Centre approves PM-DevINE scheme for infra development in Northeast


PM-DevINE: The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, recently approved a new Scheme called Prime Minister’s Development Initiative for North East Region (PM-DevINE).

Key Points:

  • The new Scheme, PM-DevINE, will be implemented for the remaining four years of the 15th Finance Commission from 2022-23 to 2025-26.
  • PM-DevINE, is a Central Sector Scheme with 100% Central funding and will be implemented by Ministry of Development of North Eastern Region (DoNER) through North Eastern Council or Central Ministries/ agencies.
  • To limit construction risks of time and cost overrun, Government projects will, to the greatest extent practicable, be implemented on an engineering-procurement-construction (EPC) basis.
  • An amount of Rs.6,600 crore has been allotted by the central govt for the implementation of this scheme.
  • The programme provides funding for physical and social development initiatives that will close development gaps in a number of Northeastern area industries.
  • The current central and state programmes will not be substituted by the PM-DevINE programme.
  • The new plan differs from the former MDoNER programmes already in place and used to develop the North Eastern Region.
  • The average size of projects under other schemes is about Rs.12 crore while the PM-DevINE scheme aids infrastructure and social development projects that are larger in size.
  • It will lead to creation of infrastructure, support industries, social development projects and create livelihood activities for youth and women, thus leading to employment generation.
  • It will also provide end-to-end development solutions rather than focusing on just isolated projects.
  • For 2022-23, the scheme will cover all projects that were introduced during recent Union Budget.
  • Other projects that could have a significant socioeconomic impact or create opportunities for sustainable livelihood for the general public (such as providing basic infrastructure in all primary health care centres or comprehensive facilities in government primary and secondary schools, for example) might be taken into consideration in the future.
  • To ensure that there are no committed obligations past this year, efforts will be made to finish the PM-DevINE projects by 2025–2026.
  • This suggests that the Scheme's sanctions will be predominantly front-loaded in 2022–2023 and 2023–2024.
  • While expenses would still be incurred in 2024–2025 and 2025–2026, there would be a focus on finishing the authorized PM–DevINE projects.

Objectives of PM-DevINE:

The objectives of PM-DevINE are -

  • To fund infrastructure convergently, in the spirit of PM Gati Shakti;
  • To support social development projects based on felt needs of the NER;
  • To enable livelihood activities for youth and women;
  • To fill the development gaps in various sectors.

Background:

  • PM-DevINE scheme was announced by the Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman while presenting the Union Budget 2022-23 to remove the developmental gaps in the North Eastern Region (NER).
  • It was announced to address the shortfalls in Basic Minimum Services (BMS) in the North Eastern Region.


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