(a) whether the business activity of N.E. Industrial Technicial Consultancy Organisation,
sponsored by SBI,IDBI and PSBs,is not satisfactory;
(b) if so,the details thereof: and
(c) the steps taken by the Government for its revival during the Eleventh Plan Period?
MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI PAWAN KUMAR BANSAL)
(a),(b) & (c): Yes,Sir.As reported by IDBI Bank,the North Eastern Industrial and Technical
Consultancy Organisation (NEITCO) started incurring losses after 1996 mainly due to lack of
opportunities for its services arising out of very slow pace of industrialization in the North
Eastern Region and due to various other reasons.IDBI appointed Moores Rowland Consulting Pvt. Ltd.
as consultant in 2002 for undertaking a viability study of NEITCO who had considered it for
closure as it had lost its long term viability.IDBI,in consultation with ICICI Bank Ltd. and IFCI
Ltd. had prepared a Status Paper which recommended to merge NEITCO with North Eastern Industrial
Consultants Ltd. (NECON) to reduce expenditure and duplication of work and to perform
effectively.However,the Board of NECON resolved that merger was not feasible. Thereafter with the
approval of Government of India,North Eastern Council has been requested by IDBI to take over the
management control and operational activities of NEITCO.