The Union government has planned to grant Rs 1,25,000 crore to eight north-east states to develop connectivity by the year 2012. This would be 50% more than the funds that was granted in the 10th Five Year Plan to north-east. The main reason behind the grant of funds is to develop the connectivity of these states with rest of India.

For this, the government has also planned to set up new 226 air links between the North-eastern states and the rest of Indian states. To improve the internal connectivity among the northeastern states the government has also planned to initiate 592 internal flights.

The Minister of development of north-eastern region, Mani Shankar Aiyar, said that the government is ready to extend Rs 15,000 crore in the next fiscal year. Almost 90% of the fund will be given in the form of grants to the eight northeastern state governments.

He was saying this during his speech at the third North-east business summit that was jointly organised by the ministry and the Indian Chamber of Commerce.

Earlier, the Centre had granted Rs 80,000 crore for the development of the northeast region in the Tenth Five Year Plan.

Later during the speech, Aiyar said that this is wrong to say that northeast is insurgency-prone region. The situation of law and order are better than that in Mumbai and Noida. There is no law and order problem in states such as Sikkim, Arunachal Pradesh and Mizoram.

He also said that according to the plan, the government is ready to invest Rs 50,000 crore also in the road sector in the region by 2012.

Read