TheUnion Budgethas once again excluded the two northeastern states ofArunachal Pradeshandbordering China from the World Bank-funded project forpower systemimprovement in the northeast.
According to theBudgetdocuments explanatory note, the project is for power system improvement in six NER states viz. Assam, Manipur, Meghalaya, Mizoram, Tripura and Nagaland. It is funded by the World Bank. Intra-State Transmission & Distribution projects for Sikkim &ArunachalPradesh have been segregated for implementation through budgetary support from Government of India in view of these states having sensitive borders.
Finance ministerNirmala Sitharaman, in her Budget for 2022-23, has proposed allocation of Rs 371 crore as programme component, Rs 273 crore as EAP component in rest of the northeast and Rs 1,700 crore as budgetary support for strengthening of transmission system in Arunachal Pradesh and Sikkim.
Segregation of externally aided projects in these two frontier states has its roots since 2009 when China objected to an Irrigation project in Arunachal that was planned by Asian Development Bank for $60-million. The project was subsequently scrapped.