Tap opportunities in North East: PM

Prime Minister Atal Bihari Vajpayee asked the north-eastern states to capitalise on the existing opportunities to boost trade as the region could become the country's economic bridgehead to south-east Asia. He said the Centre was committed to the all-round development of the region and would continue to provide assistance to the region.

"The country is working for the promotion of regional and sub-regional trade and economic development. Our north-eastern states can become our economic bridgehead to the south-east Asia," Vajpayee said inaugurating the second North-East Business Summit, organised by the department of north-eastern region and the Indian Chamber of Commerce (ICC).

"Because of its proximity to the south-east Asian markets like Bangladesh, Myanmar, Singapore and Thailand, the region has a great locational advantage," Vajpayee said.

He, however, made an appeal to the state governments in the region saying that the Centre has taken a conscious decision to provide more resources and incentives for the development of the region. "It is the responsibility of the states to use the funds properly."

Expressing concern over the extremist activities in the region, he said the NDA government has evolved a comprehensive strategy with multi-pronged initiatives and as a result the peace process has moved forward considerably in some of the troubled states.

Vajpayee said the government would soon commence work on the 2000-mw Subansiri hydro-electric project in Arunachal Pradesh, costing over Rs 6,000 crore, and the 130-mw Teesta lower dam station III project in Sikkim, at a cost of Rs 800 crore, to harness the untapped hydel power potential in the region. He added that between 1998-99 and 2002-03, the government released over Rs 44,000 crore of central resources for north-eastern states, which included Rs 5,700 crore under the Prime Minister's package.

He said the small scale industry in the region could make a lot of difference in a reasonably short time. "This can be done by ensuring better and more talented artisans, craftsmen and small enterprises," Vajpayee said.

Vajpayee also suggested that the KVIC, state government departments, banking institutions, agencies dealing with export promotion and chambers of commerce work together to devise a comprehensive strategy to promote these enterprises.

Earlier, minister for small scale industries C P Thakur urged the Prime Minister to set up an expert group to examine the possibility of transforming the north eastern region into a major special economic zone.

The locational advantage of the region can be leveraged as a strategic base by foreign and domestic investors to tap the vast markets of Myanmar, China, Malaysia, Thailand, Singapore, Philippines, Indonesia and other east and South East Asian countries," Thakur said.