News

ISSUE NO 1.01

DEVELOPMENT

JULY 18, 1999




NEWS THIS WEEK

RS 1045.75 CR CENTRAL PLAN BEING IMPLEMENTED
SPECIAL MEASURES TO MARKET N.E.
ASEB SIGNS DEAL WITH OGDEN
RS 10 CR KVIC GRANT TO MIZORAM KHADI BOARD
PAONA INTERNATIONAL MARKET INAUGURATED
ASSAM SEEKS MORATORIUM ON LOAN REPAYMENT
FUNDING BY IDBI, OTHER FIS IN NE DISMALLY LOW
EXTORTIONS POSE THREAT TO ECONOMY
CAG UNEARTHS IRREGULARITIES IN NAGALAND
CAG WITH OPPOSITION: JAMIR
TOURISM INFRASTRUCTURE BEING GEARED UP


RS 1045.75 CR CENTRAL PLAN BEING IMPLEMENTED
An ambitious Rs 1045.75-crore project is being implemented to construct border roads and barbed wire fencing along the India-Bangladesh border which extends to a length of 4095 km. Senior state government and Union home ministry officials told UNI here on Sunday that strict vigil is being maintained along the Indo-Bangla border in view of the ongoing Kargil conflict. Special measures have been taken to foil possible ISI activities in all the bordering states, specially the North Eastern States. As the entire Indo-Bangladesh border had been prone to large-scale illegal immigration, infiltration and smuggling from Bangladesh, the Centre had sanctioned the Indo-Bangla border roads and fencing project in 1986 at a cost of Rs. 371.74 crore. The cost of the project was subsequently revised to Rs 831.17 crore in 1992. The project cost was further revised to Rs 1045.75 crore in the last year, officials said. Of the total length of 4095 km long Indo-Bangla border, West Bengal shares a length of 2216 km, Tripura 856 km, Meghalaya 443 km, Mizoram 318 km, and Assam 262 km. The multi-crore project envisages construction of roads and barbed wire fences along the sensitive stretches of the Indo-Bangla border in the States of Assam, West Bengal, Meghalaya, Mizoram and Tripura, they said, adding that the works were entrusted to the CPWD in West Bengal, Assam PWD in Assam and the Border Roads Organisations (BROs) in Meghalaya, Mizoram and Tripura. The project contents include constructions of 2784 km of road, 23.8 km of bridges and 896 km of fence along the Indo-Bangla border in these five states. (United News of India; Agartala; July 11, 1999)
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SPECIAL MEASURES TO MARKET N.E.
The Centre will soon take special measures to market tourism potentiality of the northeastern region abroad to attract foreign tourists, the Union minister of state for tourism Omak Apang said on Sunday. "The initiative will be taken very soon as there is tremendous potentiality in the tourism sector which is yet to be explored," he told reporters here. Efforts are already on to involve SAARC countries in the tourism promotional efforts and stress is being put on improving the communication infrastructure in the area, he said. Apang said he had visited Bhutan and discussed the possibility of opening up the border between eastern Bhutan and Arunachal Pradesh. In exchange foreign tourists visiting Bhutan could continue on the Buddhist trail to Tawang monastery in Arunachal Pradesh and further to national parks of Kaziranga and Manas in Assam. The NE states had been given space free of cost in international trade fairs, while Rs 2 lakh each was provided exclusively to enable them to participate in order to promote Northeast tourism throughout the world, he said. A total of Rs 1,539.52 lakh was provided to develop infrastructure in the seven NE states and Sikkim during 1998-99 compared to Rs 409.89 last year, he said, adding the amount is likely to triple this year. (Press Trust of India; Guwahati; July 11, 1999)
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ASEB SIGNS DEAL WITH OGDEN
The Assam State Electricity Board (ASEB) has allegedly signed the Lease, Rehabilitation, Operation and Transfer (LROT) agreement on the Bongaigaon Thermal Power Station (BTPS) with the US-based Ogden Energy Incorporate, blocking all ways for preventing the privatisation of BTPS, even as an impression has been given by the State Government that efforts are on to find out a judicious solution to the issue of the privatisation of this public sector coal-based power station. The state government has also been holding parleys with the All Bodo Students' Union (ABSU) and the Joint Action Committee for the protection of the BTPS (JAC), which have been spearheading an agitation to resist privatisation of the power station. The latest sitting of the Government with the JAC was held on May 3 last at the state secretariat here. But, the chairman of the ASEB who was also present at the discussion that day, allegedly kept mum on the issue of LROT agreement he had signed on January 12 last, said knowledgeable circles here. (Assam Tribune; Guwahati; July 12, 1999)
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RS 10 CR KVIC GRANT TO MIZORAM KHADI BOARD
The Khadi and Village Industries (KVI) Commission has approved an annual budget of Rs 10,26,90,000 for its Mizoram chapter to develop the cane, handloom and soap-making units. According to the state government, the annual grant has come as a shot in the arm for the State KVI Board which had been facing an acute financial crunch due to bad loan recovery. With an average loan recovery of about 33 per cent, the state KVI board had not expected the in toto approval of its budget proposal. But this additional funding would help the Mizoram KVI Board sustain its industrial development programmes, said chairman Lawm Zuala. (United News of India; Aizawl; July 11, 1999)
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PAONA INTERNATIONAL MARKET INAUGURATED
The much-awaited Paona international market at the junction of the Paona Bazar, Imphal was formally inaugurated on July 11 by the State Chief Minister Wahengbam Nipamacha Singh. The modern two-storey shopping complex was completed with a total cost of Rs 71 lakh since its construction on January 14 this year. The main aim of the construction of such kind of shopping centre in the state is to develop trade and commerce among the small-time businessmen in Manipur. It may also attract tourists to the state. The market complex was formally launched by the Joint Action Committee in consultation with the State Government earlier in first week of January in view of the recently concluded V National Games beautification programme. (Assam Tribune; Imphal; July 14, 1999)
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ASSAM SEEKS MORATORIUM ON REPAYMENT OF CENTRAL LOANS
Though the Prime Minister, Atal Bihari Vajpayee, during his recent visit to the state, announced a moratorium on repayment of the Central loans availed by the state for flood management, it would not provide much relief to the fund-starved Assam Government as the loans availed by the State for taking flood control measures comprise a very small portion of the total outstanding Central loans. Talking to newsmen during his visit to the State, the Prime Minister said that the Assam government had been demanding waiving of the Central loan assistance availed for flood management. He said that the Centre is aware of the difficulty faced by the state government and therefore it decided to offer a moratorium on repayment of the Central loans availed for flood management. (Assam Tribune; Guwahati; July 14, 1999)
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FUNDING BY IDBI, OTHER FIS IN NE DISMALLY LOW
The dismally low rate of funding by the Industrial Development Bank of India (IDBI) and other major financing institutions (FIs) in the backward NE region is showing no sign of improvement despite the repeated policy announcements made by successive Central Governments to develop the region's economy with an impressive thrust at the macro level. For, said knowledgeable circles here, the funding rate of the IDBI in the region stood at 0.012 per ecnt against the all India rate in 1996-97, while it stood at 0.024 per cent in 1997-98 and 0.008 per cent in 1998-99 against the all India rates. Similarly, the case of investment made by other financing institutions in Assam may provide the tip of the iceberg in this connection, said the sources. The all India sanction and disbursement by these institutions stood respectively at Rs 3,41,232 crore and Rs 2,28,506 crore as on March 3, 1997, while the shares of Assam in these respects were Rs 1,785 crore and Rs 1,184 crore respectively though Assam is considered comparatively advanced in the region, said the sources. When the outflow of fund from the region through the IDBI and other financing institutions are taken into account to make a comparative study with the sanctions made by these institutions, the injustice made by the financing institutions to the region becomes more clear, the sources said. Between 1996-97 and 1998-99 financial years, the IDBI helped the outflow of around Rs 340.74 crore from the region against a total sanction of around Rs 52.08 crore during the period. On the other hand, other financing institutions are also mobilising huge amounts of funds from the NE region without bothering to invest substantially, in return, in the region, sources said. (Assam Tribune; Guwahati; July 14, 1999)
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EXTORTIONS POSE THREAT TO ECONOMY
Unabated extortion by several militant outfits operating in the state has posed a serious threat to the economy, if any, of the state. Of late many business organisations have shifted their base from the state to Siliguri and other places to escape the huge extortion demands from extremist outfits. It is a known fact that various central organisations operating in the state are also receiving demands from militants as well as a section of armed miscreants. The field operations of many such central organisations have been brought to a grinding halt depriving the common people of the benefit of various central schemes. All these are happening despite the much vaunted unified operation against militants in the State. Here is just only one example to show how a dreaded outfit has been thriving on extorted money in the State. The banned National Democratic Front of Boroland (NDFB) had collected a whooping Rs 1,04,38,000 through extortion in the State during the period from August 1, 1996 to May 15, 1998, as per the outfit's 'audit report' for the 'session' 1997-98. The 'audited financial statement' bears signature of Capt. D Mwnswma, Auditor NDFB, Sergeant Major B Sherja, Auditor, NDFB and Sergeant Major B Bidang, Auditor, NDFB. As per the financial statement, the outfit spent an amount of Rs 1,11,46,543 crore in different heads including camp maintenance, arms and ammunition transhipments, vehicles and repairing, communication equipment etc. during the period. The outfit incurred Rs 30,02,126 in camp maintenance, Rs 19,09,059 in vehicles and repairing, Rs 10,19,460 in communication equipment, Rs 12,98,844 in arms and ammunition transportation, Rs 14,81,764 in mess and maintenance, Rs 2,47,589 to 'bail out' cadres, Rs 10,36,301 in travelling and dearness allowances. It spent different amounts in various other heads. (Assam Tribune; Guwahati; July 14, 1999)
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CAG UNEARTHS MAJOR FINANCIAL IRREGULARITIES IN NAGALAND
Comptroller and auditor-general (CAG) of India has unearthed major financial irregularities in Nagaland revealing that less than one per cent of the total turnover of over Rs 38,000 crore was received by the state government from conduct of lotteries during 1993-1997. The latest CAG report, which was tabled on Thursday in the House, noted that ticket money of Rs 38,297.32 crore from the directorate of state lotteries had not been credited to the government account. The report revealed that only 0.101 per cent of total turnover of Rs 38,297.32 crore was received by the state government from the conduct of the lotteries during the period October 1993 to November 1997. (Press Trust of India; Kohima; July 15, 1999)
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JAMIR CHARGES CAG WITH CONNIVING WITH OPPOSITION
The Nagaland chief minister S C Jamir on Thursday charged the comptroller and auditor-general with "conniving with the Opposition to malign" his government and urged the Assembly Speaker to institute an inquiry as to how its report leaked to the Press before being tabled in the House. "This is indeed shocking and not warranted," he said, alleging that the Press in order to malign his government published various articles based on the reports, a copy of which had been leaked by the office of the CAG. (Press Trust of India; Kohima; July 15, 1999)
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INFRASTRUCTURE BEING GEARED UP TO MAKE N.E. ATTRACTIVE
Infrastructure for promotion of tourism in the Northeast is being geared up to make the region more vibrant to attract tourists, the Union minister of state for tourism Omak Apang has said. Talking to hoteliers, restaurant owners and tour operators here on Friday, Apang said with the upgradation of the tourism directorate at Guwahati to a regional directorate, tourism would achieve a new high. The Save Eastern Himalayas, a project initiated by the external affairs ministry, he said would help cultural integration between Bhutan, Sikkim and Arunachal Pradesh. (Press Trust of India; Itanagar; July 17, 1999)
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