In a significant move, the Union Cabinet has approved the continuation of schemes under the Ministry of Development of North Eastern Region (DoNER) with an outlay of Rs 12,882 crore for the balance period of the 15th Finance Commission (2022-23 to 2025-26). This funding indicates that there is no shortage of financial resources for development projects in the region. However, the real challenge lies in accelerating the pace of fund utilization to ensure the region progresses rapidly.
Recent official data highlights a worrying trend: while the actual expenditure under DoNER schemes over the last four years stood at Rs 7,534 crore, the funds available for the next four years (until 2025-26) amount to Rs 19,482 crore—approximately 2.6 times more. The key issue here is not the availability of funds, but rather the speed at which they are being utilized. If the Ministry does not overcome the challenge of faster fund deployment, the intended progress could be delayed.
A crucial step in ensuring the success of new initiatives is to minimize the liabilities from ongoing projects. The funds approved by the Cabinet include Rs 8,139 crore for the North East Special Infrastructure Scheme (NESIDS), which is designed to promote infrastructure development in the region. The NESIDS has been a major driver for progress, but there are concerns over reduced allocations. For example, the 2022-23 budget saw the allocation for NESIDS fall significantly, from the projected Rs 1,100 crore to just Rs 678.79 crore. Such reductions could impede the execution of key infrastructure projects.
Additionally, the North Eastern Council (NEC) schemes also have considerable ongoing liabilities, which need to be cleared to make room for new projects. The Parliamentary Standing Committee on Home Affairs has pointed out that the utilization rate under the NEC-Special Development Scheme was only 56% in 2021-22, primarily due to unspent funds tied to ongoing liabilities. It is essential for the Ministry to prioritize clearing these liabilities by the end of 2022-23 to avoid hampering future progress.
One of the primary reasons for slow fund utilization is the delay in receiving utilization certificates from state governments. These delays in documentation have severely impacted the flow of funds, causing disruptions in the execution of schemes. As the Ministry acknowledges, efforts will be focused on completing a large number of ongoing projects by 2025-26, to ensure minimal liabilities beyond that year.
The approved amount also includes a significant allocation for special packages aimed at the Bodoland Territorial Council (BTC), Dima Hasao Autonomous Council (DHAC), and Karbi Anglong Autonomous Council (KAAC). These councils will receive a total of Rs 1,540 crore, with Rs 500 crore allocated to BTC, Rs 750 crore to KAAC, and Rs 290 crore earmarked for old packages in all three councils.
However, the Parliamentary panel has raised concerns over the lack of progress in utilizing the DHAC funds, with no utilization reported as of December 2021. The Ministry attributes this to delays in the receipt of required documents from the Assam government. Despite this, projects under the DHAC package have been sanctioned, and funds are being released. To ensure timely and effective utilization of these funds, it is vital that the project identification process, fund release, and subsequent project execution are streamlined.
The Parliamentary Committee has called for accelerating the implementation process by improving project identification, fund release mechanisms, and project execution. One key recommendation is to enhance the monitoring mechanism, using frequent field verifications and reducing the interval between reviews. This will allow for timely intervention to address any delays or issues.
Another crucial suggestion is the use of technology to monitor project progress in real time. The deployment of drones to capture videos of ongoing work can provide visual confirmation of progress. Furthermore, creating online dashboards for BTC, KAAC, and DHAC will improve transparency by tracking the allocation, release, and utilization of funds. These dashboards will enable residents of these councils to monitor the progress of projects and exert pressure on relevant authorities to expedite implementation.
The Union Cabinet’s approval of continued funding for the North Eastern Region presents a significant opportunity for development. However, the key to success lies not only in the availability of funds but in their timely and efficient utilization. By addressing the challenges of clearing liabilities, improving documentation processes, and adopting new technologies for monitoring, the Ministry of DoNER can ensure that the region achieves its development goals within the stipulated timeline.
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