Centre ensuring infra development in northeastern region through a non-lapsable pool of resources

The broad objective of the Non-Lapsable Central Pool of Resources (NLCPR) is to ensure speedy development of infrastructure in the North Eastern Region and Sikkim by increasing the flow of budgetary financing for specific viable infrastructure projects/schemes in the region.

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Centre ensuring infra development in north eastern region through a non-lapsable pool of resources

NLCPR is a Centrally Sponsored Scheme where the funding pattern is 90:10 (Central: State). The fund would be released/ sanctioned to the State Government in the form of 90:10. 90 % of the approved cost would be released by the Ministry of DoNER as grant. Balance 10% being state share would be contributed by the State Govt.

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Background

The North Eastern Region (NER) comprises eight States viz. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura. The development concerns of these States are pursued through their respective Five Year and Annual Plans as well as those of the Union Ministries and Central Agencies. The North East has essentially depended on Central funding for development works. The Non-Lapsable Central Pool of Resources (NLCPR) Scheme came into existence in 1998 under the Planning Commission. Subsequently, it was transferred to DoNER in 2001. However, in case the ministries failed to spend the said amount for northeast development purposes, those unspent funds would be diverted to a Non-lapsable Central Pool of Resources (NLCPR). Thus, NLCPR was established by the government.

Since the inception of the Scheme, various projects were sanctioned across sectors for the development of the North Eastern Region as per Scheme guidelines framed for the purpose and revised from time to time.

Objectives

The broad objective of the Non-Lapsable Central Pool of Resources (NLCPR) is to ensure speedy development of infrastructure in the North Eastern Region and Sikkim by increasing the flow of budgetary financing for specific viable infrastructure projects/schemes in the region.

The primary aim of the NLCPR Scheme is to fill up the gap in infrastructure sector of the North Eastern Region through sanctioning the projects prioritized by the State Governments. Ministry gets Annual Budgetary Allocation from Ministry of Finance for funding the projects under NLCPR Scheme. Funds under the scheme are shared between the Central and State Governments on a 90:10 basis. The approved funds under the scheme are released in three installments in the ratio of 40:40:20 for the projects sanctioned prior to the revised guidelines 2016 based on the commensurate physical and financial progress of the projects.

Both physical and social infrastructure sectors such as Irrigation and Flood Control, Power, Roads and Bridges, Education, Health, Water Supply, and Sanitation – are considered for providing support under the Central Pool, with projects in physical infrastructure sector receiving priority.

The assets to be created under the new scheme of NESIDS will not only strengthen health care and education facilities in the region but will also encourage tourism thereby the employment opportunities for local youth. The scheme will act as a catalyst in overall development of the region in the years to come.

Conclusion

Despite the fact that the per-capita plan outlay of the NE States has, over a period of time, been considerably higher than the national average, the States still rank significantly below the national average in so far as the development of infrastructure is concerned.

In terms of per-capita State Domestic Product or other development indices, such as Power, Length of Roads or Hospital Beds, the North-East ranks well below the national average. Though the literacy levels are higher than the national average, vocational training and entrepreneurial skills remain weak areas.

Summary
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Centre ensuring infra development in northeastern region through a non-lapsable pool of resources
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The broad objective of the Non-Lapsable Central Pool of Resources (NLCPR) is to ensure speedy development of infrastructure in the North Eastern Region and Sikkim by increasing the flow of budgetary financing for specific viable infrastructure projects/schemes in the region.
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THE POLICY TIMES
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