Manager Representatives of Department of Expenditure 1. Shri Subhash Chand, Deputy Secretary 2. Shri Udyan Chatterjee, Deputy Secretary 2.0 At the outset, the Chairman welcomed the Members to the sitting of the Committee. He reminded them that the Committee, in its last sitting held on 11th April, 2012, heard the presentation of the Secretary, Ministry of DoNER in connection with the examination of Demands for Grants (2012-13) of the Ministry. During the Course of the discussion, some of the queries made by the Members of the Committee could not be answered the officers of Ministry of DoNER and the officers of the concerned Ministry. The Committee had to adjourn the meeting with the direction to the Secretary to review the progress of the schemes and come prepared in the next meeting. 2.1 The Chairman, then, informed the Members that as per the decision of the Committee, the Secretariat had written a letter to the Cabinet Secretary requesting to issue instructions to all concerned Ministries/Departments that they should be represented by senior officers not below the rank of Joint Secretary and in case of implementing agencies, the head of the organization or a senior officer should represent before the Committee. In response to that, the Cabinet Secretariat has instructed the Ministry of DoNER and other concerned Ministries/organizations to be present in the meeting for the purpose. [On arrival of Secretary, Ministry of DoNER and other Officers] 3.0 The Chairman then welcomed the officials of the Ministries and other officers to the sitting. He reminded that the Committee held a meeting in this connection on 11th April, 2012 wherein the Committee was not satisfied with the achievements of the set targets on some projects. 4.0 He asked the Secretary, Ministry of DoNER to make a detailed presentation to the Committee on the Demands for Grants concerning his Ministry covering the budgetary aspects and the issues concerning the major policies, programmes and projects taken up under the Ministry. He also asked the Secretary to focus on the ongoing Infrastructure projects and Economic Development of the North-eastern region, targets set and achievements made under Vision 2020, achievements of the physical targets during the eleventh five year plan and targets set for Twelfth Five Year Plan for various projects, schemes and programmes and also comment on the new thrust areas in the Twelfth Plan period and about implementation of vision 2020 document. 61
4.1 The secretary then informed the Committee that they have tried to set right the various lacunae or deficiencies that were pointed out by the Committee. He also highlighted that they will be trying to focus on the areas which were not really answered in the last meeting. He informed that detailed discussions were held with six Ministries/ Departments responsible for creation of infrastructure in the North-East Region and presentation of the Ministry of DoNER had been revised by incorporating the latest status of various projects being executed by these Departments, along with their plan for the next few years. He further informed that action had also been taken to ensure the presence of senior officers of all the departments executing the various infrastructure schemes and other programmes in the North-East so that questions/queries/observations of hon. Members could be suitably addressed to. 4.2 The following were the highlights of presentation/submissions made by officials: • A total allocation sought for Twelfth Plan by the Ministry is Rs. 25,078 crores as against the BE of Rs. 7,771 crores, RE of Rs. 7,705 crores and expenditure of Rs. 7,424 crores which is more than three times of the Eleventh Plan outlay. • Major enhanced requirement of Rs. 3,419 crores has been sought for the NLCPR (Central) and Rs. 1,400 crores for North-East State Road Investment Programme and Rs. 670 for the North-East Livelihood Project which are externally assisted programmes and are being undertaken for implementation in the Twelfth Plan. • Enhanced allocation of Rs. 13,027 crores has been sought for the NEC which was in the region of Rs. 3,428 crores in the Eleventh Plan. Rs. 457 crores is being sought for the North-East Climate Change Adoption Project. This is also a new scheme in the Twelfth Plan. • Thrust areas of the Ministry for the Twelfth Plan will be rapid, balance and sustainable socio-economic development, closer interaction amongst the North-Eastern States, between the North-Eastern States and the rest of the country, improved relations with neighbouring countries for mutual benefit, harnessing strength of the region for its development, building capacity of officials, technical manpower, entrepreneurship, youth and civil society. • Regarding the Vision – 2020 document, visualizing continuous assessment of the socio- economic challenges and infrastructure constraints in the North-East Region is an integral part of formulation of policies and planning process of the Government of India. • Reviewing of situation arising out of the delays in implementation of projects schemes sanctioned under NLCPR. 4.3 The power point presentation also covered details of projects of power, road, railways, civil aviation, Inland Waterways, Telecommunications along with their achievements as well as problems afflicting them and targeted dates of their completion.
Issues raised by Members 4.3 Based on the presentation made, the Members of the Committee raised following points:– • Budget Estimate for the Ministry of DoNER is Rs.1900 crores which is only 0.73 of the total budget estimates of the Union Government and it should be at least one per- cent of the total outlay. • Accruals to NLCCPR from the non-exempted Ministries is not for full State. Therefore, the increase in the budget estimates is only 9.46 per cent of the budget 62
amount of the preceding year. It is against the policy of 10 per cent gross budgetary support for the North Eastern Region by the line Ministry. · The Prime Minister declared NH-44 in 2002 which is the lifeline of Tripura as a national project but the project could not take off. · Effect on tourism due to relaxation of LTC rules allowing Government employees to visit North Eastern States in lieu of Hometown LTC. Whether Government proposes to further extend the same. · Status of the widening of NH-52. 4.4 The Chairman then asked the secretary to send replies to the questions raised in the 11th April meeting and also in that day’s meeting which could not be answered within a week. He also informed the Members about the decision to appoint a sub-Committee to visit North East and also hold a review meeting there. 5.0 A verbatim record of the proceedings of the meeting was kept.
6.0 The Committee then adjourned at 1.50 P.M. 63
XXII TWENTY SECOND MEETING
The Committee met at 10.30 A.M. on Thursday, the 3rd May, 2012 in Room No. 63, Parliament House, New Delhi.
MEMBERS PRESENT 1. Shri M. Venkaiah Naidu — Chairman
RAJYA SABHA 2. Shri Prasanta Chatterjee 3. Shri Tariq Anwar 4. Dr. V. Maitreyan 5. Shri D. Raja
LOK SABHA 6. Shri L.K. Advani 7. Dr. Kakali Ghosh Dastidar 8. Shri Ramen Deka 9. Shri Lagadapati Raja Gopal 10. Shri Mohammad Asrarul Haque 11. Shri Naveen Jindal 12. Shri Baijayant Panda 13. Shri Neeraj Shekhar
SECRETARIAT Shri P.P.K. Ramacharyulu, Joint Secretary Shri A.K. Gandhi, Director Shri D.K. Mishra, Joint Director Shri Bhupendra Bhaskar, Assistant Director Shri Sanjeev Khokhar, Committee Officer
Consideration and adoption of Draft 162nd Report of the Committee 2.0 The Committee took up for consideration the draft One Hundred and Sixty-second Report on the Demands for Grants (2012-13) of Ministry of DoNER. 2.1 After some discussion, the report was adopted with some changes. 2.2 The Committee decided to present the Report to the Rajya Sabha and lay it on the Table of Lok Sabha on 7th May 2012.
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2.3 The Committee authorized its Chairman and in his absence Shri D. Raja and Shri Prasanta Chatterjee, Members, Rajya Sabha to present the Report in the Rajya Sabha and Shri Neeraj Shekhar, and in his absence, Shri Naveen Jindal, Members, Lok Sabha to lay the same on the Table of the Lok Sabha. 3.0 * * * 4. A verbatim record of the proceedings of the meeting was kept.
5. The Committee then adjourned at 10.40 A.M.
*** Relate to other matter. Printed at : Bengal Offset Works, 335 Khajoor Road, Karol Bagh, New Delhi-110005.