Pol parties, orgs seek financial & socio-eco requirements from 15th FC

Pol parties, orgs seek financial & socio-eco requirements from 15th FC
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Kohima, November 28: Various bodies in Nagaland including the trade & commerce, VDB, Urban Local bodies and political parties have approached the 15th Finance Commission for support and consideration of financial as well as socio-economic requirements to take forward Nagaland towards development and progress.
In this, the representatives of Trade, Industry and Commerce represented by KCCI, MCCI, DCCI, Zynorique, YouthNet and Entrepreneurs Associates apprised the Commission about the challenging realities of accessing formal Credits from banks to nurture entrepreneurship in Nagaland.
The team requested the Commission to favourably provide a one time Seed Capital of Rs. 500 crores to be customized to support local entrepreneurs with soft loans for Job generation and propelling entrepreneurship.
This was favourably acknowledged by the Commission, the Team said while also highlighting the need to develop human capital and contextual skilling.
The team also highlighted the importance of developing the air connectivity, Air cargo, rail, warehouses, logistics and Land transport subsidies.
The Nagaland State Village Development Board Association (NSVDBA) requested the 15th FC to provide Matching Cash Grant (MCG) of Rs. 100 crores to VDB fixed deposit.
It also sought the help of the Commission for promotion of Micro Financing activities through VDBs. For 1428 VDBs, an amount of Rs. 714. crores is required.
It also sought grants for payment of monthly honorarium to village functionaries, grant-in-aid to VDBs household allocation (Rs. 189.95 crore for five years), special assistance for women scheme and other infrastructure and basic development (Rs. 535.50 crore for five years).
It informed the 15th FC that the State of Nagaland has been exempted from the purview of the 73rd Amendment of the Constitution due to the existence of traditional local self-government bodies like the Village Councils and the Village Development Boards (VDBs).
Tribal Hohos of Nagaland informed that the state of Nagaland Act, 1962 was enacted on 4th September, 1962, as a result of the Constitution (Thirteenth Amendment) Act, 1962 and the State of Nagaland became the 16th State under the Union of India w.e.f. 01.12.1963.
It stated that the 5th Finance Commission was pleased to introduce the concept of Special Category States in 1969 to provide certain disadvantaged states with preferential treatment in the form of Central Assistance and tax-breaks, where the State of Nagaland was included to avail such “special category status.’ Unfortunately, the Special Grants were discontinued from the 9th Finance Commission resulting in hug financial deficits to the State of Nagaland over the last many years.
The Tribal Hohos of Nagaland in a representation requested the 15th Finance Commission to consider restoration of “Special Category Status” besides others by giving preferential treatment in the form of central assistance and tax-breaks to enable the state to accelerate the path of economic development of the state.
The Political parties in its joint memorandum stated that Nagaland was created out of an extreme Political necessity. A solemn agreement the 16 Point Agreement had been signed between the Government of India and the people of Nagaland to end a violent turmoil where thousands had shed their blood. At the time of the creation of the State, it was further an admitted fact that the State was not economically viable and therefore a special Point No. ll had been included in the l6 Point Agreement which reads as follows: 1. Financial Assistance from the Government of India to supplement the revenues of Nagaland, there will be need for the Government of India to pay out of the Consolidated fund of India ((a) Lump sum each year for the Development program in the Nagaland and (b)Grant-in-aid towards meeting the cost of administration.
It stated that a total of Rs. 26,781 crore as plan outlay has been spent in Nagaland since the inception of the state, fifty years ago, in 1963.
“For a state like Nagaland, in order to catch up with the rest of the country, we will needs to develop twice or thrice the present speed, since the rest of the country are also continuing to grow. For this, there will be a need for huge special investment,” it stated.
It also urged 15th FC to create a Monitoring Agency to supervise such funds provided to the state.
Further, it requested the Commission to make the allocation for Nagaland based on “our unique and special status.”
Nagaland State Village Councils in its representation put forward a proposal to 15th FC to grant fund for the village councils in the state of Nagaland at par with the Panchayati Raj institutions of various states in India towards the interest and welfare of the rural public and for better local self governance.
The Urban local bodies in Nagaland stated that while the state cabinet has recently formed a cabinet sub committee to look into the issue arising out of the 33% women reservation and is also due to hold its meeting with the tribal hohos to resolve the impasse, it requested the 15th FC to grants to the urban local bodies as projected by the government. (Page News Service)