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June 1, 1998

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Non-lapsable resource pool for North-East

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Finance Minister Yashwant Sinha announced in the Lok Sabha today that the government has decided to create a non-lapsable central resource pool to fund specific programmes for economic and social upliftment of the North-Eastern states.

Funds will be deposited in the pool from all the ministries where the plan expenditure on the North-Eastern region is less than 10 per cent of total plan allocation of the ministry. The difference between 10 per cent of the allocation and the actual expenditure incurred on the North-Eastern region will be transferred to the pool.

The minister also proposed refinancing functions for industrial loans of state financial corporations and industrial development corporations of the north-east will be undertaken henceforth by the North-Eastern Development Finance Corporation Limited rather than IDBI-SIDBI as at present. NEDFI, promoted by public sector financial institutions and banks, was incorporated in 1985.

Legislation to restructure the North-Eastern council will be introduced in Parliament. Sikkim will be included in the council. The restructuring will lead to speedy implementation of important infrastructural programmes in this region.

Budget '98

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