News

ISSUE NO 2.01

DEVELOPMENT

AUGUST 1, 2000





NEWS THIS FORTNIGHT

Bangla river project to cause more floods
Coffee cultivation in NE dwindling
Survey re-run on Tipaimukh
Joint Indo-Bangla team begins route inspection
Arunachal wood-based industry regulation rules approved
Centre takes up Rs 220-cr IT project in NE
TSF opposes thermal plant in tribal belt
Centre sets terms for releasing funds to Nagaland
Central team concerned over smuggling through Moreh
NEEPCO to sell power to Bangla from proposed Tripura project
Record production of honey in Arunachal
NF Rly earns Rs 684 cr last fiscal
Agartala-Dhaka bus service: India, Bangla to sign pact next month
Banks siphon out Rs 1421 cr from Meghalaya
No superhighway to Tamu: Centre
CAG pulls up Arunachal govt for non-implementation of PDS
Stage set for reopening of Ashok Paper Mill
HC directive on NEEPCO arrears
Steps on to shift wholesale market from Fancy Bazar
No special concessions to NE states
Official indifference affecting bamboo trade


Bangla river project to cause more floods
GUWAHATI, July 17: The Jamuna Multipurpose Bridge Project (JMBP) in Bangladesh will ultimately lead to devastating flood and severe erosion in the Brahmaputra valley of Assam, warned noted geographer Manik Kar of Nowgong College. Jamuna is the name of the Bangladesh part of the Brahmaputra. A PhD in flood hazard, Kar said in his paper Flood Hazard Mitigation is an International Riddle : A Case Study of the Brahmaputra Valley (India), represented at an international conference on disaster management organised by CARE, UNDP and Dhaka University recently, that the around billion-dollar JMBP, which was proposed to regulate the Jamuna river at selected sites with flood protection funds and a bridge (Bangabandhu Bridge), has reduced the width of the river at the bridge site from 10 km to 5 km. As the slope of the Brahmaputra between Goalpara and Dhubri (1:14650) is little different from that of between Dhubri and Sirajganj, the barrage on the Jamuna will help aggradation in the Jamuna and thus produce devastating flood and severe erosion in the Brahmaputra valley, Kar said. The Brahmaputra and its tributaries are the major agents of floods in Assam. As for the river Brahmaputra, Kar said, it is an international river with a length of 2,897 km with its upper course Tsangpo (1,625 km, i.e. 56.10 per cent of its length) lying in Tibetan China, the middle part Brahmaputra (918 km, 31.70 per cent) flowing through Assam and Arunachal Pradesh. The river is most sensitive in the sense that it is in a seismic zone having a very narrow geographic set-up and a mobile mountain zone. Landslide is intense and the river has a very gentle slope (on an average 1:6990) in the valley where the density of population is high and the human interference is also extensive. The management of the Brahmaputra valley floods is very hard without proper management of the 56.10 per cent of the river in China and 12.20 per cent in Bangladesh, Kar said. Though dredging in the Jamuna might have proved fruitful for both Bangladesh and India it has so far not been done, he said, adding, dredging is possible in the Jamuna, while it is not possible in the Brahmaputra. As a result of absence of any dredging in the Jamuna, the river has lost its carrying capacity and aggravated the problem of floods in both the countries, he said. He also warned that construction of dams and other such devices to regulate the river in its upper catchment and its tributaries either in Arunachal or in China may result in catastrophe for Assam. Rather, he suggested that it will be wiser if China, India and Bangladesh sit together and evolve better management processes for the river. A single country is helpless in managing the river, he said. Kar also presented a paper on the role of women in flood hazard and epidemic mitigation, jointly with M Banu, in the conference. In this paper, Kar and his research scholar Banu laid stress on global efforts for flood hazard and epidemic mitigation. (Staff Reporter; The Assam Tribune; Guwahati; July 18, 2000)
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Coffee cultivation in NE dwindling
GUWAHATI, July 17: Way back in the 1990s, there were at least 10,000 hectare of land under coffee cultivation in the Northeast. Today it is just about 3,000 hectare. Production, which should ideally have been in the range of 4,000 tons a year, hovers around the 400 tons mark. But these are only rough estimates. Ask the Coffee Board's Guwahati office for data on coffee cultivation in the region and you are likely to be refused. The Coffee Board, incidentally, is the main agency entrusted with the work of prompting coffee cultivation in the region. The Board's reluctance to part with the data is perhaps reflective of its inactivity in the region. "Coffee is stagnant the world over," asserted a senior official of the Board here. He defended the Board's poor show by citing reasons varying from the invincibility of tea to the Board's lack of manpower. He also apportioned a part of the blame for the state governments in the region. The official says the main problem hampering growth of coffee is the lack of proper infrastructure. To give the necessary care to the crop there is need to have offices in all the major crop areas like the Karbi Anglong Hills, Nagaland, etc, he said. "We need a man at the spot to fulfil a project. Though we have enough money, it is not possible to do anything sitting in Guwahati," the official states. He says there is hardly any officer for the states of the region to publicise and promote the crop. He says there are a few fertilizer outlets in the tribal areas where the sensitive coffee crop is grown. He says there is no complementary support from the state governments. "We are working in isolates," he points out. At present between 3,000 to 4,000 people are involved in coffee cultivation in the region but their efforts are not forthcoming. The Board official himself acknowledges that places like Mokokchung in Nagaland can produce one of the best coffees in the world. The Board released Rs 1.5 crore in the region during the last two years, he says, although he is unwilling to give the breakup. The Board has drawn up a plan to add 15,000 hectare of fresh land to coffee cultivation. He claims the Board offers financial incentives to coffee cultivators and for new entrepreneurs. But the Board, he says, has no publicity material nor does it carry out campaigns to promote coffee cultivation. The reason? "We don't want to be swamped by applications for financial assistance," he reasons. Despite his reasoning, the fact is that the results are simply not coming out. "The organisation is only the facilitator," the Board official says. Asked whether all the money spent by the Board has gone waste, the official counters that the money given to farmers helps them to at least buy food for sometime". "Even if there is no growth in coffee cultivation we are at least doing some social service," he pleads. Any wonder then that coffee cultivation here has failed to take off ? (Staff Reporter; The Assam Tribune; Guwahati; July 18, 2000)
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Survey re-run on Tipaimukh
IMPHAL, July 18 Manipur Chief Minister W Nipamacha Singh today said his government has ordered another survey of the proposed Tipaimukh dam to determine its height. A final decision would be taken only after studying the final survey report, he told the Assembly. Earlier, raising the issue, former Chief Minister Rishang Keishing of the Congress said he wanted to know the government's stand on the power project. The government had earlier opposed the dam on the ground that it would submerge large areas of the state. The Chief Minister said Northeastern Electric Power Corporation has been entrusted with the survey of the Tipaimukh project. Government officials are also involved in the survey, he added. "If the dam is going to cause more damage, we will not allow the construction. If the gains are more than losses, we will go ahead," Singh said. On the demand of NEEPCO to provide security protection during its survey work, the Chief Minister said the Centre should shoulder this responsibility. Replying to Keishing's question, power minister Govindas Konthoujam told the Assembly that initially the Brahmaputra River Board was entrusted with the survey work. He said the Brahmaputra board's report had proposed the dam's height at 162. 79 metres. A dam of such a height would submerge large areas in Manipur and Mizoram. Subsequently, the NEEPCO had been entrusted to resurvey the project, he said. The state Assembly had earlier in 1997 opposed the construction of the dam. However, the House reviewed its decision last year but only agreed to another survey of the project. Govindas Konthoujam said the government has asked Neepco to lower the dam's height. He said the government is not opposed to the Tipaimukh project provided it did not affect large parts of the state. The power minister said 12 per cent of the total 1,500 MW power to be generated by the project will be given free of cost to Manipur and Mizoram. The power minister had said the government was officially involved in the construction of the proposed Tipaimukh dam. But the Chief Minister said his government can only agree to its construction after studying the Neepco's survey report. Nipamacha Singh said the previous survey by the Brahmaputra Board had indicated that National Highway 53 (Imphal-Silchar road) would be submerged. (Correspondent; The Telegraph; Calcutta; July 19, 2000)
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Joint Indo-Bangla team begins route inspection
AGARTALA, July 19: Stage is all set for much awaited Agartala-Dhaka bus service. An India and Bangladesh joint team has already undertaken route survey for the proposed Agartala-Dhaka bus service on Wednesday. Sources said the members of both the countries will hold a high-level meeting on Thursday in Dhaka and decide as to which route will be better for Agartala-Dhaka bus service. The meeting will submit recommendations to Dhaka and Delhi on which a formal accord on the bus service will be signed by the both countries. It may be mentioned that both the countries have already agreed to sign the accord in a meeting of Indian Foreign Minister Jaswant Singh and his Bangladesh counterpart Abdus Samad Azad at Torento, Canada recently. The 16-member team travelled to Agartala from Dhaka through Brahmanbaria and entered the city from Akhaura and then went back again to Bangladesh capital through Goomilla. They will be holding a meeting there tomorrow. Official sources said the team visited Tripura Road Transport Corporation complex here at Krishnanagar and later held a meeting with Tripura Chief Secretary V Thulasidas. The Bangladesh delegation told the Chief Secretary that Dhaka is keen to start the bus service at the earliest. Tripura Government has decided to ply only the TRTC buses on the route, and has already requisitioned luxury buses for the purpose. The Bangladesh team was led by Bangladesh Transport Corporation chairman Md Ajmol Choudhury. On the other hand, Indian team was led by director of External Affairs Ministry Banasree Basu Harrison. Transport commissioner of Tripura BK Sharma, district magistrate Manish Kumar, deputy transport commissioner K Das and first secretary of Bangladesh visa office at Agartala AKM Abdulla received the joint team at Akhaura check post. (Correspondent; The Assam Tribune; Guwahati; July 20, 2000)
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Arunachal wood-based industry regulation rules approved
ITANAGAR, July 19: The Arunachal Pradesh government has approved the 'Arunachal Pradesh Wood-Based Industry (Establishment and Regulation) Rule, 2000' in its Cabinet meeting held here yesterday. This was stated by Information and Public Relations and Land Management Minister Takam Sanjoy, who is also the spokesperson of the government, in a press release here today. Sanjoy said the decision had been taken in accordance to the directive of the Supreme Court vide par 30 of the order dated January 15, 1998. The minister further informed that these rules have been framed broadly in line with similar rules notified by the neighbouring states of Assam, Meghalaya and Tripura suited to the requirements of the state. These rules broadly provide for procedure for grants, renewal, of license and license fee, condition of license, maintenance of register, records and inspection thereof and transit of forest product in respect of wood-based industries located in the notified industrial estate, the release added. (United News of India; The Assam Tribune; Guwahati; July 20, 2000)
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Centre takes up Rs 220-cr IT project in NE
AGARTALA, July 19: An ambitious Rs 220-crore project has been taken up by the Union Government to establish information technology network in all the 446 blocks in the seven north-eastern states and Sikkim, reports UNI. Stating this state's Information Technology, Industry and Commerce Minister Pabitra Kar told newsmen here today that in the first phase, 25 blocks of the seven Northeastern states would be covered during this year. Of the 25 blocks, 12 were in Assam, three in Tripura and two each in Manipur, Meghalaya, Nagaland, Arunachal Pradesh and Mizoram. Kar said the state government recognised the importance IT education had for the development of IT industry. IT policy focussed primarily on promotion of IT education in the state and proposed to start IT's advanced courses in different educational institutions in Tripura and also encourage private agencies to establish training institutions not only in Agartala, but in other parts of the state. The IT policy also gave stress on introduction of IT in the government sector and computerisation of different government activities. The state government was in the process of identifying key governmental activities that could be computerised. The objective was not only improved revenue collection and better financial management but also better citizen-government interface. The state government proposed to start a state-wide computer network with the assistance of the IT ministry, linking all blocks to the state headquarters. Kar said the Government also planned to provide computers in all secondary and higher secondary schools. It was proposed to take up the project on a pilot basis and a request had been made to the Union Minister of Information Technology for its sanction on priority basis, he said. Setting up of a software technology park at Agartala was the top priority for the state government, he said. (United News of India; The Assam Tribune; Guwahati; July 20, 2000)
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TSF opposes thermal plant in tribal belt
GUWAHATI, July 19: Tribal Students Federation (TSF) of Assam has vowed to foil bid to set up a coal-based thermo electric project by the Northeastern Electric Power Corporation (NEEPCO) at Longtong Udoipur under Tirap tribal belt in Margherita. The primary reason for which the TSF is opposed to setting up of project that is the state government is preparing to allot 1000 bighas of land for the project evicting total 305 families from the area. Already the Government has evicted 200 families in Udoipur village without paying compensation. The leaders of the TSF on Tuesday informed the Press here that some of the inhabitants of the area have more than 100 years of settlement while some are relatively new settlers including flood-hit people of Upper Assam. They informed that it was the Government which rehabilitated flood affected people in that area under Minimum Need Programme (MNP). The TSF alleged that the Government has been discriminatory while evicting people to clear land for the proposed NEEPCO project. While tribal settlers are being evicted, small tea gardens located in the area are being avoided by the administration. The TSF, therefore, smells anti-tribal attitude of the Government and vowed to launch agitation to foil attempt to set up thermal power project in the area affecting the tribal populace there. The TSF further alleged that although the project was originally proposed to be located at Borgolai area, it was latter decided to shift to Longtong Udoipur village under 'pressure' from a lobby of coal mafia operating in Margherita coal belt. The TSF leaders said even as the Government was out to unsettle even 100-year-old settlers in Tirap Tribal Belt to facilitate the proposed NEEPCO project, thousands of bighas of Government land in the same belt are being grabbed by a section of moneyed people for setting up small tea gardens without caring to take necessary permission from the administration. The TSF also faced that the environment of the Tirap Tribal Belt area will be polluted and the general health of the locals will be affected, if the coal based thermal power project is allowed to set up in the area. (Staff Reporter; The Assam Tribune; Guwahati; July 20, 2000)
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Centre sets terms for releasing funds to Nagaland
KOHIMA, July 20: Centre on Wednesday told Nagaland government in no uncertain terms that non-lapsable pool of Central resources will be made available to the state subject to the condition of maintenance of transparency in project implementation and utilisation certificate by the state government of funds released under the same head for the last two years, reports PTI. Reviewing the development activities taken up under the Centre's new initiative for the region with departmental heads, the Additional Secretary of the Union Home Ministry, PS Shenoy told the government officials the Centre had decided to sanction Rs 50 crore to Nagaland during the current fiscal, but it will be released provided the money sanctioned from non-lapsable pool for the last 2 years was properly utilised. Summarising the outcome of the meeting, Shenoy told newsmen that the Centre now insisted on transparency of project implementation in the Northeast and asked respective state governments to extensively monitor implementation of such schemes. Shenoy said monitoring of Central schemes or visits by state government officials to the project sites in Nagaland was not so satisfactory and he exhorted officials to regularly visit and monitor Centrally funded projects. The secretary said the Centre had sanctioned Rs 102 crore and released Rs 73 crore since 1998-99 to Nagaland from the non-lapsable pool of Central resources. The fund was for completion of Likimro hydel project (Rs 20 crore), Dimapur water supply scheme (Rs 8 crore), Dimapur overbridge (Rs 3.5 crore) and upgradation of Naga hospital at Kohima (Rs 12 crore), Nagaland university (Rs 4 crore) and administrative training institute (Rs 1 crore) and other projects. The meeting also deliberated on Prime Minister's agenda for the Northeast, utilisation of funds, preparation and implementation of feasible and tangible infrastructure projects, and follow-up action of recommendations of development seminars at Mon and Tuensang for the two backward districts. (Press Trust of India; The Assam Tribune; Guwahati; July 21, 2000)
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Central team concerned over smuggling through Moreh
IMPHAL, July 21: A high-powered Central team today expressed concern over the smuggling of foreign goods through this border town in Chandel district bordering Myanmar, official sources said. The seven-member 'task force on boundary management' led by former Union Home Secretary Madhav Godbole also inspected border gates with Myanmar before holding a meeting with senior district and security officials. The team arrived in Imphal yesterday to assess the situation in the border areas of the state. Sources said Godbole wondered how the foreign goods were smuggled into the Indian side in spite of deployment of several security agencies concerned to check the smuggling at the international border. The team member, Admiral (Retd) AR Tandon after the meeting told PTI here that the location of Border Security Force at gate number one was in a 'very interior area' and should be shifted to some other area from where it could function properly. The team would submit a detailed report to the Centre on problems at border areas in Northeastern region. Sources said the team also went to Namphalong market complex bordering Moreh, on the Myanmar side. Moreh, about 120 km south of Imphal, is an important border point. The team left Dimapur by helicopter for visiting border areas in other northeastern states after spending about an hour in the border town, according to sources. (E-Pao; The Sangai Express; Imphal; July 22, 2000)
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NEEPCO to sell power to Bangla from proposed Tripura project
AGARTALA, July 22: The Northeastern Electric Power Corporation (NEEPCO) will sell power to Bangladesh from its proposed 500-MW giant thermal power project, to be set up at Santi Nagar in West Tripura, reports UNI. NEEPCO's technical director Sunil Baran Dey told newsmen here on Saturday that the surplus 300 MW power would be sold to Bangladesh, which had been facing a severe power crisis. Remaining 200 MW would be given to Tripura and National Power Grid, Dey said, adding, the Central Electricity Authority would soon submit its report for this proposed project, to be set up at a cost of Rs 2000 crore. The state government had provided the required land for the project, which would also meet the state's severe power crisis. Natural gas and water would be used for the project, first of its kind in the north-eastern region, Dey said. State Power Minister Badal Chowdhury said the state government had no objection, if the NEEPCO sold the surplus power to Bangladesh. Chowdhury said two thermal power projects, each of 21 MW capacity, would be set up in Tripura soon. The Centre's Expenditure Finance Committee (EFC) had endorsed a 21-MW project for Baramura in West Tripura. Now the Union Cabinet had to ratify the endorsement. The Minister said the proposed Rs 95-crore project would be financed by the Northeastern Council (NEC). Chowdhury said works had already started for another 21-MW-capacity thermal power project at Rokhia, also in West Tripura. The cost of the project would be met from the non-lapsable fund for the north-eastern region. During peak hours, Tripura needs about 135 MW of power. But from its own and Central sources, the state is getting around 95 MW of power. To cover the shortfall, an average of one-and-a-half-hour to two-hour loadshedding is effected everyday in the evening. (United News of India; The Assam Tribune; Guwahati; July 23, 2000)
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Record production of honey in Arunachal
ITANAGAR, July 22: Arunachal's Industries department, through a pilot project, has produced a record 250 kg of honey alone at Sille village, 25km, away from Pasighat, the district headquarters of West Siang this year, official sources said. "Never before has Arunachal witnessed such a record production of honey, and I am optimistic that the production will go up in the current year," S Tabin deputy director, in-charge of pilot project said in a press note. Stating that the recent produces are placed at government sales emporiums at Itanagar and Pasighat under the brand name of Siang honey', Tabin disclosed that this year's produces have already earned a Rs 50,000 revenue to the state exchequer. The main objectives of the pilot project was to motivate and create awareness in making an alternative economic development in the rural areas, he said, adding, preparing skilled manpower in the rural area is one of "our objectives so that rural masses can take up such activities for generating self-employment to raise their living and economic standard in near future." Above all beekeeping (apiary) is an integral part of this multi-discipline pilot project which was launched in the year 1997-98 at Sille village by the Department of Industries, he said adding, sericulture and dairy farming are some major components of this pilot project. Keeping in view the success of the project, the department is setting its eyes to create new vistas of economic development and to generate self-employment avenues for the Arunachalis in future, Tabin said. (Correspondent; The Assam Tribune; Guwahati; July 23, 2000)
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NF Rly earns Rs 684 cr last fiscal
GUWAHATI, July 23: Despite perennial insurgency, the Northeast Frontier Railway (NF Rly) has earned Rs 684.04 crore during 1999-2000. Out of Rs 684.04 crore, the Frontier has generated Rs 432.27 crore and Rs 184.99 crore from goods and passengers respectively. According to official statistics, earnings of the previous year (1998/99) stood at Rs 592.27 crore as against the financial target of Rs 544.05 crore. Sources said that due to suspension of night-running trains in the wake of spurt in activities of the insurgent groups particularly in Lower Assam, the overall earnings had gone down to some extent. The results could have been much better if night-running trains had not been stopped in two spells for about five months, sources observed. Railway tracks have remained soft targets of insurgent groups till last year from frequent bomb blasts triggered by militants. But, after declaration of ceasefire against the BLT, subversive activities are on the wane. During the period, there were eight cases of bomb blasts and eight incidents of sabotage which adversely affected the performance of the railway. Sources, however, said in spite of militancy and frequent bandhs called by various organisations, NF Rly has achieved almost all targets fixed by the authorities. "We have geared up security arrangements in Lower Assam in several sensitive areas to cope with militant threat," sources stated. They also revealed that the railway has realised a huge amount from the ticketless travellers by conducting frequent operations in different trains. 'Earnings from penalties imposed on ticketless travellers have recorded an increase of 10 per cent over last year which indicates that the number of ticketless travellers are also increasing gradually' they said, adding in view of prevailing situation, authorities have taken up several measures. NF Rly has set a target of Rs 707.80 crore in 2000-2001 financial year and during the past two months, it has crossed the proportionate target by about Rs 2.5 crore. (Staff Reporter; The Assam Tribune; Guwahati; July 24, 2000)
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Agartala-Dhaka bus service: India, Bangla to sign pact next month
AGARTALA, July 23: India and Dhaka will sign an agreement next month to start Agartala-Dhaka bus service after the successful running of the 'Souhardha' service between Calcutta and Dhaka, reports UNI. A senior official told newspersons here on Sunday that a 16-member joint Indo-Bangla official team had recently conducted an-the-spot survey to examine the 144-km-long road with its infrastructural facilities to commence the service. The joint working group that held a meeting with Tripura Chief Secretary V Thulasidas on this subject on July 18 came here by road. The senior officials of the two countries held a meeting the next day in Dhaka to finalise the modalities of the proposed bus service. This would facilitate the NE region people to go to Bangladesh easily and more comfortably. The eight-member Indian delegation was led by External Affairs Ministry's Director Banashree Basu Harison, while the Bangladesh delegation was headed by Bangladesh Road Transport Corporation Chairman Md Ajmol Chowdhury. An official of the Indian delegation, who returned here on Saturday said that the road and other infrastructural conditions were most favourable to operate the bus service, only a stretch of 15 km on the Bangladesh side needed repair which would be done soon. The two meetings held in July were to follow-up the high-level meeting held in New Delhi on June 28. The joint official team also visited the Tripura Road Transport Corporation (TRTC) bus terminus. The TRTC had procured two new buses with all modern facilities to launch the service. It would take some 3 hours to reach Dhaka from here by bus. (United News of India; The Assam Tribune; Guwahati; July 25, 2000)
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Banks siphon out Rs 1421 cr from Meghalaya
SHILLONG, July 25: At a time when the backward Northeastern states are crying out for more investments in order to accelerate the pace of development, commercial banks in Meghalaya siphoned out more than Rs 1421 crore from the state in one single year ending March last. The revelation was made in the meeting of the state Level Coordination Committee on Banking Affairs (SLCCBA) here today. Against the deposit of Rs 1729.25 crore mobilised by banking sector in Meghalaya during the year ending March 31 this year, only Rs 308 crore was re-invested in the state resulting in the siphoning of Rs 1421 crore to other states in the country. Inaugurating the meeting, Meghalaya Chief Minister EK Mawlong blamed the banking sector for the declining trend in the credit deposit ratio in the state which dipped to an all-time low of 17.83 per cent as on March 31 this year from 20.43 per cent in 1999. The Chief Minister observed "the constraints and difficulties highlighted by the banks in the matter of flow of bank credit in the state are being over-emphasised". He said that most banks cite the peculiar land tenure system as a major stumbling block in extending credit, though most of the loans needed for implementing various Centrally sponsored schemes as well as agricultural or crop loan do not require mortgage of land. Asking the banks to be "pro-active" the Chief Minister suggested a review of the existing arrangement. It should be possible to expand the credit flow in the priority sectors by creating a mechanism for expeditious and timely process of applications by the functionaries concerned and speedy sanction and disbursement of loans by the banks, he said. Mawlong refused to accept the stand of the banks that the problem of recovery was again a major constraint for advancing loans. "Poor recovery is often due to lack of effective post landing support and supervision this requires coordinated joint efforts by the concerned departmental functionaries and the banks on a regular basis", he said. Accusing the banks of being insincere in bringing about economic development in the state, he observed that only eight of the 17 banks represented in the SLCCBA cared to attend the crucial meeting. State Finance Minister AH Scott Lyngdoh expressed great displeasure that many of the commercial banks operating in the state have registered a CDR of less than 12 per cent as against the national average of 60 per cent. He hinted that the Government would evolve a policy under which Government deposits would be made with only those banks which show a better CDR. He regretted that the suggestions and recommendations of a sub committee set up by the state Level Bankers' Committee (SLBC) in 1996 to suggest ways and means to improve credit flow in the state have not been appropriately implemented by the banks. Finance Commissioner, PJ Bazeley was highly critical of the banks for citing the land tenure system in the state as a deterrent to flow of credit. "The land tenure system has been practised in the state for centuries. They should accept certificates issued by the District Council as proof of land ownership. If banks cannot accept it, they should fold up business in the state" he said. Before the bank representatives could present their position against the charges levelled by the state government, the newsmen present in the meeting were strangely asked to leave. This scribe later spoke to bankers to find their response in the meeting. The Assistant General Manager, State Bank of India, KN Hazarika made a forceful plea that the CDR should not be the basis of evaluating the performance of a bank. It should be based on credit plus investment minus transitory deposits and recoveries of loan, he said. He said the quantum increase in loans and advances, coverage of rural population in more dispersed benefits should also be considered while assessing the performance of the banks. (Bedabrata Lahkar; The Assam Tribune; Guwahati; July 26, 2000)
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No superhighway to Tamu: Centre
IMPHAL, July 25: The Union minister for surface transport HK Narayan Yadav told Rajya Sabha today that there is no proposal for extension of the super highway to Tamu, border town of Myanmar, even though the United Front Manipur government claimed that the super highway will be extended up to Myanmar. The Union minister made the statement in reply to an unstarred query from W Angou Singh in the Parliament today. The minister further informed the House that out of total stretch of 7300 km of north-south and east-west corridors, stretches of about 600 km of national highway are already four-laned while 20 sections of national highways totalling 272 km will be soon converted to 4/6 lanes. Expenditure for the north-south and east-west corridors was Rs 122.45 crores during the period of 1999-2000. A sum of Rs 430 crores has also been allocated for these corridors for the year 2000-01. The Union minister further said the Centre makes advance releases of the states' entitlements and provides ways and means advances, if needed, to the states to bail them out of overdraft. He further said advised by the Centre, some of the NE states, which are facing acute financial problem, have initiated the process of financial reform, which emphasises on formation and implementation of credible and monitorable programmes to achieve fiscal stability. Extended ways and means advances given during 1999-2000 to the NE states are: Sikkim - Rs 25 crores, Manipur - Rs 50 cores and Assam - Rs 300 crores. Allotment is done on the basis of recommendation of the finance commission. (E-Pao; The Imphal Free Press; Imphal; July 26, 2000)
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CAG pulls up Arunachal govt for non-implementation of PDS
ITANAGAR, July 25: The Comptroller and Auditor General of India has pulled up the Arunachal Civil Supplies department for not effectively implementing the public distribution system during the period 1992-99 due to defective budgeting. The CAG report for year 1999 laid down by Arunachal Pradesh Chief Minister Mukut Mithi in the state Assembly here on Monday stated that the scheme was not fully implemented in the state due to defective budgeting as Rs.11.67 crore (revenue Rs 8.07 crore, capital Rs.3.60) remained unutilized during the year 1992-99 and short-lifting of 1.09 lakh tonnes of PDS commodities valued at Rs.60.47 crore allotted by the Government of India which led to distribution of same below the prescribed scale depriving the beneficiaries of the intended benefits of the scheme. The scheme further suffered due to issue of 4079 bogus ration cards and the government sustained a loss of Rs.3.48 crore, the report said, adding, "Due to non settlement of dispute between the state government and the FCI, claims for freight charges valued at Rs.12.74 crore by wholesale remained outstanding against FCI, which had affected the financial position of the whole sellers in lifting PDS commodities and proper implementation of the scheme due to non lifting of the same." Stating that the main objectives of the public distribution system was to ensure regular supply of essential commodities like wheat, rice, sugar, edible oils and kerosene etc., at reasonable prices particularly to weaker sections of the society, the CAG reports pointed out that out of 8.18 lakh tonnes of foodgrains allotted by the GoI during the year 1998-99, the state lifted only 7.09 lakh tonnes. Short-lifting of 1.09 lakh tonnes valued Rs 60.47 crore led to distribution below prescribed scale depriving the beneficiaries of the intended benefit of the scheme. (Correspondent; The Assam Tribune; Guwahati; July 26, 2000)
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Stage set for reopening of Ashok Paper Mill
GUWAHATI, July 26: The stage is now set for the reopening of the Ashok Paper Mill, once considered to be one of the best paper mills of the country, as a Memorandum of Understanding (MoU) was signed with a Calcutta based company for leasing out the mill. Official sources told The Assam Tribune that the state government and the Ashok Paper Mill Assam Limited today signed an MoU with the Soneko Paper and Industries Limited of Calcutta. The MoU was signed by the Commissioner of Industries of the Government of Assam, Managing Director of the Ashok Paper Mill Assam Limited and the Director of the Soneko Industries. As per the MoU, the mill would be leased out to the Soneko Industries for a period of 25 years. The Soneko Industries will pay a lease rent per month from the date of taking over of the mill and will absorb all the existing employees of the mill. Official sources said that the Soneko Industries would take over the mill soon after completing the necessary formalities. Sources expressed the hope that the mill would be able to start production within a few months. Official sources said that sufficient care was taken to safeguard the interest of the state and the mill while preparing the MoU and it is expected that the bitter experience of leasing out of the mill to the Sanghi Textiles of Hyderabad would not be repeated again. Sources said that the officials of the Soneko Industries, with a team of technical experts already visited the mill and conducted a detailed study. They would visit the mill again shortly and submit a detailed action plan for the reopening of the mill within a couple of weeks. The officials of the Soneko Industries also signed a draft agreement with the existing 380 workers on their salaries and wages and the final agreement would be singed in presence of Labour Department officials soon. Sources revealed that the Soneko Industries, which has a paper mill in Orissa, has the necessary experience of producing and marketing paper and they should be able to run the Ashok Paper Mill properly. It may be mentioned here that the Ashok Paper Mill, set up in the early 1970s, with a capacity to produce 90 tonnes of paper per day and it had the distinction of producing the finest quality paper available in the country. These was a time, when the mill produced about 120 tonnes of paper per day. But different factors led to the closure of the mill in 1983. In 1995, the Government of Assam leased out the mill to the Sanghi Textiles of Hyderabad. But according to official sources, the Sanghi Group was technically not equipped to run the mill as it did not have any experience of running a paper mill. The Sanghi group also failed to pay the salaries and wages of the employees regularly and two officials of the group were even arrested for violating the labour laws. Ultimately, the Sanghi group abandoned the mill in June last year and it was taken over by the Ashok Paper Mills Assam Limited. Since then efforts were on by the state government to reopen the mill by leasing it out to a suitable company. (Staff Reporter; The Assam Tribune; Guwahati; July 27, 2000)
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HC directive on NEEPCO arrears
GUWAHATI, July 26: The Gauhati High Court has issued directives to the NEEPCO, ASEB and the Assam Govt to prepare a scheme, whereby the outstanding dues to NEEPCO amounting to approximately Rs 670 crore, can be liquidated. The division bench also directed the state and ASEB to pay Rs 20 crores per month in the next two months to NEEPCO for power supplied to ASEB. The PIL filed regarding the threatened action of the NEEPCO to discontinue power supply has been posted for further orders after two months. Chief Justice Brijesh Kumar and Justice DN Chowdhury indicated in their order that while formulating the scheme for liquidating the arrears of the NEEPCO, the authorities may also consider diversion of the 15 per cent plan money of the ASEB, which is deducted by the Centre, to be handed over to NEEPCO. The L.C. account of the ASEB can also be utilised for liquidating the arrears due to NEEPCO. It was submitted before the court by advocate P.K. Goswami, N. M. Lahiri and M Z Ahmed, appearing for NEEPCO that the ASEB has only paid Rs 5 crore and the Assam Govt. has paid Rs 22.05 crore out of the Rs 20 crore and 30 crore respectively which were directed to be paid by the High Court by its earlier order on 16.6.2000, by the ASEB and the Assam Govt. Since the entire amount of Rs 50 crore has not been paid, Chief Justice Kumar and Justice Chowdhury directed the state Govt and the ASEB to clear the balance amount as soon as possible. Considering the submissions made by the NEEPCO that it is supplying on an average 25 crores worth of power to ASEB per month the court directed that the state Govt and the ASEB should pay Rs 20 crore each month to NEEPCO in the next two months. It was submitted by N. N. Saikia, on behalf of the ASEB that various govt organisations including the G.M.C. owes huge amount to the ASEB because of which the Board is unable to make payment to NEEPCO for powers received by it. But ASEB is not in a position to resort to coercive method to realise its dues as in such an event essential services like water and medical supplies would be affected. ASEB further indicated that it is making all efforts to clear the dues but despite its best endeavours, it is able to only make partial payment to NEEPCO for power received. BC Das, appearing for the state Govt, drew attention to its counter affidavit filed wherein it was indicated that in order to clear the arrear dues, the state Govt is formulating a scheme to pay Rs 100 crore by March 31, 2001 and is proposing to pay similar amounts for every year thereafter. The Division Bench after hearing all the parties in the case including G Uzir, the petitioner-in-person indicated that the interim order passed by the court restraining NEEPCO from curtailing the power supply to Assam would continue for a further period of two months subject to the conditions laid down by the court for making interim payment by the ASEB and the state Govt. Court also directed posting of the case for further orders after two months, by which time it is expected that a scheme would be prepared to indicate to the court as to how the huge arrears due to the NEEPCO is proposed to be liquidated by the state Govt and the ASEB in the next two years. (Law Reporter; The Assam Tribune; Guwahati; July 27, 2000)
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Steps on to shift wholesale market from Fancy Bazar
GUWAHATI, July 25: Steps have been initiated to shift the wholesale market from Fancy Bazar to the outskirts of Guwahati city and several rounds of discussions were held between the Guwahati Metropolitan Development Authority (GMDA) and the business community in this regard. Talking to The Assam Tribune, the Kamrup Deputy Commissioner, DN Saikia, who is also the Chief Executive Officer of the GMDA, said that the wholesale market would be shifted to Tetelia near the National Highway by pass in the outskirts of the city. He said that several rounds of discussions were held with the business community and they have agreed to shift from Fancy Bazar. He said that about 200 to 250 bighas of land would be required to shift the market and the GMDA has already identified land for the purpose. He revealed that as per the plan, the GMDA would acquire and develop the land, which would cost about Rs 15 crore. He said that discussions are on with HUDCO and other financial institutions for financing the project. He expressed the view that it would not be difficult to repay the loan as the project would be an economically viable one. The GMDA Chief Executive Officer said that the new wholesale market would have all the basic facilities like banks, drinking water etc. The GMDA will prepare a master plan for the market and allot land to each individual businessmen and they would have to construct buildings as per the provisions of the master plan, Saikia added. Giving details of the advantages of shifting the wholesale market, Saikia said that as hundreds of trucks come to the market every day, these create serious traffic congestion on the MG Road. He said that the traffic flow would improve considerably if the market is shifted. He also said that though thousands of workers have been engaged by the businessmen, they never provide toilet facilities as a result of which the river side has been transformed into a toilet. If the market is shifted, steps can also be initiated for the beautification of the river side, he added. Saikia expressed the hope that the GMDA would be able to start implementing the project from the next winter season. A committee with representatives from the business community headed by the Deputy Commissioner has already been formed in this regard. Meanwhile, Saikia has written letters to the Public Sector Industries like the OIL and ONGC, banks and other industrial houses to provide funds for the beautification of the parks in the city. He said that steps would be taken to develop the Nehru Park and the Ambikagiri Park as exclusively children's parks. The Administration has also signed an agreement with Aspa ads for the beautification of the Sankardev Park located at the banks of the river Brahmaputra. As per the agreement, the company would take steps for the beautification of the park and run the toy train and they would be allowed to put up glow signs of advertisements of different companies. Saikia also said that lack of parking place is a major problem for the city. He said that if the district jail is shifted from Fancy Bazar area, that area can be developed as a parking place. (Staff Reporter; The Assam Tribune; Guwahati; July 27, 2000)
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No special concessions to NE states
NEW DELHI, July 28: While recommending fundamental restructuring of the system of Central financing of the Special Category states, the 11th Finance Commission has recommended that the responsibility for development of infrastructure of vital importance of these states, including Assam and other north-eastern states requiring large investments should be that of the Centre. The recommendations of the Finance Commission tabled in the Parliament here on Thursday may not be good news for the states reeling under severe financial crisis as no special concessions have been made to them as sought by the states. The Commission in its reports has observed that because of the weak revenue base of the Special Category states, all the states have large deficits on their non-plan revenue account before devolution. With 90 per cent of the Central assistance for the state plans in form of grants, the revenue budgets of the states are left with sizeable surpluses. Even so, all the special category states have large fiscal deficits. Even with massive infusion of Central funds, the finance of these states remain under acute stress with fiscal deficits running at over 10 per cent of their GSDP in some cases. Evidently the system of financing of expenditure of these states needs a fundamental restructuring the Finance Commission opined. Special consideration is given to the Special Category states in view of the weak economic base and as their own resources on an average meet a small percentage of their revenue expenditure. Northeastern states are given plan assistance in form of 90 per cent grant and 10 per cent loan. (Staff Correspondent; The Assam Tribune; Guwahati; July 29, 2000)
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Official indifference affecting bamboo trade
GOLAKGANJ, July 28: The bamboo-based cottage industries in Dhubri play a pivotal role in improving the socio-economic condition of the people of the char area of the Dhubri district. In absence of any comprehensive planning to wipe out the growing unemployment problem, encouraging bamboo-based cottage industries seems to be an alternative source of income for people living below the poverty line. These industries are concentrated in some char villages like Balurchar, Newghat char, Pahari char, Yogmaya Dham etc. The products are being marketed from South Salmara char bazar on the South bank of Dhubri district. At present more people are adopting it in view of its tremendous demand in other parts of the country and abroad too. A brief survey reveals that nearly 60,000 people are involved in this industry. But the poor artisans are paid a meager amount. They are being exploited at the hands of middlemen who supply the bamboos, the raw material and also collect the finished products. These brokers purchase the bamboo products in bulk and sell them in northern and southern states of our country at a much higher rate. With this modus operandi, a few influential middlemen are earning lakhs or rupees while the skilled labourers are living a hand-to-mouth existence. A proper planning to organising these skilled labourers under a single roof of promoting craft is the need of the hour. In West Garo Hills, one of the nearest transit points, within a radius of 300 k.m, bamboos are lying in heaps for days together awaiting transportation. Even then, the poor bamboo growers of the surrounding areas are selling their produce at much lower price of the suggestion local. The bamboo growers as well as the craftsmen are deprived of their dues because of a proper marketing system. The initial activities like organising people, creating awareness and imparting training can smoothly be carried out but for the marketing. There should be some syndicate which would provide protection to these poor people by fixing prices for their products. Dhubri, being one of the most economically backward district of Assam, rich traditions of bamboo craft may soon vanish owing to official indifference to be plight of these marginalise people. (Correspondent; The Assam Tribune; Guwahati; July 29, 2000)
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