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NE States likely to be pulled up

By Spl Correspondent

NEW DELHI, May 7 � North-eastern States are likely to face heat in coming months over under utilization of funds, with a Parliamentary Panel expressing its dismay that only 56.8 per cent of allocated funds have been utilized.

The report of the Department Related Standing Committee on Ministry of Development of North Eastern Region (DoNER) came, even as three States of Arunachal Pradesh, Meghalaya and Nagaland failing to submit its priority list for the next fiscal.

Minister DoNER Bijoy Krishna Handique has now written to the Chief Ministers of the three States to submit the list within a week, failing which the previous years� left over prioritized schemes will be selected by the Ministry, sources said.

As part of its latest initiative to expedite allocation of from the Non Lapsable Central Pool of Resources (NLCPR), the DoNER Ministry has started the retention of prioritized projects received from the NE States in keeping with the new guidelines.

Ever since the constitution of the NLCPR in 1999, the retention of projects was carried out throughout the financial year, resulting in the sanction and release spilling over to the subsequent financial year. The new guidelines will ensure the sanction and release of funds in the same financial year, sources said

The NLCPR Committee in its 80th Meeting held on April 8 has retained seven projects at a total estimated cost of Rs 150.88 crore for Mizoram and Sikkim.

Meanwhile, the Parliamentary Standing Committee�s report was tabled in Lok Sabha on Thursday by Ramen Deka. The report said the Panel was disappointed to note utilization of funds was low. The Committee desires to highlight that in case of projects like NERLP, where the vagaries of weather do not play any role only 92.2 per cent of allocated funds has been utilized.

It was observed that under-utilisation of funds by the Ministry, makes its case weak before the Planning Commission for higher projection for allocation. It is felt that outlays made should give the desired results as the Planning Commission would consider the demand for higher only when allocated funds meant for development of North-East are fully and optimally utilized.

The Parliamentary Panel also criticized the Planning Commission�s approach. The Commission should formulate initial projections and give approval. If necessary, those may be reviewed later. The Committee urged the Commission to take an early decision.

The Parliamentary Panel also expressed its dismay at the slow pace of projects under NLCPR pointing out that only four projects out of 258 infrastructure ventures sanctioned during the last three years, while 143 projects have suffered delays.

The Parliamentary Panel said it was not convinced with the argument by the Ministry DoNER for justifying the delay. It is also not satisfied with the reply given by the Ministry, which it has been argued that the concerned States of the region are responsible for under-utilisation in plan allocation to NLCPR.

It feels that besides revising guidelines, proactive measures are required to be taken on part of the DoNER Ministry. It also asked the NES to strictly adhere to the time schedule.

The Parliamentary Panel also remarked that the Rs 700 crore sanctioned by the Planning Commission for North Eastern Council (NEC) may not be enough as the Ministry had projected a requirement of Rs 1002.32 crore.

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