Non-lapsable resource pool for North-East
Finance Minister Yashwant Sinha announced in the Lok Sabha
today that the government has decided to create a non-lapsable central resource pool to fund specific programmes for economic and social upliftment of the North-Eastern states.
Funds will be deposited in the pool from all the ministries where
the plan expenditure on the North-Eastern region is less than 10 per
cent of total plan allocation of the ministry. The difference
between 10 per cent of the allocation and the actual expenditure
incurred on the North-Eastern region will be transferred to the
pool.
The minister also proposed refinancing functions for industrial
loans of state financial corporations and industrial development
corporations of the north-east will be undertaken henceforth by the
North-Eastern Development Finance Corporation Limited rather
than IDBI-SIDBI as at present. NEDFI, promoted by public sector
financial institutions and banks, was incorporated in 1985.
Legislation to restructure the North-Eastern council will be
introduced in Parliament. Sikkim will be included in the
council. The restructuring will lead to speedy implementation of
important infrastructural programmes in this region.
Budget '98
|