The North Eastern
Region (NER) comprises of 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. In addition, projects of inter-State
nature in the Region are funded through by the
North-Eastern Council (NEC), which has a separate
additional budget for the purpose.
The North East has essentially depended on Central
funding for development works. All the States in the
NER are Special Category States whose Development
Plans are centrally financed on the basis of 90%
Grant and 10% Loan. Further, the Special Category
States are allowed to use up to 20% of the Central
Assistance for Non-plan expenditure.
The Union Cabinet approved the constitution of a
Central Pool of Resources on 15.12.1997. This pool,
called as Non Lapsable Central Pool of Resources
(NLCPR), was created in 1998 for accrual of the
unspent balances out of the 10% earmarked for North
Eastern Region in the budget of various
Ministries/Departments. Ministry of Development of
North Eastern Region (DoNER) are provided budgetary
allocation for the NLCPR Scheme for sanction of
infrastructure development projects to the North
Eastern States out of the NLCPR Pool.
The broad objective of the NLCPR Scheme is to ensure
speedy development of infrastructure in the North
Eastern Region by increasing the flow of budgetary
financing for new infrastructure projects/schemes.
Both economic and social infrastructure sectors,
such as, Power, Roads & Bridges, Education, Health,
Water Supply, and Sports, etc are considered for
providing support under the Central Pool.
Funding under NLCPR is on 90:10 (Grant: State Share)
basis. From 2005-06, only ‘Grant’ portion is being
released to the State Governments. Funding under the
Scheme can be made for State sector as well as
Central sector projects/schemes. However, the funds
are not meant to supplement the normal Plan
programmes, either of the State Governments or Union
Ministries/ Departments/ Agencies.
The Ministry issued District Infrastructure Index
(DII) of NE States on 24.09.2009 which gives the
status of infrastructure at district level in NE
Region. It helps in targeting the projects in
backward areas to reduce intra-regional disparity.
The guidelines of NLCPR Scheme are being amended
from time to time to make it more effective. It has
provision for earmarking 25% funds during retention
of projects in backward/ Autonomous District Council
(ADC) areas of the States for all round development
of the region.
Projects sanctioned under this scheme are
implemented by the State Governments. The timely
completion of projects along with good quality of
works is necessary for desired benefits to percolate
to the intended beneficiaries. Therefore; emphasis
has been laid on ‘Effective Monitoring’, which is
the key to the successful utilization of resources.
Ministry of DoNER has been focusing on close
monitoring and evaluation of projects being
implemented in the NE Region under the NLCPR Scheme.
In order to ensure this, the Ministry has evolved a
comprehensive system of Monitoring and Evaluation of
the implementation of NLCPR projects.
All projects are continuously monitored through
periodical progress reports received from the State
Governments, depicting both the financial and
physical progress of the projects and also through
review meetings with State Government officers and
inspections by officers of the Ministry. The
procedure adopted for release of funds to the States
for implementation of various projects under the
Scheme stipulates conditions which ensure that the
State Governments furnish Utilisation Certificates
and other documents to the effect that the funds
have been utilized for the purpose for which they
The Planning and Development Department of each
State, which is the nodal Department for NLCPR
projects, has been entrusted with field inspections
of the projects through senior officers of the State
and submission of inspection notes. For each new
project, the state/implementing agency is to
identify a Nodal Officer, who is responsible for
timely implementation of that project submission of
progress reports. Besides, the State Chief Secretary
has been entrusted with the responsibility of
holding quarterly meetings for review of each of the
projects and sending the proceedings to the
The visits of senior officers of the Ministry of
DoNER is an effective tool for monitoring as well as
identifying problem areas and verifying physical as
well as financial progress of the projects for
prompt implementation of the projects.
To further strengthen the supervision, the
monitoring through independent agencies have been
introduced in line with JNNURM Scheme from this
year. The State Governments have been asked to make
presentation before NLCPR Committee explaining the
Status of operationalisation of the projects
completed, Action plan for completion of the ongoing
projects and the utility of the projects proposed in
the annual priority list submitted by them while
retaining new projects for the respective states.
To encourage the States for timely completion of
projects an incentive scheme has been introduced.
Wherein, every year for a best performing State in
terms of completion rate of projects, an incentive
in terms of retention of additional projects worth
to Rs.20.00 crore as per their choice over and above
their normal allocation is being given.