News

ISSUE NO 1.27

DEVELOPMENT

JULY 1, 2000





NEWS THIS FORTNIGHT

MPs urge Shourie: Make Northeast a separate administrative block
Assam seeks Rs 500 cr soft loan
Centre for conversion of Amingaon EPIP into EPZ
Tourism promotion: Rs 356 lakh central grant for Meghalaya
Killing trees - IWT way
Uniform floor rate of Tax: Assam for consensus among NE states
NE disaster mapping on, integrated control system in anvil
Gas cracker project: OIL, RAPL fail to sort out differences
Stalemate over Karbi Langpi project ends
Horticulture yet to pick up in Assam
Gas cracker project: Major hurdles cleared, agreement soon
Steps on to connect all Northeast states by Railways
Centre opens Nagaland to foreign tourists
Nagaland exploring development of airports
Tax on Northeast air travel may be withdrawn


MPs urge Shourie: Make Northeast a separate administrative block
GUWAHATI, June 17: The Members of Parliament (MPs) from the Northeastern region urged upon the Union minister of state for planning and programme implementation, Arun Shourie, to consider Northeast region as a separate administrative block to facilitate proper evaluation and monitoring of development schemes in this geographically isolated region. In a meeting of Northeast MPs with the minister at the Administrative Staff College here today, the latter was told that offices of central government departments should be set in Guwahati, Shillong and Dimapur for the purpose. The MPs also called for urgent steps to open large-scale border trade with the neighbouring countries like Bangladesh, Myanmar and even China to give a boost to the economy of this landlocked region. In this regard the central government was urged to open the Stilwel Road up to Kunming in China for international trade and commerce activities through the region. For the same purpose the MPs also suggested revival of Brahmaputra river route via Bangladesh. The bottom line of their demand was to 'link Northeast with dynamic Asia'. The MPs also highlighted that the Planning Commission should focus on improvement of national highways passing through the region and expansion of railway network in the region. According to the MPs employment generation should get top priority in the region where sense of alienation is growing stronger among the young generation. There was a call to waive restriction on movement of tourists in the region which is gifted with abundant natural potential for tourism industry. One of the MPs, Arun Sharma said, "Bureaucrats in the ministry of home affairs are still suspicious of Northeast region and are not willing to open up the region as a whole for tourists." He also suggested that in place of an advisory body the North Eastern Council should be converted to a professional body so that it can actively guide Northeastern states in preparing and implementing various development projects. The Union government was suggested to set up regional trade authority in the region as well as an implementing agency for regional infrastructure. The MPs from the region also pointed out that there has not been proper mechanism for release of fund from the nonlapsable pool of central resources for the Northeast region. There was a demand for involvement of MPs in identifying schemes and projects for implementation on priority basis. The MPs also suggested that they should be involved in evaluation and supervising the implementation of projects. Earlier, inaugurating the meeting the minister, Shourie said such meetings were instrumental in streamlining functioning of the ministry. He said such meetings should be held in regular interval so that the ministry gets the feed back on implementation of various projects in the region. Regarding follow-up actions on the issues discussed in the last round of Northeast MPs meeting with the minister, the MPs of the region were today informed that a note for cabinet committee on security is under consideration relating to the demand for providing full compensation for security-related expenditure incurred by the Northeast state governments. It was also informed that an empowered committee under the chairmanship of commerce secretary has been set up to examine and process the recommendations of the task force on border trade and inter-country trade issues in the Northeast. (Staff Reporter; The Assam Tribune; Guwahati; June 18, 2000)
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Assam seeks Rs 500 cr soft loan
GUWAHATI, June 18: The Assam chief minister, Prafulla Kumar Mahanta today requested the Union finance minister, Yashwant Sinha to grant a soft development loan of Rs 500 crore for taking up development activities. In a memorandum submitted to the Union finance minister, the chief minister said today that the government of Assam has signed a MoU with the Union finance ministry for undertaking a fiscal reform programme. The fiscal reforms programme is being implemented since January this year and the central government released an amount of Rs 3000 crore as medium term loan in March this year to tide over the difficulties during the implementation of the reforms. He said that the amount released by the Centre was fully adjusted against the repayment of the dues against the central loans. As a result, the fund released did not improve the ways and means position of the state government and requested the Union finance minister to release sufficient funds under the reform programme. The chief minister said that the ways and means problem has become more and more acute. He said that to tide over the crisis the state government has decided to invest in government of India securities, which will entitle the state to additional ways and means advances from the Reserve Bank of India. He said that an amount of Rs 300 crore need to be invested in the government of India securities to enhance the ways and means advance limit to Rs 400 crore from Rs 114 crore. He also requested the Union finance minister to provide a medium term loan of Rs 300 crore for the purpose. Mahanta, in the memorandum, said that the outstanding debt of the state as on April 1 last year was Rs 7202 crore, of which the loan outstanding to the central government was Rs 4438 crore. He demanded that the Centre should consider writing off of the repayment of the principal and interest of the central loans. Pending a decision on the waiver, the government of India should agree to a moratorium on the repayment of the central loans, Mahanta said. Mahanta said that the Centre should release additional amounts to enable the state government to undertake pay revision of the employees. He also said that the new pattern of funding of the centrally sponsored schemes should be changed and the state share should be brought down to ten per cent. The chief minister said that the nonlapsable central pool of resources has become operational from the year 1998-99. But the fund released out of this pool has been given as 90 per cent grant and ten per cent loan. Since this pool consist of the unspent balance of various ministries, the flow of funds from this pool should come as hundred per cent grant, the chief minister added. On the problem of floods, Mahanta said that every year floods cause great economic loss to the state but the central government has been providing only a loan assistance of Rs 20 crore annually for taking to flood control measures. He said that the amount should be increased to at least Rs 60 crore. He also demanded that flood should be recognised as a national problem. Mahanta pointed out that at present incentives under the new industrial policy are given only to the industries set up in the notified areas. He demanded to achieve the objectives of the policy, the restriction on notified areas should be withdrawn immediately. He also expressed concern at the apathetic attitude of the banks and financial institutions towards the state and said that in the last five years, the credit-deposit ratio has come down to 31 per cent. He demanded that the finance minister should issue necessary instructions to the banks and financial institutions in this regard to promote economic growth of the state. Referring to the problem of insurgency, the chief minister, in the memorandum, said that the situation has improved and the people of the state have rallied around the state government and stood up boldly against the terrorists. The state government, which has been fighting insurgency all these years, has now got some relief and time to look after the development needs of the people, he added. (Staff Reporter; The Assam Tribune; Guwahati; June 19, 2000)
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Centre for conversion of Amingaon EPIP into EPZ
NEW DELHI, June 20: While turning down a plea for setting up a separate Export Promotion Zone (EPZ) in the Northeast, the ministry of commerce has accepted the proposal of the Planning Commission to convert the Export Promotion and Industrial Park (EPIP) at Amingaon near Guwahati into an EPZ. The Assam government has been requested to agree to the conversion of the EPIP into an EPZ, the commerce ministry has stated. Although the ministry is still awaiting a word from the Assam government on this, it has let it be known that the proposed EPZ shall focus on export-oriented units in certain exclusive areas such as agricultural and horticultural products, food items, flowers, softwares, gems and jewellery in order to epitomise the results. The proposal to establish a separate EPZ in and around Guwahati was made by the department-related parliamentary standing committee on commerce headed by its convenor, Arun Kumar Sarma in its report to boost export from the region. In reply, the action taken report (ATR) submitted by the commerce ministry, here yesterday, said that the proposal was examined and the Planning Commission has observed that existing facilities dedicated to production for exports should be fully utilised before expanding these facilities and making further investments. The central government has also turned down a recommendation of the standing committee for setting up a regional centre of the Indian Institute of Foreign Trade (IIFT) at Guwahati, on the ground that the body is a national level institute and it may not be financially viable for it to open regional centres. The IIFT which has built up expertise in its faculty on Northeast related economic matters has been advised to commence an evening course in trade and business in collaboration with Gauhati University, the report said. The commerce ministry also asserted that it is in touch with Mineral and Metal Trading Corporation (MMTC), State Trading Corporation (STC) the Central Silk Board among others to examine the feasibility of setting up regional offices in the Northeast with powers to deal with region-specific problems. What is however, significant for the region is that the commerce ministry through India Trade Promotion Organisation (ITPO) is likely to set up a trade centre of an exhibition complex in Guwahati. The commerce ministry has shifted its focus on promotion of border trade in the region, with majority of the recommendations made by the parliamentary standing committee being acted upon. The commerce ministry's ATR said that the four border towns Moreh, Sutarkandi, Dawki and Zowkhawathr, would be developed at a cost of Rs 20 crore over the next two years. The development of the border towns were promised under the prime minister's special economic package, announced in Shillong, early this year. (Kalyan Barooah; The Assam Tribune; Guwahati; June 21, 2000)
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Tourism promotion: Rs 356 lakh central grant for Meghalaya
SHILLONG, June 20: The Union ministry of tourism has approved financial support to the tune of Rs 356 lakh for promotion of tourism in Meghalaya in the current year (2000-2001). Official sources said, the ministry has also prioritised 24 schemes for development of tourism in the state which has tremendous untapped tourism potential. The decisions were taken at a meeting between senior officials of the ministry of tourism and the secretary and director of tourism, Meghalaya at New Delhi recently. The ministry has approved sanction of Rs 15 lakh for the preparation of a 'tourism master plan' for Meghalaya and has further agreed to take up the work by itself for which purpose senior officials of the Union tourism department shall be visiting the state next month. Among the other schemes approved by the ministry include financial support for upgradation of the Shillong golf course, which is regarded as one of the best in the entire country. Other schemes approved by the government of India include accommodation and catering facilities at Dawki, Mawsynram, Lumpongdeng Island and Nongkhnum Island. Suspension bridges over Weina Falls and river Umjarain, development of hot spring at Jakrem, construction of sitting galleries at Assanangre and Behdienkhlam areas in Garo Hills and Jalaphet, respectively, have also been approved by the Union ministry. According to sources, construction of a tourist bungalow at Assanangre, a model Garo village and tourist park at Chasingre, kiosks and observatories at Shillong View Point at Laitkor, Tura Peak and Mawsynram, have also been approved by the ministry. Apart from Nongkrem dance and Wangala festival, the government of India has agreed to give financial support to Behdienkhlam dance festival of Jaintia Hills district. Besides giving top priority to setting up of an amusement park-cum-botanical garden at Jongksha, the ministry has also prioritised beautification of Nartoang monolith complex and illumination of Mawsmai cave in Cherrapunjee. (Special Correspondent; The Assam Tribune; Guwahati; June 22, 2000)
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Killing trees - IWT way
GUWAHATI, June 21: There can't be any debate over how vital the green cover for the city's atmosphere, which is fast becoming a concrete jungle. But it seems, the Inland Water Transport (IWT) department's boatmen are least bothered. They could not have cared less while following the practice of mooring their heavy vessels to the nearest available tree along the bank of Brahmaputra between Shukleswar and Bharalumukh. The practice of IWT to fasten their vessels to trees instead of dropping anchors, has endangered several valuable trees along the bank of Brahmaputra in the city. The IWT is doing this without the permission from the forest department. The divisional forest officer of Kamrup, GM Kuli when contacted today informed that the IWT had not bothered to ask for permission from the forest department to moor the heavy vessels to the trees. The DFO agreed that the practice would not augur well for the life span of these trees which are so vital for the environment. The forest official said the department was concerned over the matter. Meanwhile, the President of Save Guwahati Build Guwahati, Dhiren Baruah expressed serious concern over the danger posed to large number of trees along the bank of Brahmaputra within the city due to the practice followed by the IWT for years. He also sounded a note of warning that if these trees get uprooted for being used to prevent IWT vessels from drifting away with the current of Brahmaputra, the erosion by the mighty river will become alarming within the city limit. Baruah informed that Save Guwahati Build Guwahati had submitted several memoranda to different authorities including the chief minister, deputy commissioner and Guwahati Municipal Corporation asking for their initiative to make the IWT see reason and give up the practice of mooring the vessels to these trees. But the effort has so far failed to evoke any response. (Staff Reporter; The Assam Tribune; Guwahati; June 22, 2000)
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Uniform floor rate of Tax: Assam for consensus among Northeast states
NEW DELHI, June 22 - In a move aimed at bringing at par prices of all fast moving consumer durable goods including motor vehicles, spares and accessories, Assam today called for a consensus among the North Eastern states for introduction of uniform floor rate of tax (UFR). Addressing the conference of the chief ministers on domestic trade tax reforms and VAT, state chief minister, Prafulla Kumar Mahanta today said that Assam was forced to bring down the rate of tax on motor vehicles from 12 per cent to four percent, to prevent the high quantum of trade diversion of high value items to compete with neighbouring states like Arunachal Pradesh and Mizoram, which have no sales tax on the items. Unless all the states in the region simultaneously introduce and implement the UFR on the listed commodities no single state can successfully implement it in isolation without risking the problem of trade diversion and loss of revenue, Mahanta added. Assam was particularly interested in arriving at a consensus on introduction of UFR in respect of fast moving consumer durables, if not on all the listed items and Mahanta suggested that motor vehicles motor parts, petrol, petroleum products, cosmetics, toiletry items and electric and electronic goods be at least taxed at par in the region. "If some of the states of the Northeast cannot introduce the UFR on all commodities, they should introduce it at least in respect of high value consumer goods," the chief minister pleaded, adding that until all the states in the region agree on a mutually agreed UFR, it would not be possible for Assam alone to subscribe to the regime. Assam also protested the phasing out of the sales tax related incentive schemes, arguing that some sort of incentive to potential industrialists are unavoidable to encourage industrial growth in the Northeast. He also added that though the central government during the last few years have introduced a number of schemes and incentives specially for the region, any perceptible change is yet to be seen. Phasing out the incentives at this juncture would be inappropriate and negate all the bold efforts and measures of both the central and state governments prematurely, he pointed out. On introduction of VAT Assam opined that in order to compensate any probable loss of revenue in the wake of introduction of VAT, it should consider some measures, including creation of a fund by the Centre to compensate loss of revenue for three years after taking an acceptable growth rate. It also demanded that restriction on the levying of sales tax by the states on declared goods should be withdrawn and the state should be given back the power to levy sales tax on three items textiles, sugar and tobacco by withdrawing the additional excise duties levied in lieu of sales tax. Assam further suggested that apart from rescinding the rental agreement for levying additional excise duty on textile, tobacco and sugar and withdrawing the restriction on declared goods, the Centre should set up a fund to counter any possible revenue loss to the states in the immediate post reform phase. The reduction in the rate of central sales tax should be effected quickly in a phased manner, Mahanta asserted. The meeting today was convened by the Union finance minister, Yashwant Sinha to discuss the VAT regime and was attended by majority of the chief ministers. Mahanta today was accompanied in the meeting by his top officials including the chief secretary, P K Bora and finance commissioner and secretary, Subash Das among others. (Staff Correspondent; The Assam Tribune; Guwahati; June 23, 2000)
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NE disaster mapping on, integrated control system in anvil
SHILLONG, June 26: In a matter of just one year or so, an intricate system will be in place in the Northeast through which precise prediction of natural disasters and their control and mitigation would be possible from one central point for the Northeast states. The mechanism will facilitate area-specific forecast of disaster and the possible extent of damage, evolving and implementation of precautionary measures and a mechanism for control or mitigation of such tragedy in close coordination among the Northeastern states. This means, from such time when this mechanism takes effect, the people of a remote Dhemaji village or for that matter any other such place in the Northeast and the authorities will know beforehand that an area is going to be submerged by floods, or hit by landslides, that it could leave behind a trail of devastation of a particular extent. This will be possible through extensive use of satellite, remote sensing and modern communication technology. Courtesy the North Eastern Council, several central and state government departments have come under one umbrella to work out an integrated disaster management system for the Northeast in view of the proneness of the region towards such natural calamities as floods, landslides, forest fire, earthquake etc. Talking to The Northeast Daily on this unique venture, AK Verma, director of Science & Technology, NEC, said a core committee of the department of space and the NEC - involving senior scientists and experts of the Survey of India, Brahmaputra Board, Indian Meteorological Department, Geological Survey of India, Central Water Commission and Border Roads Organisation - is working out the broad parameters of the mechanism for the different kinds of disasters possible in this region. The core group will also map out the disaster-prone areas and assess possible damage after a disaster using India Remote Sensing Satellite data. The work involves creation of a data base, networking, data analysis/modelling and training of people, Verma said. "For instance, it can be possible to predict the Assam floods and the resultant havoc waiting to happen in northern Assam beforehand if we can gauge the rains in the Arunachal hills by using some rain censors. And if alerted in advance, the authorities as well as the people can do a lot to reduce the extent of loss that we incur every year," he added. The concept formulated at the NEC here, has active backing of the ISRO and the department of space of the Union government. According to KV Vankatachary of the ISRO, the information system and inputs of India's space system could be put to optimum use for disaster management in the NE. The model being prepared by the core group will be thoroughly examined by a coordination committee of the seven states before taking up for implementation. A proposal to form a wide network among the Northeast states was also considered at the meeting of the states where the 'Coordination Committee for Disaster Management' was formed. The entire project also involves mutual coordination among the states for control and management of disasters in one state or the other. (Bijoy Sankar Saikia; The Northeast Daily; Guwahati; June 28, 2000)
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Gas cracker project: OIL, RAPL fail to sort out differences
NEW DELHI, June 27: The OIL India Limited (OIL) and the Reliance Assam Petrochemical Limited (RAPL) has been directed to sort out their differences and sign the much-awaited Gas Supply Agreement (GSA). The petroleum and natural gas ministry conveyed this to the Assam government here today. "The Union petroleum secretary, N Narad has conveyed to me that the OIL and Reliance Industries Limited (RIL) would meet to resolve their differences and sign the Agreement shortly", the state chief secretary PK Bora who led the state government delegation told The Assam Tribune today. But latest development on signing the GSA has been taken with a pinch of salt by the Assam government as several such deadlines for signing the Agreement have come and gone. It has been learnt that under pressures from the state government, the Petroleum Secretary even assured the delegation that the agreement would be signed within this month itself. When asked Bora declined to comment, adding that they prefer to wait and watch. The last such deadline for signing of the agreement lapsed on April 14, as the OIL and RAPL failed to resolve their differences on supply of quality gas for the project. The OIL's stand on the issue is that they have no control over quality of gas as its natural and extracted from the bowel of the earth. Today's meeting was the first meeting on the project after the April 14, fiasco and the Assam government officials today reportedly did some plain speaking seeking explanation for the delay in signing of the supply agreement. The Petroleum Secretary's optimism apparently emanated from a letter written by the RIL, which assured that they were still interested in the project and would stick by the broad draft agreement signed with OIL earlier this year. The RIL however did not attend the meeting today. On the central government's part, it confirmed that the draft agreement signed between the two was in line with the policy decision of the central government, a sign which could mean that the central government may grant its seal of approval to the agreement arrived at between the OIL and RAPL. chairman-cum-managing director of OIL, BB Sarma and chairman of the ONGC, Bikash Bora attended the meeting. According to the terms of the agreement in event of either of the parties (OIL) and (RAPL) terminating the Gas Supply Agreement before the expiry of the 15 years period (from the date of commissioning of the project) the party terminating the contract will pay to the other party liquidity damages equal to the cost of one year of interest on the total outstanding debt on the date of the termination of the contract. In the event of shortfall in supply of gas both in quality and quantity, the OIL agreed to pay the RAPL damages at the rate of Rs 2500 per thousand cubic meters of loss. A document laying the principle of agreement was agreed to be signed on March 10 while the formal Gas Supply Agreement was agreed to be formally signed on or before April 14, an event which never took place. The then additional secretary in the ministry of petroleum and natural gas, Naresh Narad, chaired the meeting that broke the deadlock. The meeting today also discussed allotment of gas to the Amguri power project and a decision was taken that the OIL would convene a meeting with the Assam Gas Company Limited and the ASEB to examine the proposal of setting up a pipe-line connecting Lakuwa and Amguri. The meeting also agreed to shelve the plan to go for a common gas grid, as it did not prove to be a cost-effective proposition. The state government on its part has rejected the central proposal that the state run the Amguri power project with the total allotment of 0.5 mmscnd given to the ASEB. The state government's contention was that it required additional allotment as its gas based projects were being commissioned. The only hope of commissioning the Amguri project now lies in construction of the 30-km long pipeline connecting the project with Lakuwa, the OIL agreed to supply additional 0.5 mmscmd gases but conveyed that it could do so only in Duliajan area. (Kalyan Barooah; The Assam Tribune; Guwahati; June 28, 2000)
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Stalemate over Karbi Langpi project ends
KARBI LANGPI DAM SITE, June 27: Finally, the cloud of uncertainty over Karbi Langpi Hydro Electric project is lifted after a long stalemate raising hopes for electricity consumers in the state. State power minister, Hitendra Nath Goswami, announced the resumption of work on the 100 mega watt power project at a public meeting organised at the project site on Borpani river at Hatidubi in Karbi Anglong yesterday. The minister informed that the remaining work on the hydro-power project was proposed to be completed within March, 2003, subject to the condition that situation remains conducive for smooth progress of work. The Power Finance Corporation has agreed to provide loan of Rs 125.79 crore to the ASEB to enable it to complete the balance work on the power project which was sanctioned by the Planning Commission way back in September 1979 at an estimated cost of Rs 36.36 crore. Out of three major components of the project - concrete gravity dam, water conductor system and power house - work on concrete gravity dam ran into a stalemate due to various reasons. The power minister yesterday informed that failure of successive contractors engaged by the ASEB for dam construction and inadequate cash flow were the key reason, for which the work on the project was stalled from 1993. Then began a long-drawn legal battle with one of the contractors engaged in the project. In the meantime, the cost of the project has gone up to Rs 251.69 crore at the price level of 1998-99. Out of this amount Rs 125.90 crore has already been spent towards various works completed till March 1993. For construction of the remaining part of the project including the gravity dam, the ASEB has engaged Gamon India Limited. The chairman of the ASEB, JK Borah hoped that the work on the project would be completed before time. It was informed that the work on the project would be monitored after every two months in two separate meetings of the monitoring committee at Guwahati as well as at the project site. The power minister said an advisory committee has been formed including representatives of Karbi Anglong Autonomous Council and technical experts to oversee the progress of the project work. The Power Finance Corporation will engage a consultant to keep a tab on the utilisation of funds meant for completion of project work. The power minister said Karbi Langpi project held the key for improvement of grim power scenario in the state. Cost of generation for per unit of power in the hydro electric project is estimated at Rs 1.55-1.65. The power minister called for co-operation from the Karbi Anglong Autonomous Council and the public to ensure smooth progress of work on the power project. He assured that people of Karbi Anglong would be directly benefited when generation starts in Karbi Langpi project. The chief executive member of KAAC, Jotson Bey stressed on involvement of local people in the project work to the extent possible. He said local villagers should be engaged in non-technical works in the project. He also requested that the project site should not be made a restricted area in such a way the even local villagers are not allowed to carry out the traditional community fishing in the river during festivals. It was learnt that as many as 301 permanent staff would be required for completion of balance work on the project. Pre-construction work like building of residential complexes, hospital, school etc was completed long back. Even the power house is constructed where costly machinery are gathering rust. Work on the tunnel in almost complete. (Bijay Sankar Bora; The Assam Tribune; Guwahati; June 28, 2000)
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Horticulture yet to pick up in Assam
GUWAHATI, June 26: In spite of having vast potential, horticulture is yet to pick up in the state. According to official statistics, there are 5,42,942 hectares of horticultural croplands in the state but most of the areas are yet to be covered by modern method. The problems can be attributed to lack of motivation and financial support among the farmers, poor marketing network and shortage of quality seeds. The state government had set up 14 nurseries in various districts to produce free planting materials to meet the demand of the farmers. But, due to paucity of fund, these nurseries have been leased out to the private parties. Another important fact is that there is a considerable gap between the gross production and net availability of fruits and vegetables due to post harvest losses. About 30 per cent of the production is lost due to want of transportation and proper marketing, and as a result farmers are reluctant to go for large-scale production. Although the department is laying stress on modern technology to boost production, farmers are still dependent on conventional method due to lack of support from the extension wing. Commenting on the poor horticultural activities, official sources revealed that there is always shortage of quality seeds and hence production is below than the other states of the country. They, however, opined that banks and financial institutions are yet to come forward to extend help to the farmers. It may be mentioned here that the recent seminar on 'Green Revolution in Assam' discussed various problems faced by the farmers. MS Swaminathan, who had a long deliberation in the seminar, laid emphasis on strengthening marketing network and organic farming. He also appealed to Assam Agricultural University (AAU) to produce high quality seeds for the farmers in order to boost production. The seminar, which was attended by the scientists of Indian Council at Agriculture Research (ICAR), suggested the state government to develop horticultural area using modern technology with a view to garnering more revenue. It also suggested setting up of cold storage unit to solve the problem of distress sale. (Staff Reporter; The Assam Tribune; Guwahati; June 28, 2000)
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Gas cracker project: Major hurdles cleared, agreement soon
NEW DELHI, June 28: The OIL India Limited (OIL) and the Reliance Assam Petrochemical Limited (RAPL) today begun their deliberations to resolve the outstanding issues over supply of gas to the mega gas cracker project. Although OIL officials were tight-lipped over progress of the deliberations, informed sources said that major hurdles have been cleared and they are optimist about signing the much-talked about Gas Supply Agreement sooner than expected. The Union petroleum and natural gas ministry has reportedly prevailed upon both the parties to sign the agreement within a month or earlier. The deliberations itself begun post-haste following a directive from the petroleum secretary, Naresh Narad yesterday to resolve the remaining issues to pave the way for signing of the supply agreement. A top official of the OIL told The Assam Tribune here today, claimed that the ice has been broken and only the technical differences now remained to be resolved. "God willing we shall sign the Gas Supply Agreement very shortly, declining to specify any time-frame. The official said that the last major hurdle over supply of quality gas for the proposed project has been sorted with the OIL assuring some minimum quality guarantee and the Reliance also climbing down from their position. This is in contrast against the stand taken by the OIL that it was in no position to guarantee supply of quality gas, as they had no control over it. The two - the RAPL and the OIL has already signed the broad agreement laying the principles of gas supply. Under the agreement the OIL has given an guarantee to supply gas for 15 years. The OIL team has led by its chairman-cum-managing director, BB Sarma, while the RAPL was represented by its top officials including MC Bora. Sources said that the deliberations were likely to continue tomorrow also. (Staff Correspondent; The Assam Tribune; Guwahati; June 29, 2000)
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Steps on to connect all Northeast states by Railways
GUWAHATI, June 28: Steps have been initiated to connect all the states of the North Eastern region by the Railways and the ministry of railways has also given top priority in infrastructure development in the region, said the general manager (construction) of the Northeast Frontier Railway, GR Madan. Talking to The Assam Tribune here, Madan gave a detailed account of the ongoing projects of the Railways in North East and hoped that the projects would improve the infrastructure in the region to a great extent. Madan revealed that the consultants have finished the field survey for the fourth bridge over the river Brahmaputra at Bogibeel and laying of 55 kms of railway line and "we shall now approach the ministry of railways and the cabinet committee on economic affairs with the final survey report.' He said that the railways should be able to start working on the project immediately after the completion of the formalities. He hoped that completion of the formalities would not be a major problem as the government of India has already agreed on principle for the construction of the bridge. He also said that by the beginning of the next working season, the railways would be able to start the preliminary works like establishment works, procurement of land etc. The general manager said that a new railway line between new Maynaguri to Jogighopa has already been sanctioned and the final location survey is on. He said that the total length of the line would be 217 km and the project cost is estimated to the tune of Rs 733 crore. Madan said that to bring the railways nearer to the Arunachal Pradesh capital Itanagar, a 22 km line between Naharlagun to Harmoti has been proposed and the survey for the line has been carried out. He said that subject to allotment of land, the Railways would be able to start implementation of the project in October and an amount of Rs 10 crore has been earmarked for the project for the current year. The laying of the Dudhnoi-Deepa railway line, which was sanctioned in 1992-93, has been delayed because of problems of land allotment and Madan said that he would meet the chief secretary of Meghalaya to request him to settle the problem so that the railways can go ahead with the project soon. The general manager revealed that the laying of the 108 km long Kumarghat-Agartala line has started and work is in progress in 60 km. He hoped that the project would be completed by the year 2006. He said that a lot of tunnelling work would have to be done in this section and the longest tunnel would be about two km. He said that efforts have been made to cut down the length of the line by tunnelling in the hill section. He revealed that a new line between Diphu in Karbi Anglong district of Assam to Karong in Manipur has been sanctioned but the government of Manipur has preferred a line via Jiribam to Imphal. That is why the final decision of the line has not yet been taken. A survey work is also on to study the feasibility of a new line between Dimapur and Kohima in Nagaland, he added. Gauge conversion: Madan said that the NF Railway is working on several major gauge conversion projects in the region and one of it is the conversion of the existing meter gauge line between New Jalpaiguri and New Bongaigaon into a broad gauge. He said that it would remove the communication bottleneck to a great extent and the line should be completed within three years. The total cost of the same would be Rs 536 crore including the construction of the branch lines. He said that the railway ministry has given top priority to the line and hoped that financial constrains would not delay the completion of the project. Another major gauge conversion work is in progress in the Lumding-Silchar section and the 201 km line should be completed by the year 2006. Madan revealed that 60 km of the line would be totally new line as in one section a new alignment would be followed. The line would have at least 21 tunnels and the longest tunnel would be three km long. Madan said that the total project cost was earlier estimated to the tune of Rs 648 crore but it would ultimately increase by about Rs 100 crore. Two gauge conversions between Silchar and Jiribam and Kathakhal to Bhairabi in Mizoram is expected to be completed simultaneously with the gauge conversion work to improve rail communication in the area, he added. Giving an account of the ongoing surveys, Madan said that a survey has been done for the gauge conversion between Rangiya to Mukongselek and the report would be sent to the ministry by the end of this year. He said that a survey is also on for a new 70 km long line between Sarthebari to Changsari and hoped that the projects would begin soon. He also said that a survey is also on for a 500 km long railway line between Pancharatna to Badarpur along the southern border of Meghalaya. Security problem : The general manager admitted that the feeling of insecurity has affected the morale of the staff and affected the progress of some of the construction works. He pointed out that several officers and representatives of the contractors have been abducted and one person was killed, which affected the progress of the implementation of the projects. He said that because of the feeling of insecurity, it is sometimes difficult even to attract suitable agencies for the implementation of the projects, which affected the overall performance. In Agartala, the railways had to take people on deputation from the state government to work on railway projects because of the reluctance of others to go and work there, he added. (R Dutta Choudhury; The Assam Tribune; Guwahati; June 29, 2000)
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Centre opens Nagaland to foreign tourists
NEW DELHI, June 28: Nagaland, which was under a "protected area regime", has been opened up for tourism to attract foreign visitors, it was announced here on Wednesday. For the first time since the Foreigners (Protected Areas) Order, 1958, international tourists will be allowed to visit this Northeastern state for a maximum period of 10 days, an official release said. But unlike other parts of the country, single foreigners will not be allowed and tourist groups would have to be of four or more people, except in the case of married couples. The districts opened up in Nagaland include Dimapur, Kohima, Mokokchong and Wokha Foreigners would have to get permits to visit Nagaland from either the Union home ministry or Indian missions abroad. The foreigner's regional registration offices in New Delhi, Calcutta and Mumbai, Chief Immigration Officer in Chennai, the home commissioner in Nagaland or the state's resident commissioner in Delhi have also been authorised to issue permits. In the past, even Indian tourists required inner-line permits to enter most of the Northeastern states except Assam and Meghalaya. (United News of India; The Indian Express; Guwahati; June 29, 2000)
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Nagaland exploring development of airports
KOHIMA, June 29: Nagaland government has undertaken two feasibility study projects for developing modern airports in the state, in addition to the existing airport at Dimapur, official sources said here on Thursday. Feasibility study projects are on to develop international standard airports at Razhaphema-Ngalwa in Kohima district and Lumami-Longkhum in Mokokchung district, sources in the Transport and Communication department, here said. After the feasibility studies are completed, proper project reports would be prepared to take up with North Eastern Council (NEC) and civil aviation ministry for consideration, the sources added. The department has also directed all deputy commissioners in the state to examine and submit reports on the feasibility of establishing airports near district headquarters, they said, adding that the department is examining them for further necessary action. All-out efforts has been made to modernise and upgrade the lone airport at Dimapur under NEC schemes so that it can be provided with night-landing facility, the sources said. As a first step towards development of inland water ways in the state, Nagaland government has submitted a proposal of feasibility study to make Tizu river navigable up to Chindwin river in Myanmar to promote two-way trade between the two neighbours, the sources disclosed. The Centre is yet to take any final decision on Nagaland government's proposal for feasibility studies on inland waterways development in the state, the sources disclosed. On further expansion of railway network in the state, they said, during the current financial year, the track between Amguri (Assam) and Tuli (Mokokchung will be converted to broadguage. (Press Trust of India; The Assam Tribune; Guwahati; June 30, 2000)
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Tax on Northeast air travel may be withdrawn
NEW DELHI, June 30: The civil aviation ministry is likely to withdraw the Inland Air Travel Tax (IATT) levied on air travel to the Northeast. The notification to the effect is expected to be announced shortly. Confirming news reports, sources in the ministry said that following recommendations of the task force, a decision was taken to do away with the IATT for the Northeastern sector. Currently IATT is being charged at a rate of 15 per cent of the air fare. With the withdrawal air fare to and from the sector is likely to come down. Claiming that the move will boost tourism and air traffic into the region, it was stated that government will lose revenue to the tune of Rs 20 crore annually on this count. The IATT was introduced way back in 1989 and was widely protested by the states as well as the airline operators. However, things moved only when the Task Force set up by the civil aviation ministry made recommendations to review the tax. It was confirmed that the Union finance ministry has cleared the proposal. (Staff Correspondent; The Assam Tribune; Guwahati; July 1, 2000)
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