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Vajpayee announces 
3.65 bn grant for Nagaland
Monday, 09 June 2003, 19:30 IST
NEW DELHI: Prime Minister Atal Bihari Vajpayee Sunday announced a grant of 
3.65 billion for insurgency-affected Nagaland as he reiterated his government's commitment to encouraging economic activity in other troubled states like Jammu and Kashmir.
Asserting that sustained development was the only key to enduring peace in insurgency-hit areas, Vajpayee said the government would convert loans worth 3.65 billion extended to Nagaland into a one-time grant as a "peace bonus".
The government is currently engaged in peace talks with Nagaland's dominant rebel group -- the Isak-Muivah faction of the National Socialist Council of Nagaland -- and the grant comes in the wake of successful assembly elections in the state this year.
Vajpayee's Bharatiya Janata Party is part of Nagaland's ruling coalition.
The grant, the prime minister said, would enable Nagaland to meet all its past liabilities and also lead to annual savings of 440 million in interest payments.
"Nagaland should now be able to devote its efforts to schemes and policies aimed at poverty alleviation and balanced economic development," Vajpayee said in a statement issued here.
The central government, he said, had taken several steps to encourage economic activity and enhance employment in recognition of the "substantial progress" made in the peace process in Jammu and Kashmir, Nagaland and Mizoram.
"Jammu and Kashmir has had a peaceful election, the Naga peace process has also attained momentum. This needs to be sustained. The key to an enduring peace is all round and sustainable development," Vajpayee said.
Noting that Kashmir had last week posted a zero deficit budget, Vajpayee said: "This is significant coming as it does after deficit budgets born of strife and insurgency."
The zero deficit budget, he said, was made possible by the central government providing 29.5 billion as aid to Kashmir. Central assistance to Kashmir during 2003-04 too has been hiked by 7.5 billion.
In the case of Mizoram, the conversion of government loans worth 1 billion into a grant in 2000 had brought stability to the state's finances, Vajpayee said.
Though Mizoram has been largely peaceful since rebels and the central government signed a peace accord in 1987, economic activity in Kashmir and Nagaland has been badly hit by five decades of insurgency.
Source: IANS
3.65 billion for insurgency-affected Nagaland as he reiterated his government's commitment to encouraging economic activity in other troubled states like Jammu and Kashmir.
Asserting that sustained development was the only key to enduring peace in insurgency-hit areas, Vajpayee said the government would convert loans worth 3.65 billion extended to Nagaland into a one-time grant as a "peace bonus".
The government is currently engaged in peace talks with Nagaland's dominant rebel group -- the Isak-Muivah faction of the National Socialist Council of Nagaland -- and the grant comes in the wake of successful assembly elections in the state this year.
Vajpayee's Bharatiya Janata Party is part of Nagaland's ruling coalition.
The grant, the prime minister said, would enable Nagaland to meet all its past liabilities and also lead to annual savings of 440 million in interest payments.
"Nagaland should now be able to devote its efforts to schemes and policies aimed at poverty alleviation and balanced economic development," Vajpayee said in a statement issued here.
The central government, he said, had taken several steps to encourage economic activity and enhance employment in recognition of the "substantial progress" made in the peace process in Jammu and Kashmir, Nagaland and Mizoram.
"Jammu and Kashmir has had a peaceful election, the Naga peace process has also attained momentum. This needs to be sustained. The key to an enduring peace is all round and sustainable development," Vajpayee said.
Noting that Kashmir had last week posted a zero deficit budget, Vajpayee said: "This is significant coming as it does after deficit budgets born of strife and insurgency."
The zero deficit budget, he said, was made possible by the central government providing 29.5 billion as aid to Kashmir. Central assistance to Kashmir during 2003-04 too has been hiked by 7.5 billion.
In the case of Mizoram, the conversion of government loans worth 1 billion into a grant in 2000 had brought stability to the state's finances, Vajpayee said.
Though Mizoram has been largely peaceful since rebels and the central government signed a peace accord in 1987, economic activity in Kashmir and Nagaland has been badly hit by five decades of insurgency.
Source: IANS