Govt prepared to extend assistance to banks

Kohima, July 22 (DIPR): Chief Minister of Nagaland, in his budget speech before the August House, stressed on the importance of banks in economic development of the state and said that the government is prepared to extend assistance if necessary to set up banks in the unbanked blocks.

Stating that Nagaland state still has 19 blocks without any banking coverage, Rio lamented that people living in these areas have no scope for economic growth. He further informed that the government has been actively pursuing with the RBI to extend banking coverage to the unbanked blocks. Rio also informed that August House that RBI has granted in-principle clearance for setting up bank branches in six blocks in the state.

Stating that better recoveries would encourage for more lending by banks and increase credit flow to the people Rio reminded that lending by banks is largely dependent on the levels of recoveries of loans. In this regard the Chief Minister informed that the government has already framed rules for giving teeth to the banks to enforce recoveries of loans.

Productivity and self-sufficiency core concerns of DAN
With regard to the ‘Year of Entrepreneurs’ the Chief Minister, Neiphiu Rio said that the productivity and self-sufficiency have always been the core concerns of the DAN Government. The Government has declared the years 2010-11 as the ‘Year of Entrepreneurs’ with the basic objectives of assisting, training and motivating entrepreneurs in all the districts and build them up into the driving force of economic growth of the state. He said that an amount of Rs. 10 crore is proposed as seed money for the purpose and link them for bank loans for which Department of Industries & Commerce is designated as the nodal department. The Chief Minister has therefore challenged the entrepreneurs to come forward with viable proposals and avail assistance from the Government. He also informed that special emphasis will be given to the youth and entrepreneurs in the areas of handloom and handicrafts, furniture units, establishment of ethnic Naga cuisine restaurants and private hotels, private transport companies, bakery and pastry unit at all district levels.

Schemes under JNNURM
The Central Government under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is implementing ‘Basic Services for the Urban Poor’ (BSUP) Scheme under Kohima district, ‘Integrated Housing & Slum Development Programme’ (IHSDP) Scheme in towns with elected locals bodies, ‘Urban Infrastructure & Government’ (UIG) under Mission City Kohima and ‘Urban Infrastructure Development for Small & Medium Towns’ (UIDSSMT) Scheme in towns with elected local bodies other than the Mission City.

This was stated by Minister for Urban Development, Dr. Shürhozelie Liezietsu while replying to a starred question at the Assembly sessions this morning. Replying to another question the Minister said that the schemes and amount incurred against each scheme executed in the Capital City, Kohima from 2003 till date are as follows: Housing for Urban Poor under BSUP in Kohima town - Rs. 57.00 crores, Road & Transportation Project in Kohima under UIG - Rs. 11.92 crores, Integrated Road & Multilevel Parking Project in Kohima under UIG – NIL. 

The total sanctions against each scheme/programmes since 2003 to date in Nagaland are: Housing for Urban Poor under BSUP in Kohima - Rs. 117.34 crores, Housing for Urban Poor under IHSDP in Dimapur - Rs. 87.74 crores, Road & Transportation Project in Kohima under UIG - Rs. 25.25 crores, Integrated Road & Multilevel Parking Project in Kohima under UIG - Rs. 50.42 crores, Upgradation of roads in Chumukedima town under UIDSSMT - Rs. 4.23 crores.

Privatization of Likimro Hydel Project
Minister for Power, Doshehe Y. Sema said that only the Operation & Maintenance (O&M) of the Likimro Hydel Project has been privatised while the Project is still owned by the Government of Nagaland. Stating this while replying to a starred question during the Assembly session this morning the Minister said that according to the agreement Rs. 1.17 paise per unit is to be paid initially for the first two years and Rs. 0.50 paise per unit is the increment thereafter two years. The O&M Control is for a period of 10 years, till 23rd March 2016. He also said that the approach road of the Likimro Hydel Project is maintained by the concerned Department.

‘Irrigation key inputs in increasing agricultural productivity’ 
Chief Minister of Nagaland, Neiphiu Rio who also holds the finance portfolio proposed to provide Rs. 144.52 crores to the Department of irrigation & Flood Control. In his budget speech, he said that irrigation is one of the key inputs in increasing agricultural conservation of water resources. In the power section, Rio proposed to provide an amount of Rs. 54.91 crores and said that the department would focus on upgratation of sub-stations at Mokokchung and Tuli, improve transmission systems and emphasise on communication.

Rs. 106.23 proposed for R & B sector
On the roads and Bridges sector, an amount of Rs. 106.23 was proposed to be provided for activities including construction on feeder roads and repair and maintainance of roads. Rio in his budget speech said that Rs. 2 crores is earmarked as State Matching share to access Central Funding for roads of economic importance. Under PMGSY and Bharat Nirman Schemes, the department will focus on improving rural connectivity and work to provide connectivity to all settlements with a population of 500 and above.

Tractors & power tillers under CMCF
Minister for Planning, T.R. Zeliang said that from 2004 till date, the Government has distributed 137 tractors and 198 Power tillers to progressive farmers in the state. Stating this in a reply to a starred question at the assembly session this morning, the Minister said that selection is made on the basis of need, potential and capacity to enhance agricultural productivity.

The distributions made years-wise are as follows:
Year        Tractor     Power Tiller
2004-05        NIL     NIL
2005-06        NIL    NIL
2006-07        26     74
2007-08        25    58
2008-09        35    30
2009-10        51    36
Total    137    198