Shillong/Nongpoh, Jun 19: Union Finance Minister Nirmala Sitharaman today inaugurated a conference on ‘Leveraging Externally Aided Projects (EAPs) in the North Eastern States’ here, emphasising the critical role of strong institutions, implementation capacity and collaborative partnerships in unlocking the region’s immense development potential.
The two-day conference, organised by the central government’s Department of Economic Affairs (DEA), has brought together policymakers, state governments, multilateral development banks, bilateral agencies and development practitioners to deliberate on strategies for enhancing the effectiveness of externally aided projects and accelerating inclusive and sustainable growth across the North East.
In her address, Sitharaman said the North East possesses immense potential in agriculture, tourism, culture and natural resources, but has historically faced challenges related to connectivity and market access. She cited examples of unique products from across the region, including Meghalaya’s Lakadong turmeric and Khasi mandarin, and stressed the need to connect local producers with national and global markets.
The Finance Minister said the Centre’s focus on the North East has intensified under Prime Minister Narendra Modi, pointing to major investments in highways, airports and other infrastructure.
Describing EAPs as more than just financing arrangements, Sitharaman said they bring global expertise, technology and best practices in project implementation.
She also highlighted the sharp rise in EAP support to North East states, stating that funding had increased from around Rs 9,000 crore during 2004-2014 to approximately Rs 76,000 crore since 2014.
While acknowledging progress, Sitharaman stressed the need to improve project implementation, strengthen coordination among agencies, enhance digital connectivity and encourage greater private sector participation, particularly in tourism and logistics.
Meanwhile, Chief Minister Conrad K Sangma urged the Centre to remove or raise the ceiling on EAPs for North East states under the upcoming 16th Finance Commission period, arguing that states with the capacity to utilise funds effectively should be allowed greater access to such financing.
Sangma explained that under the existing arrangement, about 72 per cent of the loan component is borne by the central government, while the state government is responsible for the remaining 28 per cent.
According to the CM, Meghalaya was initially assigned a ceiling of around Rs 3,500 crore during the previous Finance Commission cycle. Despite this, the state was able to secure and implement projects worth nearly Rs 12,000 crore through sustained efforts and planning. He said North Eastern CMs have now requested the Centre to do away with the ceiling mechanism or significantly increase the limit for the next Finance Commission period.
Earlier in the day, Sitharaman inaugurated the largest organic spice processing plant in the North East at Lumdaitkhla village in Bhoirymbong, Ri-Bhoi.
The project has been funded by the International Fund for Agricultural Development (IFAD) through the Meghalaya Livelihoods and Access to Markets Project (Megha-LAMP) and MBMA under the FOCUS Programme at an estimated cost of Rs 30 crore.
The state-of-the-art facility of the Eastern Ri Bhoi Organic Farmer Producer Company Ltd is expected to play a significant role in strengthening the agricultural sector in Meghalaya by adding value to locally grown spices such as ginger, turmeric and black pepper. Through processing and packaging, the plant is expected to enhance the market value of farmers’ produce and improve their earnings.
The plant is projected to process more than 10,000 metric tonnes of agricultural produce annually and is expected to directly benefit over 5,500 farmers from the region. It will also help strengthen market linkages for local agricultural products and reduce dependence on processing facilities outside the state.
Among other projects whose foundation stones were laid by Sitharaman were the Meghalaya Logistics and Connectivity Improvement Project (Rs 957.46 crore), the Supporting Human Capital Development in Meghalaya, Phase 2 (Rs 59.29 crore), the Integrated Ecotourism and Sustainable Agri-based Livelihood Development Project (Rs 138.39 crore) and the Meghalaya Ecotourism Infrastructure Development Project (Rs 91.60 crore). These projects aim to improve connectivity, strengthen school infrastructure, promote sustainable tourism, enhance climate-resilient livelihoods and create long-term economic opportunities for local communities.
