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North East Special Infrastructure Development Scheme

Context:

Recently, the cabinet gave approval for the continuation of the North East Special Infrastructure Development Scheme (NESIDS) with an approved outlay of Rs. 8139.50 crore.

Relevance:

GS III- Indian Economy, Infrastructure

Dimensions of the Article:

  1. About North East Special Infrastructure Development Scheme
  2. Implementation
  3. Significance

About North East Special Infrastructure Development Scheme

Nodal: Ministry of Development of North East Region.

  • It is a Central Sector Scheme, i.e., 100% of the funding will be done by the Central Government.
  • It will cover infrastructure in the following areas:-
    • Physical Infrastructure: Water Supply, Power, Connectivity, Tourism related projects
    • Social Infrastructure: Education and Health
  • NESIDS will be over and above other existing schemes of Central and State governments of the North East Region.
Objectives
  • To ensure focused Development of the northeast region by providing financial assistance.
  • To focus on the projects of physical infrastructure associated with water systems, power connectivity, and particularly the projects promoting tourism.
  • To improve the social infrastructure within areas of primary and secondary sectors of education and health.
  • To promote similar growth across all the nation leaving no one behind.
Beneficiaries
  • All the 8 North East Indian states, i.e., Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, and Sikkim.
  • Such projects in these states which are not supported under any other schemes of Central or State Governments.
Implementation
  • The funds under NESIDS are going to be allocated to States on the idea of Normative Allocation at the start of the financial year. However, funds are going to be provided for the continued projects under NLCPR in order that they are completed by 2019-20.
  • If any of the States aren’t able to soak up the funds, their allocations may be diverted to raised performing States.
  • Only those projects are considered for funding under the scheme that isn’t supported under the other central or government scheme.
  • The NESIDS will be implemented for three years from 2017-18 to 2019-20 at the entire outlay of Rs. 1,600 crore.
  • Funds under this scheme will be distributed on the criteria based on certain parameters like Area, Population, Human Development Index, Road density, etc.
  • Projects will be sanctioned through block grants of the Non-Lapsable Central Pool of Resources(NLCPR) through 90% on central funding and 10% on contributions by states.
  • The government agencies execute the identified projects under the NLCPR schemes.
Significance
  • It will ensure focused Development of the northeast region by providing financial assistance.
  • It will improve the physical infrastructure associated with water systems, power connectivity, and also the projects promoting tourism.
  • It will improve social infrastructure within areas of primary and secondary sectors of education and health.
  • It will ensure that no region is left behind in terms of growth.

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