New Delhi: The Ministry of Development of Northeastern Region (DoNER) has been actively driving growth in North East India, focusing on transparency, infrastructure development and investment across key sectors such as healthcare, tourism, agriculture, and semiconductors.
Since September 2023, under the leadership of Secretary Chanchal Kumar, IAS, the ministry has introduced new mechanisms to streamline project approvals, enhance accountability and attract private investments.
In a recent conversation with APAC Media, Secretary Kumar outlined the ministry’s initiatives, funding mechanisms and long-term strategies to transform the region’s economic landscape.
Ensuring Transparency and Accountability in Development Projects
A crucial step taken under Secretary Kumar’s leadership is the implementation of a transparent project monitoring system. Every project sanctioned and completed is now made publicly available on the ministry’s website, ensuring accountability.
The project approval process is entirely online, involving recommendations by a state-level committee chaired by the Chief Secretary. Once approved by NITI Aayog and the respective ministries, the projects go through an inter-ministerial empowered committee led by Secretary Kumar before receiving funding.
Before sanctioning a project, the entire approval process is online. State governments recommend projects based on their respective quotas, determined by factors like population and area. If the DoNER ministry finds any objections, the ministry suggests alternatives that would benefit the population more.
Once projects are approved, the state governments handle implementation, while the ministry ensures rigorous monitoring. This includes deploying third-party institutions such as IITs, NITs, and DPIIT to inspect execution quality.
Additionally, geo-tagging enables the public to track project locations, financial progress and physical development online.
DoNER as a Gap-Funding Agency: Supporting Critical Sectors
While various central ministries allocate funds for state projects, DoNER plays a crucial role in bridging funding gaps. One area of concern has been the rising cancer incidence in Arunachal Pradesh and Nagaland.
To address this, the ministry has sanctioned cancer treatment projects in Itanagar and Guwahati, which are currently in the pipeline. Beyond healthcare, DoNER also oversees the expenditure of 54 other government ministries, which are mandated to spend at least 10 per cent of their budgets in the North East.
“Against a target of Rs 92,000 crore from these ministries, we achieved an expenditure of Rs 1,02,749 crore, marking a 113 per cent success rate. Over the last decade, against a projected expenditure of Rs 5.15 lakh crore, we have spent Rs 5.22 lakh crore,” Secretary Kumar shared.
The impact of this increased spending is visible in the region’s improving GDP growth rate, which has surpassed the national average. Infrastructure expansion, particularly in highway construction, is a key indicator of progress.
For example, five years ago, if 300 km of national highway projects were being completed annually, the number has surged to 1,300 km now. Secretary Kumar stated that such developments highlight the enhanced execution capacity and growing developmental appetite of the state governments.
Driving Investments and Economic Growth
To attract private investments, the DoNER ministry has initiated investment roadshows across major Indian cities like Chennai, Kolkata, Hyderabad, Ahmedabad and Mumbai. These roadshows include investor roundtables where North East state representatives pitch opportunities, emphasising stable governance, special incentives and supportive policies.
Secretary of the DoNER ministry said: “In March 2024, we signed MOUs worth Rs 30,000 crore. Such roadshows resulted in MOUs or Letters of Intent (LOIs) ranging from Rs 5,000 crore to Rs 10,000 crore. In total, we’ve signed MOUs/LOIs worth approximately Rs 60,000 crore (as of late January).”
However, while not all MoUs translate into investments, the ministry strictly monitors their implementation process, said Secretary Kumar. It was also stated that as of mid-January 2025, Rs 1,394 crore worth of investments have been grounded.
Key Sectors with Growth Potential
Several sectors in the North East have been identified for strategic investment and development:
- Tourism: All North Eastern states have rich tourism potential. With improved connectivity, the influx of tourists has significantly increased, contributing to local economies.
- Agriculture and Horticulture: The region’s unique agro-climatic conditions make it ideal for high-value crops. GI-tagged products such as Naga chilli, queen pineapples, and cardamom are gaining national and international recognition.
- Handloom, Handicrafts, and Textiles: Traditional crafts from the region are being promoted, providing employment and preserving cultural heritage.
- Medical Tourism: With a significant demand for paramedics and health professionals from countries like Singapore, Japan and South Korea, there is a potential for medical tourism. North East also has the potential to become a medical hub catering to Bangladesh, Myanmar and Thailand.
- Education: With institutions like IITs, NITs, IIITs, and IIMs, the North East is emerging as an education hub, attracting students from across India.
- IT and IT-Enabled Services (ITES): The region is now witnessing a significant investment in the semiconductor sector, with Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) investing Rs 27,000 crore in Morigaon, Assam. This project is expected to catalyse the development of an IT ecosystem in the region.
- Sports and Music: With a strong sports culture and natural musical talent, the North East is being positioned as both a sports and music capital of India.
Challenges and the Path Ahead
Despite these advancements, challenges remain, particularly in connectivity and land acquisition. While Guwahati is well-connected, cities like Kohima still face accessibility issues.
Land ownership patterns, where land is often controlled by village communities and autonomous councils rather than state governments, pose hurdles in large-scale infrastructure development.
Secretary Kumar remains optimistic about the North East’s trajectory, emphasising steady improvements in governance, financial access and economic integration with the rest of the country. Fintech penetration, though lower than in other parts of India, is gradually increasing. Financial access has seen a boost in recent times, signalling progress.
The contribution of the North East to India’s GDP currently stands at 2.9 per cent, against a population share of 4 per cent. While connectivity remains a work in progress, rapid infrastructure expansion, targeted investments and government initiatives are ensuring that the region is on a path to sustainable development.
According to the DoNER ministry Secretary, infrastructure is one aspect, but the ministry is also focusing on investment, CSR and banking conclaves to drive holistic growth.
“The North East’s economic and social potential is immense, and we are committed to realising it,” Kumar concluded.
Project Details in North East
The North East Special Infrastructure Development Scheme (NESIDS) is a fully government-funded initiative launched in 2017-18. Initially implemented until March 2022, it has been extended until March 2026.
The scheme has been restructured into two components: NESIDS (Roads), managed by the North Eastern Council (NEC), and NESIDS (Other than Roads Infrastructure – OTRI), administered by the Ministry of Development of North Eastern Region (MDoNER). NESIDS (OTRI) also integrates pending projects from previous schemes, including the Non-Lapsable Central Pool of Resources (NLCPR), the earlier NESIDS and the Hill Area Development Programme (HADP).
PM-DevINE, another Central Sector Scheme, was introduced in the Union Budget 2022-23 with an outlay of Rs 6,600 crore for 2022-26. The scheme focuses on infrastructure development under PM GatiShakti, addressing social development needs, generating employment opportunities for youth and women, and bridging developmental gaps in various sectors.
It serves as an additional initiative alongside existing schemes, with project proposals invited from Central Ministries, Departments, and North Eastern state governments.
In February 2020, the Union Cabinet approved earmarking 30 per cent of NEC’s allocation for new projects under the “Schemes of North Eastern Council.” This ensures focused development for deprived areas, marginalised communities, and emerging priority sectors.
The scheme now operates as a fully government-funded central sector scheme. Additionally, Special Packages have been introduced to address specific regional development needs.
Under these five key schemes—PM-DevINE, NESIDS-OTRI, Special Packages, NESIDS-Roads, and Schemes of NEC—a total of 3,586 projects have been approved, amounting to Rs 43,480.57 crore.
Of these, 2,448 projects have been completed at Rs 24,395.65 crore, while 1,138 projects remain ongoing with a total cost of Rs 19,084.92 crore.
As of 31 January this year, Rs 9,514.82 crore has been spent on ongoing projects, with an additional Rs 9,570.10 crore yet to be made.
As the ministry continues its mission to transform the North East, the region is witnessing an era of unprecedented growth, investment, and opportunities. With focused policy interventions and robust execution, the North East is set to emerge as a crucial economic hub in India’s growth story.
