Fast tracking project execution in Northeast

Over the past decade, the central government has prioritized infrastructure development and social development projects for Northeastern states, resulting in a significant improvement in fund flow to the region. When it comes to the implementation of the central sector schemes and projects, the states in the region have yet to build the required capacity to utilise funds in time. Timely utilization of the central fund can facilitate the allocation and release of more funds to boost infrastructure and social sector development in the region. The Department of Economic Affairs and Ministry of Finance data shows that various central ministries and departments made a total expenditure of Rs 5.22 lakh crore during the ten years from 2014–15 to 2023–24. Altogether, 55 central ministries and departments earmark at least 10 percent of their budgetary support to the North Eastern States, and full utilisation of this earmarked amount can put the region on a faster track to progress. The monsoon period disrupting development activities has been a challenge in the timely utilisation of funds, but the construction of all-weather roads and highways has improved connectivity across the region. Further improvement in road design and adequate landslide mitigation measures can keep the highways operational even at vulnerable stretches during the monsoon period. National and state disaster response forces, railways, and highway authorities being equipped with more modern equipment and adequate manpower can go a long way towards faster restoration of connectivity when disrupted due to landslides and floods. The Prime Minister’s Development Initiative for the North East Region (PM-DevINE) is a new central sector scheme with a total outlay of Rs 6,600 crore for four years, from 2022–23 to 2025–26. The scheme is aimed at facilitating rapid and holistic development of the region by funding infrastructure and social development projects based on the felt needs of the states, generating livelihoods for youth and women, and filling the development gap in various sectors. Since its inception in October 2022, a total of 31 projects worth Rs. 4,502 crore have been sanctioned till July this year under the scheme. While two years have already elapsed and the remaining two years are left for the implementation of this scheme, many projects are yet to be cleared. The ninth meeting of the Empowered Inter-Ministerial Committee for the scheme held in May granted in-principle approval to only three projects, and the remaining nine projects submitted before the committee were deferred to the next meeting for the documents and comments of the NITI Aayog, Line Departments. The pace of preparation of the detailed project report and communication between the state government and various line ministries at NITI Aayog needs to improve so that projects do not get unnecessarily delayed. The onus lies with the states to fast-track the DPR preparation and expedite communication with the Ministry of Development of the North Eastern Region as the nodal ministry as the facilitator. An updated dashboard of various centrally funded schemes and projects, fund flow, and project implementation status, including various stages right from feasibility studies and DPR preparation to submission of utilisation certificates, is essential to having a clear picture of its development priorities. Real-time updating of such dashboard data will help the states quickly prepare the DPR and present it before empowered committees for quick approval so that delays in starting project execution can be avoided. However, this is an area in which the states in the region have a lot to improve to ensure that delays in project implementation and failure to optimally utilize funds allocated and released by the central government do not recur. When these states lack adequate resources of their own to fund the projects and are dependent on central government assistance, the responsibility solely lies on the individual states to make the best efforts to derive maximum benefit from the centrally funded schemes and projects. The region has the advantage that in the majority of the centrally funded schemes and projects, the central government shares 90 percent of the project cost, while northeastern states are required to bear the remaining 10 percent. Administrative reforms in these states need to be pushed in a big way to build the capacity of each government department to prepare foolproof DPR and create a comprehensive databank for quick retrieval of required documents. Digital technology has brought tremendous opportunities to fast track DPR preparation and faster official communication for clarification and approval from authorities concerned. The state government offices in the region must master the use of digital technology to overcome the challenges faced in project approval, execution, and monitoring. In the days of e-office, delay in fund utilisation on excuses of delay in DPR preparation and official approval is only a mindset problem.