India Plans Major Road Projects On China, Pak Borders

By Sujit Chakraborty

New Delhi, Mar 30 : India  is all set to build 558 roads at a cost of Rs 500 billion along the border with two hostile neighbours -- China and Pakistan -- in a bid to effectively counter the former, which is working at a break-neck speed to execute world-class infrastructure along the Indo-China and Indo-Pakistan border region.

Sources in the Union home ministry and Border Roads Organisation confirmed the report and added that the 27,986 kms of road projects are expected to be completed by 2030 in a phased manner. In the first phase, a total of 277 road projects have been earmarked to be completed at a cost of Rs 248.86 billion. The total length of the projects is estimated to be 13,100 kms.

However, maximum priority has been attached to the completion of all the road projects along the Indo-China border. To ensure time-bound completion of all the road projects, the BRO has recently moved 46 of its units to Arunachal Pradesh, 21 units to Sikkim, 33 units to Uttarakhand , seven units to Himachal Pradesh  and 61 units to Jammu and Kashmir .

This apart, the central government has also decided to build an all weather road along the 1,417 km long Indo-Myanmar border region besides construction of at least 50 helipads to ensure quick reaction from the air force and the infantry, in case of any eventuality.

India had redrafted its military doctrine on building border infrastructure along the Indo-China region as road and rail connectivity at the international border areas are now seen as a force multiplier in a real war situation, as they help faster movement of equipment and quick mobilisation of troops against any enemy build up.

To ensure time-bound implementation of all these projects besides making an on-the-spot study of the available resources and additional requirements, Defence Minister A K Antony accompanied by the Army Chief V K Singh visited all the sensitive posts along the Indo-China border region. Later, the Antony interacted with the jawans deployed along the border posts and also held a high level meeting with the commanders and others posted in the region.

Similarly, Union Home Minister P Chidambaram  also toured the Arunachal Pradesh including the border districts Tirap and Changlang besides Manipur and Mizoram to get a feel of the border areas.

While the leadership in New Delhi  has finally begun execution of its massive road network projects along the Indo-China border region, it is still ignoring expansion of rail network in the border areas of sensitive the north-east region. The recent rail budget did not mention anything about its proposed eight projects to build 277 km long rail line at a cost of Rs 2,692 crore with neighbouring countries.

The five pending projects in Bhutan are: the 58-km Kokrajhar-Gelephu, (Rs 302 crore), the 51-km Pathshala-Nanglam, (Rs 753 crore), the 41-km Rangia-Sandrup Jhonkar via Darrang, (Rs 581 crore), the 23-km Banarhat-Samtse, (Rs 205 crore) and the 18-km Hashimara-Phunt Sholing, (Rs 168 crore).

The three pending projects in Nepal are: the 12-km Nepalganj road to Nepalganj (Rs 149 crore), 15-km long Nautanwa to Bhairwaha, (Rs 176 crore) and 56-km New Jalpaiguri to Kakrabitta, (Rs 358 crore).          

On the other hand, China has already expanded its rail network up to Tibet . Now it is working on another plan to extend its rail line from Lhasa to its second largest city of Xiagaze to get the access to its strategically located Chumbi valley. This valley is close to the Sikkim and Siliguri corridor, connecting the entire north-east through rail and road network.

Besides the rail network, China has also expanded its road network along the Indo-China border region in the last decade. According to sources, China has so far constructed three major highways, of around 6,000 km, besides 55 more roads along the border.

Significantly, the Centre has decided not to reopen the historic Stilwell Road despite intense pressure, mainly from the trading community. This road has been caught up in complications as both the Indian security agencies and the Myanmar government are reluctant to reopen this historic road. Myanmar is apprehensive of the militants which hold sway over its Kachin province, and might create major law and order problem if this road is reopened.

On the Indian side, the Stilwell Road is 61 km, on the Chinese side its 632 km, and the major stretch lies on the Myanmar side, at around 1,033 km. China has, however, started developing a 1,739 km long road from Kunming in Yunnan province to Pangsau pass on the Indo-Myanmar border.

China is also helping Pakistan to develop highways on Jaglot-Skardu Road and Sazin-Thakot Road besides preparing a feasibility report on the Karakoram highway-Dushnabe Road within the disputed Pakistan-occupied Kashmir. Besides, China is also funding Pakistan for its ambitious power projects and other infrastructural development within PoK.

Mizoram's Per Capita Income Estimated at Rs 50,021

Aizawl, Mar 29 : Per capita income of the state of Mizoram for the year 2010-11 was estimated at Rs 50,021 as against the national Per Capita income of Rs 54,527 for the same period, according to the Economic Survey report presented by the state chief minister Lal Thanhawla in the assembly on Tuesday.

Report of the economic survey revealed that the Gross State Domestic Product (GSDP) was expected to grow at around 9.57 per cent during 2010-11 while the national economy (GDP) was projected to grow at 8.6 per cent during the same period.

Tertiary sector of service sector continued to have the contribution to the GSDP with its share hovering between 58 per cent and 60 per cent during the past half a decade.

While around 60 per cent of the population of the state depended on agriculture, the sector's contribution to the GSDP was only 19.84 per cent during the same period and that of the industry was 20.20 per cent.

The Economic Survey indicated that 32 per cent of the cultivated area was under jhum and only 20 per cent of the demand for rice could be met within the state while a total of 14,28,600 tonnes of rice was lifted by the state government from outside.

Inflation, measured from wholesale price index show 25.80 per cent increase in December, 2010, the survey report added.

Mizoram: People Died Of Malaria, Not Black Magic

Aizawl, Mar 29 : Doctors who conducted verification of the mysterious deaths of six people in Thanzamasora hamlet in south Mizoram's Lunglei district said they died of cerebral malaria even as animistic priests of the hamlet, locally known as bawlpu claimed that they died due to a curse of another bawlpu.

Lunglei district deputy commissioner Maragaret Zohmingthangi said doctors sent from the Lunglei Civil Hospital suspected the cause of death of those villagers to be cerebral malaria and distributed malaria drugs free of cost to villagers in the area.

A person, taken ill with similar symptoms, like those who dies was treated successfully at Chawngte town when he was administered with medicines used to treat malaria.

Six people died in Thanzamasora during the past fortnight and their bodies had allegedly turned blue-black after the death which caused panic among superstitious villagers.

The village priest claimed that they were cursed with black magic by a witch from another village and he was incapable of lifting the strong spell'.

Another bawlpu from a nearby Chawngte town promised to visit the village on March 29 to remove the spell, Zohmingthangi said, adding that the villagers were animists and extremely superstitious.

Many Chakma and Bru communities in Lunglei and Lawngtlai district in south Mizoram still follow primitive religion and believe in evil spirits where native priests still perform animistic rituals to pacify such evil spirits'.

Neepco To Prepare Shelf For Northeast Power Projects

Shillong, Mar 29 : The state-run North Eastern Electric Power Corporation (Neepco) has offered to prepare a shelf of detailed reports of potential power projects in the region which can be later taken up by the respective states.

"It has been known since the years that the region has tremendous power potential. The power potential of the region is estimated at 58,000 MW. Unfortunately, nobody has come forward for investigations. One of the reasons is because of the hostile terrain," NEEPCO director (technical) Utpal Moral said here on Sunday night.

He added that during a meeting with the North Eastern Council (NEC), Neepco officials have made an offer to prepare a shelf of DPRs. The NEC is likely to fund DPRs of about 10 projects.

"The states can then decide who can take up the projects," Moral said, on sidelines of the biennial conference of the Diploma Engineers Association of Neepco.

In Meghalaya, the Central Electricity Authority (CEA) has identified 23 projects, he said.

Moral also added that Neepco has signed three MoUs with the Mizoram government to install three more hydel power plants the 635 MW Chhimtuipui project, 815 MW Lungreng project and 76 MW Mat hydro power project in Mizoram.

Meghalaya power minister AT Mondal, while speaking at the biennial conference, said the state was power surplus but with investment-friendly policies of the government, it had turned into a power deficit state.

"Meghalaya's power requirement is 610 MW while its generation is only 186.7 MW. This reflects on how much the power scenario has changed in the state," Mondal said. During the day-long conference, the Diploma Engineers Association re-elected Arabinda Gogoi as its president and Debojit Neog as general secretary.

Incentive For Northeast India: Does It Help?

By Margaret Gangte

Introduction

The incentive package scheme under the North East Industrial Policy, 1997, reintroduced as the North East Industrial and Investment Promotion Policy (NEIIPP), 2007 intended to promote biotechnology and power generation up to 10 MW and employment generation for the region. The strategy is to incentivised investors with subsidy grant on capital (30%) and insurance (100%) along with total exemption on tax and customs.

The policy was greeted with overwhelming positive response from the business communities for the generous incentive package. The policy enthused investors, raised hopes of the people in the region as it sets a pathway to unleash potentials of the region in its hydel power resource, flora and fauna and human assets. 

However, the revision of the policy subsequently in 2007 led to withdrawal of facilities and concessions including reduction in transport subsidy that eluded investors with disappointment. Imposition of Minimum Alternate Tax (MAT), full income tax payments and restriction of excise exemption only on the value addition on raw materials reduced drastically the incentive amount. 

Similar incentive package extended to Uttarakhand, Himachal Pradesh, Chhattisgarh and J&K has been seen as disincentive as these states weaned away business from the northeast region. 

Fiscal incentive scheme is critically assessed in the context of policy making process in government. The paper raises speculation about the inadequate policy process adversely affecting the policy effectiveness.

Goal and Purpose
A policy must have a purpose and a longer term goal.  The mounting and ongoing problem of employment dominates the entire socio- economic and political dilemma of the region. Unemployment problem affects governance condition that in turn caused low investment and retarded economy for decades. It is in this context that the goal of a development policy for the region should be identified. For the northeast region, security and development are most critical for the region. Therefore the identified goal will be stability, growth and equity.

The stated goal can be achieved only through development linked to investment.  To achieve the objective of development, the strategy is to adopt a participatory approach of involving local communities through gainful employment of youths in projects and programmes.

The strategy must plan for effective ways to trap potentials and development of capacity. Mere recognition of potentials without commitment to action betrays the hopes and dreams of people. Development policy must reflect the expectations, hopes and dreams of people through the stated goal, purpose and strategy.

The NEIIP however has an ambitious goal of development through industrialisation for northeast region. It adopts a strategy of investment through private sector participation and motivating their participation through fiscal incentive scheme. The goal of industrial development for a remote landlocked region is quite unrealistic. The strategy of the policy is not local need based as it represents mainly the interest of business community. The policy formulation has not adopted a participatory approach and therefore critical issues of the region remained unresolved viz; problem of unemployment, governance and retarded economy.   

Process and Approach
A policy must be formulated through a process which is credible, reliable and transparent. The history of NEIIP from its inception till the recent modification speaks for itself. The original policy promised a 100% exemption but it delivers only 57% exemption after the revision in 2007.

The reduction of the exemption was effectuated in the policy by usage of the term ‘value addition’ translated into accounting format to mean ‘added activities on the raw materials’ to receive the exemption. It means, excise duty will not be charged on additional activities on the raw material while it will be charged on raw materials only. Raw materials occupy a substantial component in the production line and mostly supplied by local entrepreneurs.

The excise duty charged on raw materials completely excluded the local entrepreneurs from receiving the benefit of the policy. The larger external investors nevertheless do not stand to gain from the policy either. It has been stated that all the old and existing projects had factored in the 100% exemption in the cost estimates.

When the project cost estimates were changed under the revised policy due to reduced exemption, it led to distortion in the cash flows and dislocation of investment plans. The reduced exemption increased the cost of production and makes the project unviable financially. 

The incentive policy has been regarded as deterrent by investors. But for the region, the loss of credibility of the policy is in greater degree. The policy debate does not speak a line on the development agenda of the region while it got completely absorbed on the issue of reduced incentives. The policy evidently had been biased towards the business community and is least involved with local needs.

Frequent changes in policy terribly have shaken the investor’s confidence. Changes occurred to correct a mistake. The mistake in this case is the misuse of the benefit of NEIIP, 2007. The misuse occurred because there is no mechanism to detect the misuse and restrained the defaulters by punitive actions to deter repeat of actions.  Instead of identifying the problem and taking corrective action to rectify the mistakes, the policy provisions evinced keen interest on the misused amount instead of putting in place a system to stop the misuse.

The huge incentives by way of capital subsidy, working capital subsidy, interest subsidy and insurance subsidy are granted to production units only after proper verification of their credibility. In other words, wrong information furnished by the production units can be subjected to severe punishment.

The policy paper based on the notification by the Department of Revenue remained silent on how to detect the defaulters or how the defaulters would be punished. Without risk identification and risk management plan in the policy to detect and punish defaulters, the process cannot produce credible, reliable and transparent policy.

Assessment of outcome
The first subsidy was introduced for transport sector to cushion the high transportation costs of a remote and landlocked region.  The full exemptions of revenue and duties gradually emerged by 1977 as a special fiscal package for the region. 

The incentives, however, failed to induced growth and development. From the national perspectives, the overall cost benefit analysis of the amount foregone as subsidies and the exemptions do not commensurate employment generation and associated growth level. From regional perspective, the incentives contributed to growth disparity in the region with 91% of investment concentrating in Assam and Meghalaya.

The impact assessment of Tata Evaluation Committee (TEC) evidenced the low investment and the low level of employment in the region during the period 1977-2004 in comparison with other peripheral states availing the same fiscal incentives. From sectoral growth perspectives, the region’s potentials in hydel power, tourism, tea and horticulture are not prioritised for strategic planning and development.

It led to a lopsided, unplanned and undesirable growth in tobacco and its products which further contributed to health hazards in the region. Reports of cancer caused by use of tobacco in the region are the highest in the country.

The incentive package in the end could not induced investors due to protracted decisions and consequent withdrawal of the incentives over the past few years. The incentive has neither promoted local entrepreneurships nor has it alleviated the condition of poverty through employment or helped to tap potential in unexplored areas. The incentive policy had fallen far too short of the expectation and failed to deliver the good promise of development for the region.  

Statistics provided by TEC, 2007 for the period 1997-2004 revealed the failure of the policy, 1997 to achieve the goal of industrialisation and to bring north-eastern region at par with the rest of the country. The region’s participation in the economic development is at abysmal low level at 4% GDP against the national level at 27% GDP, industrial growth registered only 3% against the national level of 7%, market linkages remain undeveloped, low credit deposits at 2% deter investment, low investment results in the low employment opportunities. The stagnant situation sustained the socio-economic- political problems and the region remain undeveloped and alienated.

The second policy, 2007 did not show better strategy to improve development of the region. The subsequent modifications reduced the incentives and discouraged the investors. It has been apprehended that small scale and local enterprises stand to loose completely from the benefits assured by the original policy granting full exemption on huge capital investment.

The NEIIP, 2007 did not envisage a long term goal of growth, stability and equity. It sets the objective of development on a medium term but this objective is overshadowed by a dual unspoken objective of providing fiscal incentive to investors with very little focus on the development agenda of the region.

The prime concern seems to be to help the business community out of this policy than helping the region. This objective eventually is reflected in the current debate on the size of the incentive rather than on the impact assessment of the policy on development of the region.

Conclusion
If the goal is stability, growth and equity, the objective should be development.  If development is a genuine agenda, it should not be confined to few sectors alone like power or biotechnology but must include unexplored potentials in ecotourism, horticulture, dairy, fishery and small scale enterprises as driver of engines of growth and development. If the strategy is to achieve the objective of development in order to reach the goal of stability and growth; policy makers must reverse the top down approach with bottom up approach to involve local participation.

If the policy process is credible, reliable and transparent; it will fix accountability on the mis-utilisation, underutilisation and pilferages. Finally, if the policy is in the interest of the region, the fiscal incentive would translate into visible development.  If none of the above happened, the policy has not helped. The way forward is to look ahead and think on how to do it again.

(The writer is currently based in New Delhi. She is the Deputy Financial Advisor, Ministry of Defence, Department of Finance, Government of India. Feedback can be send at margaret_gangte@hotmail.com)

‘Only A Regional Party Can Solve Assam's Problems'

Prafulla Kumar Mahanta

As a student, he led one of the most powerful mass movements in India — the six-year-long anti-foreigners movement in Assam from 1979 to 1985. Prafulla Kumar Mahanta went on to become the youngest ever Chief Minister in India at the age of 33, heading the first Asom Gana Parishad (AGP) government in Assam. He also headed the second AGP-led government in 1996.

In the 2006 Assembly poll, Mr. Mahanta led a new regional party AGP (Pragatisheel) after he was expelled from the AGP in 2005 for alleged anti-party activities. Following his return to the AGP in 2008, grassroots workers hope that a united outfit will perform better in this Assembly election and recapture power in Dispur. He spoke to Sushanta Talukdar about his party's prospects. Excerpts:

How important are the 2011 Assembly elections for your party and for the future of regionalism in Assam?

The importance and relevance of regional parties in the context of Indian politics is growing every day. For upholding democratic values and for making Assam a corruption-free State, the 2011 Assembly elections are very important for the AGP. A regional party-led government can best address burning issues like the foreigners' problem, floods and erosion, backwardness, unemployment, and insurgency in the State. The national parties have always been indifferent to these problems and are not interested in solving them.

In the 2009 Lok Sabha poll, the Bharatiya Janata Party benefited more from the tie-up with the AGP. How do you see the rise of the BJP in Assam given your conviction that the State's future depends on regional parties?

The BJP could secure more seats only because of help from the regional parties. It is true that in the Lok Sabha polls the BJP benefited more from the alliance than the AGP. However, we have a strong conviction that only regionalism can ensure prosperity for Assam.

In the event of your party falling short of a majority, is the AGP open to a post-poll understanding with the BJP on government formation?

We are hopeful of securing the magic number on our own. Hence we have not given much thought to a post-poll alliance. We will take a decision on a post-poll alliance if the need arises depending on the poll outcome.

Your party was trying to push through a “grand alliance” of all non-Congress parties. Do you think the Congress will benefit because this never materialised?

We still believe that the grand alliance of all non-Congress parties would have been a better choice as it would have prevented a split of the non-Congress vote. On the floor of the Assembly, we succeeded in exposing rampant corruption, scams, and the misrule and failure of the Congress. Legislators of all the Opposition parties — the AGP, BJP, CPI(M), CPI, and the AIUDF — were united and maintained floor coordination. As a goodwill gesture and to send a message to the four Opposition parties on the need to forge a grand alliance, we decided not to field any candidate in the constituencies represented by their leaders.

The Congress may benefit in some constituencies due to the non-materialisation of the grand alliance.

What will be the top priorities of the AGP if it is given the mandate to rule again?

Our priorities will be to enact a strong legislation to eradicate and prevent corruption; implement the Assam Accord; compile the National Register of Citizens within two years; make sincere efforts to find a permanent solution to the insurgency problem acceptable to all by holding dialogue with all the insurgent outfits; and give employment to one lakh unemployed every year. We will also provide rice at Rs.2 a kilo to every poor family and free healthcare to all students up to the university level.

Shillong Chamber Choir Ready For Personalised Concert in Mumbai

Mumbai, Mar 28 : They enthralled US President Barack Obama on his India visit last year, and now the 16-member Shillong Chamber Choir will perform to the audience's taste at a personalised concert here in April.

The Meghalaya-based choir, which won TV talent hunt show 'India's Got Talent 2', will perform April 7 at Mumbai's Shanmukhananda Hall, said a press statement.

This will be the group's maiden concert in Mumbai. It will be promoted by Indigo Live.

The highlight of the concert will be that the audience will get an opportunity to select the songs of their preference, which the choir will perform.

Audience members can nominate their song preference through social media platforms - www.facebook.com/liveindigo and www.twitter.com/liveindigo.

Tickets for the two-hour concert are priced Rs.300-Rs.2,000. These will be available at www.bookmyshow.com and at Rhythm House and Cafe Coffee Day outlets at Shivaji Park, Sion and Matunga from April 1.

UK Puts Aircraft Carrier For Sale On 'Military eBay'

The Royal Navy's former flagship HMS Ark Royal has been put up for sale on the Ministry of Defence's auction website.

HMS Ark Royal

Just two weeks after the aircraft carrier was decommissioned at its home port of Portsmouth Naval Base, Hampshire, the Ark Royal has been advertised on the edisposals.com website.

The sale follows that of its sister ship HMS Invincible, which was towed away last week to a scrapyard in Turkey after being sold on the same internet site.

Although the Ark Royal could also be sold for its scrap metal, other proposals for it include a commercial heliport in London as well as a base for special forces to provide security at next year's Olympic Games.

And a move could be made to turn it into a nightclub and school in China.

Bidders have until 10am on June 13 to put their tenders forward for the ship. No minimum price is given.

The website edisposals.com is run by the Defence Equipment and Support (DE&S) arm of the MoD which has a budget of £14 billion to equip the UK's armed forces.

Also on sale on the site are three Type-42 destroyers HMS Exeter, HMS Southampton and HMS Nottingham.