Develop an appropriate mechanism to extend financial support to Arunachal: Dy CM to Center

Itanagar, December 30 (PTI) Arunachal Pradesh Deputy Chief Minister Chowna Mein on Thursday urged the Center to consider an appropriate mechanism to ensure adequate financial assistance for the development of the northeastern state. At a pre-budget meeting convened by Union Finance Minister Nirmala Sitharaman in New Delhi, he stressed “the unavailability of funding from multilateral development banks and other international financial institutions”, and asked the ministry to compensate the state by other means.
He asked the Center to consider project specific grants at the rate of Rs 1,500 crore per year under a window similar to the old Special Assistance Plan (SPA).
The Deputy Chief Minister also proposed for consideration “a 50-year interest-free loan at the rate of Rs 1,500 crore per annum in excess of the normal borrowing limits prescribed by the Fiscal Responsibility and Security Act 2003. budget management “.
He said the state has witnessed massive development in border infrastructure over the past 5-7 years.
“However, the depopulation of border areas for lack of better infrastructure is a reality and poses a serious challenge …”, said Mein.
The state government has proposed the construction of roads and drinking water facilities, strengthening of health and education infrastructure, installation of hydroelectric micro-projects and solar street lights in border areas.
“Once sanctioned and implemented, these projects will provide much better infrastructure in border areas and stimulate economic activities. This will encourage people to return to their countries of origin,” he said.
The Deputy CM asked the Center to quickly approve the projects which are actively examined by the Union Ministry of the Interior.
Mein also sought flexibility for northeastern states to design custom projects in particular sectors where relevant ministries are unable to spend 10 percent of gross budget support on their projects and programs in the region.
“This will ensure an increase in capital spending in the NE and will not distort allocations in specified sectors either,” he said.
The Deputy Chief Minister also urged the Center to facilitate the creation of investor-friendly frameworks and a specific policy for the northeastern states for the development of manufacturing capacities in the region to create jobs.
He also called on Narendra Modi’s government to set up a special task force to improve trade, connectivity and economic infrastructure in the region.
Mein further asked him to double the allocations for the programs of the Northeast Council, the Northeast Region Department and the Border Areas Development Program. PTI UPL BDC BDC

Comments are closed.