The Hindu : 'Bonus' for Nagaland

Online edition of India's National Newspaper
Monday, Jun 09, 2003

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National

'Bonus' for Nagaland

By Our Special Correspondent

NEW DELHI JUNE 8. As part of the Centre's effort to give yet another push to the ongoing peace process in Nagaland, the Prime Minister, Atal Behari Vajpayee, today extended a "peace bonus" to the north-eastern State by converting the Rs. 365-crore loan into a "one-time grant".

Taking note of the peaceful elections in Jammu and Kashmir, the Prime Minister said the Naga peace process had also attained a momentum.

"This needs to be sustained. The key to an enduring peace is all-round and sustainable development," he said in a statement here.

Significantly, Mr. Vajpayee put the two insurgency-affected States almost on the same scale so far as increased economic activity is concerned. Several organisations of Jammu and Kashmir have often compared the peace process in Nagaland to that of Kashmir where the Centre's emissaries have tried to spur economic activity.

They have pointed out that New Delhi has been talking to the Naga insurgent leaders even outside India, a demand raised by some of the Kashmiri militant outfits.

Mr. Vajpayee hinted at boosting the peace initiative in Jammu and Kashmir, Nagaland and Mizoram in the far north-east.

"I am glad that Jammu and Kashmir has presented a zero-deficit budget. This is significant coming as it does after deficit budgets born of strife and insurgency. This has been made possible by a Central assistance of Rs. 2,950 crores that I have sanctioned for the State. This is also an increase in Central assistance to Jammu and Kashmir in 2003-2004 of Rs. 750 crores," he said.

Similarly, it had been decided to extend a "peace bonus" to Nagaland.

"An amount of Rs. 365 crores extended to Nagaland as a ways and means loan will now be converted into a one-time grant. This will enable the State to meet all its past liabilities and will also result in an annual interest savings of Rs. 44 crores. Nagaland should now be able to devote its efforts to schemes and policies aimed at poverty alleviation and balanced economic development," he said.

"In the year 2000, I had announced a similar package to Mizoram. This involved conversion of a Rs. 100-crore loan owed to the Central Government into an outright grant. This has imparted a degree of stability to the State's finances and given major impetus to developmental efforts," he said.

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