Ibobi demands adequate funds for NE development
Source: The Sangai Express / Manipur Info Centre

New Delhi, April 10 2015 : Chief Minister O Ibobi today stated that the allocation of funds and actual release of funds to the NEC was grossly inadequate to take up meaningful development of inter-State infrastructure or human development of the North Eastern Region.

He was attending the two-day 64th plenary session of the North East Council here at SCOPE Auditorium, SCOPE Complex, Lodi Road here which began yesterday.

In his speech Ibobi said, "It is a matter of concern that there has been a budget cut to the tune of Rs 191 crore during 2014-15.NEC is statutorily mandated to act as a regional planning body and has identified core areas for regional planning of the NE Region based on Vision 2020 of NER.

However, with meagre plan funds provided to NEC it will be difficult to provide fund for core areas like establishment of SLCD projects in the NER" .

The 64th plenary session of NEC underway at New Delhi

Emphasizing special conditions and fund requirements of special category States, he urged the Ministry for Development of North Eastern Region (DoNER) to take up the question of enhancing the allocation for NEC and NLCPR with the Centre.

Referring to restructuring of Centrally sponsored schemes and change in funding pattern, the Chief Minister said, "Under the 14th Finance Commission Award, there has been an increase in devolution of Central tax share to the States from 32 pc to 42 pc.

However, no provision is made in the Union budget for the financial year 2015-16 for 31 CSS schemes under category D.Special Category States also lose out on NCA, SCA, SPA on which the NE States and Manipur in particular, heavily depend on to meet the fiscal deficit and finance State matching share.

States will also be burdened with more State share on CSS schemes under Category B, where the funding pattern is to be changed.

States also lose out on schemes under Category C, which have been delinked from Central funding" .

He stressed the need for immediate restoration of special category status to the NE States along with other financial allocation of fund.

He requested for providing financial gap and State matching share for CSS, which was earlier provided from flexible fund and NCA, SCA, SPA by the Finance Ministry or from NLCPR pool of GBS.

Ibobi further requested for retaining existing funding pattern of 90:10 or 100% for CSS programmes for all Special Category States.

He appealed to the Union Minister of DoNER Dr Jitendra Singh to take up the matter seriously with the Ministry of Finance on top priority so that fiscally poor NE States and Manipur in particular might not deviate from the path of development.

With regard to the equitable distribution of NEC funds and enhancement of allocation of fund for Manipur, Ibobi said, "In the last Plenary Session of NEC, I had raised the issue of equitable distribution of funds to member States.

Overall fund released to Manipur still continues to be the lowest after Sikkim; around 4 pc of the total releases made so far by NEC.

During 2014-15 Rs 48.90 crore was released, which is not sufficient to clear liabilities of ongoing projects and implement new projects sanctioned" .

He urged the Central Government to enhance the percentage allocation for Manipur to be at least at par with Nagaland, Tripura, Meghalaya, which was more than 6 pc of the total releases.

While supporting the continuous thrust given by NEC to the Transport & Communication, Power, Agri & Allied Sectors, Human Resource and Health Sectors, the Chief Minister said, "I understand that the approval of the Council is solicited for Budget allocation of Rs 773.00 crore for the year 2015-16.I am aware that the allocation is meagre to meet committed liabilities and sector wise proposed outlay for new programmes aspired by NEC and member States.

My State has already submitted priority list of projects for the year 2015-16".He requested the NEC to consider the priority list of projects in core thrust areas of NEC.

He highlighted a few of the priority sector projects under NEC namely, installation of 2x5 MVA, 33 KV sub-station along with associated 33 KV line & related works at Mao amounting to Rs 9.12 crore; installation of 2x5 MVA, 33 KV sub-station along with the associated 33 KV LI-LO line & related works at Mayangkhang (Rs.8.97 crore); construction of Yatri Niwas and bus parking at Dimapur under Tourist Sector (Rs.14.48 crore); and Construction of Manipur State Yatri Niwas at Shillong under Tourism sector (Rs 14.54 crore) for early sanction.

Ibobi applauded the NEC for detailing comprehensive detailed Revised General Guidelines and Revised Sectoral schemes guidelines of NEC.

He remarked, "This will bring transparency in the working of NEC.

My Government supports constitution of Executive Committee of NEC chaired by the Chairman, NEC, composition and function of sectoral empowered committee, framing of procedures to be followed by the standing committee, for retaining of projects in NEC and procedure for NEC-Project Appraisal Committee (NEC-PAC)" .

However, he made some specific suggestions on the revised guidelines for consideration.

He suggested, "Flexibility may be given to the State to identify priority areas for distribution of funds sector-wise and ensure equitable fund distribution to member States within the ambit of the regional ramification" .

"Change in the order of priority of projects given by State may be done in consultation with the State Government", he suggested.

He said, "We do not support part-release of first instalment of fund of 5% of project cost upon sanction of the project.

Existing pattern on release of fund 40 pc, 40 pc and 20 pc may continue" .

He opined, "Second instalment of fund may be released on submission of UC of 80 pc of NEC funds and equivalent State share instead of 100 pc utilization.

This is to ensure that fund flow continues for ongoing works" .

The Chief Minister endorsed NEC's proposal for construction of State Guest House at Shillong.

He said, "My State does not have a proper State Guest House at Shillong.

Shillong is the hub of tourist and centre for higher education, regional meetings like NEC plenary meetings, REC, etc.

Regular NEC review meetings are also held at Shillong" .

He requested for construction of a Manipur Guest House at Shillong to facilitate tourists, students and officials coming to Shillong.

On power transmission front, the Chief Minister said, "We suffer from both inter-State and intra-State transmission constraints.

In Manipur, the inter-State power transmission is operated at 132 KV voltage system through the existing Dimapur�Imphal and Leimatak�Jiribam 132 KV lines of PGCIL.

State cannot draw more than 100 MW even in peak monsoon though our allocation is 150 MW.

Fortunately, with the coming up of Pallatana and Bongaigaon Power Plants, PGCIL has taken up a 400 KV Double Circuit line from Silchar to Imphal initially chargeable to 132 KV system voltage as an associated transmission system of the above projects.

This line, once completed will definitely remove the inter-State transmission constraints for the State" .

For better system reliability and benefit of all NER States, Ibobi expressed, "It is necessary that the 400KV line be extended up to Misa in Assam to have a 400 KV ring main consisting of Misa�Balipara�Bongaigaon�Azara �Byrnihat�Silchar�Imphal� New Kohima�Misa.

The Empowered Committee of Government of India has agreed to implement Imphal (PG)�New Kohima (Nagaland) 400 KV Double Circuit (D/C) line, to be initially operated at 132 KV, through Tariff Based Competitive Bidding.

The same needs to be extended up to Misa.

This will give benefit to Assam, Manipur and Nagaland" .

He reminded that the proposal was also placed in the last plenary meeting at Shillong.