(a) whether the Ministry of Development of North Eastern (NE) Region has directed the North Eastern Council to put on hold projects which were sanctioned for implementation in the NE States;
(b) if so, the details thereof;
(c) the mechanism to take back funds from the States already released by the Council; and
(d) whether the decision is likely to impact infrastructure development of the NE States and if so, the details thereof ?
The Minister of State (Independent Charge) of Ministry of Development of North Eastern Region
[Dr. Jitendra Singh]
(a) and (b) The projects sanctioned by North Eastern Council (NEC) in FY 2017-18 were put on hold to undertake a review of these projects, necessitated by the need to liquidate the outstanding committed liabilities within the overall allocation to NEC.
(c) and (d) In the 67th NEC Plenary held in July, 2018 at Shillong, it was decided that a review of the projects kept in abeyance would be undertaken by the Project Identification Committee (PIC) consisting of Secretary, DoNER; Chief Secretary of the concerned States and Secretary, NEC. The review would be held on the following lines:
i. The projects in sectors not covered in the new schemes of the NEC, but which are essential and where substantial work has already been done may be allowed to continue as a one-time exception, with the condition that the DPRs would be vetted by the concerned line Ministries;
ii. Total financial size of the projects-ongoing and new may be restricted to the envelope of Rs.4500 crore. In case savings are anticipated under NERSDS, some amount from NERSDS may be re-appropriated to schemes of the NEC;
iii. Projects where Rs.10 lakh was released as part of first instalment and where tenders have not been floated even after the stipulated time may be withdrawn; and
iv. States may be urged to foreclose ongoing projects which are not feasible so that savings from these liabilities can be utilized for other projects.
Accordingly, the PIC has completed the review of projects sanctioned by NEC during 2017-18. Individual cases of fund release to States are dealt with as per the extant Financial Rules.