7-Feb-2019: Revision of guidelines pertaining to development of NER

The Government has approved a central sector scheme of North East Special Infrastructure Development Scheme (NESIDS) with 100% central funding restructuring the block grant of 90:10 under the scheme of Non-lapsable Central Pool of Resources (NLCPR).

While framing the guidelines for NESIDS, the provisions of guidelines of NLCPR, as revised in 2016, were retained which, inter-alia, includes the constitution of State Level Empowered Committee (SLEC) under the chairmanship of Chief Secretary of the States; delegation of power of vetting of projects to the states through SLEC; strengthening of project portal for online submission of documents; emphasizing completion of ongoing projects by releasing more funds against them; putting a cap on value of retention of new project; provisioning of release of only token amount of Rs. 10 lakh at the time of sanction of the project with balance to be released on receipt of award of work; and reducing the number of installments for release of funds from three to two.

This resulted in faster completion of projects and reduction in amount of pending utilization certificates  from Rs. 1158.95 crore as on 01-04-2016 to Rs. 247.94 crore as on 31-12-2018, besides decrease in time taken for vetting of DPRs and awarding of work.

19-Dec-2018: Non-Lapsable Central Pool of Resources

The details of funds allocated to the North Eastern States under the scheme of Non-Lapsable Central Pool of Resources (NLCPR) scheme administered by the Ministry in the last three years is as under:-

Year	Budget Estimates (in Cr.)	Revised Estimates (in Cr.)
2015-16	975.00	605.10
2016-17	695.00	645.00
2017-18	695.50	700.07

The entire amount available at the RE stage was utilised.

Under this scheme, the entire funds were released to State Governments on the basis of sanctions for new projects and utilisation certificates, Quarterly Progress Reports etc. in respect of ongoing projects.

The annual allocation to Ministry of DoNER under NLCPR scheme is determined through the normal budgetary process of the Government of India. Earmarked spending by Central Ministries in the North Eastern Region have contributed to improved connectivity and infrastructure. In recent years, the average growth rate of NE states has been relatively higher than the all India average.

Background: The North Eastern Region (NER) comprises of eight States viz. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. The development concerns of these States are pursued through their respective Five Year and Annual Plans as well as those of the Union Ministries and Central Agencies. In addition, projects of inter-State nature in the Region are funded by the North-Eastern Council (NEC), which has a separate additional budget for the purpose.

The North East has essentially depended on Central funding for development works. All the States in the NER are Special Category States whose Development Plans are centrally financed on the basis of 90% Grant and 10% Loan. Further, the Special Category States are allowed to use up to 20% of the Central Assistance for Non-plan expenditure.

Objectives:

In the conference of Governors and Chief Ministers of the North Eastern States and Sikkim held in January 2000 at Shillong the Prime Minister stated the objectives of the Non-lapsable Central Pool of Resources.

• Government has created a pool of non-lapsable funds for the North-East and Sikkim. This pool, meant for funding development projects in these States, will fill the resource gap in creation of new infrastructure, which is a top priority concern of the Union Government.
• The broad objective of the Non-lapsable Central Pool of Resources scheme is to ensure speedy development of infrastructure in the North Eastern Region by increasing the flow of budgetary financing for new infrastructure projects/schemes in the Region. Both physical and social infrastructure sectors such as Irrigation and Flood Control, Power, Roads and Bridges, Education, Health, Water Supply and Sanitation - are considered for providing support under the Central Pool, with projects in physical infrastructure sector receiving priority.
• Funds from the Central Pool can be released for State sector as well as Central sector projects/schemes. However the funds available under the Central Pool are not meant to supplement the normal Plan programmes either of the State Governments or Union Ministries/ Departments/ Agencies.