Looking into the Affairs of DoNER Ministry

G S Oinam *

Mind is blowing out when DoNER ministry started discussion on development san banking, finance, insurance, business, market and corporate governance etc. Well, DoNER ministry is concerned with infrastructural development of North East. Please say construction work, contract work! Within ten years, mouse to cat, cat to god, dog to tiger turn contractors are seen. Please teach them what is public private partnership (PPP) or they will turn into man eater (politician) to kill their own Master (seating MLA). Now, DoNER minister is asking investment in the NE region. Pravasi Bharatiya Divas was organized recently in New Delhi and asking overseas Indians to invest in sectors like health and education and in the North Eastern Region where the country needs massive investment. What a good idea, Sirji? But the ground reality is zero- entire north east are encircled as disturb area on the eyes of MNC, investors, export and import companies etc. because people are unaware of corporate governance and its people's responsiveness.

The ideas of corporate governance / CSR/ Corporate citizenship are widely discussed in many big cities of India between of 2000-2004. But the idea could not be extended to rural areas, small cities/ state like Jarkhand and North East. Your banks do not issuing credit card in Manipur. Bank does not trust you-- most common joke. Please ask to Ms Adim Premji why he did not open Wipro Office in North East before you are asking NRI's funding. DoNER ministry spent Rs.15-25 Lakhs per programme on NE business summit at Kolkata, Goa, Hydrabath, Delhi etc. Please do NE business summit at Juhu beach. Mumbai is the commercial capital of India. Some exporters will purchase 20-30 pieces of NE handloom products and directly send to own factory for redesign and reproduction for export to their own style. Because, cost of materials for production and raw materials are cheaper in big cities than NE. Beside, NE local people have little knowledge of exports and imports and unable to supply the consignment/ shipment in time from various factors. Well, Handicraft is where we can specialize because row materials are available plenty in local and hardly to duplicate.

Where the Doner ministry fund goes?- Mostly in Assam and Meghalaya. (please see the budgetary provision and schemes of DoNER and NEC). Bechari, Secretary DoNER came to Manipur but the programme was sponsored by NEC.

Some chinky piggy officials will visits the state and remarks- all projects are failed, projects have no progress; or else, mouth piece of opposition party? In case of trouble torn state like Manipur and NE, A project manager can prepare a mitigation plan or else build some of these contingencies into the project. Many of these activities should be tackled by project authorities before the award of contract. More over, a review of performance of infrastructure shows shortfalls against the yearly target in many sectors. It implies that even a commissioned or running project requires trained and effective manager. Please send some officials for MBA/MA project management both for NEC and state employees. Now, the MBA/MA project management courses are open. Interestingly in Manipur. MBA/MA salary for a project is Rs10, 000/- on contract basis. MBBS salary on contract basis is 20,000/-. In Manipur, MBBS boleto...? Doctor boleto.....? Mera demak kharap kardeya mind is upset to look into the case study of one Doctor run project somewhere about 50 kms from Imphal.

Why do project go away? The typical reasons for time and cost overruns including delay in land acquisition, delay in obtaining forest and environment clearance, lack of infrastructure support and linkages, delay in tie up of project finance, change in scope, delay in awards, law and order problems, increase in cost due to escalation, exchange rate variation, high cost of rehabilitation measures and so on.

NE Vision 2020-- Perhaps, a wrong spelling or grammar. I wish NE Vision 2020 successful but it will not be successful. Because, a dream you dream alone is a dream. And a dream you dream together is reality says John Lennon. Manipur will take at least two three decades where contractors son's becoming MBA/Engineer and MLA's son become MLA. DoNER ministry itself has facing problem on systematic programme implementation. We want "Development Indaba" but DoNER ministry says – no fund for sponsorship, even they are not proving fund for Bodo land for awareness. Go to NEC - unless reputed organization initiate or work, NEC will remained silent.

But Union Government is yet to formulate any specific action plan of how the NE Region could be provided with the necessary infrastructure required for development. The Union Government vis-à-vis the NEC should formulate special strategy for removal of bottlenecks, provisions of Basic Minimum Services and creating a development friendly environment. As we all know backwardness of the region is primarily due to isolation, inadequate infrastructure and poor investment in harnessing natural resources etc. etc.

Procedural and system related bottlenecks in interfacing with many departments/ Organizations in GOI, Planning Commission, and State Governments etc. have adversely affected the developmental activities. The existing procedure for appraisal and sanctioning of projects should be simplified.

There are also certain other policy and procedural issues, which need your attention. Firstly, it appears that various Ministries/Departments of Government of India including NEC now require prior approval of the Planning Commission to consider any project approval through the mechanism of Standing Finance Committee (SFC) and Expenditure Finance Committee (EFC). This procedural change is resulting in major delays in approval of the projects and therefore, needs to be reviewed. As many as 7 major projects of the State are held up for sanction due to procedural delay in clearance of SFC/EFC.

Late Sri Krishna kanta Handique – noted educationalist and social reformer of Assam had kept everything for his children- fame, honour, inheritage property, tea estates, bungalow etc. Tumar ki kam acche, Papar naam tur maayada rakha; Tumi kibo ita kari dekhuwa shriman BK Handique. (Please show something different - Mr. BK Handique.)

Ministry of Development of North-Eastern Region receives every year prioritised projects for retention under Non Lapsable Pool of Resources Scheme from the State Governments in the North Eastern Region (NER) which also includes projects in the Autonomous District Council (ADC) areas. The details of projects received and retained during each of the last three years and current year is --

Status of priority List for 2007-08-Arunachal Pradesh-Projects in priority list-53; Cost (Rs. in crore)- 783.52; Projects Retained-21; Cost (Rs. in crore)- 294.82. Assam- Projects in priority list-75; Cost (Rs. in crore)- 798.11 Projects Retained-50; Cost Rs.351.48. Manipur-Projects in priority list 55; Cost (Rs. in crore) 467.98; Projects Retained 10; Cost (Rs. in crore)- 155.75; Nagaland- Projects in priority list-22; Cost (Rs. in crore) 581.11; Projects Retained- 9; Cost (Rs. in crore)- 160.42 Status of priority List for 2008-09- Arunachal Pradesh Projects in priority list -19, Cost (Rs. in crore)- 232.62 Projects Retained -13 Cost (Rs. in crore)- 157.84. Assam Project in priority list - 142, project retained -63; Manipur-- Projects in priority list 44,(cost Rs. in crore)- 287.94 Projects Retained -31 Cost (Rs. in crore)- 159.19. Meghalaya Projects in priority list- 79 (Rs. in crore)- 1099.69 Projects Retained -19 Cost (Rs. in crore) 176.46. Nagaland Projects in priority list 24 Rs. in crore)- 824.33 /-Projects Retained -15 Cost (Rs. in crore) 216.28 /-

Status of priority List for 2009-10 - Arunachal Pradesh Projects in priority list 33 Rs. in crore)- 402.36 Projects Retained- 17, Cost (Rs. in crore ) 224.66/- Assam – project in priority list- 276; Project retained- 62. Manipur-- Projects in priority list 56, Cost (Rs. in crore ) 668.70 Projects Retained -21 Cost (Rs. in crore ) 156.31. Meghalaya Projects in priority list 106 Cost (Rs. in crore ) 1576.76 Projects Retained- 20 Cost (Rs. in crore ) 150.45. Nagaland- Projects in priority list 29 Cost (Rs. in crore ) 1231.67/- Projects Retained - 13 Cost (Rs. in crore ) 208.34/-.

Status of priority List for 2010-11: Arunachal Pradesh Projects in priority list 58, Cost (Rs. in crore ) 1475.16 Projects Retained -11 Cost (Rs. in crore ) 166.51. Assam- Projects in priority list 106; Projects Retained- 24. Manipur- Projects in priority list 17, Cost (Rs. in crore ) 625.12; Projects Retained -11 Cost (Rs. in crore ) 101.50. Nagaland Projects in priority list 46 Cost (Rs. in crore ) 1307.55 Projects Retained- 6 Cost (Rs. in crore ) 110.6/-

All Ministries / Departments of Government of India (except a few specifically exempted ones) are earmarking at least 10% of their annual budget, less allocation for externally aided schemes and local or event specific schemes / projects for expenditure in the North Eastern Region. Besides, the projects in the NER including Bodoland Territorial District Areas are funded by Ministry of DoNER under NLCPR Scheme. The projects are also funded in the NER by North East Council (NEC). There is an additional provision of Finance Minister's Rs. 500.00 crore Package for Social and Infrastructure Development of North East Region. For BTC Areas, there is a separate provision of 'Special BTC Package' of Rs. 750.00 crore (Rs. 500.00 crore as 'Special BTC Package' and Rs. 250.00 crore as Additional BTC Package).

Year ending report for financial year 2001-10 on the status of 10% lumpsum provision scheme for the benefit of NER including Sikkim under Urban Development ministry;-
In the financial year 2009-10, 17 new projects with an estimated cost of Rs.18965.69 lakh have been sanctioned for the North Eastern States- Manipur received 5 project cost of Rs.1281.60 lakhs in 5 installment.

Manipur- no of project sanction-19; project complited - 10 Amount in lakhs13682.62 GOI share 12841.14 released on 3/3/2010 Rs. in lakh 10029.57. 100 bedded hospital at Thoubal, Manipur NBCC project estimate cost Rs. 1,17,02000 /- Retaining wall / embankment on Southern Bank of Thoubal River, Manipur NBCC project- estimate cost Rs 1,45,21000/- C/o city convention centre at Imphal, Manipur State Govt. run project ; Estimate cost Rs 6,27,62000/- Development of Urban Infrastructure of Thoubal, Manipur-Estimate cost Rs.(lakh)1280.48/- ( project sanction on financial year 2009-10) As on 28.02.2010, Rs. 39630.29 lacs have been released for all the North Eastern States including Sikkim, thus, Rs. 30369.71 lacs are lying unspent under NLCPR Scheme. In which Manipur state received Rs4007.02 ( lakh)

In view of the focus given to border trade with neighbouring countries, special economic Zone (SEZ) should be created in all states. As mentioned in the Common Minimum Programme, Special Action Plan for self-employment tailored to meet the requirement of the Region needs to be introduced. While formulating the package, special attention is to be given towards high literacy of the Region, traditional skill of the local artisans, availability of natural resources like, rubber, bamboo and cane, natural gas, horticultural products etc. In order to ensure success in self-employment on a sustainable basis, investment is needed not only in propagation on specific product but also in a wide range of support activities like skill up-gradation, credit link, vocational training, entrepreneurship development, development of marketing skill including bank loan at concessional rate, actual marketing of products etc. Banks support so far in funding self-employment schemes is not satisfactory. Special measures are required.

The North East has been amply reflected as the country's future power house in "Mission 2012-Power for All" with an eye on the region's potential. Approximately, 58,900 MW, 38% of economically exploitable hydro power potential of the country, is available in the North East but the actual ground work and initiatives is discouraging.

Northeast could supply power not only to the main land but also to neighbouring countries through a grid connection linking the north eastern & eastern grids with Myanmar, Bangladesh, Bhutan and Nepal. This suggests the possibility of a regional energy exchange to mutual benefit.

The Look-East Policy of the Union Government and the emerging trends of sub-regional cooperation including Bangladesh, Bhutan, India, Myanmar, Nepal Srilanka, Thailand, BIMST-EC have in them trans-border trade through NER as the core element. This is where a serious policy intervention is required mainly with a view to tapping the comparative advantages of all NE States. NEC can take the initiative as a catalyst in the process. For achieving rapid economic development in Tripura, facility of movement of people and goods through Bangladesh to Eastern India is a necessity. There is an urgent need for Transit/Transhipment facility including road, rail and waterway connection through Bangladesh to Eastern India as well as access to Chittagong Port in Bangladesh. The Govt. of India may persuade Bangladesh for allowing access to Chittagong Port and also allowing Multi Model Transportation of Goods through Bangladesh with Ashuganj as the Port of Call.