ECONOMY

The Economy of Assam can be described as an underdeveloped one. A state is underdeveloped one when it is characterised by poverty, under-utilized manpower and untapped natural resources. Prof. Ranger Nurse states that underdeveloped countries are those which " Compared with the advanced countries, are under equipped with capital in relation to their population and natural resources."

The Indian planning Commission defines an Underdeveloped country as one " which is characterised by the coexistence, in greater or less degree, of unutilized or underutilized man-power on the one hand, and of unexploited natural resources on the other".

Eugene Staley defines an Under-developed country thus: �A country characterized (i) Mass poverty which is chronic and not the result of temporary misfortune and (ii) Obsolete methods of production and social organisation, which means that the poverty is not due to poor natural resources and hence could presumably be lessened by methods already proved in other countries". This definition of under-development is quite satisfactory. Thus, Assam, with its vast development potential untapped resources and poverty, can be easily described as under-developed state.

1. Slow growth of state Income: The estimates of state income (Net State Domestic Product) show a steady but slow growth of the economy of Assam in the past few years. The State Income (SDP) for Assam, at current prices, stood at Rs. 946.00 crores in 1973-74 as against Rs.874.7 crores in 1972-73 showing an increase of 24.5 per cent in 1972-73 over 1971-72. The net national product of the country at current prices shows an increase of 24.5 per cent in 1973-74 over the previous year as the national product was calculated at Rs. 49,290 crores in 1973-74 as against Rs. 39,592 crores in 1972-73.

According to the revised series, State Domestic Product (SDP) at current prices stood at Rs. 1340.7 crores in 1974-75 as against Rs. 1318 crores in 1975-76 showing a decline of 2 percent over 1974-75. The SDP rose to Rs. 1521.9 crores in 1976-77 showing a rise of 16 per cent over 1975-76 and further rose to Rs. 1682 crores in 1977-78 showing a rise of 10 percent 1976-77. In 1978-79, the SDP stood at Rs. 1856.1 crores showing a rise of 10.5 per cent over 1977-78. In 1981-82, the SDP at current prices, increased to Rs. 2798.4 crores showing an increase of 50.7 per cent over 1978-79. The net national product of the country as a whole, on other hand increased from Rs. 87,253 crores in 1979-80 to Rs. 1,04,201 crores in 1980-81 showing an increase of 19.4 per cent over the previous year.

Again the state domestic product at current price rose by 11.3 per cent in 1989-90 over the previous year as compared to only 2 per cent in 1988-89. On the other hand, the rate of growth of national income in India was 10.4 per cent in 1988-89 and then declined to only 4.5 per cent in 1989-90. Again in 1990-91 and in 1993-94, the rates of growth of state income in Assam were 7.5 per cent and 13.8 per cent respectively. But at constant prices, the rate of growth of state income in Assam in 1993-94 was 9.2 per cent over the previous year.

This shows that the growth of state income in Assam could not keep pace with the growth of income for whole country in early although it showed marginal improvement in recent years.

2. Low per capita income : The per capita income in Assam is also very poor. It was Rs. 528 at current prices in 1970-71 and compares very unfavourably with the per capita national income of Rs. 636, much more so when viewed against the higher price level in Assam. Again the per capita income at current prices rose by 4.9 per cent in 1971-72. The per capita State income at current prices stood at Rs. 600.6 in 1973-74 as compared with Rs. 572.1 in 1972-73 and Rs. 535.5 in 1971-72. Similarly, the per capita state income of only Rs. 816 in 1976-77 shows a gap of over Rs. 200 with the per capita national income of Rs. 1049 in the same year. The per capita income at current prices rose further to Rs. 866 in 1977-78 showing a rise of 6 per cent over 1976-77 as against national annual increase of 8 per cent. The provisional estimated figure of per capita income at current prices stood at Rs. 1007.2 in 1978-79 and then the same figure increased to Rs. 1220.8 in 1980-81 and then to Rs. 5916 in 1993-94. But the per capita income of Assam in 1993-94(Rs.5916) compares very badly with per capita income of India (Rs. 7060) in the same year showing a gap of over Rs.1144.

3. Poor rate of capital formation : The State�s economy is characterised by poor rate of capital formation. The volume and rate of savings in Assam are very poor. Savings depends on the level of per capita income. As the level of per capita income in Assam is very poor, the savings potential of the State is thus low. Unfortunately, the marginal propensity to consume of the people of Assam is very high on account of sub-standard living conditions of the majority of the population. Possibly, there are large accruals of additional income in the rural sector. But there are inherent difficulties of mobilising these incremental rural incomes. Thus shortage of savings is the main root of capital deficiency in Assam.

4. Excessive dependence on agriculture : The state�s economy is depending too-much on agriculture. Colin Clarke and Kuznets state that economic development consists in the progressive enlargement of the proportion of tertiary occupation. Of the total working population of the state, about 77 per cent were engaged in agriculture and allied activities. But in Assam, cultivators and agricultural labourers together account for 64.1 per cent of the total working population as against 67 per cent for all states of India, according to 1991 census. District wise, Mikir Hills district has the highest percentage of agricultural workers (83.9 p.c.) followed by Goalpara (78.1.p.c) and Nagaon district (77.2 p.c.) The lowest percentage occurred in Old Lakhimpur (49.4 p.c.) and Sibsagar district (51.1 p.c.). Total number of workers in the manufacturing, other than household industry, constitutes 2.8 percent of the total workers in the state while workers in trade and commerce account for 5.7 per cent. Further the percentage of income from agriculture was 57 in 1970-71 and then it remained 56 per cent, 54 per cent, and 54.1 per cent in 1975-76, 1976-77 and in respectively compared with 45 percent for the country as a whole in 1975-76. In 1993-94, the percentage of income front agriculture in SDP declined to 34.1 percent as compared with 30.0 percent for all India. As non-agricultural occupations could not grow sufficiently due to lack of sufficient investment, the agricultural productivity per worker in Assam has declined from Rs.508.77 in 1951-54 to Rs.355.27 in 1969- 72. This shows how the agricultural sector of the state is over-burdened.

5. Population pressure and Unemployment: Population pressure in Assam is very heavy. The rate of growth of population in Assam is one of the highest in country. The growth rate in the decade 1951-61 was 34.97 was 34.97 percent against 21.64 percent for all India. Similarly, the growth rate during the decade 1961-71 was 34.95 percent in Assam as against 24.80% for the country as a whole. During the last fifty years(1921-71), the growth of population in Assam has been 215%. This high rate of growth is not entirely due to biological cause. A significant portion of the increase is due to the influx of people from outside and this trend has been continuing at least since the beginning of the century. Thus whatever development has been achieved in the State, it is being swallowed up by increased population. Thus the increasing trend in the growth of Assam�s population can be visualized from the fact that Assam�s population as percentage of all India has been increasing from 1.4 percent in 1901 to 2.2 percent in 1951 and then to 2.5 percent,2.7 percent and 2.6 percent in 1961,1971 and 1991 respectively. The overall population density per Sq. km. of the State is 284 which are higher than the national average density of 267 persons. In 1991, the total size of population of Assam is estimated at 2.24 crores as against 1.46 crores according to 1971 census.

As alternative occupations in the secondary and tertiary sector do not develop sufficiently, thus the increasing number of population is being thrown on land to eke out their living from agriculture. This tendency of increasing dependence on agriculture is creating disguised unemployment in the economy of the state.

6. Shortage of technology and skills: The economy of Assam is suffering from low level of technology and acute shortage of skilled labourers. Poor techniques and lower skills result in inefficient and insufficient production which leads to poverty. The technological backwardness of the State is even greater than that of all India standards. Thus the rate of development of the State is quite slow.

7.Lack of infrastructure : From the very period Assam was a neglected State partly due to its geographical features. The State was lagging in respect of transportation, communication, electrification and credit facilities etc. than most of the other states of India. Due to this infrastructure backwardness, industrialisation, the major wheel of economic development, started very belatedly in Assam. The surface transport facilities by Roads, Railway, and Waterways within Assam and the links with the neighbouring states and rest of India are not adequate and subject to severe hardships during the monsoons. The Railway route length in Assam covering the entire North Eastern Region is 2200 km of Metre Gauge and 266 km. of Broad Gauge. The P.W.D. Road length (as on 31st March 1990) is 30,086 km. 0f which only 6389 km. stretch of Brahmaputra. One more bridge at Pancharatna, which is urgently required is now under construction. The length of total road per 100 sq. kms in 1968 was 18 km. in Assam as against 29 km. for all India. Postal and Telecommunication services in Assam were not very satisfactory. Postal services are improving gradually in recent years. But telecommunication system needs more attention.

Assam is still deficient in respect of generation and consumption of power. The per capita consumption of electricity in Assam was only 78 Units in 1989-90 which was barely 33 per cent of the national figure of 236 units during the same year. Total power generation in Assam is very less at present and it stood at 1068.3 Million kwh, in 1992-93. The potential of generation of thermal (coal and natural gas) power is also high. At present, various hydro and thermal power projects are under construction. The pace of rural electrification in Assam was very slow. Electrified villages comprised only 6.4 per cent of the total villages of the state in 1973-74 as against 100 per cent electrification in the village of Haryana and 78 percent in Tamil Nadu. In 1992-93, 83 percent of total villages in Assam are electrified.

In case of banking facilities the state is lagging far behind the national position. in 1991, a bank office in Assam covers on an average, 17 thousand people as against 12 thousand persons for the country as a whole. Further number of bank offices per 100 sq. kms was only 0.2 in Assam as against 3.7 for all India in the year 1971. Per capita bank credits in Assam stood at Rs. 52.5 in 1977 as against Rs. 238.6 (approx.) for all India and in 1992, the same figure further declined to Rs. 46.0 only. The state is also lacking in sound administrative machinery which is very essential for spending up the pace of development.

8. Under-utilisation of natural Resources : Assam is a land of potentialities. Various natural resources are available within the state. Unfortunately, due to its geographical isolation, Assam was a neglected state from the very early period. Gradually Assam�s importance was realised as sufficient natural resources were found available in this region. But till now, various resources, viz. water, minerals, forest, land etc. remain under-utilised or even untapped due to various difficulties, such as their inaccessibility, shortage of capital, lack of proper attention, primitive techniques, transport bottlenecks and the small extent of the market. Assam has 28 per cent of the total hydro power potential of the country, which remains under-utilised. Further, a vast quantity of mineral resources and forest products still remains under-utilised. Thus in this way due to lack of proper attention, the natural wealth is being wasted.

9. Lack of industrial development : Assam is lagging behind other states in regard to industrial development. This is due to absence of large investments in industry during preceding plans and Assam�s geographical isolation. The industrial sector in the state has been centralised around some major industries, i.e., Tea, Jute and Oil. The volume of private industrial investment in Assam is very low due to heavy risks involved in the investment. These risks are both natural risks, arising through natural calamities like flood, droughts and political risk as the state itself is a border state. Further geographical isolation of the state inhibits private investment from other regions. This is aggravated by transport bottlenecks. The consequential higher unit cost of transport act as a further disincentive to external private investment in the state. That Assam had been an industrially backward state in the country will be apparent from the fact that during 1969 per capita value added by manufacture in Assam amounted to Rs. 28.00 only as against all India figure of Rs. 51.00. Further, per capita gross output in industry in Assam stood at Rs. 128.00 as against all India�s Rs.220.00 during the same period. Again, total income (product) from industry (mining, manufacturing and construction) in Assam constitutes only 18.0 per cent, 19.9 per cent and 19.5 percent of the total net state domestic product (at current prices) during 1973-74, 1977-78 and 1993-94 respectively.

10. Poverty : The state�s economy is characterised by long standing poverty. With the increase in the size of population, growing inequality of income and increased price level, the degree of poverty in Assam started to increase as the number of occupations could not grow satisfactorily. Dandekar and Rath in their study "Poverty in India" has estimated from the NSS consumer expenditure data of 1960-61 that about 48 per cent of Assam�s population was lying below the poverty line on the basis of minimum nutritional needs. Further, the extent of poverty in Assam was aggravated during 1970-71. It has been estimated that the consumer price level in Assam is About 20 per cent higher than the All India level. The poverty line of Rs.40.00 (according to planning commission's approach document) may be taken correspondingly as Rs. 48.00 at Assam prices. Taking Rs. 48.00 as the poverty line, it was estimated that number of persons below the poverty line in Assam would be 5.53 lakhs (40.14 per cent) and 107.12 lakhs (77.38 per cent) in urban and rural areas respectively making a total of 112.65 lakhs (73.67 per cent) for the state as a whole. Again the planning Commission�s Expert group Report (1993) shows that the number of persons lying below the poverty line in Assam was 89.6 lakh (39.0 per cent). Thus the Extent of poverty in Assam is gradually increasing day by day creating suffering for the millions of people living below the poverty line.

Main problems of Economic Development in Assam and Factors responsible for these problems

Various problems are attached with the initiatives to develop the economy of Assam. Although every state has its own share of special problems, Assam may be described as a major �problem state� with its geographical isolation, proneness to natural calamities, sensitive borders, disturbed law and order conditions and other factors. Factors impeding economic growth in Assam can be classified into Economic and non-economic factors.

Economic factors : Following are the main economic factors which are responsible for creating problems of economic development in Assam :

1. Rapid growth of population : Population pressure in Assam very heavy. This is a very disturbing factor as the increasing number of population is a liability rather than asset. Census date shows that Assam has one of the highest demographic growth rate in the country, the growth rate in the decade 1961-71 being 34.95 per cent against 24.80 per cent for all India. During the last two decade 1971-91, the growth rate of population in Assam was 53.26 per cent. A significant portion of the increase is due to the influx of people from outside. The rate of growth of occupation and wealth in Assam cannot keep pace with this high rate of population growth creating problems of unemployment, poverty and inequality of income in the states.

2. Natural Calamities : Assam is unfortunately one of those few states which are every now and then visited by natural calamities such as floods and droughts. Experience and a study of the problems connected with the Brahmaputra and its tributaries suggest that it will be a long time before the problems of flood are adequately tackled. Total damages to crops, cattle, houses, public institutions in Assam has been increasing year by year, i.e., from Rs. 13.2 crores in 1970 to Rs. 24.6 crores in 1972 and from Rs. 11.98 crores in 1976 to Rs. 39.80 crores in 1980 and then to Rs. 306.6 crores in 1989. Thus production and income of the State faced setbacks in every year due to floods and revenues are being diverted for flood relief in every year. Total diversion of revenue for flood relief has been increasing from Rs. 104.74 lakh in 1962-63 to Rs. 286.32 lakh in 1974-75 which accounted to 2.6 per cent and 1.8 per cent respectively of the state total revenue. Thus a good volume of state�s resources has been diverted for making repairs and for giving relief to the flood victims. Had there been no such burden, this amount of resources would have been available for development plan purpose. Further, natural calamities in Assam make speedy implementation of plans difficult.

3. Geographical isolation of the state and its difficult terrain : Geographical isolation is a characteristic feature of the state which always goes against its development strategy. From the very early period Assam was a neglected state partly due to its geographical isolation which restricted capital flow into the state�s Economy for industrialisation of the state. Geographical isolation of the state involves higher unit costs. Further, lack of contact, lack of attention and lack of supervision by the centre are all the results of geographical isolation of the state. The difficult terrain of Assam surrounded by hills, rivers and dense forest leads to increase in the cost of administration cost of developmental projects, besides making mobilisation of resources particularly difficult.

4. High Cost Structure : Cost structure in Assam is very high. This is due to Existence of higher price level in the state in comparison to other states. According to K.K. Bhatia�s standard basket method, showing preliminary estimated of indices of comparative cost line of selected centres of different States of India with Delhi as the base, the index for Digboi (Assam) is higher by 18% over Delhi. This index for Digboi is again the second highest in the country following Bombay. If Digboi is taken to represent Assam and the average of the 16 centres to represent India, then according to this Index (standard Basket Method) it is 21% higher.

Taking all these into consideration, broadly speaking, it is felt that the consumer price level in Assam may be taken to be about 20 per cent higher than all India average. The cost structure in Assam is thus very high and this has raised the cost of all the projects under different plans. This had added an additional strain on the financing of development project in Assam. Besides due to this high cost of living, chances of raising tax rates and the volume of savings for financing developmental plans become narrow and the cost of Administration increases due to high cost structure. Thus this high cost structure is always going against the development of the economy of Assam.

5. Poor transport and Communication facilities : Assam is lacking a sound transport and communication system. Geographical isolation, difficult terrain and lack of attention are some of the basic factors which are responsible for poor development of transport and communication facilities. Both the railway and road transport facilities in Assam are very less according to its need. Assam accounts for 3.9 per cent of the total railway route length of the country during March, 1993 but in case of broad gauge lines it accounts for measure 0.35 per cent of the total B.G. routes of the country. Expansion works like preparation of new railway lines: Conversion metre gauge lines into broad gauge lines, extension of national highways, construction of new bridges over Brahmaputra, development of well connected transport facilities and sound communication system etc. are not up to the mark. In the absence of all these above mentioned facilities, a region cannot develop industrially. In recent years, steps have been taken to improve the transport and communication system of the state without which the development of the economy is impossible.

6. Capital deficiency : Capital deficiency is a characteristic feature of underdeveloped countries. This characteristic is nothing peculiar to Assam when the whole country is suffering from capital deficiency. But this is serious handicap with which the state�s economy is involved. The problem of finance assumes serious proportions, both because agriculture and small business dominate the economy and also because neither the Government nor the corporate sector saves enough to meet the cost of its own Investment projects. The volume and rate of savings in Assam are very poor. Savings depend on level of per capita income. As the level of per capita income in Assam is very poor, the saving potential is low. Unfortunately, the marginal propensity to consume of the people of Assam is very high on account of sub-standard living conditions of the majority of the population. Thus, in spite of having huge development potential, the State�s economy cannot develop due to lack of capital formation. Further, a sizeable section of the population earning its livelihood in Assam is of a migratory character. A substantial portion of the savings of such seasonal migrants is not available for being ploughed into Assam�s economy as it is remitted outside, Similarly, the corporate sector and trade are substantially in the hands of persons exercising control from outside and they are remitting profits outside Assam. A recent study has been made by an Expert team sponsored by I.D.B.I. on the basis of available statistics of rail and road borne trade. The study indicates that which commodity flows into and out of Assam are more or less balanced at the level of about Rs. 200 crores annually, there is a regular outflow of monetary income from Assam to the extent off Rs. 63 crores annually. This heavy amount of outflows of capital is creating a heavy pressure on the financial condition of the state besides making the pace of development slower.

7. Waste of natural resources : In spite of having huge amount of natural resources, the State�s economy still remains largely under-developed and involves itself into the wastage of huge quantity of natural resources. Investment in Assam is mainly channelised towards exploitation of rich resources viz. tea, jute and oil, which is reflection of the continuation of old colonial pattern of investment. Barring the setting up of a fertiliser factory and three refineries no significant utilisation has come about. Assam has 28 per cent of the total hydro power potential of the country, which remains under-utilised. The vast coal resources have not been exploited (Except for traditional use of the Railway etc.) despite several possibilities for use as fuel for production of power, for production of coke and as base for several chemical industries. The forest resources in Assam are also under-utilised, particularly in the matter of non-standard species. Thus insufficient exploitation of natural resources in Assam is responsible for this poor economic development of the state.

8. Lack of skilled personnel: Assam is also suffering from an acute shortage of skilled labour. Most of the labours are unskilled. For higher skills, the State has to depend upon other states and foreign countries. Consequently the state has to pay higher wage rates for skilled labour than in many other States. Besides, the State has to import technicians from outside the state on attractive rates of remuneration for installation of capital-goods industries and thus it raises the cost of the development projects besides making the gestation period of these projects lengthy.

9. Lack of Entrepreneurial and Managerial talents : About the availability of entrepreneurial and managerial talents, the picture is very gloomy. There is lack of initiatives and entrepreneurship on the part of local talents to start new industries within the state for which there is sufficient development potential.

10. Poor credit facilities : Credit facility, which is a part of infrastructure requires for development, is very minimum per capita bank credits in Assam stood at Rs. 15.6 in 1970 as against Rs. 83.9 for all India. The credit deposit ratio in Assam stood at 23.5 in 1970 as against 55.9 for all India. In recent years also credit deposit ratios of the commercial banks in Assam stood at a poor level which were 44.3, 49.5, 45.5 and 43.4 in 1975, 1976 1977 and 1978 (June) respectively. Again in December 1994 the deposit ratio in Assam was 55.9 per cent as against 59.4 per cent for all India. Thus the lending policy of the commercial banks is far from generous to this poor State of Assam. Thus in the absence of large scale credit facilities, industries in the private sector cannot grow satisfactorily.

11. Primitive Technology : Technological progress is the root of economic progress. But Assam is suffering from lack of technological development due to poor scientific educational facilities. Assam is still following primitive technologies in Agricultural sector and thus agricultural production remains stagnant whereas other State like Punjab, Haryana, Gujrat, Uttar Pradesh have been able to make sufficient progress in agriculture by applying modern technologies. Small scale and cottage industries in Assam are still following old orthodox technologies and cannot stand in the competitive market. Thus the economy of the State has remained economically backward due to the absence of advances in technology.

Thus most of the favourable factors, which are responsible for sound economic growth, are missing in Assam. Rather various unfavourable economic factors are standing on the way to retard the pace of economic development of the state.

1. Sensitive borders : Assam is bounded by sensitive borders in its four sides. Borders Especially with Bangladesh (formerly East Pakistan) on the west and south and with China on the north have remained too sensitive since independence. This adverse factor always goes against the economic interest of the State by obstructing the easy flow of industrial investment both in the public and private sectors. In spite of possessing huge natural resources, the investment in Assam has remained a risky one due to its sensitive borders. With the change of time public sector investments started to flow within the state�s economy, although very slowly, but the flow of investment in the sector still remains poor.

2. Disturbed law and order conditions: Maintenance of law and order is a critical subject as Assam is a sensitive border State. Assam has to spend a heavy amount on police administration for the maintenance of law and order. Per capita expenditure on police administration on Assam stood at Rs. 8.25 in 1972 which was the second highest figure among all the states. In recent years, the expenditure has increased considerably due to the problem of insurgency in the State. This unduly heavy expenditure on law and order maintenance has put a severe strain on the already slender finances of the State Government and has, to that extent, hampered the Government�s ability to finance the developmental schemes. Further, this disturbed law and order condition will also restrict the flow of private capital into the State�s economy.

3. Lack of efficient administrative machinery : Maintenance of an efficient and clean administration is very essential for achieving sound level of development. But administrative machinery in Assam is neither efficient nor clean. Leakage of funds in various developmental works is quite common, resulting in poor performance or various plan and non-plan projects and wastage of financial resources of the state. Prevalence of red-tapism always delayed the operation of various developmental plan projects and makes the utilisation of plan funds difficult which leads to even surrender of scarce plan funds to the Central Government.

4. Social Structure : Social structure in Assam is not favourable for economic growth. The joint-family system creates under-employment and makes savings difficult. The caste system restricts the mobility of labour, the laws of inheritance resulted minute sub-division and fragmentation of holdings and religion has advocated austerity and renunciation which always obstructed the people from the way of their material advance. Further, United action by the people of the State on the economic front has been prevented by the diversity of castes and creeds.

Thus, We have seen the various hurdles which the State has to face while attaining economic development. Both the economic and non-economic factors are equally responsible for this poor rate of development attained by the State.

It is difficult to deny that foundation of the modern economic system of Assam was laid during the British regime. In Assam, British rule commenced from 1825. British rules in the early period of their rule undertook two socially beneficial measures having great economic significance. These were the suppression of slavery in 1843 and the poppy cultivation in 1860.

The establishment of a modern economy in Assam based on Capitalist principles was the greatest achievement of British regimes which was possible mainly due to the development of tea plantation. Along with tea industries, a modern industrial sector grew up on Assam with the establishment of different industries like petroleum, saw mills, plywood and Coal mining, etc. Besides, a modern transport and communication system was also built up with the gradual development of river, road, and railway, postal and telegraphs services. All these developments ultimately led to the growth of Commercial sector in Assam.

But the agricultural sector which engaged three fourth of the total population of the State was more or less unaffected by the activities of the modern sector. Thus there was colonial pattern of development in Assam which created a dual economy a small modern sector and a huge traditional subsistence sector existing at the same time. Thus during the pre-independence period there was secular stagnation in the economy of Assam.

During the British period, the principal agricultural crops of Assam were rice, mustard, pulses, Jute, cotton, sugarcane etc. With the arrival of Muslim immigrant cultivator from East Bengal, Jute cultivation started in Assam at the beginning of this century. During this period, the cropping pattern of Assam was not at all balanced and in respect of its diversification it was very less. Thus cultivation of rice covered the maximum area of the total cultivated land. In respect of trend in the sown area, it was very much irregular and fluctuating. In case of other crops, excluding Jute, increase in sown areas is very less.

In respect of the production of principal agricultural crops during this period, there was no continuous rise in production rather it was marked by fluctuation. During the period 1923-24 to 1947-48, total growth rate of production of rice was only 13 per cent. Again during the last period of nine years 1938-39 to 1947-48 the growth rate was as poor as 4 per cent. Further, during the 15 year period 1923-24 to 1938-39 rape, mustard and sugarcane had a growth rate of only 3 percent. But it was the production of Jute only which could maintain an increasing trend and its total growth rate was 68 percent during this period.

Although there was fluctuation in the production and area sown in case of rice, but the productivity of rice maintained a continuously raising trend during the period 1933-34 to 1947-48.

During the pre-independence period, Assam exported a good quantity of rice regularly besides meeting her own requirements. On the whole, Assam was a net exporter of food grains even after considering the large quantity of wheat import by the state.

Thus considering all these previous positions it can be concluded that during the pre-independence period, agriculture in the state was more or less stagnant, having all the traditional and orthodox approaches applied into it.

Industrial development in Assam was centered on Tea, Petroleum, Coalmining, Cottage and Village industries during the pre-independence period. In spite of having huge development potential, the industrial sector in the state could not develop at a satisfactory rate due to various constraints faced by it. Let us now look into the condition of these above mentioned industries before independence.

Establishment of Tea Industry was one of the greatest land marks in the economy of Assam during the British period. In 1833, the first tea garden was established in Assam by the Government. Just after this, various private companies and enterprising individuals were induced to take up tea plantations in the state. Initially, a huge amount of Capital, mostly from British, was invested in this tea industry. A sum of Rs. 63.8 million was invested in the plantation sector of the state in the decade ending 181 as against an investment of Rs. 13.8 million in the preceding 12 years. Again a sum of Rs. 110.9 million was invested in tea industry during the next two decades. Further, under the waste and settlement Rules, the Government also encouraged the growth of tea industry by supplying sufficient land for tea plantation under very liberal terms. In Assam proper, the area of waste lands settled with planters increased from around 3 lakh acres in 1871 to 6.4 lakh acres by 1901. Further, with the aim of driving the farmers into the plantation jobs, the Government also raised land revenues. With the same intention, tea garden labourers were also offered comparatively higher wages including other facilities like concessional rice, free fuel and grazing land and a plot of land for private cultivation, etc.

During the period 1884 to 1900 there was an increase of 92 per cent in the area under tea plantation. But since the turn of the present century, i.e., during the fifty years period between 1900 and 1950 the acreage increased by 48 percent only. Total number of tea garden in Assam gradually increased from 906 in 1924 to 1120 in 1938-39. The yield of black tea in Assam increased from 99 thousand tonnes in 1933 to 118 thousand tonnes in 1938. Average number of labour force, daily engaged in these tea gardens in Assam was 497106 in 1942, 486250 in 1938 and 489425 in 1938.

Tea industry, being a leading industry in the state, encouraged the growth of several ancillary industries in Assam like plywood, saw mills, coal mining, general engineering works and also river transport service and railway transport. Further, as good as 12 to 15 percent of the total population of Assam are dependent on this tea industry.

Although the tea industry of Assam was a leading sector during those days but its role in the economy of the state was very limited as the growth stimuli produced by the industry was very small and confined within the modern sector only.

Further, most of the tea gardens were owned and managed by British companies. Percentage of area under Indian owned tea estates was only 16 per cent of the total area under tea in Assam. Again majority of the owners of India owned tea gardens were non-Assamese. Naturally out of the huge earning of these tea industries in Assam Only a part of it was used for financing the expansion of area sown and the remaining major part of the earning was remitted outside the state as dividends.

The tea industry in Assam also did not lead to the state as the European owners and managers depended mostly on the consumer goods imported from abroad or other parts of India. Moreover, tea industry in Assam helped very little in the growth of managerial quality and entrepreneurship in the state as very few people of the locality were given the superior managerial posts in these tea gardens.

Petroleum Industry : During the pre-independence period petroleum industry was also developed in Assam by the British rulers. In Assam, Oil was discovered in 1825. But the commercial production of petroleum began in 1899 after the formation of Assam Oil Company under the patronage of the Assam Railway and Trading Company. With the taking over of the management of A.O.C. by the Burma Oil Company in 1921, the petroleum production in Assam was increased to a great extent. The production of petroleum thus gradually increased from 11 million gallons in 1918 to 24 million gallons in 1926, 32 million gallons in 1928, 56 million gallons in 1931 and then to 65 million gallons in 1946.

Assam, being a monopoly producer of petroleum during the pre-independence period, earned a good amount of Government revenue from the production of petroleum apart from saving a good amount of foreign exchange for the country.

But as the petroleum industry was highly capital intensive thus its contribution towards the development of the economy of state was very little. This industry provided employment to a limited number of persons of which local people were very few in number

Besides, the petroleum industry was also owned and managed by foreign interests and thus major portion of the profit was repatriated keeping only a little portion of profit for reinvestment in Assam. A group of subsidiary industries like petro-chemical complex which could have been developed in the state side by side the petroleum industry, did not come up due to lack of capital, entrepreneurship and Government patronage.

Coal mining : During the British period coal mining was also undertaken in Assam. Coal was discovered in Assam as early as 1825. But the commercial exploitation of coal started only after the development of railways in Assam. Most of the coal fields in Assam are situated in Makum area which contained 80 to 85 percent of the total known Coal reserves. Coal reserves are also situated in the Khasi and Jantia hills. Although Assam had a huge amount of Coal reserve but only an insignificant portion of the reserve was exploited during the pre-independence period. Out of the total amount of Coal, explored in the state, the maximum portion was utilised by the tea gardens and the railway system of Assam.

Factory industries : During the pre-independence era, the progress of factory industries was very slow, irregular and unbalanced as a very few number of new factories were added in different years. Among the total number of new and old registered factories, tea factories formed the largest number in the state. Those other factories registered in Assam were rice mills, general engineering workshops, Oil mills and Saw mills, etc.

Cottage and Village industries : During the pre-independence period, a good number of Cottage and Village industries were existing in a precarious condition due to lack of finance, market and government patronage. Moreover, these cottage and village industries has to close down their business due to unequal competition from the cheap manufactured good both from abroad and other parts of India.

Later on, the Government realized the importance of their industries as they provide scope for employment to a huge number of populations both seasonally and throughout the year. Thus a separate Department of Industries was created in 1981 for the promotion and growth of indigenous industries in Assam. This department took many important measures for building up an infrastructure for the development of these village and cottage industries. These include establishment of Gauhati weaving school, shillong weaving school for imparting industrial training, Titabar Muga Silk-worm Station for experimentation and a Government emporium for promoting the sale of cottage products at Gauhati.

All these efforts on the part of the Government created a congenial atmosphere which resulted in the growth of many handloom weaving and sericulture industries in Assam. In 1945, it was observed that "handloom weaving and sericulture which are the most important cottage industries of the province, have developed considerably during the last 20 years. This development is particularly due to the grant of subsidies by the Government of India since 1935-36. During this period, the number of fly-shuttle looms introduced by the Department through demonstration staff has more than doubled, the production of handloom fabrics has largely increased and the weavers have been enabled to earn larger income".

But the condition of other traditional cottage industries deteriorated during the pre-independence period due to lack of attention paid by the Government towards these industries.

Development of infrastructure, viz,. ; transport and communication, generation of electricity etc. was in a very poor shape before the British rule in Assam. With the interest of developing tea industry, petroleum and the coal mining, the British Government did a lot in providing a modern transport system in Assam. Although inadequate, the progress made in the case of different types of transport-river, road and railway during the British regime was pioneering in nature. Let us now look into the development of various types of infrastructural facilities in Assam during the pre-independence period.

River transport : From the very early part of their rule the British authorities started to develop river transport in Assam considering the constraints in the development of roads and railways. The East India Company started a steamer service in 1847. Later, two more private companies were formed to provide regular commercial services to Assam in 1864 these were--- the Indian General Navigation Company and the Rivers Steam Navigation company. Afterwards, these two companies were joined together to form the Joint Steamer Companies which ultimately maintained steamer services in the state throughout the British period. The steamer services helped the state in exporting bulky products like tea, Jute, timber etc. and also in importing other consumer goods at a very low transit cost.

Railways : In the pre-British period, there was no railway system in Assam. With the growth of tea gardens in the interior places of the state, the need for a well developed railway system was felt for providing cheaper means of transport to these tea gardens. In 1881, the Assam Railways and Trading company was formed by the British and the first railway line from Dibrugarh steamer ghat to Jaipur road was inaugurated in the next year. Two more companies--- Jorhat provincial Railway and Tezpur-Balipara Railway were also set up in 1885 to cater the need of transport for the tea gardens of Jorhat and Tezpur area.

In 1892, the Assam Bengal Railway was formed to provide railway connection to Assam with the rest of India. In 1902, Dhubri was connected with Calcutta by the extension of the Eastern Bengal Railway line. Again in 1909-10, Amingaon was connected with Calcutta through Dhubri. During the period 1896 and 1933 there was rapid expansion of railway lines in Assam.

Roadways : Rivers in Assam helped the state to develop the cheapest means of transport, i.e., the river transport. Thus the British rulers, in the very initial stage of their rule neglected the development of road. So the Public Works Department (P.W.D.) of the Government was established in 1868 for the construction of road in Assam. Again in 1880 Local Boards were formed for the improvement of roads in rural areas of the state.

After the First World War, Government realised the need for better roads and thus a Road Board was constituted at the provincial level in 1926-27. Again in 1927, a new fund-Tea Rates Road Fund was created by imposing additional local rates on the tea lands for improving roads in the state.

In 1929-30, two more funds were created at the national level for the developments of Roads in British India. These were-- a Special Reserve Fund and a General Road Development Fund. During the period 1929-30 to 1937-38, financial assistance to the extent of Rs. 21.8 lakh from the General Fund and Rs. 36.9 lakh from the Reserve Fund was sanctioned in Assam.

Thus, the British rulers spent only a small amount for the construction of roads which was the main reason behind the backwardness of road transport in the state.

Development of Power : From the very beginning, Assam had a huge potentiality for the development of power. But the utilisation of these potentialities both by the Government and the private sector was very minimum during the pre-independence period.

Generation and supply of electricity in those days was managed by private companies under the license issued by the Government. The first electrical undertaking in the state was installed at Tezpur in the year 1913 for supplying electricity to the people. Similarly, more electrical installation was established in different towns of Assam for the same purpose. Later on, some of these companies were closed down.

Installed capacity of electricity was very low in Assam in comparison to other states both in absolute and relative terms. In 1939, Assam generated only 0.1 per cent of total electricity generated in British India. In Assam, the per capita generation of electricity was as poor as 0.26 Kwh as against 7.27 Kwh in British India

Banking and other institutional financing facilities are an important part of economic infrastructure of a region. Rapid economic development calls for rapid expansion of banking facilities. The growth of banking and institutional credit system in Assam has been tardy. The availability of banking facilities in Assam was quite inadequate few years back. Over the past few years, there had been a rapid expansion in the number of bank offices in Assam as in other parts of the country. Thus it was only during the recent past that the position of Assam in this respect showed some improvement.

As on June, 1969, Assam had only 74 offices of scheduled commercial banks. Thus there was one bank office for every 188 thousand persons in Assam as again the national coverage of 65 thousand persons per bank office in the same year. The following table shows the growth of bank offices and other progress of commercial banking in Assam and the country as a whole over the period 1970 to 1995. (See Table No 11.1)

The table no. 11.1 reveals that the number of commercial bank offices in Assam increased from 95 in June, 1970 to 214 in 1975. This number again increased to 466 in 1980 and then to 507 in 1982. During 1980-81 (July, 1980 to June, 1981) a total of 41 new bank offices were opened in the State of which 33 were established at Unbanked Centre. Total number of bank offices located in the rural areas of the State stood at 283 at the end of June, 1981.

In 1970, a bank office, on an average covered about 153 thousand persons in Assam as against only 53 thousand persons in all-India. But in 1977, one bank office covered nearly 51 thousand persons in Assam as against only 25 thousand persons in all-India. Again with the expansion of new branches of commercial banks in the State the population covered per bank offices in Assam declined to 41 thousand persons in 1980 as against only 17 thousand persons for all India . Thus, at the end of 1982, a bank office, on an average, covered about 35 thousand persons of the State as against only 17 thousand persons in all India. Thus, the State was lagging much behind in this respect compared with position of the country as a whole.

During 1981-82 (July, 1981 to June, 1982) a total of 55 new bank offices were opened in the state, of which 39 offices were opened at under banked Centres. The total number of new offices opened during the corresponding period of the previous year was 41. At the end of March, 1982 the rural areas of Assam had as many as 306 bank offices which constituted nearly 54 per cent of the total.

The new Branch Licensing policy announced by the R.B.I. for the three-year period April 1982 to March 1985 aimed to achieve by the end of March, 1985 one bank office on an average for a population of 17 thousand in the rural and semi-Urban areas of the country on the basis of the 1981 Census. This new policy created much impact in Assam as the State was relatively under-banked state.

During the eighties, the banking infrastructure in Assam has expanded considerably. total number of branches of commercial banks in Assam has increased from 507 in December, 1981 to 1094 in June, 1989 and then to 1227 in march, 1992 and finally to 1228 in March, 1995. Thus, during the eighties, the state saw an impressive 148 per cent growth in the number bank branches as against 82 per cent growth witnessed at all India level during the same period.

Again the total number of rural branches of commercial bank in Assam was 283 in 1981 and then it increase to 826 in March, 1990 which accounted about 71 per cent of the total branches of commercial banks in the state. Again the number of bank branches located in urban and semi-urban areas was of the order of 112 and 216 respectively accounting for 10 per cent and 19 per cent respectively of the state total.

As a result of such rapid expansion of bank branches, the average population covered per bank office in the state has gone down from 31 thousand in December, 1981 to 18 thousand in June, 1989 and then to 17 thousand at the end of March 1990 and then slightly rose to 18.2 thousand at the end of March, 1995. However, despite improvement of the position over the years, Assam continued to lag behind the all India average which worked out to be 12 thousand population per bank office as at the end of March, 1990 and then slightly rose to 13.5 thousand population per bank office at the end of march, 1995.

Again the total number of public sector bank branches in Assam has also increased from 67 in June, 1969 to 823 in September, 1996 which accounted nearly 67.0 per cent of the total bank branches of the State as compared to that of 70.15 per cent for all India.

Growth of deposit, employment of Credit and Credit-deposit ratio of commercial bank in Assam

The volume of deposits and deployment of credit (advance) by scheduled commercial banks in Assam started to show an increasing trend due to gradual expansion of banking facilities in the state. It can be seen from the table (no. 11.1.) that the deposits with the scheduled commercial banks which was only Rs crores in 1970 increased to Rs. 405 crores in June 1973, to Rs. 180 crores in 1977, to Rs. 445 crores in 1981 and then to Rs. 3929 crores in March1995. Likewise, deployment of credit by these banks also grew from just Rs. 15 crores in June 1970 to Rs. 50 crores in June, 1975, to Rs 81 crores in June 1977, to Rs. 209 crores in December, 1981 and then to Rs. 1495 crores in March, 1995. It is also observed that between March 1992 and March 1982, the volume of deposits with the banks displayed an increase of 62.1 per cent while the rise in the deployment of credit over the same period was only 25.6 per cent.

Although nearly 58 per cent of the state�s bank offices were located in rural areas, the share of these offices in the aggregate deposits and gross bank credit have been found to be very poor being only Rs 86 crores (19.3 p.c.) and Rs.41 crores (or 19.6 p.c.) respectively as on March 1982.

Credit-deposit ratio : The credit-deposit ratio of commercial banks in Assam was satisfactory during the period of first and Second five Year Plans. Then there was decline 1966, the credit-deposit ratio of Commercial banks increased to 45.8 but again fell to 34.6 during 1968. But after the nationalisation of commercial banks in 1969, the credit-deposit ratio in Assam started to increase. It can be seen from the table (no. 11.1) that the credit-deposit ratio of commercial banks in Assam which was only 39.2 in June, 1970 as against 79.2 for all-India, gradually increased to 46.9 in June 1981, to 55.4 in December, 1989 as against all-India ratio of 60.7. This credit-deposit ratio of commercial banks in Assam again fell down to only 38.0 in March 1995 as compared to all India ratios of 53.7. this shows that the credit-deposit ratio of commercial banks in Assam was all along poor in comparison to that of all-India ratio.

The table (no. 11.1.) further shows that the deposit of scheduled commercial bank per office increased from Rs. 42 lakhs in June 1970 to Rs. 87 lakhs in December 1991 and then to Rs.320 lakhs in March 1995. The credit of scheduled commercials banks per office which was only Rs. 16 lakhs in June 1970 gradually increased to Rs.41lakhs in December 1981 and then increased to Rs. 121 lakhs in March 1995.

The table (no 11.1) further reveals that the per capita deposits of scheduled commercial banks in Assam, which was only Rs.26 in June 1970 as against Rs.98 for all-India, gradually increased to Rs.224 in June 1987, as against Rs. 644 for all-India and finally increased to Rs. 1754 in March 1995. Again the per capita credits of scheduled commercial bank which was only Rs. 10 in June 1970 as against Rs 78 for all-India, gradually increased to Rs. 105 in June 1981 as against Rs. 441 for all-India and then to Rs.667 in March 1995.

Thus, the difference between the per capita deposit and per capita credit in Assam was quite higher than that of all-India resulting in poor credit-deposit ratio of commercial banks in Assam.

Sectoral deployment of credit : An analysis of sectoral deployment of credit in Assam, as available up to December 1980, reveals the dominance of industry sector in sharing bank credit. Out of the total outstanding bank credit of Rs. 225 crores in December, 1980 the industry sector alone shared about Rs. 105 crores (or 46.5 per cent). Agricultural sector with an outstanding credit of Rs. 50 crores (or 22.4 per cent) occupied the next position. The share of other sector was as follows : Trade (17.3 per cent), personal loans, including consumer durables (2.4 per cent) and all other (4.3.per cent).

In recent years, the data related to occupation wise percentage distribution of outstanding credit of scheduled commercial banks reveals that in Assam., industrial sector occupies the top most position with 38.1 per cent share in the total outstanding credit as at the end of June, 1989 followed by agricultural sector (25.1 percent) and trade (16.3 per cent). The share of tea processing and small scale industry sector was 10.7 per cent and 13.2 per cent respectively of the total deployment of credit. Deployment of credit to other sectors was as follows transport operations 7.3 per cent, personal loan and professional services 7..1 per cent and other activities 6.1 per cent.

The Reserve Bank of India introduced the "Lead Bank Scheme" in December 1969 which was a Co-ordinated programme for setting up of adequate banking facilities in the underbanked districts of the country. Under this scheme districts were allotted to the State Bank group (State Bank and its 7 subsidiaries), the 14 nationalized banks and to other India banks. A lead bank would be responsible for taking, a leading role in surveying the credit needs, development of branch banking and extension of credit facilities in the districts allotted to the three major banks, viz, the State Bank of India, the united Commercial Bank (UCO Bank) and the United Bank of India, the districts of Nagaon, Sibsagar, lakhimpur and Cachar were allotted to United Bank of India while all the hill districts were allotted to the State Bank of India. With the introduction of lead bank scheme in Assam the expansion of banking facilities through the opening of new offices as well as through functioning of existing offices in a more intensive manner was greatly facilitate.

In recent years, regional rural banks have been se up all over the country with the objective of meeting the credit needs of the under-privileged sections of the society, residing in rural areas. These Regional rural Banks (RRBs) have been receiving a high degree of importance and attention in the rural credit system.

Considering the gross absence of banking facilities in the rural areas of the country, the Reserves Bank of Bank of India in consultation with the Central Government, State Governments and some major nationalized sponsored banks, had set up some Regional Rural Banks in the late seventies with a view to elevate the economical status of the rural poor as well as to inculcate a habit of saving among the rural masses.

As per the recommendations of the Working Group on Rural Banks, the regional rural banks were established for supplementing the commercial banks and co-operatives in supplying rural credit. The main objective of regional rural banks in India is to advance credit and other facilities, especially to small and marginal farmers, agricultural laborers, artisans and small entrepreneurs in order to develop agriculture, trade, commerce, industry and other usual productive activities in different rural areas of the country.

The share capital of RRB is subscribed in the following manner as the Central government-50 per cent, the State Government concerned � 15 per cent, the sponsoring commercial bank-35 per cent. The regional rural banks are maintaining its special character as their area, of operation is very much limited to a definite region, grant direct loan to rural people at a concessional rates and receive subsidies and concessions from the Reserve Bank and the sponsoring bank.

The concession granted by the Reserve Bank of India is : (a) allowing RRBs to maintain cash reserves ratio at 3 per cent and statutory liquidity ratio at 25 per cent ; (b) providing refinance facilities to RRBs through NABARD.

In the mean time, the regional rural banks have extended this network throughout the country to a considerable extent. At present (in 1995-96), there are 196 regional rural banks operating in 23 states with nearly 14,516 branches. Till June, 1988, these RRBs have been lending annually nearly Rs. 600 crores to the rural people and more than 90 per cent of the loan has been advanced to the weaker sections.

In the late seventies some regional rural banks, were established in Assam under the sponsorship of major nationalized commercial banks. Again during the eighties another two RRBs were set up in Assam. In Assam number of such banks opened up to June, 1982 was only 3, namely, the Pragjyotish Gaonlia Bank, the Lakhimi Gaonlia Bank, and the Cachar Gramin Bank which had altogether 63 branches spread over 6 districts. During January 1982 another regional rural bank namely, "Longpi Dehangi Rural Bank" was opened with headquarters at Diphu which would cater to the credit needs of rural areas of the two hill districts of Assam.

Thereafter, another rural bank, namely, Subansiri Gaonlia Bank was established in the State. Under this Subansiri Gaonlia Bank, the responsibility to create rural banking facilities in Dhemaji, Dibrugarh and Tinsukia districts was assigned.

Out of these five regional rural banks (RRBs) established in the state, the four RRBs, viz., Pragjyotish Gaonlia Bank, Lakhimi Gaonlia Bank, Cachar Gramin Bank and Subansiri Gaonlia Bank were set up under the sponsorship of United Bank of India under public sector and only Longpi-Dehangi rural Bank was set up under the sponsorship of State Bank of India. As per the 6 (1) section of Regional Rural Banks Act, 1996, the share capital of the RRBs in Assam is subscribed in the following manner-Central Government-50 per cent, Sponsor Bank (UBI and SBI)-35 per cent and the Government of Assam-15 per cent. Initially, the Reserve Bank of India in Consultation with the Central Government, the State Government and the Sponsor banks (UBI and SBI) set up these five RRBs in Assam. Accordingly, these five RRBs covered all the 23 districts of the State. The main objectives of these RRBs were to improve the economic conditions of poor people living in rural areas and to inculcate the saving habit among the general masses living in rural areas.

Assam has at present 5 regional rural banks covering all the 23 districts of the State. Till March, 1982 the regional rural banks had a total of 89 branches located in the rural and semi-urban areas of the State as against 63 branches in June, 1981. Total volume of deposits and credit by these banks stood at Rs. 7.21 crores and Rs. 4,000 crores respectively in March, 1982 as against Rs. 2.18 crores and Rs. 1.45 crores respectively in December 1980.

Total number of branches of RRBs in Assam has gradually increased to 137 in January, 1983 and then to 321 at 4 the end of June, 1986. Total volume of deposits and credits of these regional rural banks at end if June, 1986 were Rs. 38.4 crores and Rs. 27.5 crores respectively. The following table shows the detail information about the RRBs of Assam at the end of the June, 1986.

The above table reveals that as on June, 1986 Pragjyotish Gaonlia Bank with its head office at Nalbari had 134 branches covering 7 districts of the State. Lakhimi Gaonlia Bank with its head office at Golaghat had 80 branches covering 3 districts of the State. Cachar Gramin Bank after establishing its head office at Silchar opened 40 branches covering 2 districts of the state. Longpi-Dehangi Rural Bank with its head office at Diphu had 35 branches covering 2 districts of the State. Lastly, the Subansiri Gaonlia Bank after establishing its head office at North Lakhimpur had 32 branches covering 2 districts of the State. Moreover the table further shows that the credit- deposit ratio varied between 60 to 100 per cent. Moreover, the average credit-deposit ratio of all the five RRBs of Assam was 71.5 per cent at the end of June, 1986.

In recent years, these RRBs have established more branches in their area of operation and the deposit and credit structure have also been changed. The following table shows the recent position of these regional rural banks in Assam.

The above table reveals the development of regional rural banks in Assam. Total number of branches of these five regional rural banks in Assam has increased from 321 in June 1986 to 382 in December in 1989 and then to 405 in March, 1993. The volume of aggregate deposits with these banks was Rs. 38.40 crore in June, 1986. Then this aggregate deposit rose from Rs.55.91 crores in December, 1987 to Rs. 74.46 crores in December 1988 and then to Rs. 96.12 crores in December, 1989. The rate of rise in December 1988 and then to Rs. 96.12 over December 1988 and about 71.9 per cent over December 1987. Again, the aggregate deposit of this RRBs in Assam rose from Rs. 121.31 crores in December, 1991 to Rs. 146.58 crores in December, 10992 and then marginally to Rs. 272.11 crores in March, 1995 showing a growth rate of 70.4 per cent in December, 1994 over December 1993 and only 6.9 per cent in March, 1995 over December, 1994.

Likewise, the gross bank credit by these RRBs also increased from Rs. 27.50 crores in 1986 to Rs. 63.73 crores in December, 1988 and then to Rs. 78.56 crores in December, 1989, registering a growth rate 23.2 per cent in December 1989 over December 1988 as against 35.4 per cent growth recorded in December, 1988 over the previous year. Again the gross bank credit advanced by these RRBs has also increased from Rs. 96.61 crores in December, 1991 to Rs. 110.69 crores in December, 1992 and then to Rs. 151.35 crores in March 1995 recording a growth rate of 19.6 per cent in December, 1994 over December 1993 and only 6.2 per cent in March, 1995 over December, 1994.

Moreover, the credit-deposit ratio of these regional rural banks in Assam increased from 71.5 per cent in 1986 to 85.5 per cent in 1988 and then declined to 56.6 per cent in March, 1995.

Thus it is observed that in recent years, the activities of the regional rural banks in Assam have been progressing at a satisfactory rate. Thus, these RRBs are setting up branches in under banked regions and providing facilities for collection of deposits and advancing credit among the rural people of Assam and thereby providing adequate incentives to the various sectors of the economy of the State. Therefore, with the development these regional rural banks in Assam the rural banking system of the State has advanced considerably in recent years.

The Guwahati divisional Office of the Life Insurance Corporation of India (LIC) extends its area of operation to all the seven State of the North Eastern Region. This Corporation is not only introducing business by accepting new life insurance proposals but also investing a good amount of its fund on various investment projects in the State and also offering loans to various organisations in the State.

In 1992-93 the Guwahati, Silchar, Jorhat and Bongaigaon Divisions of LICI introduced 2,28,335 policies with the assured sum of Rs. 915.98 crores.

The LICI is also playing a praiseworthy role in respect of investment and credit in the State. Every year a sizable amount is invested by the Corporation in the State Government securities, Electricity Board Bonds, Financial Corporation�s share/bonds etc. besides issuing loans to State Electricity Board, Government housing schemes, State Road Transport Corporation etc. The following table shows the volume of investment and credit of the LIC in Assam under different heads in 1992-93.

The table given above reveals that total amount of investment of LICI in Assam in 1994-95 was to the extent ,of Rs. 24510 lakh.

The Industrial Finance Corporation of India is an important Financial institution offering industrial credit to various industrial projects in the country. This Corporation (I.F.C.I) is having a branch office at Guwahati and also offering loans to various industrial projects in the State. The following table shows the amount of financial assistance sanctioned by (I.F.C.I) to industrial projects in Assam During different plan periods.

Thus, it is clear that during the First Plan, I.F.C.I sanctioned financial assistance of Rs.45 lakhs to industrial projects in Assam. The assistance increased to Rs. 165.29 lakhs during the Second Plan and to Rs. 363.00 lakhs during the Third Plan in Assam. During the annual Plans assistance was Rs.78.50 lakhs only. During the Fourth Plan the net financial assistance from I.F.C.I to Assam came down to Rs. 203.00 lakhs and to Rs.249.00 lakhs in the Fifth Plan. Thus the aggregate assistance from the I.F.C.I. to Assam was Rs. 1103.79 lakhs.

Further, annual average assistance from I.F.C.I. during the First Plan was only Rs. 9 lakhs, then it increased to Rs. 33.85 lakh and Rs. 72.6 lakh during the Second Plan and Third Plan respectively and then it falls to Rs. 26 lakhs, Rs. 40.8 lakhs and Rs. 49.8 lakhs during Ad-hoc Plan, Fourth Plan and Fifth Plan respectively.

The commercial banks in Assam are playing an important role for the economic rejuvenation of the State�s economy. In the early period, commercial banks in Assam played a little role in the development of the economy of the State. After the nationalisation of commercial banks and particularly after the expansion of branches, commercial banks have been playing a very responsible role in the upliftment of the economy of the State. The following are the main role of commercial banks in Assam�s economy:

i. Commercial banks in Assam are mobilising a good amount of savings from the people of the State through its various saving schemes.

ii. Banks in Assam are also advancing a good amount of loan to the various sectors of the State leading to the growth of the State�s economy.

iii. Commercial banking facilities in Assam are also helping in the growth of business and trade in the economy of the State.

iv. Commercial banks in the State are providing liberal finance to farmers leading to the development of the agricultural sector in Assam. But the amount of loan advanced by banks to this sector is not yet sufficient.

v. Banks in Assam are promoting large, medium and small industries in the State providing them with sufficient financial assistance. About 38.1 per cent of the total outstanding credit in Assam is advanced to the industry sector alone.

vi. Commercial banks are also offering financial aid to the export sector of the State leading to the growth of export of various goods.

vii. Banks in the State are also helping the small businessman and the retailer by advancing loans leading to the self employment of huge number of people in the State.

viii. Commercial banks in the State are also helping financially new entrepreneurs, men with ability but having no resources of their own.

ix. Commercial banks in Assam are playing an important role in rectifying regional imbalance of the State by opening branches in backward areas although these branches are not remunerative for some years. This is no doubt an important step towards developing the backward areas of the State both agriculturally and industrially.

In conclusion, we can say that the commercial banks in Assam are playing a very important role for the upliftment of the economy of the State. But what has been done is not sufficient for the State. Thus the Commercial banks will have to undertake more responsibility for the economic upliftment of the State�s economy in future.

In a developing economy, the study of price trends is very important as the prices influence the allocation of economic resources and affect the level as the prices influence the allocation of economic resources and affect the level of income, cost of production and all other economic variables in an economy.

The price situation in Assam is essentially a manifestation of the all-India phenomenon of rising prices. But the upswing of the price level in the State has been more pronounced due to certain factors like rapid growth of population, transpor5t bottlenecks and a virtual dependence on outside supply for the essential consumer goods.

In Assam the trend of price recorded a continuous rising trend since the commencement of plan. Thus the price situation in Assam in the context of all India phenomenons of rising prices continued to cause anxiety.

The table given above reveals that the index number of wholesale prices in the State (Base 1953=100) increased from 103.8 in 1955 to 131.2 in 1960 and then to 176.5 in 1965. But the index number of wholesale prices for all-India increased from 92.5 in 1955 to 124.9 in 1960 and then to 176.5 in 1965. But the index number of wholesale prices for all-India increased from 92.5 in 1955 to 124.9 in 1960 and then to 165.1 in 1965. During the period 1953-65, the general price level rose by 76 per cent in Assam as against the increase of 65 per cent in all India. The wholesale price index then jumped to 242.5 in 1969, to 355 in 1976, in 1990, 1405.0 in 1991 and then to 1779 in 1994. During the period 1965-82, the general price level in Assam is increasing at a very high rate since the Third Plan onwards.

One of the encouraging features of the State�s economy in 1982 was that the price rise was contained to reasonable extent during the year. The upsurge in prices, which experienced considerable deceleration during 1981, exhibited further deceleration during 1982 as evident from the movement of wholesale price indices. The annual average wholesale price index displayed a rise of about 5.7 per cent in 1982 over 1981 as compared with a rise of about 6.7 per cent in 1981 over 1980 and about 17 per cent in 1980 over 1979. Item wise, wholesale price index for food items increased by 2.9 per cent in 1982 over 1981. The main contribution to the increase in general index in 1982 thus, resulted from 13 per cent increased in the index of non-food items. In the previous year, the contribution to the total increase was shared equally by both the groups (food and non-food).

In recent years, the wholesale price index in Assam (base 1953=100) has been increasing at a rapid rate. Accordingly the wholesale price index in Assam rose from 875.0 in 1985 to 1229.0 in 1990 showing an increase the price level by 40.4 per cent during 1985-90. Again the wholesale price index in Assam (Base 1953=100) has further rose to 1625.0 in 1993 and then to 1779 in 1994 showing an annual rate of inflation to the extent of 4.2 per cent in 1993 and 9.47 per cent in 1994 over the previous year.

Item wise, wholesale price index for food items increased by 10.9 per cent in 1991 over 1990. The main contribution to the general index in 1991 haw resulted from 19.7 per cent increase in the prices of non-fo0d items. Thus due to increase in the prices of non-food articles, the general price level in Assam has increased considerably in recent years.

In general, the price situation in Assam reflects more or less faithfully the all India phenomenon. However, the price situation sometimes happen to be more sensitive and uncertain in Assam due to a variety of factors like bottleneck in the transport sector, fast expansion of demand, diverging trend in agricultural production, heavy dependence on outside sources of supply of most of the essential consumer goods etc. Price situation in Assam therefore, requires constant vigilance in the shape of maintenance of uninterrupted supply of essential commodities, effective check on malpractices like hoarding and gearing up of the public distribution system throughout the State.

Behaviour of prices has no uniformity over time and space. Price of same commodity differs at different points of time at any particular place and from place to place at any particular point time due to various reasons. Variations in demand and supply cost of production and marketing taxation, trade practices, marketing and transportation facilities of different commodities at different times. Some times it is quite difficult to compare prices of even the same commodity in different places due to difference in quality and variety. Finding out the inter-state differences in costliness in much more difficult. The usual consumer price index numbers denote only the movement of consumer price at any particular place or state at different points of time and not between different place or States.

Cost structure in Assam is very high. This is due to existence of higher price level in the State in comparison to other States.

Shri K.K. Bhatia, Director of Labour Bureau Government of India in an article on �Comparative Costlines-a New Dimension to consumer Price Index Number� (Published in the Labour Bureau�s Silver Jubilee Souvenir 1940-71� issue) has discussed comparative cost of living and presented two tables worked out on two different methods, viz; (1) Common Commodity Method, and (2) Standard Basket Method, showing preliminary estimate of comparative costliness of selected Centres of different State of India with Delhi as the Base. One of thee two tables, which is basing on standard Basket Method is given below.

From the table given above (NO. 13.2), it is seen that the index according to Standard Basket Method for Digboi (Assam) is higher by 18 per cent over Delhi. This index for Digboi is again the Second highest in the country following Bombay. If Digboi is taken to represent Assam, and the average of the 16 centres to represent India, then according to this index (Standard Basket Method) it is 21 per cent higher. It may be noted that those indices are meant for working class population only.

Further, for some minimum consumption standard the per capita annual consumption expenditure of rural population in Assam is Rs. 233 as against Rs. 170 for India as a whole. In Assam (Guwahati) the prices of most essential commodities are generally higher than those in other centres of other centres of other Indian States.

Taking all these into consideration, broadly speaking it is felt that the consumer prices level in Assam may be taken to be about 20 per cent higher than all India average. The cost structure in Assam is thus very high and this has raised the cost of all the projects under different plans.

Price situation in Assam happens to be very much sensitive and uncertain. The State is experiencing an upsurge in price since the introduction of planned development process. The basic causes responsible for this increasing trend in prices are the steadily accelerating tempo of investment programme from year to year, insufficient production in relation to demand, deficit financing in the Government sector, expansion of bank credit in the private sector, fast expansion of demand, diverging trend in agricultural production, heavy dependence on outside sources of supply of most of the essential consumer goods, bottlenecks in the transport sector and substantial hoarding etc.

Thus the price rose in Assam as a result of either rise in demand or fall in supply or both.

1. Increase in Money Supply: Increase in money supply within the state is a very important reason behind the continuous rise in price in the State. Central assistance and overdrafts from Reserve Bank of India, which were the two major inflationary sources for collecting resources for financing plans in Assam, created some impact on the price level of the State. The growing amount of central assistance in the form of loans and grant from the Planning Commission and over-drafts from Reserve Bank raised the inflow of money supply within the State. But as all this amount were not productively utilised and as Assam had to spend much on the preparation of basic economic infrastructure within the State, production could not be raised significantly. Thus, increase in production lagged behind the increased in money supply, which tended towards serious inflationary spiral of price level in Assam.

2. Heavy Investment Expenditure: Investment expenditure in the public sector is increasing day by day in Assam with the growth of plan expenditures resulting in excessive demand for market goods and services which ultimately created an excessive rise in prices in the State.

3. Higher income elasticity of demand: Income elasticity of aggregate demand was more in the case of Assam at the initial stages of development. This was quite natural in a poor state like Assam where the marginal propensity to consume of the people of the State is quite high. Thus any increase in money income is always putting a heavy pressure on the demand side of the market aggravating the already increased price level in the State.

4. Budget Deficits: The State Government is maintaining deficit in its budget every year. Although in certain years revenue budgets were balanced but the maintenance of deficits in its capital budget had experienced inflationary effect. Thus the budgetary deficits have had a pronounced inflationary effect.

5. Growth of Population: Population pressure in Assam is very heavy. Census data show that Assam has one of the highest demographic growth rates in the country, the growth in the decade 1961-71 and 1971-81 being 34.95 per cent as against 24.80 per cent for all India. This increase in the size of population brought about rise in prices particularly in the prices of food articles.

6. Decline in Production: In Assam there has been from time to time setbacks to agricultural and industrial production, which are making the matters still worse. Assam is unfortunately one of these few states, which are every now and then visited by natural calamities such as floods and droughts. Thus the agricultural and industrial production of the State are facing setback every year due to the occurrence of natural calamities which is creating an abnormal increase in the prices of essential goods in the State.

7. Hoarding and Black Marketing: In Assam, there is large scale hoarding and black marketing of essential goods by the speculative traders and black marketers, which resulted increase in the prices of these goods. In this respect, black money is playing an important role in speculation and hoarding.

8. Dependence on outside sources: Assam is depending heavily on outside sources of supply of the essential consumer goods. Thus any disruption of supply of these goods from outside sources raises their prices.

9. Transport Bottleneck: Bottlenecks in the transport sector are also responsible for the increased price level in Assam. During the summer season, transport sector in Assam faced setbacks frequently due to floods leading to increase in the price level in the State.

10. Changing policy regarding control: The changing policy of the Government of Assam in connection with controls on prices and goods has been aggravating the problem of soaring prices. Partial controls over the prices and supply of essential goods create black markets and thus raise effective prices of the consumer goods in the State.

Price rise in Assam is to be checked by applying a package of measures directed towards increasing supplies of goods and restraining excess demand. The following measures adopted by the Government to control the level of price in Assam are worth mentioning.

Firstly, steps were taken by the State Government to increase the supply of food grains through larger imports from other States, internal procurement, increased number of fair price shop, and greater releases of stocks in order to secure a better balance between aggregate monetary demand and overall supplies of essential consumer goods especially food grains. Other measures adopted were the ban of forward trading in food grains, restriction on the inter-state movement of food gains, fixation of minimum support prices for increasing availability of food grains.

Secondly, effort was made for increasing agricultural production in the State, which included creation of additional capacity, minimisation of the impact of foreign exchange shortage, incentives to secure larger output and decontrol of certain commodities.

Thirdly, the State Government adopted some taxation measures to curb spending and to provide incentives for saving.

Fourthly, monetary measures were introduced for reducing pressure of excess demand in the State by restricting supply of credit through controls of credit.

The measures adopted for checking rise in price in Assam have not been successful. Price level in the State continued to increase persistently due to disequilibrium between demand and supply. Productions of agricultural and industrial goods are lagging behind the money incomes originating from large Government outlays on development programmes. The state Government also failed to check deficit in its budgets. Activities of hoarders, profiteers and black marketeer are still rampant in the State.

Thus, in the coming years the State Government should try to boost up both agricultural and industrial production through efficient utilization of available resources within the State and should adopt strong measures for curbing antisocial activities of the traders. The State Government should also adopt all the fiscal and monetary tools efficiently for maintaining a balance between the demand and supply of essential goods and services in the State.

The Government budget is one of the most important instruments of economic growth of a State or a Country. The budget of the State, which reflects in general the totality of efforts on the part of the Government to discharge both social and economic responsibilities, has recorded manifold increase with the changes in time. Between 1950-51 and 1978-79, the size of budget of the Government of Assam has increase from Rs. 9.3 crores to Rs. 412 crores and then it increased to Rs.905 crores 1980-86 to Rs. 6143 crores in 1993-94 and finally to Rs.6364 crores in 1994-95.

The major two sources of revenue of the Government of Assam include tax and non-tax revenue. Tax is the major source of revenue. Tax is of two types-Direct tax and Indirect tax. Taxes imposed by the Government of Assam may be of three types-(a) Taxes on Land and Income, (b) Taxes on Property, (c) Taxes on Commodities and services. Taxes on land and income include agricultural income tax, land revenue, business tax. Taxes on property tax include stamp and registration fees, urban property tax etc. Taxes on commodities and services include general sales tax, tax on motor spirit, tax on motor vehicles, tax on passengers and goods carried, taxes on jute and leathers, amusement tax, state excise duty, taxes on trade and business, taxes on electricity etc.

Moreover, the Government of Assam is also getting a share of taxes imposed by the Central Government. These shares include share of Central excise duty, share of income tax, share of wealth tax and share of additional excise duties. Moreover, the state government is also getting royalty on mineral resources from the Central.

Assam Government is also getting revenue from non-tax sources. These include-interest, dividend, income from social and community services, income from general services, income from economic services, income from forest, income from irrigation and movement of boats, profits of state public sector enterprises, viz., ASTC, ASEB and other enterprises. Moreover, the government of Assam is also getting various grants from the central government.

Head of expenditures of the Government of Assam can be divided into two parts- (a) Revenue expenditures, (b) Capital Expenditure. The revenue expenditures of the government of Assam are four types: (1) General services (2) social and community services (3) economic services and (4) grants and contribution.

General services include administrative expenditure, departmental expenditure, pension, interest payment etc. Head of expenditure on social and community services include expenditure on education, arty, culture, health and family welfare, public health etc. The heads of expenditure on economic services include expenditures on agriculture and allied activities, industry, mines, water resources and power development, transport and communication etc. Grants and contribution include different the different types of recurring and non-recurring grants and contributions to various institutions and organisations.

The capital expenditure of the state government is broadly divided under general services, social and community services, economic services etc.

With the growth in the size of the State Government budgets the total expenditure and receipts of the State increased significantly.

On the receipt side, the revenue receipts have increased from Rs. 10.3 crores in 1950-51 to Rs. 37.9 crores in 1960-61 and to Rs. 111.1 crores in 1969-70. Tax receipts have increased from Rs 6.5 crores in 1950-51 to Rs. 47.9 crores in 1969-70. Non-tax receipts increased from Rs. 3.4 crores in 1950-51 to Rs. 63.2 crores in 1969-70. Thus the gross receipts under the consolidated Fund on the State Budget of Assam had increased from Rs. 19.6 crores in 1950-51 to Rs. 54.17 crores in 1960-61 and then to Rs 295 crores in 1970-71.

On the expenditure side, the total gross expenditure (both revenue and Capital) rose from Rs.1890 crores in 1950-51 to Rs.65 crores in 1960-61 and then to Rs. 293 crores in 1970-71. The table given below shows the receipt and expenditure under the consolidated fund of the State Budget during the period 1950-51 to 1994-95.

Receipts and Expenditures from the consolidated Fund of Assam Government Budget (Rs. Lakhs)

The table (no. 14.1) reveals further that although the total revenue receipts in the State budget increased from Rs.102.82 crores in 1970-71 to Rs.202 crores in 1975-76 but the total capital receipt of the State declined from Rs.192 crores to Rs108 crores during the same period leading to the fall of total receipt from Rs.294 crores to Rs.253 crore during the above mentioned period. Similarly, the total gross expenditure of the state budget declined from Rs 293 crores in 1970-71 to Rs. 234 crores in 1975-76. The main reason behind these declines in gross receipt and expenditures was the separation of Meghalaya and Mizoram areas from Assam.

The gross receipts from the consolidated fund then gradually started increasing from Rs. 253 crores in 1975-76 to Rs. 392 crores in 1979-80 and then jumped to Rs. 780 crores in 1980-81, which is just doubled within 5 years. The gross receipts then further increased from Rs. 2450 crores in 1985-86 to Rs. 3974 crores in 1990-91 and to Rs. 5662 crores in 1996-97. In the State budget of 1997-98 the gross receipts is fixed at Rs. 5805 crores. This sudden rise in receipt in recent years is attributable to the rise in receipt under revenue, capital and public account.

The total expenditure under the consolidated fund of the state budget also declined from Rs.293 crores in 1970-71 to Rs.234 crores in 1975-76 due to the separation of Meghalaya and Mizoram from the State. Since then the total expenditure rose from Rs. 2410 crores in 1985-86 to Rs. 3964 crores in 1990-91 and then to Rs. 4723 crores in 1994-95. It is seen that the expenditure has significantly increased by Rs. 456 crores in 1993-94 over the previous year. This sudden rise in the expenditure is attributable to the rise in expenditure under revenue account to the tune of Rs. 363.0 crores over the year the year 1992-93. The expenditure under revenue account had gone up gradually from Rs. 1920 crores in 1990-91 to Rs. 4828 crores in 1997-98 (B) showing a rise of 151 per cent during the period of eight years.

The total gross expenditure in Assam then jumped to Rs. 4354 crores in 1993-94 and to Rs.4723 crores in 1994-95 (R.E). In the State budget of 1997-98, the total expenditure is estimated to be Rs.6161 crores. This sudden increase in the gross receipts in recent years is mainly attributable to the significant increase in revenue expenditure, capital expenditure, and outgoings from public account.

The table (no. 14.2) given above shows that in 1950-51 the revenue of the Government of Assam from State Taxes was only Rs.5.07 crores. Then it rapidly increased to Rs.79.91 crores in 1980-81 and then to Rs.796.8 crores in 1995-96.This was made possible due to levy of new taxes and duties as well as extension of the coverage and enhancement of rates of the existing taxes and duties. Besides, tax base in Assam had also widened due to economic planning.

Although in terms of absolute size taxation increased, in terms of percentage of State�s total receipts it showed a declining trend. In 1950-51, the share was 51.1 per cent of the State�s total revenue but it slid down to 32.8 per cent in 1960-61 and then to 27.8 per cent in 1970.71, 18.3 per cent in 1980-81. But in 1995-96, the share or State taxes declined to 21.3 per cent. This decline in the share of state taxes happened due to heavy increase in the State�s non-tax revenue both from the State and central sources as also of central taxes.

The non-tax revenue of the State rose from Rs. 2.27 crores in 1950-51 to Rs. 7.94 crores in 1970-71 and to Rs. 262.44 crores in 1980-81 but then again raised to Rs. 440.08 crores in 1995-96. Although in terms of absolute size, non-tax revenue increased but in terms of percentage of States total receipts, it declined from 22.8 per cent in 1950-51 to 7.85 percent in 1970-71 but then the share of non-tax revenue suddenly increased to 60.2 per cent in 1980-81 and then it again declined to 11.7 per cent in 1995-96.

The share of Central taxes in absolute size although increased by manifold amount i.e. from Rs. 1.42 crores in 1950-51 to Rs. 41.56 crores in 1970-71 and then to Rs. 986.46 crores in 1995-96 but in terms of percentage of Stage�s total revenue, it increased marginally from 14.3 per cent in 1950-51 to 17.6 per cent in 1970-71 and then to 26.3 per cent in 1995-96.

The non-tax revenue from Central sources, which was only Rs. 1.16 crores in 1950-51 gradually, increased to Rs. 47.23 crores in 1970-71 and then to Rs. 1520.81 crores in 1995-96. In terms of percentage of State�s total revenue receipts also the non-tax revenue from central sources showed an increasing trend. In 1950-51, the share was 11.8 per cent State�s total revenue receipt but it gradually increased to 46.6 per cent in 1970-71 but it declined abruptly to 9.6 per cent in 1980-81 and then it again increased to 40.7 per cent in 1995-96.

Thus, total revenue receipts of the Government of Assam rose from Rs.9.92 crores in 1950-51 to Rs.101.19 crores in 1970-71 showing a rise of 920 per cent. The State revenue receipts then gradually increased to Rs. 436.15 crores in 1980-81 showing a rise of 331 per cent over 1970-71. In 1990-91 the total revenue receipt of the State stood at Rs. 1776.64 crores but then it increased to Rs.2553.0 crores in 1991-92 and then to Rs. 3944.14 crores in 1995-96 showing a rise of 110.7 per cent overt 1990-91. In the budget estimates of 1997-98, the total revenue receipt of Assam is estimated at Rs. 4442.93 crores.

Assam Government Budget, 1987-88 The Assam budget for 1987-88 was presented in the Assam Assembly on February 10, 1987 showed an overall deficit of Rs. 69.58 crores despite proposal to levy fresh sale tax on tea and enhancement in the rate of taxation in certain other commodities. The following table gives bird�s eye view of the Assam budget, 1987-88.

The Table (no. 14.3) showing the budget estimates, 1987-88 of the Government of Assam, reveals that total receipts during the year 1987-88 is estimated at 297.61 crores against the total estimated expenditure of 2,99.52 crores thus leaving a net deficit of Rs. 19.91 crores. Taking into account the opening deficit of Rs. 19.91 crores. Taking into account the opening deficit of Rs. 49.67 crores, the budget for 1987-88 shows an overall deficit of Rs. 69.58 crores. However, the net accrual of about Rs. 4.15 crores from the proposed taxation measures will ultimately reduce the deficit to the extent leaving an uncovered gap of Rs. 65.4 crores.

It is proposed to enhance the rates of sales tax from the existing 10 per cent to 15 per cent in case of aviation fuel, from 12 per cent to 13 per cent in respect of arms and ammunition, clock and watches, iron safe and almirahs, refrigerators, air conditioners, carpets, plastic and rubber products, cosmetics and some toilet requisites and from the existing 3 per cent to 6 per cent on manufactured tea. It is also proposed in the budget to enhance the rates of entertainment tax from the existing 25 per cent to 30 per cent and to levy sale tax at the rate of 1 per cent on tea sold in auction at Guwahati hitherto exempted from sales tax.

The State budget proposed to reduce the rates of sales tax applicable to bicycle and most kinds of medicines from the existing level of 7 per cent to 4 per cent. The reduction in sales tax on the said items will result in loss of revenue to the tune of Rs. 80 Lakhs while the new tax proposals at enhanced rates are expected to yield net additional revenue to the extent of Rs.415 crores

In recent years, the budgets of the Government of Assam have been experiencing considerable changes. In March 22, 1993, 1994 and 1995, the Government of Assam presented its budgets for the year 1993-94, 1994-95 and 1995-96. The following table gives a bird�s eye view of three budgets of Assam.

The table (no. 14.4) reveals the actuals of the budget of 1993-94 of the Government of Assam. The actual figures show that the actual revenue receipts and capital receipts of the Government of Assam were Rs. 3317.46 crores and Rs. 802.33 crores respectively. Including the other sources of receipts total receipts of the Government of Assam in 1993-94 was Rs. 6044.92 crores. In this year, total revenue expenditure and capital expenditure of the Government of Assam stood at Rs.2901.18 crores and Rs.1453.25 crores respectively. Covering the other expenditure, total expenditure of 1993-94 stood at Rs. 6143.06 crores. Thus the actual transaction during the year shows a net deficit of Rs.94.14 crores and including the opening balance of deficit worth Rs. 160.15 crores, the net closing deficit balance in 1993-94 stood at ,Rs. 258.29 crores.

Again the revised estimates of the receipts and expenditures of Assam budget, 1994-95 shows that the total revenue receipts and capital receipts during the year were Rs. 3315.00 crores and Rs. 1452.41 crores respectively. Including the other sources of receipts, total receipts of the Government of Assam in 1994-95 was Rs.6458.91 crores in 1994-95. During this year, total revenue expenditure and capital expenditure of the Government of Assam stood at Rs. 3241.88 crores and Rs. 1481.19 crores respectively. Covering the other heads .88 crores and Rs. 1481.19 crores respectively. Covering the other heads of expenditure, total expenditure in 1994-95 stood at Rs. 95.23 crores and including the opening deficit balance of Rs. 258.29 crores, the net closing deficit balance stood at Rs. 163.06 crores in 1994-95 thereby improving the progressive and up-to-date position of the situation at the end of 1994-95 by Rs. 95.23 crores.

The budget estimates of the Assam Budget for the year 1995-96 was presented in Assam Assembly on 22nd March 1995. The Budget estimate shows that the total revenue receipts and capitals and capital receipts of the Government of Assam are estimated at Rs. 3444.14 crores and Rs. 1281.92 crores respectively. Including the other source of receipts, total receipts of the Government of Assam is estimated at Rs. 6962.62 crores in 1995-96. Thus the budget for 1995-96 envisaged improvement in receipts to the extent of Rs. 543.15 crores over that of the revised estimates for 1994-95.

Again, in this year, the total revenue expenditure and capital expenditure of the Government of Assam in 1995-96 are estimated at Rs. 3717.16 crores and Rs. 1482.76 crores respectively. Covering the other heads of expenditures, total expenditure of 1995-96 is estimated at Rs. 7084.52 crores. Thus on the expenditure side, however, there would be an estimated increase of Rs. 720.84 crores over that of revised estimates for 1994-95.

Thus the actual transaction during the year shows an estimated deficit of Rs. 122.46 crores with an anticipated opening deficit balance of Rs. 163.06 crores, the year 1995-96 was anticipated to close with a deficit of Rs 282.52 crores. This huge amount of closing deficit balance is not a welcome trend. However, the Government assured the House that this deficit would be bridged by better mobilisation of tax and non-tax revenue, economization in expenditures and overall better financial management.

The current budget did not makes any fresh attempt to impose any fresh taxes rather announced exemption of sales taxes on wax candles, polythene-lined jute bags, sindoor, kumkum, low cost foot wear costing Rs. 20 or less, educational accessories like charts, maps, globes, dusters etc. and UNICEF cards and mangal sutras costing not more than Rs. 1000. The budget also mentioned that at the end of 1994-95, the estimated public debt amount stood at Rs.4798.41 crores out of which the main debt obligation would be towards the Centre.

The Assam Budget for 1995-96 can be termed as a moral exercise on fiscal fronts where drastic attempts have been made for the betterment of the State�s economy.

The Assam budget does not propose any fresh tax and what is more, it has reduced the existing rates of taxes on some commodities and exempted some non-essential items from sales tax, which as a whole may be guided by populist move. Moreover, the chances of additional resource mobilization during the year are also remote.

While the State�s annual plan expenditure has been fixed at Rs. 1418 crores, the annual budget proposes to spend Rs. 7048.52 crores during 1995-96. Whatever may be the proportion of plan and non-Plan expenditure of the State the Finance Minister of the State honestly admitted that a �big chunk of our non-Plan expenditure� is eaten up by the head such as establishment expenditures, including pensioner liabilities. Moreover, expenditures on law and order, relief and rehabilitation and annual debt servicing by way of payment of installment of principal and interest on loan from central Government and institutional loans also swallow a considerable amount of non-Plan budget. Due to this high non-Plan budget, the developmental works of the State is being starved to paucity of funds. While more emphasis should have been laid on certain fronts viz., flood control, irrigation, security measures in border areas and their development and industrialization of the State, but the Budget (1995-96) has only made pathetically low provisions for these heads.

But this budget has included certain popular measures such as - (a) monthly pension to age-old farmers, (b) monthly pension to old widows, (c) widening the scope of unemployment allowance to educated unemployed, (d) Extension of the coverage of scheme of Rs. 2 per Kg. Rice to 15.33 lakh families from the present 4 lakh families, (e0 provision of dwelling houses for poor families, (f) creation of job potentials for more than 23 lakh unemployed youths etc. Which is expected to benefit the socially and economically backward classes? But the success of these schemes depends how far these schemes can reach the target groups.

Another welcome feature of the current budget is the introduction of the 8-year period Rs. 480 crore would Bank Project of Rural Infrastructure and Agricultural service, which in scheduled to commence from 1995-96 with the present budget provision of Rs.44.64 crores. If properly implemented, this type of schemes can certainly develop rural infrastructures such as roads, irrigation etc.

One of the important snags in the current budget is the closing deficit balance of Rs. 285.52 crores including the last years closing deficit of Rs. 163.06 crores. In the absence of any initiative for additional resource mobilisation, this deficit even might increase.

Finally, the budget does not reflect a better growth either in the agricultural or industrial sector in future and put least stress on the industrial infrastructure, power supply and also removing regional imbalance within the States.

In recent years, the budgets of the Government of Assam have been experiencing considerable changes. On 14^th December 1996 and on 14^th March 1997, the Government of Assam presented its budgets for the year 1996-97 and 1997-98. The following table gives a bird�s eye-view of two budgets.

The Revised estimates of the receipts and expenditures of Assam budget, 1996-97 shows that the total revenue receipts and capital receipts during the year were Rs. 1370.31 crores and Rs. 5662.18 crores respectively. Including the other sources of receipts, total receipts of the Government of Assam in 1996-97 was Rs. 5662.18 crore. During the Years, total revenue expenditure and capital expenditure of the Government of Assam stood at Rs. 4570.48 crore and Rs. 1616.44 crore respectively. Covering the other heads of expenditure, the total expenditure in 1996-97 was Rs 7953.96 crore. Thus the transaction during the year shows a deficit of Rs. 470.77 crore, including opening deficit balance of Rs. 295.52 crore and closing deficit balance of Rs. 766.29 crore.

The budget estimates of the Assam Budget for the year 1997-98 was presented in Assam Assembly on 14th March 1997. This budget estimate shows that the total revenue receipts and capital receipts of the Government of Assam is estimated at Rs. 4442.93 crore and Rs. 1362.04 crore respectively. Including the other sources of receipts, total receipts of the Government of Assam are estimated at Rs. 5804.97 crore in 1997-98. Thus the budget for 1997-98 envisaged improvement in receipts to the extent of Rs. 142.79 crore over that of the revised estimates for 1996-97.

Again, in this budget, total revenue expenditure and capital expenditure of the Government of Assam in 1997-98 are estimated at Rs. 4628.37 crore and Rs. 1538.11 crore respectively covering the other heads of expenditures, total expenditure of 1997-98 is estimated at Rs. 6161.48 crore. Thus on the expenditure side, however, these would be an estimated decrease of Rs. 25.44 crore over that of revised estimate for 1996-97

Thus the actual transaction during the year shows an estimated deficit of Rs. 282.15 crore with an anticipated opening deficit balance of Rs. 354.43 crore. The year 1997-98 is estimated to close with a deficit of Rs. 636.58 crore. This huge amount of closing deficit balance is not healthy trend. However, the Government assured the House that this deficit would be bridges by better mobilisation of tax and non-tax revenue, additional revenue mobilisation from the hike of sales tax, increased rate of tax on specified tea growing land, better tax compliance and economization of expenditure and overall better financial management.

The current budget imposed a 10 per cent luxury tax on cigarettes, scented tobacco, including zarda, expensive mill made textiles and two to four per cent increase in taxes on food items like confectionaries, tinned food, hair dye materials, pressure cookers, music systems, shaving sets, mineral water, sanitary fitting, vegetables sold in sealed containers to augment more revenue.

The Assam Budget for 1997-98 can be termed as a moral exercise fiscal fronts where some vital measures have been taken to augment additional resources worth Rs. 79 crores by imposing fresh taxes of luxury items, increase in sales tax in varying rates from two per cent of four per cent on 22 items and a 12 paisa increase on tax on specified land where tea is grown.

The budget also offers the biggest concession in the tea industry in the form of reduction of agricultural income tax from 60 to 45 per cent which the tea industry has been crying for long to bring the tax rate on par with the corporate tax. The budget expects that as a result of this measure, responsive tea market and higher growth in production would lead to increase in tax revenues. This is no doubt a good step to encourage the tea industry and also to attain a better tax compliance from this industry.

The total expenditure of the Government has been estimated at Rs. 6161.48 crore which is Rs. 25.44 crore less than the revised estimates of expenditure in 196-97. This is a welcome trend.

The large budgetary deficit of Rs. 636.58 crore, which is the highest so far, is really a cause of concern, which must be bridged at any cost. Attaining financial discipline should be the first agenda in this direction. However, the State Government expects that the fresh tax proposals and additional likely receipts to accrue from �enhanced oil royalty, reimbursement of security related expenditure, increase in the divisible pool of shared central taxes and duties and relief in debt payment� would help the Government to bridge its budgetary deficit.

It is quite important to note that such high scale of budgetary deficit must be contained at any cost otherwise the poor financial management of the Government would eventually bring the State in a whirlpool of financial bankruptcy.

However, the Budget has taken some important steps to mobilise additional resources and also allocated additional funds to some poverty alleviation schemes, which is no doubt welcome step.

Finally, the budget failed to reflect a better growth either in agriculture or industrial sector in future and put least stress on the industrial infrastructure, power supply and also to remove regional imbalance prevailing within the state.

Nature was kind enough while blessing Assam with various natural resources. The total deposit of various natural resources indicates that Assam is quite rich in this respect. Natural resources in Assam include mineral resources, power resources and forest resources.

Minerals are the pre-requisite to industrial progress as they provide the raw materials to heavy industries, engineering, chemical and other industries, Assam, being a leading state of the north-eastern region of India, is well endowed with some of the important mineral resources. But mineral resources of the State have not yet been completely assessed. Following are the main mineral resources available in Assam.

Coal: Coal is an important mineral product in Assam. Coal provides fuel to households and industries in Assam along with other by-products. Coalfields in Assam are situated at Makum, Margherita, Nazira, Lankadaman, Jaipur, Ledo, Namdum etc. Total coal reserves (both proved and indicated inferred sources) of Assam is 295.2 million tonnes as per GSI assessment as on January 1,1994. Again the total coal reserves of some of the main coal fields in Assam are estimated to be 235.6 million tonnes for Makum, 30.0 million tonnes for Dilli-joypura, 2.5 million tonnes for Janji-Disai (Nazira) and 0.6 million tonnes for Koliajan in Karbi Anglong district. Total production of coal in Assam, which was 5.22 lakh tonnes in 1970, gradually increased to 5.82 lakh tonnes in 1975 and then to 6.49 lakh tonnes in 1978. In 1979-80, the production of coal in Assam came down to 5.84 lakh tonnes and then increased to 6.51 lakh tonnes in 1981. In 1989, total production of coal in Assam has increased to 8.4 lakh tonnes and then to 9.82 lakh tonnes and 12.92 lakh tonnes in March 1991 and 1994 respectively. In 1994, total production of coal in Assam constituted 0.49 per cent of the total coal production of the country as a whole.

Crude Oil : Petroleum (Crude) is the most important mineral product of Assam. Total production of petroleum crude in Assam accounts for nearly 50 per cent of country�s total petroleum output till 1970. The amount of production of petroleum (Crude) in Assam varied marginally between 44.7 lakh tonnes in 1977, 40.8 lakh tonnes 1978 and 44.5 lakh tonnes during 1979-80 as against 86.9 lakh tonnes in 1977 for all India. Total production of petroleum then fell down to 10.6 lakh tonnes in 1980 and then again increased to 51.5 lakh tonnes in 1986. Total production of petroleum crude in Assam further rose to 54.09 lakh tonnes in 1989 and then it slowly declined to 48.61 lakh tonnes in 1994. In 1994-95, Assam produced about 15.1 per cent of total petroleum crude (32.24 million tonnes) produced in India. Total reserve of crude oil at Sibsagar and Dibrugarh area is estimated to be 70.46 million tonnes. Oil deposits in Assam are found in Naharkatiya, Moran, Hugrizan, Rudrasagar, Galeky, Lakwa, Nazira, Teok etc. The first oil refinery in Assam was established at Digboi and then two other refineries were established at Guwahati and Bongaigaon. The main products of these refineries are petrol, high-speed diesel, Kerosene, Carbon, Wax, Naphtha, petro-chemicals etc. In 1981, total production of these three refineries in Assam was 15.7 lakh tonnes and then it increased to 25.3 lakh tonnes in 1989. In the mean time, the construction works of the 4th refinery had already started in Numuligarh of Golaghat District.

Natural Gas : Assam is well blessed by nature in respect of natural gas. Total reserve of natural gas in Assam is estimated to be 23,000 million cubic metres. This is available at Naharkatiya and Moran area. The quantity of natural gas utilised in Assam, however, increased from 848 million cubic metres in 1976 to 942 million cubic metres in 1979. In 1980, there was an abrupt fall in its utilisation to only 455 million cubic metres and then its utilization increased to 869 million metres in 1981. Total amount of natural gas utilized in India was 1,545 million cubic metres and thus Assam�s utilization of natural gas accounts for 59.8 per cent of the total utilisation in the country. Namrup Fertilizer plant and Namrup Gas Thermal Power Project are the main two projects using natural gas in Assam.

Moreover, in recent years, total amount of natural gas utilized in Assam has increased to 1030 million cubic metres in 1992 and then declined to 893 million cubic metres in 1994. But in India total production of natural gas in 1990-91 was 18.0 billion cubic metres. In the various Oil fields of Assam run by Oil India about 3.5 to 4 million sq. metres of natural gas are being emissioned daily. Out of which only 1.5 million sq. metres of natural gas are being utilised in the various industries of Assam and the remaining portion of natural gas are being flared up daily, leading to a huge loss of scarce resources. Assam Gas Company is also supplying natural gas to various tea gardens of Assam. Steps have also been taken to install one fertilizer factory at Mezeva near Nazira when natural gas available in the Sibsagar district will be commercially utilised. In BRPL of Bongaigaon, a good amount of natural gas is also being utilised. Moreover, recently steps have been taken to start a gas Cracker Project in Assam for suitable utilisation of huge amount of natural gas in the state. Moreover, the Assam Gas Based Power Project (AGBPP) at Kathalguri is all set to generate 100 MW of power in March, 1995 and will have a total installed capacity of 291 MW of electricity from six gas and three waste heat steam turbines.

Lime Stone : Lime Stone is also an important mineral product of Assam. It is used as an important raw-material for the production of Cement. Lime stone mines in Assam are available at Garampani and Koliajan in the district of Karbi Anglong and North Cachar Hills. Total reserves of limestone in Garampani and Koliajan area are estimated to be 78 million tonnes and 81 million tonnes respectively. Limestone in Assam is of cement grade. Koliajan reserves of limestone are being mined by Cement Corporation of India for Bokajan Cement Factory. Total production of limestone in Assam has been increased from 88 thousand tonnes in 1975-76 to 143 thousand tonnes in 1978 and then 289 thousand tonnes in 1979-80 and then followed by 269 thousand tonnes in 1981.

Again in 1984 total production of limestone in Assam has declined to 209 thousand tonnes and then it increased to 297 thousand tonnes in 1990 and then again gradually increased to 338 thousand tonnes in 1994. Recently, steps have been taken for the establishment of some mini cement plant in Assam for the increasing use of its limestone reserves. Accordingly, the Karbi Anglong Chemicals Ltd. is going to establish a 100TPD mini Cement plant in the village of Amlokhi in Diphu.

Probable reserves of other minerals : Some other mineral resources are also located in Assam, which include Fire Clay, Kaoline, Iron Ore, Fullers Earth, Feldspar. Fire Clay is available in Selvetta, Koliajan and Namdeng (Ledo) areas of Assam and their probable reserves are 2.10 million tonnes. Kaoline is available at Selvetta and Jaijuri area and its reserves are estimated to be 0.58 million tonnes. Iron ore is also found in Assam in the Chandardings, Lengupara and Kumari area of Goalpara district and also in Mahim area of Kamrup district and its probable reserves are estimated to be 17.6 million tonnes. Average content of iron ore in Assam varies between 40.12% and 46.45%. Both Fullers Earth and Feldspur are available at Kamrup district of Assam and its reserves are estimated to be 17.0 million tonnes and 0.02 million tonnes respectively.

Moreover, as per the exploration survey conducted by the Assam Mineral Development Corporation (AMDC) during 1994-95, the whole Gaurinagar Hillock, situated within the four walls of Nalbari Reserved Forest in Goalpara district is full of rocks mainly in abundance with the granites (dolerites). The granite is a very hard rock composed of feldspar, quartz and mica which is used as building materials and the exploration of the Gaurnagar granite is the best of its kind with black colour granites.

Thus, it is found that Assam is quite rich with its deposit of some of the basic mineral resources which will provide ample scope for industrialization through fuller utilization of these vast mineral resources.

Assam has its rich potential for the development of forest. The upper Brahmaputra Valley along with two hill districts is covered by ever green forests and the lower Brahmaputra valley is covered by tropical deciduous forests. Total area covered by forests in Assam is 30,807 sq.kms. (1991-92) which is 39.2 percent of the total geographical area of the State. But reserved forest area covers 22 percent of the total geographical area of the state. National forest policy prescribed national minimum of 33.3 per cent under the productive forest and Assam�s percentage of forest area is lower in this respect.

The forests of Assam can be classified under certain broad classes, namely, evergreen, semi-evergreen, tropical evergreen, mixed deciduous, sal forest, riverine forest and moist and dry savannah. The climate in Assam facilitates the growth and regeneration of plant species with a great diversion from evergreen to dry savannah type. Reserved forests in Assam are divided into six circles and 25 divisions and the areas under wildlife are divided into eight divisions including state zoo. Under the principal chief conservator of forests, the department of forest, Assam, engaged more than 11,000 man power to look after this large area under forest cover. For smooth functioning, the department of forest is divided into two group-(a) general forestry and(b) social forestry. Tribal sub-plan and scheduled castes components are also included into the social forestry division.

In 1992-93, out of the total forest area of 30,807 sq.kms., reserved forests covered 17,567 sq.kms., forests under District Councils covered 3589 sq. kms. and unclassified forest covered 5731 sq.kms. (including other community forests) Thus 57.02 per cent of the total forest area is covered by reserved forest, 12.72 per cent is covered by the proposed reserved forest area, 11.64 per cent is covered by forest under district council and the rest 18.6 per cent is covered by unclassified forests. Among all he district of the state, Karbi Anglong and North Cachar Hills possess highest concentration of forests in the state and its area constitute 40.2 per cent of the total forest area of the state.

At the end of 1994-95, total forest area in Assam was 21.86 lakh hectares(excluding unclassed state forest), out of which reserved forest covered 14.9 lakh hectares and the proposed reserve forest area covered 3.93 lakh hectares. Thus out of total forest area of Assam, reserved forest covered 81.88 percent and the remaining 18.12 percent is covered by the proposed reserved forest area.

Due to rapid urbanisation process and consequent factors degradation of forest is also occurring which is estimated (1991-92) at 2352.77 sq. kms. and classified as forest waste land.

To facilitate the green movement, the state forest department also distributes various seedlings of economically important plant species to the general public raised in the social forestry nursery free of cost. During 1991-92 such seedlings amounted to 18,60,569 in number.

At present a total of 611 mills and factories, including paper, match and plywood factories are running, depending upon the forest products in the state.

In the plain districts of Assam, State Forest Department manages the forest while in the hill districts, districts council manages it.

Output from forest in Assam is composed of timber, fuel wood and some minor forest products, viz., bamboo, cane etc. Total out turn of timber in thousand cubic metres, were 447 in 1973-74,557 in 1974-75, 480 in 1977-78 and 351 in 1978-79 which revealed an increasing trend in the beginning and then followed by a declining trend. Total output of timber in rough poles was 607 thousand running metres. Total production of fuel from forests in Assam, in thousand stack cubic metres, were 270 in 1973-74, 136 in 1974-75, 289 in 1976-77 and 154 in 1978-79. The value of minor forest products which includes bamboos and cane, was Rs.72 lakhs in 1970-71 and then increased to Rs. 143 lakhs in 1976-77.

In recent years, total out-turn of timber and fuel-wood from forests in Assam has declined considerably in recent years. Total out-turn of industrial timber from forests in Assam which was 78.6 thousand cubic metres in 1988-89, gradually declined to 6.91 thousand cubic metres in 1989-90 and then it again slightly increased to 76.8 thousand cubic metres in 1993-94. Total out-turn of fuel-wood in Assam which was only 30.06 thousand stack cubic metre in 1988-89 gradually increased to 44.2 thousand stack cubic metre in 1993-94.

The net product from forestry and logging at current prices was estimated at Rs.27.4 crores in 1976-77 as against Rs.22.8 crores in 1975-76.

Again net product at current prices from forestry and logging has increased from 34.7 crores in 1980-81 to Rs. 156.9 crores 1993-94. Again, the net product from forestry and logging at constant (1980-81) prices declined from Rs.34.7 crores (1.5 per cent of SDP) in 1980-81 to Rs.34.4 crores (0.7 per cent of SDP) in 1993-94.

Forest in Assam has contributed only Rs.57 lakh in 1950-51 to the revenue of Assam Government and its contribution rose to Rs. 966 lakh in 1977-78, Rs. 1,110 lakh in 1978-79, Rs. 1,221 lakh in 1980-81 and finally to Rs. 16.9 crores in 1994-95. The forest revenue, which was only Rs. 70 lakh during the First Plan period gradually increased to Rs. 1,956 lakh during the Fourth Plan period. This shows a significant rise in the forest revenue in absolute terms in the state. Forest revenue as in percentage of total revenue of Assam was only 0.93 per cent during the First Plan and then gradually increased to 4.09 per cent and 4.4 per cent during the Second Plan and the Third Plan respectively and then it fell down the 3.5 per cent and 3.4 per cent during the Ad-hoc plans and the Fourth Plan period. In recent years, the share of the forestry sector in the State�s net domestic product is not of much significance as it barely constitutes 1 per cent of the total SDP.

Problem of Deforestation or Degradation of Forest in Assam-Afforestation and Tree planning Activities

In Assam, the problem of deforestation or degradation of forest is quite acute. Total area under forests has been gradually declining in Assam due to its total mismanagement. Due to rapid, urbanisation process and consequent factors, degradation of forest is also occurring which is estimated (1991-92) at 2352.77 sq.kms and classified as forest waste land. The factors which are largely responsible for large-scale deforestation include-growing demand for raw materials for forest-based industries and increasing demand for state revenue from forest. From the very beginning state Governments were very much interested to collect a big volume of revenue by selling timber and other forest produce. Moreover, forest bureaucracy allowed illegal felling of trees with the sole intention to get illegal gratification. Besides, indiscriminate cutting of trees standing in the forest adjacent to the village by the villagers is also responsible for massive deforestation in the country. Again a good number of landless poor are regularly cutting trees and setting firewood for earning their livelihood. In this way, the pace of deforestation has been intensified since independence.

As the forest management�s prescribed yield fell for short of the requirement, thus political pressure, muscle flattening, money power, political patronage played their roles to meet the requirement. The forest officers who tried to resist and refuse were humiliated, shifted, by-passed and ignored. Those who tried to compromise and finally obliged, smooth sailed at the crest of developing waves.

Assam is also having a good number of forest based industries. In 1995, Assam was having 565 saw mills, 76 plywood and Veneer mills, 3 paper mills, 1 match factory, 1 match splint factory, 3 timber treating plants, 1000 odd brick kilns, tile factories potteries, bakeries, cane, bamboo industries besides developments in the field of industry, agriculture, surface and air transport and communications, power, energy, industrial plantation, trade and commerce. Moreover, with the increase in the size of population, ethnic movements are also in the rise with the rise of unemployment, shelter, health, poverty and shortage of food. In order to sustain all these above mentioned activities and also to meet the requirements of different forest based industries, the forest cover in the state is gradually shrinking and the crop density is gradually being thinned. The per capita forest area in the state has declined considerably and stood at 0.13 hectare in recent years. As per the current Forests Survey of India (FSI), total forest area under encroachments is 2477 sq. kms. Total area of reserved forests partially wiped out of forests covers estimated at 1483.38 sq.kms. Reserved forests partially wiped out of forests cover in the State are also estimated at 1260.34 sq.kms.

The estimated demands of forest produce to sustain the current estimated requirements of the state include saw logs 0.3 m mt., plywood logs 0.092 m mt., timber 0.0401 mmt, matchwood logs 0.008 mmt., fuel wood 3.0 mmt. and bamboo for pulp 13.5 m mt. A sample survey of outside supply of forest produce from North Eastern states showed that 3780 trucks load of forest produce were transported from the region within 28 days and of these, 438 truck loads were carried from Assam. These statistics shows the extent of large scale deforestation going on in Assam along with the other North-eastern states.

The forest management in Assam has become the target of frontal attack for quite sometime. Large scale deforestation, rapid disappearance of forest cover, diminishing wild life population, scarcity of commercial timber, acute shortage of fuel wood, recurrence of flood, environmental disaster etc. are all attributing to the mismanagement of forest resources in the state.

The forest is a living organism and like other organism it needs proper and adequate care and congenial conditions for growth. The forest is a slowly growing organism and thus requires tender and adequate treatment. The ill treatments that have been meted out to the forest in Assam, subverting the forest management for the last two decades, have denuded the forest cover in the state at a large scale. As per the recent Forest Survey of India report, 50 per cent of the forest cover is still dense and more than 25 per cent of the cover is having below 40 percent density and only 447 sq.kms of area has been transformed into scrub or no forest cover, even after such onslaught on forests. In spite of all odds, the present situation demands a strict adherence to the forest management policy. Managing a living organism is quite difficult. Without having any fencing, the forests are open to grazing, pilferage, poaching and biotic interference. All these have made the forest management a difficult task, particularly in the days of lawlessness.

This sort of continuous large scale deforestation is directly responsible for soil erosion, greater frequency and intensity of floods, continuous heavy siltation of costly dams and river banks, change in climate conditions and ecological imbalance. Moreover, deforestation has resulted in huge sufferings to the landless cultivators and marginal farmers in the form of loss of fuel wood and fodder for their cattle. This in turn is responsible for loss of valuable organic manure as cow dung which is now-a-days largely being used as fuel. Thus deforestation has created both ecological and socio-economic problems in the state.

In the mean time, though the states and forest department tried to check deforestation but they become successful only to protect the forests from poor people and miserably failed to protect forests from the clutches of industries and illegal timber traders. Even the social forestry programme and other schemes as incorporated in our forest policy have miserably failed to check deforestation which is progressing on a large scale. Thus under this present situation proper steps must be taken for the conservation and development of forest resources in the state.

Considering the gravity of the problem of large scale deforestation or denudation of forest in the state, both the central as well as the State Government have undertaken a long standing strategy of afforestation and tree planting throughout the state under its various schemes. As per this programme of afforestation and tree planting, the Assam forests had created 2906.23 sq.kms of plantation, i.e. 1311.92 sq. kms of area under social forestry and 1594.31 sq. social forestry had planted 37.98 million seedlings, distributed 7.38 lakh fodder plants, 6.27 lakh fruit plants and 4.94 lakh Ornamental plants. In 1994-95, about 5626 hectares of land were brought under social forestry and about 140.7 lakh seedlings were planted.

Although massive steps have been taken by the government agencies in this direction, but it needs to be mentioned here that a big chunk of such afforestation and tree panting activities has gone into waste due to lack of its proper maintenance. Under such a situation, various State Government agencies should take up these schemes and afforestation activities with utmost sincerity and should take necessary steps for continuous maintenance of those areas at least in the initial stages.

In May, 1996, the Assam Government imposed a total ban on felling of trees in a bid to save its forest from environmental degradation. Accordingly, no new permit would be issued to cut down trees in any forest reserve. In order to check the deforestation activities, the Forest Department has been asked to provide a detailed report of destruction of forest resource from all the reserve forests of Assam and to ascertain the involvement of any officials in it. Meanwhile a vigilance cell, headed by the Chief Conservator of Forest (CCF), had been formed to check illegal activities like destruction of forests. This is, no doubt, a welcome step.

Finally, people in general, should realise the potent dangers of deforestation and should take active interest and co-operation in the successful implementation of these afforestation and free planting schemes as a continuous process so as to increase green coverage of the state for the betterment of the life of their future generations.

Allocation of Fund, Target and Achievements in respect of Development of Forestry under the Plans in Assam

The Five Year Plans in Assam has been allocating a good amount of fund regularly for the development of forest in Assam. The following table shows the allocation of funds under various Five Year Plans and their achievements.

It is revealed that the State Government under its various plans has been allocating a good amount of fund for the development of forestry. These amounts of fund varied from Rs. 6.43 lakh during the First Plan to Rs. 450.28 lakh during the Fourth Plan, to Rs. 5581.54 lakh in Sixth Plan, Rs. 11,296.25 lakh in the Seventh Plan and then finally to Rs. 22752.21 lakh during the Eight Plan.

Moreover, the area covered under the development of forestry in Assam during various plans has also increased from 2283 hectares during the First Plan to 13867 hectares during the Third Plan, 45710 hectare during the Sixth Plan and to 38278 hectares during the Seventh Plan. The state department of forests has fixed the target of 1 lakh hectares of land to be covered during the Eighth Five Year Plan period started from 1992-93 under production forestry scheme covering the fields like Plantation of economic and commercial plants, plantation of quick growing species, farm forestry, social forestry and fuel and fodder projects. During the first two year of the Eighth Plan (1992-94), a total of 14,207 hectares of land has been covered and 12,520 hectares of land is being targeted to cover during 1994-95.

Wild Life Protection : The state forest department has distributed a good number of rare and endangered flora and fauna species throughout the state forests. To protect and preserve all these species fruitfully the forest department of Assam has undertaken some important steps by dividing the whole forest area into eight circles. Thirteen national parks and wild life sanctuaries have also been formed including the game sanctuaries. Government enacted several legislation relating to it to enforce, the protection and preservation campaign successfully. Under the auspices of the state department of forests, several voluntary organisation and social workers, mass awareness programme has also been started.

Moreover, the state forest department has developed 31 parks in selected sites to enhance tourist attraction. A Forest Protection Force has also been raised to facilitate the progress of green movement in Assam.

Forest resources are having its strategic importance to the economy of Assam. About 22 per cent of the total land area of Assam is covered with reserve forest. Assam is favoured with its south western monsoon which helped her to grow various valuable trees and plants. Forest in Assam is composed of evergreen forests and tropical deciduous forests. This huge forests in Assam contribute its economy in many respect.

Forest provides timber like Sal, Bansam, Teak or Chegun, Sishu, Gamari etc. which are very much valuable for furniture making and construction works. Thus forests provide not only timber but also excellent employment opportunities to thousand engaged with this furniture making and construction works. Forests also provide fuel for household and other amenities, which is comparatively cheaper. Many people are getting their livelihood by supplying fuel, in the form of fire wood, from forests.

Forests in Assam provide raw materials for various industries like plywood industry, match industry, paper and paper pulp industry etc. In 1991, there were 655 registered factories engaged in the manufacture of wood and wood products, Furnitures and Fixtures in Assam. Timber which are required for the production of plywood are sufficiently available in the forests of Assam and this led to the growth of many plywood factories in Assam which generated employment to the extent of 5,658 nos. and producing 33 million sq. metres of plywood. The availability of soft wood facilitates the establishment of match industry in Assam. Soft woods are being used for the preparation of match sticks and boxes. There are at present 1 match factory and 2 match splint factory in Assam which generated employment to the extent of 1,117 nos. The availability of bamboo and soft wood in the forest of Assam provides sufficient raw materials for paper and paper pulp industries situated within and outside Assam. There are at present 3 paper mills in Assam. Ashok paper Mill was established in Jogighopa in the Goalpara district in 1972-73 which employed 451 persons with its capacity to produce 16 thousand metric tonnes of paper. But the company ceased its production since 1983 and became a sick industrial unit. In 1st March, 1995, the Government of Assam signed a Memorandum of Understanding (MOU) with the Sanghi Group Of Industries, Hyderabad, for the revival of the sick Ashok Paper Mill Limited at Joghighopa. There is also one specialised paper manufacturing factory at Guwahati. Considering the huge potentiality of the growth of paper industry in Assam, two more paper mills were set up at Nagaon and Cachar in the public sector. Forests in Assam provide raw materials, in the form of log to 459 saw mills which produce timber. Total employment generation in these mills is 3,407 numbers.

Besides, forest products like cane and reeds provide excellent opportunity for the growth of small scale industry producing cane furnitures etc. Mulbery trees available in the forest of Assam have enabled rearing and developing muga and silk industry in the State. The other forest based industries in Assam are two timber treating plant (one at Makum and other at Naharkatiya), one hard board factory at Panikhaite, 18 bidi factories and 6 Ivory industries.

Forest in Assam also provides sand and stone chips for construction purposes which are available in plenty in the side of forest streams and rivers.

Among the wild animals available in the forest of Assam, elephant, tiger, deer, bear, one horned-rhino are quite famous. The Government of Assam is preserving these animals by maintaining several forest sanctuaries. Government is getting a good amount of revenue as these sanctuaries are visited by tourist both, home and foreign. Assam has supplied one horned rhino to different Zoos of the world along with other animals. There are different types of rare birds in the forest of Assam.

Thus, forest resources in Assam are providing huge amount of revenue to the Government besides creating scope for development of various types of industries and employment to numerous persons. Considering its importance the programme of forest development has placed emphasis on creation of large scale economic plantations to meet growing demand of forest based industries and demand for timber for construction purposes, etc. In 1974, the Assam Plantation Crops Development Corporation was formed for intensive regeneration and plantation of economic crops like coffee, rubber, black pepper etc. on commercial basis and to rehabilitate the jhumiyas in the hills. The Corporation had its authorised capital to the extent of Rs. 500 lakhs as on 31st March, 1976. The company has created 10 coffee estates and 6 rubber estates. About 625 acres of land has been brought under rubber plantation. Total direct employment generation by this corporation was to the extent of 129.

Moreover, Assam and its people are deriving following indirect benefits from the forest :

(c)forest restricts the flood water during summer and helps to squeeze adequate quantity of water ;

Thus, we have seen that forest resources are occupying a very important place in the economy of Assam. There is much scope for the development of forest resources which will provide ample scope for the development of forest-based industries in Assam.

The Forest Policy of Assam, 1988 was announced in the State Assembly by the Chief Minister of Assam 31st March, 1988. In this policy it was stated, among other things, that it would be the constant endeavour of the Government to clear all reserved forest lands of encroachments. The lawful settlers would be reorganised with a view of giving them allotment certificates akin to revenue pattas, conferring all rights excepting the right of alienation to the forest villagers which would help them to obtain bank loan and other financial assistance and contribute to improve the standard of living. All effective measures would also be taken to ensure that no new encroachment in reserved forest land take place and illegal felling of trees be stopped.

The new forest policy has revealed that massive afforestation programme would be launched and regeneration of superior and other indigenous species with minimum disturbances to the existing forest would be stepped up to improve productivity and eco-balance both quantitatively and qualitatively.

The international standard suggests that one-third of any geographical area should be under forests. With more than 3 percent reserved forest areas under forest villages and more than 10 percent under encroachments, Assam has never even the minimum requirement of forest cover. The growing menace of large scale poaching, illegal felling of valuable trees and unchecked deforestation have created a big problem for the conservation of forest in Assam.

(i) Active participation of District Councils will be encouraged in all matters of forestry in the hill areas also in the matter of elimination of Jhum system in phases.

(ii) Working plan prescription including silvicultural methods will be followed more strictly and extensively for scientific management of forestry. Preservation of diversified plant genetic resources will be encouraged.

(iii) The new policy envisaged that rare and endangered species of plants and animals will be identified, classified, enlisted and all effort will be made to rehabilitate, develop and preserve them. Due importance and support will be given to the preservation of the eco-system to develop and reconstruct the same giving due importance to living and non-living components upon which the very existence and continued survival and development of mankind depends.

(iv) Export/import of forest produce of plant and wildlife origin to and from the State will be controlled keeping in view the need of the local consumers.

(v) More area of wildlife importance will be declared as wildlife sanctuaries. Some of the existing wildlife sanctuaries shall be upgraded after proper study to National parks to emphasize their importance. Additional recreational facilities will be provided with more parks, way side and highway parks, restaurants, nurseries, wilderness trails and nature preserves.

(vi) The new-policy suggests that all poaching and other illegal activities will be completely stopped by taking effective measures and particularly by expanding the strength of the Assam Forest Protection Force as may be required from time to time in a phased manner, so that the pressure on police force is reduced to the extent possible.

(vii) Use of Wireless sets, transport facilities in both surface and water, establishment of more number of posts and better trained manpower will be ensured in the battle against poaching and other illegal forest activities.

(viii) Endeavour will be made to plant even small blocks as mini forests in community lands, scattered wasteland, institutional lands etc. so that each village or a group of people become self sufficient in fuel, fodder, thatch grass, ikras, bamboo, medicinal and other products. Such community forests would act as a measure to boost up village economy.

(ix) Public awareness to the need of forestry for our survival and for the survival of the posterity will be aroused by making sufficient arrangements for publicity and public relations.

(x) All concessions offered to plywood mills and saw mills will be suitably reviewed.

(xi) Smuggling and clandestine deals in timber and other forest products will be effectively combated.

(xii) Issue of new license to industries will be duly regulated so that the local, particularly, the tribal people are mostly benefited.

(xiii) The new policy proposes to examine, standardise and extend some concessions to all the tribals living near the reserved forests.

(xiv) As per the new forest policy, formation of co-operatives will be encouraged by offering preferential treatment in matters of forest contract, subsidiary silvicultural operations, mechanised carpentry and looms, labour contracts, marketing of forest products etc.

(xv) The weaker sections of the people including the tribal people residing in the neighbourhood of forests and the local educated unemployed youths will be encouraged to form co-operatives to run sand, stone, fish, cane and other mahals of the forest department.

(xvi) Conversion of timber for Government use will be done in a phased manner in the Government saw mills by increasing the number and capacity of such saw mills. The co-operative sector shall be encouraged to take over such operations.

(xvii) As a part of the process of linkage of forestry with industry an assessment of the need and viability of existing units, pricing policy of inputs and outputs, employment pattern and employment generating potentialities and location of headquarters of such industries will be made and corrective steps be taken.

To help mitigate the unemployment problem to the extent possible is one of the basic objectives of new forest policy. All effective steps will be taken to improve forest administration and new Management tools will be utilised to the extent possible for the same purpose in all areas of forestry.

Conservation of reserved forests falling in the inter-state boundaries will be more vigorously carried out within the bounds of the existing inter-state agreements. Necessary literature and books on forestry will be produced for use in schools and colleges.

With a view to enlarge the scope and contain research and to apply any proven developed new technique in forestry, the universities and other institutions situated within the state will be approached and helped financially.

Further, the existing laws and rules are reviewed to ensure speedy and deterrent punishment to forest offenders charged with serious crimes.

Among all the natural resources of Assam, water resources are considered as one of the most important resources of the state. Water can sustain all human, animal and plant life on earth. Water is essential for the survival of all these objects. Besides water in adequate quantity is very much important for the development of agriculture, fishery, animal husbandry and also for industrial development.

As agriculture is the main occupation of the people of Assam, regular and assured supply of water in adequate quantity is very much important for the development of agricultural sector. Water is no doubt the most important single requirement for the growth of various types of plants.

Water is available from both from over ground (surface run water) and under ground sources. The success in raising a good agricultural crops as well as running of allied activities depend upon the availability of adequate quantity of surface run water or from under ground storage of water. It would be better to study these sources of water resources in detail.

1.Surface or over ground water resources : Rainfall and rivers are the two major sources of surface run water. Rain water : The major portion of surface run water or over ground water in Assam is derived from rainfall. Assam is well known as a heavy rainfall area. Rainfall in Assam is usually heavy due to its peculiar geographical position. The annual rainfall ranges from 70" in the plains to 250" or more in the hill areas of Assam. The Kopili Valley, lying between the Khasia-Jaintia Hills and Mikir hill in Nagaon district is the only area where average rainfall is 43" and, therefore, may be called the driest area in the state.

In Assam, the rainfall is not fairly widespread throughout the year. Rather 90 percent of the total rainfall occurs during the monsoon periods. The monsoon usually starts in June and lasts till the end of October. The rainfall rapidly diminishes after October and December is usually the driest period of the year throughout the state. Moreover, the state faces vagaries of monsoon due to its late arrival or early termination in different years. A prolonged break in rainfall during the monsoon period causes severe drought condition in the state. Further, there are some regions under rain shadow in the south-eastern part of Nagaon districts, south western part of Golaghat sub-division of Jorhat district and the adjoining areas of Karbi-Anglong district, where rainfall is found to be very meager in quantity. Thus average rainfall and the condition of soil may indicate the availability of water in a particular area in different periods of time.

River water : Another important source of surface water in Assam is the major river of the state. In Assam there are huge number of rivers, ponds and wet land which are providing water in the various parts of the state throughout the year. Brahmaputra and Barak are the two major rivers of Assam which has 35 and 9 tributaries respectively, each of which has considerable hill catchment. Brahmaputra is the major river of Assam which links all the plain districts excepting Cachar. The river is entering the state in the Lakhimpur district in the east and flowing out of the state through the Dhubri district in the west . The river, by and large, does not exercise its fertilising influence in its upper reaches due to rapidity of its current but it does so in its lower reaches. The other major river Barak is flowing through the undivided Cachar district of Assam. During the monsoon, both of these rivers along with their tributaries spill over their banks at frequent intervals and inundate large areas with all their consequences. Further, the terrains, in the Brahmaputra valley are very steep, where retention of water during the monsoon months in paddy fields, even for sali paddy, causes a great problem. Even after the monsoon a major part of the plain areas remain water-logged for varying period, depending upon the depth of the depression. Considering these problems, it is quite important to undertake scientific river management plan in Assam. The establishment of Brahmaputra Board has raised a high hope in this direction. Moreover, a River Planning Commission is established with the purpose of flood control, electricity generation, irrigation and fishery development.

2. Under-ground Water Resources : The under-ground water potential in Assam is also quite high. Out of the total area worthy of ground water exploration, nearly two-third of this potential has already been covered. As per reconnaissance estimate, there are about 16 billion cubic metres of ground water available for exploitation. This water potential could be utilised for providing irrigation facilities to 1.6 billion hectares of land adequately. It is also estimated that under-ground water resources of the state can provide assured irrigation water to 30 to 40 per cent of its total requirement. But unfortunately, the utilisation of ground water for irrigation purposes in Assam is very less. Moreover, there is scarcity of potable drinking water both in the urban and rural areas of the state.

A survey conducted by the North-east branch of the central Ground water Board revealed that of the 50 million hectare metres of ground water potential, the dynamic ground water resources of the state in shallow phreatic zones has been computed to be about 24,719 million cubic metre (MCM). Recently, the replemishable ground water resources of Assam are estimated at 2.47 million hectare metres peryear and its rank among all the states is 7th. This dynamic ground water resources can be used for development in the agricultural sector as it is recharged in a very short period. However, only 0.1 million hectare metre of ground water potential has so far been developed for irrigation. According to the Survey out of the total geographical area of 78,438 sq.kms, the State has a gross cropped area of 34.60 lakh hectares. Against this 34.60 lakh hectare of cultivatable land, 21.01 lakh hectare of land can be brought under assured irrigation by way of using dynamic ground water resources.

Among all the north-eastern states, Assam has the highest groundwater potential and a proper utilization of this potential can usher in a radical change in the state�s agricultural scenario. However, only 941 million cubic metres of ground water resources have been utilised so far. Besides Assam, the ground water potential in other north-eastern states has been computed as follows : Meghalaya- 593.30 MCM, Tripura-663.74 MCM, Manipur- 3153.67 MCM, Nagaland- 723.58 MCM and Arunachal Pradesh- 2222.53 MCM. This abundant ground water resource can be used to ensure rapid development in the agricultural sector, particularly in the plain areas of the hill states. The main reasons behind keeping such vast ground water resources of the states unutilised are severe shortage of electric power for harnessing groundwater in a big way and excess iron content in over 30 per cent area of the state.

It is very unfortunate that schemes for development of groundwater potential could not be taken up for shortage in electric power. While the region has potential of producing 41, 441.5 MW. of electricity which is about 41 per cent of the country�s total power requirement.

The water resources of Assam are being utilised to a limited extent. In spite of having huge potential for the utilisation of water resources, Assam could utilise only a limited portion. The following are some of the important purposes for which water resources in Assam are being utilised.

1. Irrigation : Assam being one of the agricultural state is facing the problem of irregularity in the arrival of monsoon leading to devastation of crops due to either flood or drought arising out of scarce rainfall. Under such a situation, there is immense importance of assured water supply in the agricultural fields of the state through irrigation system.

Assam is blessed with huge natural irrigation potential which remains largely neglected. It is only recently that irrigation has been given its due importance for the development of irrigation projects and for its optimum utilisation. Water necessary for irrigation facilities may be made available both from surface water and underground water sources. In order to use surface water, multipurpose river valley projects may be constructed along with the construction of reservoirs, dams and also field channels. But these are long term projects and requires huge amount of capital for its realisation. Therefore, in the short run, the lift irrigation system may be more suitable where pump sets are being utilised to draw water from perennial river sources. Again in order to utilise underground water sources, the use of deep and shallow tube wells can also provide irrigation water to the agricultural field of Assam if the under-ground level is high. In Assam, most of the irrigation projects are being operated either by lift irrigation or by tube well irrigation system. But, the use of canal irrigation system is mostly restricted to Jamuna Irrigation Project situated at Nagaon district and also at Sukla irrigation project at Darrang and Kamrup district. At the end of Fourth Plan total irrigation potential in Assam was of the order of 2.8 lakh hectares out of which only 30 to 35 per cent of the above potential are utilised. Till the end of the fifth Plan, total irrigation potential created in Assam as in percentage of ultimate potential was 11.0 per cent only as against 48.7 per cent for all India. The irrigation programme being carried on in Assam consists of (a) major and medium irrigation programme and (b) minor irrigation programme. Total irrigation potential created in Assam up to the end of March 1993 was 4.58 lakh hectares out of which only 2.21 lakh hectares worth irrigation potential was utilised during 1991-92 , which is nearly 48.2 per cent of the ultimate potential created in the state.

2. Hydro-electric Power Generation : Assam is a store house of huge hydro-electric power potential. The meteorological, topographical and hydrological factors contribute to such a huge potential. Assam alone has 28 percent of the total hydro power potential of the country which remains largely under-utilised. As per our estimate of C.W.P.C. in the late fifties, rivers in Assam provide the possibilities of 14 million K.W. of hydro power. There can be no better alternative than the available water resources for power generation, particularly in a situation of sharply increasing cost and rapidly decreasing reserve of oil and coal. Moreover, hydro-electric plants can be established at any place in varying sizes considering local requirements.

But this hydro-potential has not yet been properly utilised. This is mainly due to the problems connected with the location of the project sites and the possible reservoirs in the foothills bordering the state. Most of these reservoirs are situated in Arunachal Pradesh, Meghalaya and Nagaland for which joint efforts by these states are very much essential for the execution of these projects.

After independence the Government of Assam put much importance on the development of hydro-electric projects considering huge hydro-power potential of the state. Accordingly Barapani Hydel Project and Umium Hydel Project at Sumer were commissioned for generating a huge volume of hydro power. But after the partition of Meghalaya from Assam both of these two projects went in favour of Meghalaya leading to a huge deficit in power generation within the state. Later on, Assam State Electricity Board has undertaken ambitious programmes for the development of some hydel projects, viz., Lower Barapani Hydel Project (250MW) etc. In the mean time, some of these projects are completed and some other remains still in incomplete stage. Karbi-Longpi Project is one of them.

In the mean time, investigations of Subansiri Dam Project, Dehang Dam Project, Dhansiri Reservoir Project, Pagladiya Detention Dam Project and Barak Dam Project have already been completed but works on none of these Projects have been started due to paucity financial resources.

3. Development of Water ways : Water ways is the cheapest mode of transport as it provides readymade route and it does not require any maintenance expenditure. Through water ways, a huge volume of cargo can be easily transported over long distances. There are unique opportunities for developing inland water transport in Assam. In Assam, there are two rivers systems, i.e., the Brahmaputra and the Barak-Kushiara and their tributaries in the south. Besides, country boats carry a good amount cargo and passengers through different rivers of the state. Assam has a total navigable water ways to the extent of 4,065.6 kms. Out of which only 2,193.6 kms. Are navigable throughout the year and the rest 1,872 kms. are navigable only during the monsoons. Thus water resources of Assam are also being utilised for navigation purposes to a great extent.

In spite of having huge water resources, Assam could not utilise these valuable resources satisfactorily. The ground water potential in Assam is quite high and about 50 per cent of the total area of the state is found suitable for the exploration of ground water. As per the reconnaissance estimate in the late fifties, there are about 16 billion cubic metres of ground water available for exploitation in this region. Such a huge volume of ground water can be utilised for irrigating nearly 1.6 billion hectares of land. But unfortunately, utilisation of ground water potential for irrigation purposes is very less in Assam. At the end of March, 1993. Only 13.2 per cent of the total cropped area of the state was irrigated. This shows really a dismal picture in respect of the utilisation of water resources for the development of agricultural sector of the state.

In respect of generation of the hydro-electricity, the situation is worse. In spite of having huge Hydro-power potential, only a very small percentage of this potential has been harnessed. Similar is also the case in respect of water transport. Although the state has a huge natural navigable routes for internal transport, but these routes are not being utilised properly and efficiently. Thus in this way, the cheapest mode of transportation facilities in Assam has been thoroughly neglected in the days of oil crisis and escalating transportation costs.

Under the present context, various measures should be undertaken for the utilisation and conservation of these water resources in Assam. Firstly, there is paramount need for proper assessment of water resources in the state in the light of its present requirement. Moreover, utmost care and prudence must be exercised in respect of the utilisation of water resources in the State, so as to avoid its wastage which can result in disastrous consequences. For ensuring economy and efficiency in the use of water resources, conservation of these resources is very important. Proper steps must be taken to develop those irrigation projects which can provide maximum benefits at a cheaper cost. In order to tide over the present power crisis prevailing in the state, more hydro-electric projects should be developed in varying sizes. Similarly proper steps should be taken to develop a regular and efficient inland water transport system in the state, provide the cheapest mode of transport facilities to the people in general. Thus, a comprehensive programme must be taken to cover the main three aspects, i.e., proper assessment of water resources, estimate the present and future needs of water resources and preparation of suitable projects for the best utilisation of these water resources in order to meet the different needs of the people of the state.

Problems of Flood in Assam and the Government Strategy to Control it- Brahmaputra Board

Assam is unfortunately one of those few states which are every now and then visited by floods. Experience and a study of the problem connected with the Brahmaputra and its tributaries suggest that it will be a long time before the problems of flood are adequately tackled. The two main, rivers, i.e., Brahmaputra and Barak are mostly responsible for the continuous problem of flood faced by the state. The catchment areas of the Brahmaputra and its main tributaries Sankosh, Gangadhar, Hel, Gadahar, Champabati, Saralbhanga, Pagladia, Barnadi, Aie, Manas etc. are mostly located in Arunachal Pradesh, Bhutan, Tibet, Meghalaya and Nagaland. Again the catchment areas of the Barak and its main tributaries Sonai, Katakhal, Rukni, Longai, Singla, Dhaleswari etc. are located in Mizoram and Manipur. Thus the task of flood control does not solely rests on Assam alone. Rather it requires co-ordination and co-operation among neighbouring states and also requires a long span of time and huge fund to contain this problem.

Floods in Assam are a regular phenomenon. Every year, a huge area of the state is liable to floods. As per the data collected during the period from 1953 to 1978 and excluding the area protected till 1978, the total area liable to floods in Assam is around 31.5 lakh hectares as compared to that of 335.16 lakh hectares for the country as a whole which constitutes about 9.4 per cent of the total flood prone area of the country. In respect of flood prone area, the rank of Assam is fifth.

As per the memorandum submitted by the state government of Assam to the Central Government, in August 28. 1996, it found that the recurrent floods in Assam since 1953 have so far caused damages worth Rs. 3348.50 crore in the state.Out of these, damage to the public utilities stands at Rs. 832.42 crore, the rest was caused to crops, houses and livestock resources. During this period, a total of 1,650 human lives were lost, 4,25,450 cattle were perished and 31.32 lakh dwelling houses worth Rs. 265.45 crore were damaged. Floods also affected 92.50 million people in an expanse of 40.52 million hectares. Moreover, crops spread over an area of 4.53 million hectares were also damaged by flood during this period.

This memorandum observed that "The problem of recurrent floods in the State is a major constraint and deterrent to development. For Assam, although the river Brahmaputra and Barak represent the very essence of life of our people, it could not provide the desired yield due to inadequate utilization of the potentials. Unfortunately, these rivers have become more �liability� than �asset� to the people of Assam". The annual average loss on account of floods had been estimated to be over Rs. 200 crore.

The representation further observed that the maximum flood depredation were caused in 1988 when about 1.24 crore people of 16 districts were reeling under floods . The 1988 deluge claimed 226 human lives, perished 1.08 lakh cattle and destroyed 4.89 lakh houses. Floods engulfed 51.02 lakh hectares of land and breached about 85 embankments.

In 1996, floods in Assam have resulted in loss of 38 human lives and 372 livestock, damaged 7,848 huts/houses and damaged crop area to the extent of 2.0 lakh hectares.

As the tremendous potential water resources of the Brahmaputra and Barak are not manageable to proper use for profitable purpose, it goes berserk in every rains devastating the state and the state has been experiencing an annual loss of Rs. 250 to 300 crore worth natural wealth and crops. This has also necessitated undertaking of relief , rescue, rehabilitation and repair work, to the extent of Rs. 500 to 600 crore every year.

In order to tackle the flood problem, about 4,500 Kilometers of embankments had been constructed as short-term measure. These preventive steps had offered protection to only 16 lakh hectares of land, thus exposing the rest(out of 31.5 lakh hectares of flood prove areas) to inundation. But even these embankments, constructed during the early fifties and the sixties are in dire need of improvement and modernization . Unless such steps are taken, even the now guarded land might soon fall to flood fury.

A scientific solution to the problem of flood erosion has to be discovered as constructing embankments had not solved the problem in the last four decades. In Brahmaputra, about 3,450 km. length of embankment (940 km. on the main river and 2,510 km. on various tributaries) has been constructed. However, these embankments have failed to meet the requirements, and these are also inadequately maintained for lack of financial resources on the part of the state.

Assam is a problem state, whose production and income are facing set backs in every year due to recurrent floods. Total damages to crops, cattle, houses and public institutions in Assam has been increasing year by year, i.e., from Rs. 13.2 crores in 1970 to 24.6 crores in 1972 and from Rs.11.98 crore in 1976 to Rs. 39.80 crores in 1980 and then to Rs. 306.6 crore in 1989. Moreover, floods in Assam have also necessitated undertaking of relief, rescue, rehabilitation and repair works for which a huge amount of revenue are being diverted. Total amount of such diversion varies between Rs. 500 to 600 crore every year. Thus a good volume of state�s resources has been diverted for making repairs and for giving relief to the flood victims. Had there been no such burden, this amount of resources would have been available for development plan purpose. Further, natural calamities in Assam make speedy implementation of plant difficult.

Thus, it is high time that the problems of floods in Assam be tackled adequately. By tackling this problem of flood, such a valuable water resources can be converted from liabilities into assets. To manage this water resources, it is necessary to construct hydel projects with the co-operation of other north-eastern states. These hydel projects will cost not less than Rs.2,10,000 crore (70,000 MW. of power @ three crore per MW) and will require a span of time of 10 to 15 years without adopting any further flood control measures. Thus the works assuaging flood hazards should be carried out by the state with its own resources and also with adequate flow of central assistance and assistance from international development institutions like World Bank. Judicious management of water and soil only can assuage flood hazards in Assam.

In the mean time, three master plants have been prepared by the government agencies at a cost of over Rs. 35,000 in order to control annual flood havoc in the entire north-eastern region. These master plans were also being updated following the advice of the centre and North-Eastern States.

The Brahmaputra Board has prepared master plan (part one) for main stem of the Brahmaputra river costing Rs. 32,000 crore and it was sent to seven basin states in June 1987 for comments as also to other concerned central agencies. The Central Water Commission, after examining the master plan, had observed that the problem of main stem of Brahmaputra was closely interlinked with those of its tributaries and therefore decided that the overall plan would be examined on the basis of an integrated picture of the main river and tributaries so as to provided optimum flood moderation and other benefits by the various multi-purpose projects proposed in the master plan.

The master plan (part two) for Bank sub-basin costing Rs. 2,500 crore had also been prepared and sent to seven N.E. states and other appraising agencies. Based on comments received from these agencies and seven sister states, the master plan was being updated. The master plan (part two) prepared by the Brahmaputra Board Covers flood management plans of thirty eight major tributaries in the Brahmaputra Valley and eight major tributaries in Tripura and it was also being updated following the comments and suggestion received from the appraising agencies and seven state Governments.

The Centre has allocated Rs. 43.80 crore in the Current Eight Plan for Brahmaputra Board and Rs. 25 crore for Tripaimukh and Pagladiya projects. Eight major projects have been undertaken for detailed investigation by the Board. These are Dihang, Subansiri, Pagladiya, Tiparimukh, Lohit, Kulsi, Jadukata and Someswari. The Brahmaputra Board has also undertaken construction of Hydraulic Research Institute for conducting model studies related to river morphology, floods, bank erosion and drainage congestion. The Brahmaputra Board in their master plans for preparing detailed flood management schemes within the overall framework of these plans. These master plans have identified the main reasons for frequent floods in the north-eastern region. These reason are-- the narrowness of the valleys, high rainfall, heavy encroachment of the forest land owing to increasing pressure of population. Frequent earthquakes in the region have also seriously disturbed the drainage of the Brahmaputra Valley.

The report observed that the acutely braided nature of Brahmaputra coupled with slit and sand strata of its banks, comparatively steeper slopes in Assam and high sediment loads are among the main causes of its excessive erosive activity in the valley. Moreover, the river Barak, which traverses through Mizoram, Manipur and Southern-Assam has also similar characteristics as those of the Brahmaputra river, but its carrying capacity and intensity of flooding is much lower. However, both these rivers rise and fall outside the boundaries of the country.

The problem of floods in Assam, along with the entire north-eastern region is quite acute. Recognizing the magnitude and complexity of the problem, the Union Government constituted the Brahmaputra Board in December 1981 under the Brahmaputra Board Act, 1980 for planning and implementation of measures for the management of floods and bank erosion in the Brahmaputra valley. Recently, the Brahmaputra Board has been revitalized in 1997 with the appointment of all the key officials. It is only a positive indication that the new dispensation in the Centre would like to see an end to the protest by the people of Assam that very little had been done to tame Brahmaputra, tap its huge resources and control the floods. Thus the revamping of the Board is, no doubt, a good step in this direction. The new dispensation in the Board should ensure that at least the low-cost projects prepared by the Board and pending sanction from the centre are cleared first. Such steps must be taken within the reasonable time frame.

In August 1996, the centre has agreed to convert the Rs. 6 crore annual loan for implementing flood control schemes in Assam into grants from the 1996-97 fiscal year. Several long pending flood control projects have also received the go-ahead signal. The ambitious Tipaimukh dam project on the trijunction of south-Assam, Manipur and Mizoram has also received green signal to the Union Water Resources Ministry and this would help in checking recurrence of floods in the Barak basin. The Centre had also provided the techno-economic and environmental clearance for the Rs. 2988 crore project. The Arunachal Pradesh Government had also cleared the proposal to build inter-state dams on the Dibang and Subansiri rivers. This projects, if implemented would minimize floods in Assam by about 50 per cent and that be outlay for the two projects had been pegged at Rs. 37,000 crores. The Centre was considering funding of the projects with the help of loans from the world bank.

Again on 27th October, 1996, the Prime Minister H.d. Deve Gowda announced a comprehensive economic package for the development of the North-east. While announcing a comprehensive water management and flood control measures, the Prime Minister announced that the Brahmaputra Board will be immediately activated to prepare a list of projects relevant for flood control, power generation and water management. Dredging operations will be launched to make inland waterways more efficient in the discharge of water and for transport. All the Brahmaputra flood control projects works henceforth will receive 100 percent grant from the centre. This is no doubt a positive step taken by the Centre and it has readily accepted the long pending demand of the state government and the people of Assam that the Central assistance for Brahmaputra flood control be turned to 100 percent grant and the Centre should take up the measures for controlling the flood in Brahmaputra. Accordingly, the centre has provided Rs.25 crore as grant in 1996-97 and Rs. 10.68 crore grant-in-aid to the Brahmaputra Board under the new central scheme to provide hundred percent grant for controlling the floods of river Brahmaputra.

The survey and investigation for construction of dam projects are going on at Jadukata, Someswari, Umnigot, Debang, Kulsi, Nao-dihing, Bhairabi and Kameng. Alternative sites for siang and subansiri dam projects were also being looked into investments Clearance for the Pagladiya dam projects built at a cost of Rs. 479.21 crore and inter-state clearance from Manipur, Mizoram and Assam for the Tipaimukh dam project were awaited. Moreover, in the mean time modifications of nine master plans of the Brahmaputra Board have been completed and submitted to the Ministry of Water Resources for its approval.

However, providing 100 percent grant for all Brahmaputra flood control projects is a great boon for Assam. Till now, the state Government was getting Rs. 25 crore as loan, which, after deduction, came to only Rs. 3 crore. However, in 1996-97, Rs. 25 crore was given as grant in aid.

Moreover, Rs. 500 crore sanctioned by the centre in the Ninth Five Year Plan for Brahmaputra flood control will be spent on Pagladiya project, Tipaimukh and Harang drainages and development schemes in Barak Valley. Of the Rs. 500 crore, Rs. 351 crore in for Pagladiya Project, Rs. 84 crore for Tipaimukh, Rs. 50 crore for preconstruction of Pagladia and Tipaimukh Projects and Rs. 10.85 crore for Harang development scheme.

The estimated cost of the four multi-purpose projects viz., Pagladia, Subansiri, Dihang and Tipaimukh is Rs. 39.323 crore with a combined installed capacity of order of 22,203 MW.

Power is an essential pre-requisite for industrial development. Assam is generously blessed by nature with its huge power potential based on water, natural gas, Coal and Oil. Assam alone has 28 percent of the total hydro power potential of the country, which remains under-utilised. In spite of having huge power potential, Assam is lagging behind most of the other states of India in respect of installed capacity as well as per capita consumption of electricity. In 1975-76, the state accounted for less than one percent of the total installed capacity of the country. In 1979-80, total installed capacity of the power projects in Assam was 151.5 MW with two major generation stations viz., Chandrapur thermal (30 Mw) and Namrup thermal (111.5 Mw) and a few isolated diesel generation stations. This capacity has increased to 201.5 Mw at the end of 1980-81 following the commissioning of the first unit of Bongaigaon Thermal Power Station (60Mw) with effect from 26 th February, 1981. Further, during 1981-82 total installed capacity increased to 312.5 M.W. as against the load demand of 462 M.W.

Again in 1993-94, total installed capacity of power projects in Assam gradually increased to 534.4 M.W. Moreover, total units of electricity generated were 1068.3 million unit in 1992-93.

In Assam power is utilised mostly for domestic, commercial, industrial and for public lighting purposes. In 1950-51, per capita consumption of electricity in Assam was 0.58 Kilowatt as compared with 13.3 Kilowatt for all India. In 1989-90 the per capita consumption of electricity in Assam gradually increased to 78 Kilowatt as compared with that of 1236 kilowatt for all India.

Time bound programme was taken up in the state to generate 585 M.W. of power by 1983-84 for making the state self sufficient in power. The Lakwa Thermal projects and Bongaigaon Thermal Power Station (120 M.W.) have already inaugurated and started commercial production. In the mean time, works of 150 M.W. Kopily Hydel Project has been completed and till February, 1993, this project has generated 790 M.U. of electricity. The power supply position in Assam is expected to be improved with the completion of the following projects, viz., Namrup waste Heat Power project (22 M.W.) extension of Chandrapur Thermal power Station (30 M.W.), Lakwa Gas Turbine (45 M.W.), Lower Barapani (Kamrup) Hydel Project and Karbi Longpi Hydro-Electric Project (250 M.W.) Kathalguri gas project based project (291 M.W.) and extension of Kopily hydel project (100 MW.) Kopily Hydel (250 M.W.) and Logtak (Manipu) Project has also improved the power position in Assam substantially.

Moreover, the work of Assam Gas-based power project undertaken by NEEPCO at Kathalguri has been completed and the project in Commission in 24th March, 1995. This project will ultimately generate 291 M.W. of power by utilising one million standard cubic metre of natural gas per day.

Total generation of electricity which was 658 million Kilowatt in 1978-79, gradually declined to 465 Kilowatt in 1980-81 and then gradually increased to 1079 Kwh and 939.9 Kwh in 1991-92 and 1993-94 respectively.

Thus, Assam has its rich power potential which still largely remains under-utilised, In the coming future we can hope that more power projects mainly based on natural gas, water and coal, will be commissioned in different parts of Assam. In the mean time, the Government of Assam has taken steps to establish some new power projects based on natural gas and water in the private sector.

Economic resources are those which can be used without much conversion in its shape and character. Although all natural resources are also termed as economic resources after its processing but some resources are readily available and can be used directly both for production and consumption purposes without any processing. The two most important type of other economic resources include live stock resources and fishery resources.

Livestock is a kind of reproducible biological resources. Livestock population includes cattle, buffalos, sheep, goat, pigs, duck, etc. In Assam, a good number of rural people accepted the rearing of livestock as a secondary occupation side by side with their principal occupation. Moreover, a limited number of population in Assam, particularly dwellers in hilly slopes are practicing livestock farming as a whole time occupation.

As per the livestock census of 1988 in Assam, there are nearly 72.7 lakh cattle, 6.2 lakh buffaloes, 67 thousand sheep, 21.3 lakh goats, 13.5 thousand horses, 6.4 pigs, 84.6 lakh fowls and 29.9 lakh ducks. As per census report it is found that the livestock population is comparatively much higher in the districts like Dibrugarh and Tinsukia, undivided Cachar, Lakhimpur and Barpeta.

In order to attain a higher yield from livestock farming for longer duration, exotic varieties of cattle, goats, fowls, ducks etc. must be introduced. In the mean time steps have been taken to enrich the livestock resources of the state through rural development schemes like IRDP.

Fish is another water born resources. A considerable proportion of rural people in Assam, belonging to landless and economically backward section particularly are meeting their own requirement of fish by own catch. Moreover, a small section of population has accepted fishery activities on commercial basis and also earns a good amount of income from fishery. But the fishery resources in Assam remains totally neglected inspire of having a huge potential for its development.

Assam is endowed with huge fishery potential. Assam possesses immense fishery resources in the form of rivers, beds, swamps, ponds, tanks, forest, fisheries and paddy fields. The twin river system of the Brahmaputra Valley and the Barak Valley bring enough fresh water to almost all over the state through innumerable tributaries. The ecological condition of the state is also quite favourable for pisciculture along with its subtropical humidity and coolness of climate.

Fishery is considered as one of the important sectors for the development of rural economy of the state. Two major rivers of India, viz., the Brahmaputra and the Barak flow through the state. The Brahmaputra flows from East to West and runs through a distance of 730 Kms., having 42 tributaries of which 27 are in the North bank and 15 on the south bank. In its upper reaches, for a length of about 530 Kms till Guwahati, the gradient is steep and the strong surface and underwater current render commercial fishing impossible with the indigenoeous methods of fishing. The remaining 230 Kms stretch from Guwahati to Dhubri is exploited commercially for fishing.

The other major river, the Barak, flows from North to South in the Southern region of the state, for a total length of 400 Kms. It has 13 tributaries, 7 of which are in the North bank and the 6 of them are in the south Bank. Commercial fishing is practiced across the entire river. The state has two newly constructed reservoirs in North Cachar Hills District constructed by Kapilee Hydro Electric Project. The process of developing these reserves into fisheries shall continue in the coming years. Total fishery potential of the state under different heads is given below.

There are a good number of fisheries in Assam. Total number of registered beels and unregistered beels in Assam were 430 and 766 respectively in 1992-93. Moreover, there is a huge number of swamps and low-lying area (1192 and ponds and tanks (1.85 lakh). All these fisheries are covering a huge area of land. Moreover, there are a good number of river fisheries in Assam for approximately 4820 kms. of length and varied width. In 1994-95, there were 177 registered river fisheries in Assam. But unfortunately, these huge volume of fishery resources of Assam largely remains under-utilised. The introduction of scientific management practices on these huge fishery resources is very much essential in the present context. If such scientific practices can be introduced then Assam will be able to boost the production fish within the shortest possible time.

Seed Production :The state being deficit in fish production, efforts have been made towards increasing production of fish in the state. Fish seed being the primary input in the production of labh fish, maximum emphasis has been laid in the production of the required quantity of fish seed in the state. The state is now almost self-sufficient in the production of fish seed, considering the present requirement. But in order to utilise the unutilised water area of the state, the production of fish seed must be increased further.

The first step towards making the state self-sufficient in the production of fish seed, was the establishment of Eco-Hatcheries in the private sector. Construction of some more Eco-Hatcheries in the private sector have been taken up by the Fish Farmer Development Agencies (FFDA), the construction of which is in progress. There are also three departmental Eco-Hatcheries and two more are now under construction. Besides, there are potable Hatcheries, Glass jar Hatcheries and Mini Brinds in the Departmental Fish farms. Under modern technology, induced breeding method has been adopted. The state had set a target of producing 2000 millions of Fish seed (both under public and private sector) during the year 1993-94 against which it had produced 2170 million of fish seed.

Fish Production : Fish being one of the main items of food for most of the people in Assam, the demand for fish is very high in the state. About 90 per cent of the people in the state are fish eaters. Calculated on the basis of average nutritional consumption of 11 kgs. of fish per head per year, the requirement of fish for the state per year comes to 2,21,000 Metric tonnes (MT) on the basis of the population of 1991 Census. The Fishery Department has set a target of production of 1,40,000 Mts. during the same year.

The main traditional varieties of fish which are available for commercial purposes include rohu, mrigal, hilsa, catla etc. and exotic varities like grass carp, common carp and silver carp. Moreover, air breeding varieties such as magur, singee, garai etc. are also found in beels and swamps. Total production of fish seed in Assam was 2386 million nos. and total production of fish in Assam was 1,53,029 metric tonnes in 1994-95.

In Assam, the demand for fish has been continuously increasing in recent years. Due to deficiency in production, the prices of fish have recorded a rapid increase. In order to meet such short fall in domestic supply, the state is importing a huge quantity of fish from other states like Andhra Pradesh, West Bengal, Orissa, Uttar Pradesh etc.

In 1993-94, the total amount of fish imported to the state was 20, 549 Metric tonnes.

The Fish Farmers Development Agency is one of the agencies through which the Department had taken up the task of development of the existing water bodies, creation of new water bodies and to increase production of fish by adoption of modern technology.

FFDA is a centrally sponsored Agency for the development of fresh water Aquaculture, its jurisdiction being coterminous with a district. The FFDA meets two basic needs of the Fish farmers, i.e., (a) technical support including extension support and (b) financial support.

A prime objective of the aquaculture development through FFDA is to alleviate rural poverty through generation of employment among the weaker section of the society, marginal farmers etc. FFDA provides training to the fish farmers. The trained fish farmers are provided with subsidy with or without institutional finance.

During 1993-94, the FFDA subsidy has been de-linked from the bank loan. Now a fish farmer can avail FFDA subsidy without Bank loan, if he can meet the requirement of fund beyond the subsidy amount out of his own sources. During 1993-94, the Government of India sanctioned 8 (eight) more FFDAs for eight different districts of Assam, i.e. Hailakandi, Bongaigaon, Nalbari, Morigaon, Dhemaji, Golaghat, Tinsukia and N.C. Hills. With the eight new FFDAs, the total number of FFDAs in Assam comes to 23. Thus there is one FFDA in each of the 23 district of Assam. The first FFDA in Assam was set up in Kamrup District in 1995-96. Up to 1991-92, the total number of FFDAs in the State was 12. The number of FFDAs in the state rose to 15 in 1992-93 and now the state has 23 FFDAs.

The performance of the FFDAs shows that during 1993-94. Total water areas developed by FFDAs were 1108. 98 hectares and total number of beneficiaries covered by the FFDAs was 4107. During the year 1993-94, the Fisheries Department had realised Rs. 247.89 lakhs to the FFDAs, of which the central share was Rs. 82.00 lakhs.

In order to harness the fishery potential of the state, the Fishery department has undertaken various other steps in the following manners.

(a) Development of Derelict water Bodies : There are many derelict water bodies in the state. The Department has taken up a scheme to develop the derelict water bodies to make them suitable for fish culture. But the step taken by the state is not adequate and much more is to be done for developing the huge derelict water bodies.

(b) Assam Fisheries Development Corporation Ltd : The Assam Fisheries Development Corporation Ltd. (AFDC) was set up in 1977, with the prime objective to develop the natural fisheries and thereby improve the socio-economic condition of the poor and scheduled caste fishermen and the Maimal Community of the Cachar district. The AFDC has taken the onus of development of Beel Fisheries under the World Food Programme. Till 1993-94, the Fishery Department had given an amount of Rs. 521.00 lakh to the AFDC for the development of bed Fisheries in the state.

(c) Assam College of Fisheries : In order to develop proper manpower and technology for the utilisation of huge fishery potential of the state, The Assam College of Fishery was established in 1998 at Rah in the Nagaon district. The college is under the Assam Agriculture. University, where B.F.Sc. Course is being taught in this college.

(d) Training Programme : In order to provide practical training to the fish farmers, some training programmes are being undertaken by different agencies. There is a Regional Fisheries Training Institute (RFTI) at Amranga in the Kamrup District, which is about 35 Kms. from Guwahati. The Institute was set up with the funds provided by the North Eastern council. It provides refresher course training to the in-service personnel of the North Eastern states. The duration of the course is nine months. It also organises short term Fishery Training courses for the fish farmers of Assam and other North-Eastern States.

Between 1987 and 1993-94, the RFTI has given training to 330 Fishery Officers and fish farmers.

There are two more training institutes, one at Joysagar in Sibsagar district the other at Guwahati. They provide training courses for the fishery demonstrators and also for the fish farmers. During 1993-94, both the Institutes provided training to 66 Fishery Demonstration and fish farmers.

Moreover, FFDAs are also conducting short duration training course for fish farmers who are selected for taking up implementation of various schemes under FFDAs for their self-employment. During 1993-94, the 23 FFDAs trained about 3090 fish farmers in the state.

But the training programmes undertaken so far are not adequate considering the huge fishery potential of the state and the number of persons involved in it. Thus adequate steps must be taken to arrange fruitful training programmes for those persons.

In order to draw maximum benefits from the fishery sector, the Directorate of Fisheries has taken a series of measures like production of quality fish seeds both in Government and private sectors with establishment of modern infrastructures which include-development of eco-hatcheries and fish seeds farms, supplying adequate volume of fish seeds to fish farmers, development agencies, extension services, making provision for training and research etc.

As a result of these measures, the production of fish in Assam had increased to nearly 1.55 lakh mt. in 1996-97. The state Government is initiating series of ambitious programmes for increasing the production of fish and also for harvesting the additional and unutilised fishery potential areas of the state.

Fishery Development under Assam Rural Infrastructure and Agriculture Service Project (ARISAP) :

In recent years, a new programme entitled "Assam Rural Infrastructure and Agriculture service project (ARIASP) is undertaken with the assistance of the World Bank. Under this project, the Department of Fisheries, Assam has secured a total of Rs. 28.37 crore in order to increase the production of fish from the present level of 1.55 lakh mt. to the projected requirement of 2.21 lakh mt. including adequate provision of allied infrastructure facilities. This project (ARIASP) will continue for a span eight years since it has started from 1995-96.

Out of the total allocation of Rs. 28.37 crore on this project, a sum of Rs. 21.70 lakh has been earmarked for fish seed production. Rs. 72.20 lakh for mobile fish health clinic, Rs. 820.00 lakh for development of farmers community tanks and ponds, Rs. 124.40 lakh for open water fisheries, Rs. 841.80 lakh for beel fisheries development, Rs. 335.90 lakh for fisheries research, Rs. 449.60 lakh for fisheries extension, education and training and Rs. 72 lakh for project monitoring call. All these earmarked amount would be spent during the span of eight years.

Under this project, an eco-hatchery with other infrastructural facilities is proposed to be established at Assam Agricultural University, Jorhat for the production of fish seeds. Six ambulatory vans with accessories have been proposed to be procured for rendering services related to fish health care. Moreover, about 800 nos. of fish farmers� ponds, 150 nos. of Community tanks will be developed with in the stipulated period of eight years. Besides, about 5000 hectares of natural beel areas and 500 hectares of open water fisheries have been taken up for the promotion of pisciculture so as to enhance the production of fish and to uplift the socio-economic condition of the fishermen community. Education and training to fish farmers and in service and in-service personnel in latest technology in the field of aquaculture are proposed to be intensified at the university and department level. Accordingly, Fisheries research activities in Raha and Jorhat are augmented. A project monitoring cell will also be established for meticulous planning and programming in this sub-sector.

Since after the introduction of ARIASP, the achievements of the fishery sector took a new turn with the development of large number of farmers� ponds, beel fisheries etc.

During 1996-97, the extent of progress made in the fishery sector was quite encouraging. During this year 220 nos. of farmers� ponds and 57 community tanks were developed. Moreover, 44 nos. of farmers ponds were brought under intensive fish culture with horticulture and 25 nos. of ponds were also developed under pig-cum-fish culture. Besides, 16 nos. of vehicles were procured while trainings were imparted to around 200 nos. of farmers and 34 nos. of in service officers. Apart from these, civil work , for construction of four training centres at Tezpur, Barpeta Road, Joysagar and Amranga has already been completed. Total amount of expenditure incurred in the fishery sector during 1996-97 was nearly Rs. 2.38 crores.

ARIASP project is no doubt an important project for the intensive development of the fishery sector of the state. Considering the huge fishery potential of the state, the officials of the Fishery department should try to implement this project with utmost sincerity so that instead of ritual, the project is implemented for the benefit of the general fish farmers of the state.

Assam is situated at the North-eastern Himalayan Sub-region of India. In spite of having huge development potential, the economy of Assam remained underdeveloped as it is characterized by poverty, under-utilized man power and untapped natural resources. The economy of the state is depending too much on agriculture. In Assam, cultivators and agricultural labourers together account for 64.0 percent of the total working population, whereas workers of manufacturing and other household industries constitute only 2.8 percent of the total workers of the state.

Assam is one of the industrially backward states of the country. In spite of being blessed with a high potential for development of resource-based and demand-based industries in the state, the pace of industrialisation in Assam had not been satisfactory. The industrial sector in the state had been centralised around some particular sectors, like tea, petroleum, coal, jute and forests.

Agro-based industries of Assam include-Tea industry, Sugar industry, Grain mill products industry-(Rice, Oil and Flour Mill), Food processing industry and Textile industry.

Mineral-based industries of Assam includes-Railway workshop, Engineering industry, Re-rolling mill, Steel Works, Motor Vehicle Workshop, Galvanized wire units, cycle factory, Aluminum utensils industry, Cycle spare parts, Steel Trunk, Tube well pipe, Steel wire net, Barbed wire, cement industry etc. Moreover, the non-metal based industries include oil industry, Natural Gas-based industry etc.

Forest-based industries of Assam include-Plywood industry, sawing mill, Paper and Paper-pulp industry, match industry, Leather industry, Hard board industry etc.

Other industries of Assam include-Power industry, Fertiliser industry, Printing Press, Brick and Tiles industry, Chemical industry etc. Shyness of capital due to high cost of production, vulnerability of the region, inadequate economic and basic infrastructural facilities, dearth of technical personnel, lack of entrepreneurial motivation on the part of local people and low level of central sector investment etc. are responsible for poor industrial development of the State. During the decade of planning the industrial sector practically remained stagnant. It was during the Third Plan that the industrial development programmes were accelerated along with the development of infrastructural facilities. It is also encouraging that over the past few years persistent efforts are being made for increasing and improving various infrastructural facilities which are paving the way for gradual industrialisation in the State. Besides, the State Government is also providing technical training undertaking surveys and investigation of raw materials, developing industrial sites and participating in the share capital of private enterprise. These developments created a favourable climate for industrial investment in the State.

Industrial production in Assam has been increasing at a slow rate. Major industrial products in Assam include Tea, Coal, Matches, Plywood, Sugar, Fertilizer, Jute Textiles, Petroleum Crude, Refinery Products, Wheat Flour, Paper and Cement. The following table shows the production of some important industries in Assam:

Item

Unit

Production in

1975

1981

1985

1991

1994

1. Tea

2. Sugar

3. Jute Textile

4. Fertiliser

5. Refinery

Products

6. Petroleum

Crude

7. Plywood

8. Match

9. Cement

10. Paper

11. Wheat Flour

12. Coal

Million Kg.

�000� M.T.

�00� M.T.

�000� M.T.

�000� Tonnes

Million Sq.

Meters

Million gross Boxes

�000� M.T.

�000� Tonnes

263

141

1295

110

305

204

1566

4386

5.4

197

149

651

352

187

1910

4791

169

0.5*

337

835

388

4.2

5.3

326

2531

4838

4.7

179

283

946

399

1.5

5.0

129

4861

42.7

4.1

275

249

1292

The above table reveals the trend of production of some important industries of Assam in recent years. Production of Tea, which was 263 million Kg. in 1975 gradually increased to 352 million Kg. in 1985 and then fell to 390 Million Kg. in 1994. Production of sugar stood at 1.5 thousand M.T. in 1992 as against 6 thousand MT in 1975. Production of Jute Textiles shows an increasing trend from 4 thousand M.T. in 1975 to 6 thousand M.T. in 1985and then declined to 5.0 thousand M.T. in 1994. Fertiliser production in Assam which reached the peak level of 32.6 thousand M.T. in 1991 gradually declined to 12.9 thousand M.T. in1994. The volume of refinery products in Assam gradually increased from 1295 thousand M.T. in 1975 to 2531 thousand M.T. in 1991. Production of plywood in Assam also increased from 23 million sq. metre in 1975 to 43 million sq. metre in 1994. Production of match which reached the peak level of 6 million gross Boxes in 1979, gradually declined to 4.4 million gross boxes in 1994.

In the case of Cement industry, total production gradually increased from 110 thousand M.T. in 1975 to 275 thousand M.T. in 1994. It is also expected that total production of Cement will also increase further in the coming years. Total production of paper which reached the peak level at 17 thousand M.T. in 1978 gradually declined to 11 thousand M.T. in 1980 due to the closure of Ashok Paper Mill at Jogighopa. In 1983 total production of paper again declined to 0.5 thousand M.T. in 1983 and it declines further in recent years due to near sick condition of two paper mills of Hindustan Paper Corporation.

Total production of coal in Assam also maintained an increasing trend i.e., from 584 thousand tonnes in 1979, the production increased to 1292 thousand tonnes in 1994.

The Directorate of Economics and Statistics (Assam) has been preparing an index of industrial production, with base 1970=100, based on 25 items of products representing 13 industry groups at 3 digit level of National Industrial classification (NIC) 1970. These 13 industrial groups accounted for 81.9% of the value added by Manufacture in the registered factory sector in 1970. The following table shows the index of industrial production for the period 1971 to 1994.

Industry Group

1971

1976

1981

1991

1994

1.Grain Mill products

2.Manf. and refining of sugar

3.Manf.of other edible oils and fats

4.Tea processing

5.Manf. of Cotton textiles

6.Manf.of Jute textiles

7.Manf. of veneer plywood & their products

8.Sawing & planking of wood (other than ply)

9.Petroleum refineries

10.Manf. of products of petroleum not elsewhere classified

11. Manf. of Fertilizers and pesticides

12. Manf. of Matches

13. Aluminum manufacturing

14. All Industries combined

92.34

72.54

101.78

105.49

62.35

104.98

120.43

147.53

92.79

108.70

117.29

96.85

96.15

103.57

103

130

266

175

130

106

189

104

119

124

145

119

275

315

152

136

382

100

198

145

114

159

183

128

353

278

144

238

122

190

188

107

302

454

115

265

188

204

The above table reveals that the industrial production in Assam evidenced a continuous upward trend since 1971, the annual rate of growth being about 4 percent. But the increase in the industrial production varies in different years. The index of industrial production (base 1970=100) in the registered factories increased by over 20 percent during 1970-77. The increase in 1976 over 1975 was 6 percent while that in 1977 over 1976 has been estimated at 2 percent. The table further shows that the indices of I industrial production (Base 1970=100) of the industrial groups like-grain Mills product, Manufacture and refining of Sugar, Manufacture of other edible oils and fats and Manufacture of products of petroleum not elsewhere classified have been gradually declining and reached the level of 64, 54, 76 and 36 respectively in the year 1981. Again in 1991, the same indices changed to 114, 40, 159 and 71 and in 1994, these indices again reached the level of 98, 15, 57 and 17 respectively.

But the indices of industrial production of the industrial groups like Manufacture of Jute textiles. Manufacture of veneer plywood and their product, Manufacture of Fertilizers and pesticides and Aluminum manufacturing have been increasing satisfactorily and reached the level of 275, 315, 382 and 198 respectively in the year 1981. In the 1991, these same indices increased to 353, 278, 716 and 122 and in 1994, these indices again increased to 302, 454, 47 and 188 respectively. The indices of other industrial groups like Tea processing, Sawing and planking, Petroleum refineries, Manufacture of Cotton textiles have been increasing at a slow rate and reached the level of 145, 152, 136 and 119 respectively in the year 1981 whereas the indices of production of Match industry remained more or less stationary. In 1994, these same indices again increased to 188, 115, 265 and 107 respectively.

It is also observed that the indices of production (Base=1970) of All industries combined in the State gradually increases to 133 in 1979 and then to 145 in 1981. Again in 1991, the indices of production of all industries increased to 190 and in 1994, the same indices further rose to 204. The index also reveals that the index was lower by 7.5 percent in 1980 over 1979 and 8.9 percent in 1979 over 1978. But the production performance in the manufacturing sector of the State which suffered a slowing down in the year 1979 and 1980 has regained the lost ground in the year 1981. Again, the indices of industrial production (all industries combined) has recorded an 3.8 percent increase in 1991 over 1990 and recorded a marginal increase of 1.5 percent in 1994 over 1993. It is also evident from the available data that during 1981 production of fertilizer, refinery products, jute textiles, Plywood and Cement have increased in varying proportions as compared with the preceding year. Production of sugar fertilizer, paper and match displayed some fall during the year.

Assam got its berth in the industrial map of India since the pre independences period. During the British period, the process of industrialisation was initiated in Assam with the growth of tea and oil industry. With the development of these two industries, the industrialisation process gained its momentum in the last half of the British period and subsequently after independence.

The industries in Assam can be broadly classified into- (a) Organized industries and (b) Unorganized industries. The organized industries of Assam include Tea, Petroleum, Paper, Cement, Plywood, Coal, Jute, Sugar etc. The unorganized industries of the state include the small and cottage industries, Khadi and village industries etc. Both the organized and unorganized industries are playing a very important role in the economy of the state. Tea and Petroleum industries are the two important organized industries of the State which has been playing an important role of sustain the economic development process of the State. Moreover, the other organized industries along with unorganized industries like various small and cottage industries and the Khadi and village industries are also playing a very important role in the state, especially, in the rural economy of the state. The following are some of the important roles played by these organized and unorganized industries of the state :

1. Utilisation of huge volume of natural resources has become possible with the development of these various types of organized and unorganized industries in the State. Assam still possesses a huge volume of various types of mineral, forest and agro-based resources which are mostly remain unutilised. Development of these industries can tap these resources to the fullest extent.

2. Development of these industries would increase the job opportunities for huge number of population of the State. Agro-based industries and the unorgansed industries, being labour intensive, are providing a huge number of employment opportunities in the state. Tea industry aloe provides direct employment to more than 5 lakhs of persons daily. If more such industries materialize fully, the problem of unemployment could be solved easily in the state.

3. Organised and unorganised industries are contributing a good portion state income. The manufacturing industries have contributed 15.5 percent of the total state income in 1993-94.

4. Organised industry like tea industry of Assam is supplementing a good volume of export requirement of the country. Assam�s share of tea export was more than 55.0 percent of the country�s total sales abroad. Similarly, the petroleum and Petro-chemical industry of Assam has also a considerable import-substitute component.

5. Development of organised industries has led to the growth of a good number of ancillary industries in the state.

6. Development of these different industries has to the development of markets for various raw materials and finished product in the state.

7. Finally, development of various organised and unorganised industries will help well in the creation of industrial climate in the State. The expansion of tea industry in Assam has led to the growth of many small industries viz, industries producing tea machineries and implements, tea chests plywood industry etc.

The manufacturing sector of Assam is very poor in its size. Thus its contribution to state income is also very poor. Being industrially poor, the State�s economy cannot expect sufficient income out of this sector. The percentage of income derived from manufacturing (including tea processing, factory establishments and small enterprises) out of total state income remained at a poor level as the economy of the state is mainly an agrarian one.

In 1950-51, contribution of the manufacturing sector to the state income was around 15.6 percent and then its contribution increases to 17.2 percent in 1955-56 and further to 17.7 percent in 1960-61. In 1965-66 the contribution of the manufacturing sector the state income (at 1948-49 prices) stood at Rs. 64.6 crores which came around 17.4 percent of the total state income. In 1969-70, the contribution of this sector although increased marginally to Rs. 77.4 crores but its contribution declined to 15.1% of the total state income.

From 1970-71, the state income has been calculated at 1970-71 (constant) prices. Taking the manufacturing, construction, Electricity, Gas and Water supply within a particular group its share in the state income of 1970-71 was to the tune of Rs. 108.0 crores, contributing 13.9 percent of the total state income of Assam. In 1973-74 although its share remained at the same level of Rs. 108.7 crores but its contribution declined to 12.5 percent of the state income. In 1977-78 the share of this manufacturing and allied sector gradually increased to Rs. 130 .0 crores but its contribution remained at the same level of 12.7 percent of the state income.

The contribution of the manufacturing sector alone to the state income of Assam (at 1970-71 prices) was Rs. 92.4 crores in 1977-78 then it increased to Rs. 98.7 crores in 1978-79 and then gradually declined to Rs. 97.8 crores in 1979-80 and Rs. 92.0 crores in 1980-81. Further, the share increased to the level of Rs. 104.9 crores in 1981-82 (provisional). The shares of this manufacturing sector alone to the total state income of Assam were 9.8 percent in 1978-79, 10.0 percent in 1979-80, 8.4 percent in 1980-81 and 9.4 percent in 1981-82

The share of manufacturing sector to the net state domestic product at current prices has increased from 6.9 percent in 1980-81 to 10.2 percent in 1990-91 and to 10.56 percent in 1991-92. The same share at constant prices(1980-81) has also increased from6.9 percent in 1980-81 to 13.37 percent in 1990-91 and then to 15.50 percent in 1993-94.

Again the contribution of the entire secondary sector which includes manufacturing industry, construction, electricity, gas and water supply to the net state domestic product of Assam at 1980-81 prices has increased from 11.8 percent in 1980-81 to 19.45 percent in 1990-91 and then to 23.00 percent in 1993-94.

Thus from the above fact it reveals that the contribution of this manufacturing sector to the State income of Assam has been gradually increasing at a slow rate. The reason behind this trend is that the manufacturing sector could not expand at a desired rate and thus the agricultural sector is still dominating the show accounting 33.5 percent of the total state income of Assam. Thus the economy of the State is yet to be diversified. This required that the industrial sector should expand at a rapid scale and new industries both large and small scale, should be developed on the basis of available natural endowments.

During British period the industrial development in Assam was very poor. Even the basic infrastructural facilities which were essential for industrial development were more or less absent. After independence, although planning started in Assam along-with the other states of the country but the aims of the State plan were tilled towards the development of agricultural sector neglecting the industrial sector.

During the first decade of planning the industrial sector practically remained stagnant. It was during the Third Plan that the industrial development programmes were accelerated to provide much needed boost to the growth-including factors. The State Government also directed its vigorous efforts with its limited resources towards creation and development of adequate infrastructure like expansion of the facilities of power, transport, providing technical training, and also undertaking surveys and investigation of raw materials, developing industrial sites, and participation in the share capital of private enterprise. Thus a favourable climate for investment in industries had been created with all these development. But the response of the private investment was not so much encouraging. Public investment of the central sector in the State was also meager. But prospect has brightened with the decision taken later by the Government of India to set up number of resource based industries in the State.

Towards the latter part of the Second Plan and the early part of the Third Plan a number of new industries, namely a bicycle factory, a spun silk mill, two cotton spinning mills, a house service meter factory, some re-rolling and fabrication units, a mixed fertiliser plant, a Jax board factory, a hard board factory, a sugar mill (a Co-operative enterprise) and a fruit-processing plant were set up in the small or medium scale sector. The capacity of the existing industries notably in plywood and saw mills, flour and oil mills, motor repairing and general engineering was also expanded.

Besides two major projects viz : Noonmati Refinery (Third Plan) and Namrup Fertiliser Plant ( spilled over to Annual Ad-hoc plans) both in the central Government sector and the third, the Gas Distribution Project- Assam Gas Company in the State Government sector were established. All these above mentioned projects are resource-based which supported a number of ancillary and subsidiary units. The most prominent among these is India carbon products Limited (based on Noonmati Refinery). Late in the Third Plan, the State Government took over from the private sector, implementation of the Cherra Cement Projects which started production in 1966.

During the Fourth Plan, the pace of industrialisation in the State was accelerated with the establishment of number of resource-based industries mostly in the public sector located in some of the relatively backward areas of the state. During the Fourth Plan, some new industries were set up which included Assam Co-operative Jute Mill at Silghat, Assam Alkali Allied and Chemicals Ltd., at Jogighopa, Ashok Paper Mill at Jogighopa. Further, some of the existing industries in the State were also expanded during this plan period. Among those included was the Cherrapunjee Cement Factory whose production capacity was expanded from 250 tonnes to 850 tonnes per day. The Assam Gas Company has laid down another pipeline connecting Moran Gas grid with Namrup to meet the requirement of natural gas of the Namrup Fertiliser Plant for its expansion. The production capacity of the Namrup Fertiliser Plant has also been increased by three times in terms of ammonia production.

The setting up of Assam Co-operative Jute Mill at Silghat in Nowgong district at a cost of Rs.1.65 crores with 150 looms, sufficient to produce 7,000 tonnes of Jute Products was an important step towards industrialisation of Assam. Then the Ashok Paper Mill was set up at Jogighopa with production capacity of 120 tonnes of pulp and 90 tonnes of paper per day at the cost of Rs.15 crores. But due to mismanagement this mill incurred a huge amount of loss and now the mill is closed. A huge mechanised company is gradually being wasted due to lack of maintenance. Along with this the Assam Alkali Allied and Chemicals Limited was also set up at Jogighopa as a captive unit for the Ashok Paper Mills Limited at a cost of Rs. 2.5 crores. But the fate of the company is also similar to that of Ashok Paper Mill.

Further, the Assam Petro-Chemicals Limited was set up at Namrup with Japanese Collaboration at cost of Rs. 5 crores. This project is based on natural gas for manufacture of methanol formaldehyde, urea formaldehyde, resins etc. A sugar mill was also set up at Cachar at cost of Rs. 2.60 crores.

Thus during 19 years of planning till the Fourth Plan the number of registered factories in Assam increased from 911 in 1951 to 1588 in 1969 and employment in these factories increased from 65.1 thousand to 79.4 thousand over the same period. The backwardness of the State in industrial sector can be gauged from the fact that her share in the total national net output from manufacturing industries which was barely 2.35 percent in 1960-61 gradually came down to 1.68 percent in 1965-66 and then to 1.62 percent in 1968-69.

Some of the important industries which were commissioned during 1976-77 and 1977-78 i.e., during Fifth Plan are the Bokajan Cement Factory belonging to the Cement Corporation of India, the Assam Petro-chemical complex, Namrup and the Cachar Sugar Mills Limited . Among the factories registered during 1978 are the Bongaigaon Refinery and Petro-chemicals Limited (BRPL) which has the highest number of employees (1000) . It was proposed to establish a cement plant at Garampani, a spinning mill of 25,000spindles-based on BRPL polyester fibre at Bongaigaon. It was also envisaged to set up a vanaspati plant, a finished leather project, a drug formulation project of IDPL . In the mean time the vanaspati plant has started its commercial production in 1985.

The State Government of Assam is not only patronising establishment of industries in the private sector but also increasingly involved itself in undertaking many industrial venture of its own . Due to these efforts, a few important resource and demand-based industries have come up in the state in the recent past and a few more are in the offing.

Recently, the state government has identified five sectors for state investment and major thrust areas in the coming years. The five sectors are down stream units of the gas-cracker project, plastic-based industries, textile industries, lime-stone based industries and the electronic sector. The state government has also formed an Industrial Advisory Committee to guide the state government in formulating its policy for the development of industrial infrastructure, identifying priority sector for generation of maximum employment and other field f industrial development in the state.

Total number of industrial factories registered in Assam is also an important Indicator for the progress of industrialisation in the state. The following table shows the total number of registered factories in Assam since 1971.

The table given above reveals that over the past few years there have been a steady increase in the number of registered factories in the state. Total number of such factories in the State which was 1604 in 1971 increased to 1897 in 1980 and then to 2462 in 1985. Since then again the number of registered factories started to increase during the Seventh Plan and accordingly the total number increased from 2503 in 1986 to 2523 in 1986 to 2523 in 1988 and then to 2567 in 1989. Another set of 110 new factories were registered in the year 1990 bringing the total number of registered factories in the state to 2677 at end of the year 1990. In 1994, total number of registered factories declined to 2438. Total number of workers employed in these factories has increased to 90.1 thousand in 1988 as against the number of 90.7 thousand in 1981 and about 87.7 thousand in 1980. There are very few large scale employment-oriented industries in the state.

There are, at present only four factories which employ 1000or more workers. Tea factories account for about one-fourth of the total registered factories in the state. Total number of tea factories in Assam was 570 in 1990 and average number of labourers employed daily in tea industry was 5.42 lakhs.

Further, for accelerating the process of industrial development in the state a host of organisations have been set up by the state Government viz.; the Assam Industrial Development Corporation, the Assam Small Industries Corporation, the Assam Small Industries Development Corporation etc. During the first year (i.e.1980) of the Sixth Plan a new organisation under the name of the Assam Industrial Promotion and Infrastructure Corporation has been set up for developing infrastructural facilities in the state. Besides, another organisation, viz ; the Assam State Textile Corporation Ltd. has recently been incorporated as a Government Company for promoting textile industries based incorporated polyester staple fibre made available from the Bongaigaon Refinery and Petro-Chemicals Ltd.

The Assam Industrial Development Corporation (AIDC) was established on 21st April, 1965,i.e., during the Third Plan. The main objective of this corporation is to accelerate the pace of industrial development in Assam. The AIDC, which is a State Government undertaking, is reported to be taking various steps for the promotion and development of large and medium scale industries in the state, Till February 1990, the AIDC is reported to have provided financial assistance to 61 number of projects under the IDBI refinance scheme, of which 32 projects reported completion and 28 projects under implementation. The volume of term loan and seed capital sanctioned by AIDC under the aforesaid scheme amounted to Rs. 44.36 crores and Rs. 1.12 crores respectively up to the end of February, 1990. According to the information available from the Directorate of Industries, Assam, a total of 15 large and medium scale industrial units and 285 number of SSI units were assisted by sanctioning capital investment subsidy to the tune of Rs. 91.62 lakhs and Rs. 4.95 crores respectively during 1988-89.

The Assam Industrial Development Corporation has taken the following industrial Projects in the State : (a) Spinning mill, (b) Phthalic Anhydride Project, (c) Methanol Expansion Project (d) Expansion of Assam Gas Company etc. Construction work of some of these projects has already been started during the Seventh Plan. Works on the rest of these projects are now being taken during the Seventh and Eight Plan.

In the mean time, the area and the size of operation of AIDC has been enlarged to a large extent. The construction and installation works of some industrial Projects completed by this Corporation include-Assam Petro-chemicals Limited, Fertichem Limited, Cachar Sugar Mill, Assam Syntex Limited etc.

Functions : In recent times, the AIDC is performing the following functions :

1. Identification, implementation and promotion of large and medium scale industrial projects in the state both of state public sector and joint sector.

2. To Participate in the equity capital of private sector industrial units so as to provide them financial assistance.

3. Implementation of package scheme of incentives like disbursement of capital subsidy and transport subsidy for the benefit of entrepreneurs.

4. Providing term loan assistance to medium scale entrepreneurs under IDBI�s Refinance Scheme.

AIDC is now working with the following industries which are at various stages of implementation and planning :

The Government of India set up a Task Force in October 1980 and it identified a number of Projects based on down stream products of BRPL. The Task Force suggested establishments of 20 spinning mills in the State exclusively for producing blended yarn and also for full use of 30 thousand tonnes per annum of polyester staple fibre produced, at BRPL. If these projects materialise during the Seventh and Eight Plan, the process of industrialisation in Assam is expected to get a boost besides generating employment avenues for about 1. lakh persons. Already work for setting up 6 spinning mills both in the public and Co-operative sectors in the State are progressing satisfactory. Among hose mills, three mills, will have the capacity to produce 25,000 metres of cloth daily. Thus we can hope that if everything runs suitably, industrial development in Assam will have a boost in near future.

But in the mean time, the spinning mill established at Noapara under the Bongaigaon district and which was sponsored by AIDC has already transferred to the private sector after incurring a huge loss due to its organisational problems.

The Task Force set up by the Government of Assam (as per clause no.7 of Assam Accord) submitted its report on 5th April, 1988. The suggestions forwarded by this Task Force for the industrialisation of the State Include- to set up a highly sophisticated electronic industry in Assam, to establish ancillary industries which are directly and indirectly related to tea and petroleum industry, to establish domestic and government demand based industrial projects and to set up agro-based industries. Moreover, this Task Force suggested establishing a new industrial development centre- "Industrial Town" having 2000 hectares of land and other infrastructural facilities in the central part of the state.

Prospect of Industrial Development during the Seventh and Eight and Ninth Five Year Plan in Assam

In respect of Industrial development, Assam is lagging far behind the other industrially developed states of India. Although Assam is endowed with different types of natural resources but its utilisation are miserably poor. Until and Unless these natural resources are being used within the territory of the State, the State cannot expect a boost in the level of development in its economy.

Industries developed till the end of the Sixth Plan in Assam are not at all satisfactory considering the degree of economic problems faced by the State. Traditional Tea industries and oil industries are still dominating the economy of Assam. If we want to develop the economy of the State, the industrial diversification on the basis of natural endowments of Assam.

The Government of Assam had taken a decision in February, 1985, to set up one industrial area in each district headquarter of Assam during the Seventh Five Year Plan. Thus the schemes have been prepared and the following places �Lolabari� and �Bihupuria� of North Lakshimpur district, �Malinibil� of Cachar district, �Rani� of Kamrup district and �Lahowal� of Dibrugarh district have been selected for the purpose.

Further, the Government of Assam has also selected some Petro-chemicals Project for its successful installation during the Seventh Plan period. These projects include :

In their memorandum, submitted earlier to the Central Government, the State Government demanded establishment of another oil refinery and a Gas processing unit. Besides, the Plan to establish one �Gas grid� and a �sponge� iron project� based on natural gas was also examined.

The Government of Assam and the Central Government has also examined another plan to develop �Assam Electronics Development Corporation�, for producing various types of electronic goods. This Corporation will produce various electrical inputs for tea industry, drug industry and for agricultural sector of Assam. In the mean time, this corporation has started its production.

Further, the State Government of Assam has also taken a decision to establish one mini-steel industry in which they have planned to establish one �Sheet Plant� in Assam during the Seventh Plan period.

Besides, the work of establishment of six spins mills, which started during the Sixth Plan Period, are now progressing well. Some of these mills have started their commercial production during the Seventh Plan period and some others are expected to do so during the Eight Plan. With the Commissioning of the petro-chemical Section of B.R.P.L. many new small textile units will come up on the basis of polyester fibre produced by B.R.P.L.

Prospect of the development of many downstream industries on the basis of the petro-chemicals from B.R.P.L. is quite bright. This includes the products like plastic, pesticides, photo film, resin, detergent, P.V.C. compound etc. The prospect of developing other industries in Assam includes forest based industry, mineral-based industry, agro-based industry and textile industry. It is expected that some of these projects will be developed during the Eight and Ninth Plan period.

In the mean time, the Numaligarh Refinery Limited under the join sector has started its construction works. On 22nd April, 1993, this company was formed officially. As per the primary estimate, total investment of this company would be around Rs. 2000 crores and the total refining capacity would be around 2 million tonnes. Moreover, it has been decided that the State Government will hold 10 percent of the equity capital, Indo-Burma Petroleum Company will hold 51 percent of the equity and the remaining 39 percent equity capital will be collected from the primary market.

Moreover, the efforts to set up a Gas Craker Project in Assam have been progressing satisfactorily. Again, the expansion programme of Bongaigaon Refinery and Petrochemicals Limited has been almost completed in May, 1995. With the completion of this expansion programme the refining capacity will just double from the present level of 1.35 million tonnes per annum to 2.7 million tonnes per annum. The Government of India approved this expansion programme for the BRPL on 31st December, 1991 and allotted Rs. 223 crores for the project, which has already been completed in May, 1995, Moreover, the Central Government has taken steps for the modernisation of Digboi refinery and Namrup fertilizer unit.

Moreover, the State Government has identified five sectors for state investment and major thrust areas in the coming years. The five sectors are down stream units of the gas- Cracker project, Plastic based Industries, textile industries, lime-stone base industries and the electronics sector. The state government has also formed an Industrial Advisory Committee to guide state government in formulating its policy for the development of industrial infrastructure, identifying priority sector for generation of maximum employment and other fields of industrial development in the state.

Moreover, under the present scenario of economic reforms introduced throughout the country, the state government has been exploring the possibilities of disinvestment and privatisation of some of the existing state public sector undertakings. In the mean time, a few state public sector undertakings have already privatised by the State Government.

Besides, the State Government and Central Government are also trying to develop some resource-based industries during the ensuring Ninth Plan with the participation of some Indian private sector companies and some foreign companies. Thus if a conducive atmosphere can be created for the industrialisation of the State, then the benefit of economic reforms, which has not yet been reached the state, can be expected to prevail upon during the Ninth Plan. This needs an all-out efforts from difficult angles.

In December, 1986 the new Industrial Policy of Assam was announced by the A.G.P. Government for serving the local interests. The new policy aims at encouraging growth and promotion of all industries based on local resources, local demands, local scarcity conditions and local environment. In this new Policy, the State Government attaches priority to speedy industrial development of the state as well as generation of adequate employment opportunities through self-employment opportunities through self-employment in the industrial sector.

In the new industrial policy, special provisions have been made to protect the interests of the local people by making the state incentive schemes available in the case of the small sector. In order to become eligible for the benefits under the state incentive scheme there should be hundred percent employment of local people in the small industry sector. In the medium and large industry sector, local employment would have to be ensured in 80 percent in the managerial cadre and 90 percent in the non-managerial cadre. Over a period of five years from the date of commencement of production, these medium and large units would have to take effective steps to ensure 100 percent employment of local people in the non-managerial cadre and least 90 percent in the managerial cadre.

In the new industrial Policy, the State Government has announced a package of incentives for the benefit of the entrepreneurs to start industries in Assam. The package of incentives include subsidy, allotment of factory sheds to small sector industrial units, manpower development of local entrepreneurs, equity participation in assisted sector, exemption of stamp duty, sales tax exemption, reduction of Assam Finance Tax, Power subsidy, subsidy on drawal of power lines, rehabilitation of viable sick industrial units, contribution to feasibility study cost, subsidy on generating set, risk capital formation, special incentives for industries being set up in no industries district and for electronic industries.

The new industrial policy makes provision for single windows facilities through "Udyog Sahayaks", This "Udyog Sahayaks" has been created at each District Industries Centre and in Directorate of Industries sector and at the Assam Industrial Development Corporation for medium and large scale industrial sectors. The Udyog Sahayaks provide single window facilities to entrepreneurs and also ensure expeditious identification of entrepreneurs and projects, registration, processing and forwarding of financial proposals to the agencies concerned, issue eligibility certificates coordination, sanction, delivery of incentives and follow up steps for rapid implementation of projects.

It is now expected that the prospect of speedy industrialization in Assam will be brightened with the various industrial projects coming up during the Seventh Plan Period in the public sector, Joint Sector, Co-operative sector, assisted and private sector. This prospect will be further brightened with the development of industrial infrastructure in the State in a phased manner and also with the Central Government setting up major industrial and other projects in a big way.

After the announcement of new industrial policy in July, 1991 by the Narasimha Rao Government at the Centre, the Government of Assam has also announced its new industrial policy keeping conformity with the Central policy. Although the initial notification of the policy was made on 6th April, 1991 but the final notification of the Policy was made on 1st July, 1992. While framing this new policy, although the state Government has followed the central policy directions but it has also duly considered the local issues and problems faced by the State.

The new industrial policy (1991) has set certain definite policy guidelines and objectives to meet its requirement of industrial development along with generation of employment opportunities. In view of the priorities attached by the Government to the speedy industrial development of the state as well as generation of adequate employment opportunities through self employment in the industrial sector, it had been considered necessary to review and revise the existing industrial policy and incentive scheme which became operative from 1st January, 1987.

The New policy has been formulated with the experience of the 1986 policy and keeping in view the shortcomings of the 1986 policy which have come to notice. While framing the new policy, recommendations made in a seminar held in February, 1990 to review the 1986 policy have also been kept in view so that the genuine aspirations of the people can be met within a time frame through economic and industrial development of the State. The new policy aims at encouraging growth and promotion of all industries based on local scarcity condition, local environment and to the extent possible by utilising locally available raw materials.

In the new industrial policy, 1991, the Government of Assam has accepted the following policy guidelines and objectives :

1. To ensure balanced regional development through rapid promotion of a host of Khadi and Village industry, cottage industry, tiny, small and ancillary industries throughout the state on the basis of techno-economic potential surveys.

2. To set up/promote setting up of Medium and Large Industries in the State/Joint/Co-operative/Assisted and Private Sectors, using the advantage of local availability of Petroleum, Natural gas, Coal, lime-stone and other minerals, agricultural products and other resources of the State. High priority will be given to the utilisation of natural gas for setting up gas-based industries which have a high downstream potential.

3. To create a suitable environment by taking effective steps for the development of basic infrastructure facilities for industrial development.

4. To ensure that there is proper development of local skills and entrepreneurship through intensive publicity, motivation and training programmes at district, sub-division and block level.

5. To promote and protect the interests of the people of Assam by making the various incentives available on the condition of the unit satisfying certain laid down conditions of a minimum percentage of employment of the people of Assam.

6. To ensure that local entrepreneurship is given preference in setting up medium and large industrial units under the Refinance Scheme of I.D.B.I. as well as under the "Assisted Sector" Scheme which is being operated by the A.I.D.C. Ltd.

7. To encourage the traditional artisan and handicraft sector covering items, such as, cane and bamboo products, brass and bell metal, etc. by providing common facilities service centers, raw-materials, marketing, technical and other supports, as may be required from time to time.

8. To ensure viable growth and to give positive guidance to local entrepreneurs, by building up a data bank at the Directorate of Industries and at A.I.D.C. with a shelf of specific project profiles and other vital information.

9. To give a special attention to the less developed districts and the Hill Districts in developing the industrial infrastructures and establishment of medium and major projects.

10. To extend all possible assistance for shifting of the Head Offices of the Tea Companies to Assam for ensuring continued growth of the tea industry and additional employment avenues for unemployed youth. The Inland Container Depot, Guwahati Tea Auction Centre and Guwahati Stock Exchange would be encouraged and supported in their efforts for industrialisation and creation of employment opportunities for local people.

11. To provide for a single windows clearance agency at each District Industries Centre for the small sector and at A.I.D.C. for the medium and large sector.

12. To provide for the revival of viable sick units through proper identification and provision of comprehensive package of assistance and to take steps for periodical and regular monitoring and guidance to new units to avoid sickness.

Definitions and Criteria for Eligibility in the Incentive Scheme as Incorporated in the New Industrial Policy

The new industrial policy has finalised its incentive scheme and its eligibility limit for the successful implementation of the policy. The new package of incentives herein after referred to as �1991 Incentive Scheme� shall remain in operation for a period of 5(five) years commencing from 1.4.1991 or till such time as the Government may consider fit and proper.

Effective Date : The effective for 1991 Incentive Scheme is 1.4.1991 and from this date the 1986 Incentive Scheme and 1982 Incentive Scheme under the 1986. 1982 and other relevant Industrial Policy resolutions will cease to be operative unless otherwise provided for.

Units enlisted under 1986 Incentive Scheme but completing final effective steps after the effective date of 1991 Incentive Scheme will be governed by the 1991 scheme.

All industries which are to be notified as non eligible by the Government will be entitled to assistance under the 1991 scheme. Incentive under the 1991 scheme will be available to eligible units in the Private Sector. Assisted Sector, Joint Sector, State Public Sector and the Co-operative Sector Central Public sector undertakings will not be considered as eligible for incentive under the scheme either for their own ventures or for their joint ventures. Such units will however be eligible for manpower development subsidy.

Only new units set up on or after 1.4.1991 and existing units, undertaking expansion, modernisation or diversification at the same location or at any other place in the State of Assam will be eligible for incentives under 1991 Scheme provided that the following conditions are fulfilled :

(I) A unit shall have employment of 80 percent people of Assam in the managerial cadre and 90 percent people of Assam in the non-managerial cadre and that over a period of 5 years from the commencement of production such units would take all effective steps to ensure 100 percent employment of people of Assam in non-managerial and at least 90 percent in managerial posts. They would further give an undertaking that if these conditions are violated, the State Government Subsidies/Incentives so availed by them would be fully refunded.

(ii) In exceptional cases where the industrial units can prove to the satisfaction of the State Level Committee that persons with required skill and expertise are not locally available, relaxation of the above clause will be allowed by the State Level Committee as deemed fit.

An industrial unit which has taken all the initial effective steps on or after 1.4.91 would be considered as a new unit.

A unit which is or was in commercial production at any time prior to 1.4.91 will be considered as an existing unit for the purpose of the 1991 Scheme.

Expansion/ Modernisation/Diversification of an existing industrial unit will also be eligible for all incentives if the total capital investment on plant and machinery in the expansion/modernisation or diversification, as the case may be, is more than 25 percent of the total fixed capital investment of the existing unit. For the purpose of calculation, Gross value of all the capital investments made on land, building, plant and machinery of an existing unit will be taken into consideration. Expansion modernisation diversification will imply an increase of at least 25% in the existing installed capacity as well as increase of additional employment at least by 10%.

The fact that existing unit has availed itself of incentives will not disqualify the expansion/modernisation/diversification project to get incentives for the extra investment made.

A unit declared as sick unit by the State Govt. under Assam Industries Relief undertaking (Special Provision) Act, 1984 (Assam Act No. VII of 1984) from time to time.

Effective steps will comprise of initial effective steps and Final effective steps.

A unit will be deemed to complete the initial effective steps if all the following conditions have been achieved :

(b) registration of the firm or the company or the society or the trust with the appropriate authority.

(f) the means of finance for the project is completed including sanction of term loan.

A unit will be deemed to have completed the final effective steps if the following targets have been achieved :

(c) Receipt of all relevant approvals and clearances from the appropriate authorities e.g. pollution clearance C.G. clearance, Explosive clearance, Municipal clearance etc.

No right or claim for any incentive under the scheme shall be deemed to have been conferred by the scheme merely by virtue of the fact that the unit has fulfilled on its part the conditions of the scheme. The incentives under the Scheme cannot be claimed unless the Eligibility Certificate has been issued under the Scheme by the implementing Agency concerned and the unit has complied with the stipulations/conditions of Eligibility.

Eligibility Certificate is the certificate which will be issued by the Udyog Sahayak of the Directorate of Industries/District Industries Centre for the SSI sector and Assam Industrial Development Corporation Ltd. (AIDC LTD.) for the medium and large sector. This will be issued after ensuring that all the norms for eligibility have been fulfilled.

Certificate of local employment will be issued by the Officer in charge of the concerned implementing agency.

Completion of initial effective steps will qualify the unit for issue of a provisional eligibility certificate based on which disbursement of contribution of feasibility study cost as well as development subsidy can be made.

Completion of the final effective steps will be required for issue of a final eligibility certificate and disbursement of the remaining incentives of the subsidy.

The implementing agency for the 1991 Incentive Scheme in respect of the SSI Sector will be the Directorate of Industries and for the medium and large sector the implementing agency will be the Assam Industrial Development Corporation Ltd. (AIDC).

The new Industrial Policy of Assam, 1991 has incorporated various incentive schemes for the establishment of different types of new industries in the State. The following are some of these incentive schemes included in this policy :

(A) Developed land will be allotted on long term basis for initial 30 years, subject to payment of rent as fixed by the Govt. from time to time renewable for subsequent period as deemed fit by the Govt. The lease land will be permitted to be utilised by the unit for mortgage/hypothecation for obtaining loans from the banks and financial institutions.

(B) In appropriate cases, developed land will be allotted on hire purchase basis also. The cost of land including cost of development and cost of creating the infrastructural facilities like, Power Water and approach road will be recovered in equal annual installments over 15 years from the date of handling over of the land, with a moratorium of five years. Such land will be permitted to be utilised by the unit for mortgage/hypothecation for obtaining loans from banks & financial institutions.

In case developed land as stated in (A) above is not available for allotment the entrepreneurs will be allotted undeveloped land. In such case, actual land development cost will be provided as an interest free loan to the eligible units.

The above loan and cost of land will be recovered in equal annual installments from the date of disbursal of loan over a period of 15 years with a moratorium five years.

For new small scale industrial units, built up factory sheds would be allotted to the entrepreneurs on annual rental basis and the State Govt. will subsidise 50% of the economic rent for a period of five years from the date of allotment of the shed. While allotting industrial areas/industrial shed, preference would be given to entrepreneurs of Assam.

Subsidy on manpower development will be provided in respect of local persons trained and employed in the industrial units at the following rates, to compensate for the amount spend on training :-

Eligibility Certificate for the above subsidy will be issued on the basis of initial effective steps taken by the unit but disbursal will be after final effective steps.

Assam Industrial Development Corporation Ltd. (AIDC)/ Assam Small Industries Development Corporation Ltd. (ASIDC) would participate in the equity contribution up to 15 percent of the issued capital of the company subject to a ceiling of Rs. 15 lakhs in any viable project where the project cost does not exceed Rs. 5 crores. Preference would be given to the company floated by entrepreneurs of Assam. AIDC would participate in the equity share in respect of medium and large scale and ASIDC in respect of SSI sector.

Entrepreneurs will be provided interest subsidy on working capital above 8 percent and subject to maximum of 5% for SSI and Sick Industrial Unit for such loans taken from banks and financial institutions. This benefit will be available for the first three years from the date of commercial production/revival of the unit respectively.

Sales Tax will be exempted on purchase of raw materials and sales of finished products for a period of seven years.

To encourage the local manufactures, Assam Finance Tax will be lowered from 12% to 4% bringing it at per with 4% CST so that such manufacturers can compete with products coming from outside the State. Such reductions will be limited to certain selected items which are being manufactured locally within the State and the same will be identified by a committee to be constituted for the purpose.

The committee will review the list of items to be brought under the provision of these incentives from time to time, at least once in a year. Further, the above incentives will be made available to those units which are either non-eligible for incentives under Sales Tax Exemption above or have already availed the incentives under Sales Tax Exemption above.

All incentives under 1991 Incentive Scheme declared for the new industrial units will also be available for revival of the viable sick industrial units.

In the case of medium and large scale industries, AIDC will provide 90% contribution towards the cost of preparation of Feasibility Report prepared by Agencies approved by the State Government/ respective Udyog Sahayak subject to a ceiling of Rs. 2,00,000/- in each case. The contribution shall be treated as an interest free loan for a period of five years from the date of commercial production or from the date of disbursal of the loan, whichever is later. If the project is not implemented within the prescribed period. Feasibility Report shall become the property of AIDC and the Entrepreneur for whom it was prepared shall have no right to the Report or any part thereon.

For small scale units the cost of Feasibility Report prepared by an Agency approved by the Directorate/Udyog Sahayak will be subsidised to the extent of 100% in case of projects whose total project cost is within Rs. 10 lakhs and 90% in case of projects above Rs. 10 lakhs. Ceiling of Subsidy will be Rs. 20,000/- in each case. The project Report will become the property of the Government if the project is not implemented within the prescribed time.

The Subsidy on the Generating Set including non-conventional energy generating sets will be given @ 50% of the cost of the Generator, subject to a ceiling of Rs. 10 lakhs (Rs. 10,00,000/-) per industrial unit.

Development Subsidy up to an extent of 10% of the fixed capital investment subject to a ceiling of Rs. 3 lakhs per unit, or the actual expenditures on the item listed below, whichever is the least, will be paid to the eligible unit to cover the following expenses :

(iii) Cost payable to Assam State Electricity Board for drawal of HT/LT line up to the premises of the unit and installation of Transformer for power supply to the unit.

(iv) Charges payable to local body, Municipal Board, Panchayats etc. or any statutory body for any permission or registration .

(vi) 50% of the fees (excluding recurring royalty) paid for procurement of Know-how from National Research & Development Agency, recognised by the Udyog Sahayak.

(vii) Cost of pollution control and Monitoring equipments and quality control measures etc.

The Development Subsidy shall be released only after actual expenditure is made by the unit. The above is applicable for all sectors of industries where fixed investment does not exceed Rs. 5 crores.

In case of projects located in areas which require drawal of power line of 66 KV and above, such line, including associated transformers, will be drawn at the cost of the Government subject to the condition that the location of the unit as such area is approved by the Government.

A special State Capital Investment Subsidy @ 30% of the cost of land and building and plant & machinery subject to a ceiling of Rs. 10 lakhs will be made available till the Central Capital Investment Subsidy Scheme is reintroduced or till such time Govt. may decide to continue State Capital Investment Subsidy Scheme which ever is earlier.

A new unit with fixed capital Investment exceeding Rs. 3 crores set up in a District where there is no Medium or Large Scale Industries will be given pioneer status. Such unit will be eligible for additional State Capital Investment Subsidy of 5% of fixed capital investment subject to a ceiling of Rs. 10 lakhs.

Implementing Agencies for the Implementation of New Industrial Policy of Assam, 1991.

In order to implement the various clauses as well as incentive schemes under the new industrial policy, 1991, the Government of Assam has introduced the following implementing agencies.

In order to provide single window clearance facilities which will ensure proper delivery of all services, a separate wing known as "UDYOG SAHAYAK" is already functioning and this will continue.

The primary objective is to provide single window facility to the entrepreneurs and to ensure expeditious identification of entrepreneurs and projects, registration, processing and forwarding of financial proposals to concerned agencies, issue of eligibility certificates, co-ordination, sanction, delivery of incentives and follow-up steps for rapid implementation of projects.

2. In order to ensure effective and proper implementation of the 1986 Incentives Scheme, committees have been constituted at the Divisional level as well as the State Level. Such Committees will continue under the 1991 Scheme.

3. The implementing agency for the small and tiny sector would be Directorate of Industries through the District Industries Centres and for the medium and major sector it would be the Assam Industrial Development Corporation Ltd. (AIDC).

4. A separate wing in the Directorate of Industries has been opened known as "UDYOG SAHAYAK".

4.1. The "Udyog Sahayak" in the Head Quarter will continue to be under an Additional/Joint Director of Industries, with one Deputy Director and two other officers at the ADI level with necessary supporting staff.

4.2. The "Udyog Sahayak" shall continue to have a similar cell in each District Industries Centre and a Functional Manager will be in charge of such a cell.

5. For large and medium sector industries, AIDC is having a separate Division known as "Udyog Sahayak" for implementation of the 1991 Incentive Schemes.

6. All administrative Departments shall refer all issues related to the implementation of 1991 Incentives scheme to the Udyog Sahayak and keep the Udyog Sahayak appraised of all actions taken in this regard.

Accordingly, all administrative departments shall issue Instructions to all Heads of Departments/Officers/Corporations/Boards under their administrative control to co-ordinate effectively with the Udyog Sahayak in the implementation of the 1991 Incentive Scheme.

(a) Proper and adequate publicity of the Incentives Scheme 1991 as well as render all assistance to the entrepreneurs to avail of the same.

(b) Identification of prospective entrepreneurs, building up of a data bank to guide and motivate the potential entrepreneurs. This shelf of specific project reports would take into account the market potentialities of the product availability of raw materials and technical man power as well as the investment required for the project. Viable project reports would be prepared in different categories of investment.

(d) Co-ordination with the connected agencies/administrative department, including processing and forwarding of financial Proposals.

(e) Proper and effective Implementation of all incentive schemes and issue of sanctions thereof.

(f) To refer all relevant issues to the Divisional Committee State Level Committee which require clearance/approval at their levels and or any other matter connected with implementation of the Policy.

(g) To keep the two committees well apprised of the progress of implementation of the incentive schemes.

An Industrial Infrastructure Development Corporation would be created which shall be the Nodal agency regarding provision of infrastructural facilities such as land (both developed and undeveloped), water, power and build-up industrial sheds. All existing Industrial estates, industrial areas, commercial estates, growth centres etc. shall be transferred to this Corporation.

(ii) To ensure effective and close supervision over implementation of the schemes.

(iii) To collect feed back information from the public and ensure remedial measures.

(iv) To invite entrepreneurs/connected non-official organisations to appear before the committee for stating the difficulties, if any faced by them.

(vi) To refer to the State Level Committee matters which have been pending or which require clearance/approval of the State Govt.

(vii) To keep the State Level Committee apprised of the Implementation of the 1991 Incentives Scheme.

The committee will meet as and when required and at least once in every quarter.

10. State Level Committee : The state level committee is to be formed with the following purpose :

(a) To review the entire implementation of the New Industrial Policy and 1991 Incentives Scheme by obtaining feed back from the Divisional committees, Udyog Sahayaks as well as from non-official organisations, connected with industries such as Assam Entrepreneurs Association, Assam Manufactures Association etc.

(b) To direct various Government departments/institutions/agencies concerned to expedite required clearances, within stipulated time and to give such other directions as deemed fit with regard to the implementation of the incentives.

This committee will also meet as and when required and at least once in every quarter.

Moreover, as per the new industrial policy of the Central Government, the Government of Assam has taken various steps for the adoption of delicensing system, to provide various facilities to the industrial units through the policy of liberalisation and to revive the state public sector industrial projects through disinvestment of its shares in the hands of private sector. Moreover, the maximum limits of investment of the small scale industrial units, ancillary industry and export-oriented small industry have been raised to Rs. 60 lakhs, Rs 75 lakhs and Rs. 75 lakhs respectively. Again, this investment limit of tiny industrial units has also risen from Rs. 2 lakhs to Rs. 5 lakhs.

Thus in order to accelerate the pace of industrial development in Assam, the successful implementation of this new industrial policy is very essential. The success of this new industrial policy depends upon the sincere effort of the Government, sincere co-operation of the Government officials and also on the successful participation of the local entrepreneurs of the state.

Therefore, it can be expected that with the implementation of various industrial projects in the public sector, joint sector, co-operative sector and private sector during the Eighth Plan, the prospect of industrialisation at a quicker pace will become bright. Again, with the development of infrastructural facilities in Assam and with the establishment of different industrial projects by the Central government, the prospect of industrialisation will become brighter in near future.

The Industrial Policy of Assam, 1991 has failed to make much headway in the industrial development of the State and the state has also failed to reap the benefit of economic liberalisation adopted throughout the country, under the new regime of economic reforms. Under this precarious situation, it has become imperative on the part of the State Government to redraft its new industrial policy considering its emerging problems and potentialities. In this regard, the need for adopting a new practical concept for growth and development oriented approach was also stressed by a number of industrial and economic experts of the State at the time of finalizing the draft policy by the State Government. Therefore, it has become imperative for the state to embark upon the high road of liberalisation, privatisation and globalization.

Accordingly, on 29th March, 1997 the State Government introduced its New Industrial Policy, 1997 with great promise. The AGP led alliance Government�s new industrial policy is aimed to provide an effective thrust for "expeditious promotion and growth of all industries with a view to creating a strong industrial base and employment opportunities in various directions."

Basic Thrust : The basic thrust of the Industrial Policy, 1997 is to create an environment for maximum, possible utilisation of locally available raw materials and human resources for industrialisation and to offer competitive advantage to all investors including the foreign ones in setting up industries in the State.

The raw industrial policy has identified some priority or key areas which require more attention in the process of industrialisation. Accordingly, as many as 199 priority areas have been identified in this policy to set up industries in the State. These priority areas include- (a) development of local skills and entrepreneurial abilities ; (b) maximum employment generation for the local people ; (c) development of women entrepreneurs ; (d) development of food processing industry ; (e) growth of export-oriented units ; (f) promotion of rural non-farm sector ; (g) attaining balanced regional development within the State by giving special attention to the less developed areas and the hill districts ; (h) revival of sick industrial units ; (i) development as well as promotion of village and small scale service and business enterprise (SSSBEs) ; (j) establishment of medium and large scale industries in public, private, joint and assisted sectors to create an industrial base etc.

The new policy has identified the lack of infrastructure in the region as one of the main reasons for poor growth of industries in Assam. In the new Industrial policy, the State Government has proposed to give top priority to the development of infrastructural facilities in the State.

Land : Considering the shortage of developed land in the state for industrial purpose, the Assam Industrial Development Corporation (AIDC) Ltd. has been allotted Government land at a number of places for developing industrial areas. There is also a proposal to set up tree growth centres in the state within the next five years.

Power : Regarding the power position, the policy observed that the total available power in the state is around 315 MW which is less than peak demand of 375-400 MW, but the off-peak demand is around 270 MW only. Therefore, there is surplus power during the off-peak season. The policy observed that the Government with the help of ASEB and NEEPCO would take steps to increase the availability of power during the next five years by facilitating completion of power generation projects, under implementation in State. Such projects are Kathalguri gas based project, Amguri gas-based project, Karbi-Longpi Hydro Electric power project and lower Kopili Hydro-Electric power project. Once these projects are commissioned within the next few years, the state as well as north-eastern region will become a power surplus area. The Government in its package of incentives also proposed to provide subsidy for generating sets apart from subsidy on power tariff.

Surface Transport : The new Industrial Policy also include provision for the development of surface transport system of the state. To remove transport bottlenecks priority will be given to the development of roads leading to industrial areas. Focus will be given on conversion of meter gauge railway lines to broad gauge. The state Government has taken up with the centre for upgradation of existing broad gauge Railway line up to Guwahati from single track to double tracks.

In view of the high priority given by the Government to the export oriented units, the State Government is already pursuing with the Union Government the matter of declaring Guwahati Airport as an international airport at least from giving custom clearance facilities to the industrial units at Guwahati itself. The State Government will also take up the matter to develop the Brahmaputra river for the improvement of water transport facilities in the state.

Lack of skilled manpower is one of the most important factors for industrial backwardness of Assam. The Government will take steps to ensure development of skills among local people through various technical schemes.

The new Industrial Policy proposes to encourage setting up of new industries in the area of fruit processing, vegetable processing, spice processing, aquaculture, horticulture based projects in the State. The policy also proposed to promote environment friendly industries and projects. In this regard the AIDC has also identified several viable projects for the coming years. For developing the electronic industry, the Government proposed to declare the Assam Electronic Development Corporation Ltd. (AEDC) as a nodal agency for overall development of this sector.

In a bid to tap the vast resources of oil and gas, the fourth oil refinery at Numaligarh had already been sanctioned and the policy observed, in this connection, that the State Government would take special care in order to ensure its implementation at the earliest.

The policy has also attempted to cover new areas like facilities for women entrepreneurs, emphasis on food processing industry, encouraging the export promotion industries through simplification of procedure and the delivery systems etc.

Considering the poor financial condition and mismanagement of State Level Public Sector Units (SLPSU), the new Industrial Policy, 1997 has observed that henceforth all state level PSUs would have to survive on their own. State public sector undertakings which were for a long time enjoying budgetary support from the State Government, will now have to change their strategies and discover new avenues of their survival. The State Government would help the PSUs in their revitalization strategies and urged the managements to find out ways to make profit. The State Government recently (in 1997) declared six public sector units in the state as sick and initiated efforts for revival of these sick PSUs by handling them over to joint sector.

The Government has incorporated various incentives in the industrial policy, apart from liasioning with banks and financial institutions to finalize packages for revival of potentially viable sick PSUs.

Keeping in view the employment potentiality in the small scale sector, the new policy observed that the State Government would give top priority to setting up of industries in the small scale and tiny sector in which the State Government proposes to give additional incentives. In this connection, the Government has underlined the need to strengthen the District Industry Centres (DICs) in view of the vital roles played by these in the growth of small scale industrial units.

Assam is traditionally known for its rich handloom and handicraft products and the Government has promised several development schemes for promoting this sector. All possible steps would be taken for securing technical and financial assistance from the centre to develop handloom and handicrafts industries. Moreover, the Government also proposes to conduct a survey on various handicraft products and registration of handicraft units which will be undertaken by the Deputy Commissioners. The Government also proposes to encourage setting up of fruit processing, vegetable processing, spice processing, aquaculture, horticulture based projects in the state under this small scale and tiny industrial sector.

In tune with the Industrial Policy Resolution, 1997 the State Government has also formulated a package of incentives for the promotion of industrial units and revitalisation of sick industrial units in the state. The new package of incentives referred as "1997 Incentive Scheme" shall become operative from April 1, 1997 for five years. Thus the new policy carries a package of incentives which will be available for eligible units, especially in the small scale sectors, including sick units, units set by women, export oriented units etc. The following are the various incentives offered under the "1997 Incentive Scheme".

Power Subsidy : Power subsidy for industrial units up to a maximum of Rs. 30 lakh per year per unit is included in this incentive scheme. Industrial unit with connected load up to 1 MW will be allowed power subsidy of 50 percent subject to a ceiling of Rs. 5 lakh per industrial unit annually. In case of connected load ranging from above 1 MW to 2 MW, the subsidy will be 30 percent subject to a ceiling of Rs. 15 lakh per industrial units per year. Industrial Units with connected load above 5 MW, 20 percent subsidy will be granted subject to a maximum of Rs. 30 lakh per unit per year. This power subsidy will be available for a period of five years from the date of commercial production :

Interest Subsidy : Five percent interest subsidy shall be provided to the SSI units with an investment up to Rs. 60 lakhs on interest on working capital for the loan obtained from the banks and financial institutions. This benefit shall be available for a period of three years from the date of Commercial production and the maximum benefit shall be of Rs. 3 lakh per year.

Capital Investment Subsidy : The new policy also offered a special state capital investment subsidy at the rate of 30 percent of the capital investment on land, building, plant and machinery subject to ceiling of Rs. 10 lakh.

Subsidy on Generating set : The new policy has made provision for subsidy on generating set including non-conventional generating set which will be given at the rate of 50 percent of the cost of the generator subject to a ceiling of Rs. 10 lakh per industrial units.

Sales Tax Exemption : As per provision of the new policy, all new industries and existing industries going for expansion, diversification and modernisation will be granted sales exemption for sale of finished product and purchase of raw materials. For new SSIs, tiny industries and SSSBEs, exemption will be for 7 years to the maximum of 150 percent of fixed capital investment. Again for new medium and large units, the sales tax exemption will be for 7 years subject to a maximum of 100 percent of fixed capital investment. Moreover, in case of electronic industry, tax exemption benefit is extended up to 250 percent of the fixed capital investment for a period of seven years.

Other Subsidies : The new policy has also made provision for some other subsidies which include- (a) 20 percent subsidy for ASEB connection and installation of transformer for power supply to a maximum of Rs. 2 lakh ; (b) 50 percent subsidy on cost of pollution control and monitoring equipment to a maximum of Rs. 2 lakh ; (c) 5.0 percent subsidy on cost of quality control equipment subject to a ceiling of Rs. 1 lakh.

Industrial Support : The new policy has also made provision for institutional support. Accordingly, AIDC and ASIDC will participate in the equity contribution up to 20 percent of the issued capital on the company subject to a ceiling of Rs. 20 lakh to any viable project where the project cost does not exceed Rs. 5 crores. Preference will be given to companies floated by entrepreneurs of the state. Moreover, the AIDC will further provide 90 percent contribution towards the cost of feasibility reports, subject to a ceiling of Rs. 2 lakh in each case of medium and large scale industries, while 100 percent subsidy in case of small scale industries, subject to a ceiling of Rs. 50 thousand in each case.

Appraisal of the New Industrial Policy and the Steps to be Followed to keep the Benefit of Liberalization :

The State Government has again come out with another new Industrial Policy,1997 to embark upon the high road of liberalisation, privatisation and globalisation as the State has totally failed to reap any benefit from the present system of economic liberalisation and globalisation process adopted throughout the country. Although the Industrial Policy of Assam, 1991 was proclaimed by the previous Government with much fanfare but it has totally failed to implement as well as to reap any considerable benefit from the policy unlike the other industrially developed states of the country. Although, the industrialists of the State had maintained a high hope on this policy under the present regime of economic reform but all these remained in vain to dismantle the vicious circle of license and permit raj. The policy also failed to attract the required flow of investment from private investors, both Indian and foreign, due to unstable socio-political conditions arising out of defective socio-political set up, exploitation, extremist movement, corruption and bureaucratic obstacles.

The New Industrial Policy, 1997 of the Government of Assam, by no means can be considered as a fresh attempt to help out entrepreneurs. The policy makes some pious attempts and proclamations about the need to bridge the gaps and backlogs in the process of industrialization to achieve this end. The policy has also failed to make clear about how to go about industrialization of the state.

While all the previous industrial policies framed by the earlier state Governments failed to achieve the objective of industrialisation in the state, thus one fails to understand as to why the government of Assam required yet another industrial policy for the industrialisation of Assam and how far this new policy will become successful to attain its goal. The new industrial policy is a rehearsal of what had been formulated in the policies proclaimed earlier. Under the present situation, when the State Government is groaning under a tremendous fund crunch, its present attempt to assist the entrepreneurs in setting up industries is itself quite anachronistic. Entrepreneurs in Assam had already tasted the bitter experience to set up industrial projects attracted by the promises of incentives and subside incorporated in all earlier industrial policies. All their investments and schemes could not proceed satisfactorily due to the usual practice red tapism in the department concerned. Subsidies and incentives promised by the Government do not flow when they are required and the power scenario remained grim. Under such a situation, the entrepreneurs had to give up the project in the midway, sunken in deep debt. Naturally it is questioned, whether the Government is capable enough to keep its commitments to the entrepreneurs.

The schedule of industries drawn up by the new policy is a pointer to the fact that the Government is yet to emerge from the hackneyed concept of industries being saw mills, brick kilns, roller flour mills etc. The policy also failed to point out about how the Government would help the entrepreneurs by developing infrastructural facilities. Although the preamble to the policy stressed on how it had become imperative for the state to embark upon the high road of liberalization, privatisation and globalization, but it simply assures the prospective entrepreneurs that the State Government would prevail upon the Centre and different financial institutions to provide them the required financial back-up. The policy is quite silent on how it would help the export-oriented units. The policy did not mention about the steps to be followed by the departments concerned for lessening the paper work and the move to attend swiftly to the problems of clearance of the schemes and projects. Moreover, the Government should try to attract private capital, both domestic and foreign, considering the problem of its capital deficiency. Otherwise, the Government can do very little as an agency to help the industrialisation process. The officials and staff maintaining the �Udyog Sahayak Kendars� should try to understand about what industry means and how urgent it is for them to attend to the entrepreneurs. The Government should train up its officials and staff accordingly. In order to attain a smooth passage to industrialisation, the need of the hour is to dismantle the license and permit raj completely.

The Government, both at the Centre and the State, should take into consideration the fact that liberalisation had made no difference to the North-east and, in fact, only widened the gap between the forward and backward states. The various corporations like AIDC and ASIDC should act as a catalyst in the economic development of the state, rather than merely establishing industries. A body should be instituted to review the implementation of the policy once in every three months to sort out any problems involved in it. Infrastructure development should be given topmost priority and an infrastructure development corporation should be formed and start functioning immediately. The industrial estates should be handed over to such corporation and the State Government should earmark land for future development and hand it over to the corporation. After developing land and providing all facilities like electricity, water etc. the corporation can sell the plots to the entrepreneurs.

Under the present socio-political condition of mistrust, instability, chaos and confusion, leading to huge capital flight from the state and sturdy inflow of capital resources any new policy will find it difficult to achieve its goal unless sufficient confidence building measures are taken by the Government as well as the people, in general, to gain the confidence of the investors. This will pave the way for smooth passage of large investment in the industrial sector to tap the huge industrial development potential of the state as well as to reap the benefit of liberalisation. Otherwise, the goal of attaining industrial development and the practical implementation of the policy will remain a distant dream for a industrially backward state like Assam.

Major industries of Assam include Tea industry, Petroleum industry, Plywood industry, Paper industry, Fertiliser industry, Cement industry, Coal industry, Leather industry, Shellac industry etc. The following analysis reveals the brief outline of some other industries of Assam.

Tea industry, being the largest single industrial sector of the state, is playing a dominant role in the economy of Assam. It is the largest single industrial sector in the State which is contributing a bigger share in the state income of Assam. The importance of tea industry can be realised from the fact that Assam alone produces more than 50 percent of country�s total tea production. Further, Assam tea also contributes substantially to the national exchequer every year in the shape of foreign exchange earnings through its export.

It has a remarkable breakthrough when tea bushes were first discovered in Assam in 1823. It is a story of success and fulfillment heralding the age of new economic activities that brought Assam to the industrial map of the world. It has also made significant contribution to the economic regeneration of the state unfurling the door for an ever increasing export trade. Assam is now the second largest tea producing area in the world. Assam now produces about 20 percent of the world�s tea production and 53 percent of India�s total production.

In 1835, the East India Company established the first tea garden in Assam on experimental basis. Again in 1844, this garden was sold to Assam Company. Since then the number of tea garden started to increase gradually and it was spread over to a large part of Assam valley and also to a considerable part of Surma valley.

The total number of tea gardens in the State was 848 during 1991 which covered an area of 2.31 lakh hectares. The average number of labourers employed daily in these tea gardens was as high as 5.54 lakhs in 1991. Estimates of tea crop for the year 1991 reveal that during the year, Assam produced 396 million kilograms of tea as against 305 million kilograms produced during the year 1981.

In Assam, the total production of tea has maintained a gradual increasing trend since 1951. Total production of tea which was 150 million kgs. in 1951, gradually increased to 183 million kgs. in 1961 and then reached the level of 223.7 million kgs. in 1971. In 1981, the total production of tea in Assam reached the level of 305 million kgs. showing an increase of 37.6 percent in comparison to that of 1971.

The table no. 8.4 reveals that total number of tea gardens in Assam has increased from 751 in 1970 to 777 in 1980 and then 844 in 1985 and finally to 848 in 1991. Total number of tea factories which was 587 in 1970, gradually rose to 589 in 1975 and since then it started to decline to 575 in 1980, 563 in 1989 and then slightly rose to 568 in 1991. Total area under tea cultivation which was 180 thousand hectares in 1970, gradually increased to 200 thousand hectares in 1980 and then to 233 thousand hectares in 1991. Total production of tea in Assam has increased significantly from 212 million kgs. in 1970 to 300 million kgs. in 1980, which then further increased to 352 million kgs.? in 1985 and finally to 396 million kgs. in 1991. In respect of productivity, the average yield per hectare which was 1178 kgs. in 1970, gradually increased to 1499 kgs. in 1980 and then it rose to 1631 kgs. in 1985 and finally to 1700 kgs. in 1991.

The table further reveals that the average number of labour employed daily has also increased considerably from 394 thousand in 1970 to 449 thousand in 1980 and then the same figure rose to 484 thousand in 1985 and then to 554 thousand in 1991. Again the average ruling price of per kg. of tea in Guwahati Tea Auction Centre (GTAC) has also increased from Rs. 9.52 in 1975 to Rs. 22.87 in 1985 and then to Rs. 40.18 in 1991. These are all, no doubt, a good trend for the tea industry of Assam.

In 1995, Assam produced about 3999.0 million kgs. of tea, which was 53.0 percent of the country�s output of 754.0 million kgs. cut, tear and curl (CTC) tea contributed the maximum with 315.4 million kgs., orthodox tea provided 68.2 million kgs. and the other tea productions made up 4.2 million kgs. of the state�s total production. In this year, Assam�s share of orthodox tea exports was 55.4 percent of the country�s total sales abroad, while CTC shared 55.5 percent.

In 1995, there are 844 tea estates (gardens) covering an area of 2.31 lakh hectares of land. Daily number of labourer engaged directly in tea industry in Assam is about 7.0 lakh. Indirect employment has also been provided to large number of workers, engaged in ancillary industry and also in tea warehousing, marketing, transport etc. The tea industry is generating resources for industrial development in the state and is helping the country in maintaining ecological balance of the environment. The tea industry has helped in the growth of 45 satellite townships in and around the tea estates in Assam and is the catalyst for the growth of several ancillary industries. The tea industry has contributed to the growth of the Inland Container Depot (ICD) at Amingaon which today handles around 25 million kgs. of tea meant for direct exports. Assam tea contributes around Rs. 200 crores in terms of Assam Agricultural Income tax, land revenue, sales tax, green leaf cess etc. Moreover, the tea industry of Assam has been disbursing more than Rs. 1000 crore to the income stream in terms of salary, wages, bonuses, gratuity etc.

However, all is not running well in respect of tea industry in the state. Tea industry of the state is now facing certain peculiar problems.

As the tea gardens in Assam are becoming age old, thus the productivity of these old gardens is declining. Data relating to area under tea according to different age group of bushes in Assam shows that in 1990 about 43 percent of the gardens were in the age group of over 50 years.

Looking at the future, the growth prospects of the tea industry of Assam valley appear to be limited. In the past decade, the tea gardens in Assam put out 27,000 hectares of new tea area and the production increased by 70 million kgs., showing an annual increase of 1.6 percent in area and 2.6 percent in production. In Assam valley most of the plantable areas within the registered tea area have been planted out and there may be only about another 3000 hectare of plantable land, still left, which will be fully used up within next two years. Under the present circumstances, the Assam Branch of Indian Tea Association (ABITA) will have to direct its energies to counter this stagnation and the approach will be two pronged one :

(a) To substantially push up the yields from old areas and low yield areas through replantation, rejuvenation and consolidation and (b) to initiate serious effort to bring more lands under tea. To implement the first point, the industry needs investible surpluses and the second point involves revesting denuded forests and waste land to the gardens by the State Government.

In a survey conducted by the Indian Tea Association (ITA) in 1987, it appeared that there were large tracts spread all over the tea growing areas,- lands that were taken under ceiling act, denuded forests and waste land unsuitable for agriculture. This land is lying, doing nothing, a national wealth just lying unused, unattended uncared for- a source that can be converted into a resource. Such vacant land may be allotted among the small tea growers for the production of green leaf and the ITA and ABITA must extend all technical expertise and managerial guidance and assistance to make them viable. This small growers scheme, formulated by ITA, some years ago, will solve unemployment problem as well as provide a green cover, preventing top soil erosion and consequent loss of fertility (as suggested by a NABARD study).

Scanty rainfall has been creating a problem in the tea gardens of Assam in recent years. Out of 848 tea gardens in the State, only about a hundred tea gardens have their own irrigation system and out of this hundred, fifty gardens have partial irrigation facilities. Most of the tea gardens located in areas which have normally lesser rainfall as compared to other districts are without irrigation system. In districts like Sonitpur, Darrang, North Lakhimpur, Nagaon and Golaghat, only 30 percent of the gardens have their own irrigation system. Others have to depend on rains. Due to this scanty rainfall, the production of tea in Assam has declined from 403 million kgs. in 1993 to 30 million kgs. in 1994.

Another problem faced by about 100 tea gardens of Assam is that they get inundated every year due to flooding of Brahmaputra arising out of rise in its bed. If Brahmaputra bed keeps on rising at the present rate of 9 to 12 inches every year then more and more gardens along the river will face this problem and suffer gradually.

Another serious problem faced by the tea industry in Assam is the general fall in the price of medium and plain tea. For some time there were no buyers of such tea. This is mostly resulted from the break-up of the USSR leading to a loss of market of 120 million of tea for the country as a whole. Cacher tea suffered the most, as out of 104 tea gardens producing nearly 40 million kgs. of tea, most of it was medium and plain quality which got only Rs. 25 to Rs. 28 per kg. at the auction as compared to Rs. 40 being the cost of production in 1994. In 1973, the same tea got Rs. 45 to Rs. 48 per kg. in the GTAC. The 94th annual general meeting of the Surma valley branch of Indian Tea Association (SV-ITA) held on March 11, 1995 has focused this problem. The crisis in the Cachar tea industry is much more real than it is generally perceived in official circles. About 52 tea gardens are already on the sick list and some of these are, in fact, on the verge of closure. Financial chaos is looming large over most of the gardens. Such a situation was created due to the downward slide of price all over the country following over production accompanied by shrinking of market. In 1993, there was a target of exporting 200 million kgs. of tea whereas they could export only 160 million kgs. leaving a surplus of 40 million kgs. In addition to this, there is nearly 20 percent of unsold tea meant for domestic market, which are lying in the warehouses. Notwithstanding the other problems, it is the low price which is a matter of serious concern for the tea industry of Assam.

Another problem faced by the tea industry in Assam in recent years, is that the industry is facing an increasing trend in its cost of production. As per the study made by the RBI and NABARD, it is observed that the average cost of inputs as well as increase in the price of food grains leading to increase in the share of subsidy given to labourer by the tea estate management.

The rate of taxation imposed on the tea industry is excessive and discriminating. Tea industry is paying a higher rate than any other industry. When all other industries are paying at a rate of 51.75 percent but the rate of tax on the tea industry is 70.50 percent. Moreover, the imposition of time bound payment of advance agricultural income tax, levy and cess is also creating a serious financial problem for the weak tea gardens. Thus this high rate of taxes has been reducing the investible surplus of this industry.

Again, the Cachar tea gardens have traditionally been given the benefit of a differential rate of excise duty. The Cachar tea was previously subjected to excise duty of 33.3 percent of what used to be charged for the Assam valley tea on consideration of the former�s lower yield, lower price and higher cost besides its logistic disadvantage. But recently, the Government of Assam has been treating the tea estates of Cachar valley at par with those in Brahmaputra valley. Accordingly, the green leaf cess at 18 paisa per kg. is now required to be paid in advance throughout Assam. This high rate of cess has been creating a serious problem for tea gardens of Surma valley in Assam.

Another peculiar situation faced by the industry is that more than 200 tea companies have been showing perennial loss and avoiding agricultural income tax to the tune of about Rs. 40 crore. The State Finance Department is moving ahead with the proposal to cancel the lease of at least 200 "loss making" tea gardens of the State and hand over the land to willing small and medium planters. The State Government had already made up its mind not to renew the lease agreements with these companies after the expiry of the agreements in a couple of years from now. The tax authorities of the State Government found that out of the 653 tax assesses, altogether 208 were showing "suspect" perennial loss. It is being regretted that despite the State Government�s reduction of agricultural income tax from 65 percent to 45 percent, the tax compliance of these suspect companies did not improve.

For the majority of the tea companies, the 99- year lease agreement is coming to an end in the next couple of years. A new lease agreement will have to be incorporated before its expiry. Under such a situation, the state government�s proposal to cancel the lease of about 200 "loss making" tea gardens of the State may create confusion and apprehension in the mind of tea planters, which may dampen the spirit and incentive of the tea producers of the state. It is also true that the tea gardens should pay their necessary taxes and should not evade the taxes any more. Tea gardens, therefore, should bring transparency in their audited accounts and increase their tax compliance adequately. The State Government should also take care that the tea planters of Assam should not be unnecessarily harassed during the renewal of their land lease. Both the tea planters and the State Government should sit together to sort out differences amicably so as to remove all confusion and apprehension. Any deviation from such natural and logical course may retard the growth of the biggest industry of the State, which may invite a serious complication in the economy of the State.

Thus we have seen that bad weather conditions, poor sales at the auction houses, low sale price, low exports, below target increase in the domestic market, increasing cost of production, low yield of age old gardens and excessive rate of taxation are some of the serious problems faced by the tea industry of Assam in recent years and which seems to be out of their control.

Another recent development in the history of tea plantations in Assam is the inclusion of small tea growers for production and supply of green leaf to the tea factories owned by bigger tea gardens. The Indian Tea Association (ITA), some years ago, formulated a small tea grower�s scheme for deserving entrepreneurs. Development of small tea gardens by small tea growers is very important in a state like Assam where unemployment among the youth is creating law and order related problem for the people of the State and more particularly in a state where tea industry is presently providing employment to at least one lakh people in Assam and still possess a huge employment potential.

As per the record of All Assam Small Tea Growers Association there are nearly 5064 small growers in Assam who are having membership with the association. Again 286 small growers of Assam are registered with the Tea Board and out of these only 200 are getting subsidy. In 1993, these small tea growers produced 492 lakh kgs. of green leaf. The quality of tea leaf produced by the small tea growers is much superior as compared to most of the bigger tea gardens in the state. This is mainly due to the fact that the small growers pluck their leaves after 6 to 7 days and the bigger tea gardens pluck after 7 to 8 days when the size of cloan increases affecting the quality of tea. The All Assam Small Tea Growers Association has chalked out a plan to create about 1 lakh small tea growers and thereby to employ at least 4 lakh educated youths and 12 lakh labourers by the end of 2006. Small tea growers has already established about 11,135 small gardens where about 2.46 lakh educated and unemployed youths have been engaged and about 1.0 lakh labourers have been directly employed. A good number of families have also been benefited by getting indirectly engaged in these gardens. In 1996, the small tea growers produced nearly 600 lakh kgs. green leaves.

The small tea growers in Assam are having special problems of their own. Firstly, the biggest problem faced by these small tea growers is the shortage of land and non-allotment of land. Out of the total 2,50,800 bighas of land under tea plantation with the small tea growers, the actual amount of land allotted to them is 25,623 bighas, which is just 10 percent of the total area under plantation by small tea growers. Most of the land under plantation by small tea growers is either government land, surplus under Land Ceiling Act or VGR. Under such a situation the district administration is sometimes issuing eviction notices to small tea growers leading to a peculiar problem of insecurity among these growers. Although the State Government has recently appointed one-man commission under Addl. Dy. Secretary to go into the possibility of allotting degraded forest land for tea plantation. But the bigger tea gardens have also been staking their claims for the degraded forest land.

Secondly, small tea growers of Assam are facing acute financial problem as they failed to secure loan from commercial banks.

Thirdly, there is acute shortage of tea factories to process the green leaf produced by the small tea growers. Thus for want of such factories, they are forced to sell their green leaf to the capitalists who have no garden of their own or to bigger tea estates.

Fourthly, the small tea growers of Assam are not getting remunerative prices of their tea leafs as they are at the mercy of bigger tea estate owners or other factories. In 1993, there was huge increase in the price of tea but the benefit was never passed on to them.

Fifthly, the small tea growers are not getting proper technical guidance and training. The apex body Tea Research Association (TRA) does not give any technical know-how to their members for they cannot afford to become members of TRA. But this problem can be easily tackled jointly by ITA, ABITA, TAI and other tea associations in league with the State and Central Government. Establishment tea estates in the membership of ITA and ABITA must also extend all technical expertise, managerial guidance and assistance to the small tea growers in Assam.

Although Assam is the pioneer state in respect of development of tea industry in Assam, but there is a huge potential for growing tea in the non-traditional areas of North-Eastern region. In recent years, this immense potential of growing tea in non-traditional areas of North-Eastern states came to light following the initiatives taken in the states like Nagaland, Arunachal Pradesh and Meghalaya.

This standing committee on Commerce Ministry in its report submitted in April, 1995, emphasized the urgent need to expand tea cultivation to north-eastern states like Arunachal Pradesh, Mizoram, Nagaland and Manipur which have the "climate and soil conducive" for this purpose. The standing committee has also strongly recommended revisal of subsidy for replantation of tea to keep pace with the growing demand growth failing which it will "spell disaster" and exports might be the "first causality" as happened in the past.

According to the Standing Committee report, tea industry provides one million jobs. And an additional one million are indirectly employed in ancillary occupations. Therefore, to boost tea production, it is necessary to revise subsidy for replantation as most of the tea bushes are well over 50 years old and yields are no longer at their best.

Realising the potential, the Tea Board had announced a new tea unit financing scheme for these areas. For getting benefit of the new scheme, farmers would have to work out a technically feasible and commercially viable project report. Seventy five percent of the consultancy fees, subject to a ceiling of Rs. 2 lakh, would be borne by the Tea Board.

In the mean time, Agriculture Department of the Nagaland Government has brought nearly 60 hectares of new areas under tea plantation and distributed five lakh tea plants among the farmers free of cost.

In Arunachal Pradesh, tea plantation has also been taken up by the administration, forest corporation, Agriculture Department and local tribals in Arunachal Pradesh in a large scale. The State Government and banks are rendering assistance to interested farmers for this purpose. The tribals had taken up tea plantation on community and co-operation basis. In Changlang and Tirap districts of the state hill slopes, once famous for jhuming and shifting cultivation, were carpeted green with tea plants.

Recently, a privately owned tea company, the Siang Tea Company which took up large scale plantation at Oyan near Pasighat, was producing export quality tea and has also set up a mini tea processing unit at the plantation site. The Namshum Tea Company with a total grant area of 478 hectares in Changlang and a NABARD financed investment of Rs. 1.6 crores was set for a large output.

Tea plantation has also been taken up in Lohit, Siang and Dibang valley districts by various agencies and private individuals.

In Meghalaya, steps also have been taken to popularise tea plantation. Meanwhile, 500 hectares of land have been identified in Naya Bunglow, Rongran and Sonapahar area of Meghalaya as suitable for tea cultivation. Two nurseries had been set up at Rongran and Naya Bunglow with a grant in aid from the Tea Board. The financial grant provided for the purpose up to March 1993, was Rs. 33,66 lakhs. During the financial year 1993-94, a further sanction had been accorded for setting nurseries at Umsming and Rongran areas for raising plants at an estimated cost of Rs. 31.16. In these areas, plantation had been taken up by small farmers also.

The Tea Board has been encouraging entrepreneurs for undertaking activities of extension planting by providing long term loans and interest subsidy on bank loans since 1962. During the course of last three decades, about 88,000 hectares of land had been brought under extension planting of tea in various tea growing states.

Thus as the potential of growing tea in non-traditional areas of North-eastern region is quite rich thus it can be expected that with the continuation of such initiatives, the entire north-eastern region will be quite rich in the production of tea in near future.

In order to improve the condition of tea industry in Assam, various steps have already been taken by the Government. In 1991, Assam Tea Corporation was established for the maintenance of sick tea gardens in Assam. In the mean time, this corporation has been able to bring some tea gardens within its control. In this respect, another important step was to open the Guwahati Tea Auction Centre on 20 th September, 1970.

In order to increase the demand for tea in the national and international market, the Government has set up "Tea Board". This Board is trying to increase the demand for Indian tea in England, Canada, America, Germany etc. through various type of publicity. On the other hand, "Indian Tea Board� has been trying to increase the domestic demand for tea within the country and also advancing financial assistance to the tea gardens.

Moreover, for plantation, expansion and re-plantation works of the tea gardens, one Tea Finance Committee was formed. Again, the National Bank for Agricultural and Rural Development (NABARD) has also been set up by the Reserve Bank of India in July 1982, so as to supply adequate volume of credit to the agricultural and plantation sector. In the mean time, NABARD has extended a good volume of credit to the tea gardens of Assam.

Guwahati Tea Auction Centre : One of the historic event for the tea industry of Assam was the commissioning of the tea auction Centre at Guwahati on 25th September, 1970 at the initiative of the Government of Assam. The planters of Assam are deriving number of benefits from the Guwahati Auction Centre. Apart from making a saving in freight charges, the planters of Assam are also saving the payment of West Bengal entry tax. Chances of damage and pilferage of tea in transit are now less in the case of consignment to Guwahati. The buyers are getting the advantage of exemption from sales tax and facilities for quick inland transport.

The sale of tea at the Guwahati tea auction centre increased from 21,998 thousand kgs.in 1971-72 to 26,626 thousand kgs. 1974-75. Due to its encouraging performance, this auction centre has become an established market in the country where both the quantity of offerings and returns to producers are increasing year by year. It is heartening to note that Defence forces, Tea Trading Corporation of India and even foreign buyers like Iraq and U.K. etc. are participating in this centre. In the first part of eighties, the volume of sales through the Centre which received set back during the previous two years, reached a new height of 75.34 million kg. during 1982. The total sale during 1981 and 1980 stood at 64.97 million and 62.56 million kgs. respectively as against 73.3 million kgs. and 74.85 million kgs. respectively during 1979 and 1978. The average price fetch per kilogram of tea at the centre also displayed an upward trend during 1982 being Rs. 15.00 per kg. compared with Rs. 12.69 and Rs 12.83 per kg. in 1981, 1980 and 1979 respectively.

In recent years, the volume of sales through the centre increased considerably from 120.25 million kgs. in 1985 to 136.20 million kgs. in 1986. Again the volume of sales of tea has again increased to 141.51 million kgs. in 1991 and then rose considerably to 151.32 million kgs. in 1993. The average price fetch per kilogram of tea at the centre (GTAC) also displayed an upward trend from Rs. 22.87 per kg. in 1985 to Rs. 40.78 per kg.1991. But since 1992, the prices started to decline due to general fall in the demand for Indian tea in export market arising mostly from loss of captive market from USSR.

Accordingly, the average price of tea fetched at GTAC stood at Rs. 50.07 in 1993 and Rs. 43.46 in 1994.

Thus we have seen that the operations of Guwahati Tea Auction Centre (GTAC) continued without interruption throughout the period. Even during the years of Assam agitation, there was no closure in the activities of GTAC rather the rate of progress was much higher than in the comparable centres elsewhere in the country. At present, the Guwahati Tea Auction Centre is the largest CTC tea auction centre in the world.

During the extremist problem, there was considerable loss of confidence, especially among the buyers, both domestic and foreign. The darkest day came in November 8, 1990 when two buyers- Brooke Bond and Lipton-unilaterally taken decision to withdraw their staff without giving any notice to the State Government or GTAC. But with the combined efforts of the GTAC members, local tea traders, entrepreneurs and workers� unions, the situation was controlled and the normalcy was returned by early 1991.

The GTAC has also faced another crisis when a few officers of Gujarat Government, allegedly in co-operation with some entrepreneurs made an attempt in 1993 to set up a new centre at Ahmedabad. But this move was averted with the opposition from various corners.

It is quite worth mentioning that the State Governments support for GTAC continued throughout the period. The steps taken by the Government to foster GTAC�s growth was the exemption from sales tax of all teas sold in GTAC in the initial years. This has encouraged the producers to send their tea output to the centre throughout the period. The prudence shown by the State Government has paid good dividend by helping the GTAC to grow its strength year after year. Since 1987, the State Government has levied a sales tax, which is bringing in revenue of Rs. 12 to Rs. 15 crores per year to the state exchequer.

Since its inception, the GTAC has contributed immensely towards generation of employment opportunities as its members provided nearly 3000 full-time jobs besides part time and occasional ones and has also contributed towards the activities related to the development of transport, banking, housing, hotel and construction. Local educated youths have also gained knowledge and skills in different relevant aspects of tea trade.

With the development of GTAC, the infrastructural facilities have also been developed. The transport infrastructure for tea has substantially improved. Besides transportation by barges, through the riverine route, by railway wagons and also by trucks to various destination of northern and western India, the recently developed Inland Container Depot (ICD) at Amingaon has increased its activities satisfactorily during the past few years. The ICD is almost exclusively handling tea where the tea is mechanically loaded to containers in palletized form. The containers are licensed by the Tea Board and sealed by customs so that these cannot be opened anywhere else till they reach their ultimate destinations all over the world. Total number of containers sent through ICD, Amingaon has increased from 861 in 1986 to 1674 in 1989 and then to 1718 in 1993. In 1994, it was anticipated that about 2100 containers would be sent out from the ICD.

The recent spurt of liberalization has encouraged tea producers to sell more teas directly and outside the auction system. However, it is observed that a substantial quantity of Assam tea, particularly of the orthodox varieties, is still being sold in the Calcutta auctions. In an effort to attract such orthodox teas to GTAC, sales tax on such teas was withdrawn and a workshop was held on April 11, 1992, which was largely attended by all the senior representatives of the different segments of the tea trade and industry. However, the promises of representatives to send more orthodox teas to GTAC has not yet materialized

Thus the development of GTAC has helped the process of concentrating a part of the tea trade in Guwahati and accordingly accruing and passing a portion of benefits of the tea industry, however small, to the people of Assam. The GTAC is also having a bright prospect for further growth in its activities in near future if the socio-political situations in the State allow the things to happen and the Centre (GTAC) gets co-operation from all concerned. Thus it is necessary that all concerned should remain alive and vigilant so that the opportunity is not missed any further.

As Assam is having sufficient deposit of Petroleum crude four oil refineries have already been established in Assam. These four refineries are, Digboi Refinery, Noonmati Refinery, Numaligarh Refinery and Bongaigaon Refinery. Total production of refinery products has increased from 1390 thousand metric tonnes in 1979 to 1566 thousand metric tonnes in 1981 and then to 2531 thousand metric tonnes in 1991.

Digboi refinery was originally commissioned in 1901, when the petrol driven vehicles were yet to enter the Indian transport scenario. Therefore, the refinery produced only Kerosene, Wax oil, fuel oil and greases. It then had a annual capacity of 28000 metric tonnes. The refinery was rebuilt in 1923, when its oil field production and refining capacity was increased and it emerged as a cost-efficient commercially viable unit. Addition of two distillation towers in 1932, by the Foster Wheeler Company of U.K., gave the Digboi refinery, the distinction of being the first modern refinery in Asia. Two more distillation units were installed in 1940, further increasing the capacity. Thus till 1950, Digboi was the only refinery in India.

At present, Digboi refinery is one of the six oil refineries operated by the Indian Oil Corporation (IOC). Digboi refinery is still in production even after 94 years of its installation. In this refinery, items produced from crude oil include- motor spirit (23.2%), Diesel oil (17.4%), Kerosene (16.9%), Furnace fuel (16.8%), Wax (7.9%), Lubricant (3.8%), Bitumen (2.2%), Coke (1.7%), Gas (2.4%), Others (4.4%) and unutilised part (3.2%). At present the refining capacity of Digboi refinery is 0.50 million tonnes only.

Despite the fact that Digboi oil refinery, Asia�s first and perhaps even the world�s oldest continuously operating refinery, is producing in excess of its capacity every year, the need to modernize this age old refinery has been long felt.

On October 14, 1981, this Digboi refinery and the marketing assets of the erstwhile Assam Oil Company came under the wing of Indian Oil Corporation Ltd. Since then a number of projects have been undertaken. Four refinery linked projects at an investment of Rs. 11.04 crores have already been completed by June, 1990.

After that the modernisation project of the Digboi Refinery of the IOC was approved in June, 1989 at an original cost of 143.74 crores, which is expected to be commissioned by July, 1996. Work for the project was affected due to infrastructural deficiencies and local disturbances. The projects which are under implementation against Digboi Refinery Modernisation Project include- Digboi refinery modernisation project, Catalytic reforming unit and wax hydro finishing unit. The revised cost of this modernisation project is estimated at Rs. 478.80 crores. With the completion of this modernisation project, the production capacity of this age old refinery would increase and it would emerge as an cost efficient commercially viable unit.

Establishment of another new refinery became necessary after the discovery of crude oil in the Naharkatiya area. But there was a great deal of controversy about the establishment of this refinery in Assam. At last, it was decided to establish this refinery with a production capacity of 0.75 million tonnes at Noonmati area of Guwahati. To meet this purpose one agreement was signed between the India Government and the Rumanian Government. Rumania Government sanctioned Rs. 52.38 crores long term loan at the interest rate of 2.5 percent. Besides, Rumania Government supplied machineries and thus the refinery was established with the help of their skilled personnel. In 1961, establishment work of Noonmati Refinery was completed. This refinery is also under the control of Indian Oil Corporation (IOC) Ltd.

Since then this refinery is producing various types of petroleum products such as motor spirit, HSD, lubricant, Kerosene, wax etc.and the total refining capacity of this refinery is 0.85 million tonnes.

The Noonmati Refinery (Guwahati) is expected to soon go for a massive expansion programme as a hydro-treatment plant has been approved by the Indian Oil Corporation (IOC) for the refinery. The plant will be set up at a cost Rs. 391 crore and the proposal will soon be approved by the Union Petroleum Ministry. The refinery is also now planning to increase its refining capacity to 1.5 MMTPA from the present 0.85 MMTPA. The other proposals include the hydro treatment plant and a Rs. 81 crore ISOSIV plant for production of lead-free petrol in the refinery. The other expansion proposals of this refinery include a Rs. 32 crore delayed coking unit (DCV), a crude distillation unit (CDU) and a paraffin wax unit (PWU) at a cost Rs. 500 crore. The total cost of all these expansion programmes is estimated to around Rs. 1200 crore.

With the increase in the production of crude in Assam Oil fields and also with the increase in the demand for petroleum products in the North-Eastern region, the demand for the establishment of third refinery in Assam was mooted. Considering the requirement position, the Petroleum Ministry finally came to a decision to set up the third refinery in Assam in the public sector. Accordingly, the Bongaigaon Refinery and Petro-chemicals Limited (BRPL) was formed as a public sector limited company. On 19th January, 1972, the foundation stone of Bongaigaon Refinery and Petrochemicals Limited (BRPL) was laid by Late Indira Gandhi, the then Prime Minister.

BRPL, a government of India undertaking , under the administrative control of the Ministry of Petroleum and Natural Gas was registered on February 20, 1974 with its headquarter at Dhaligaon under Bongaigaon District. Originally, total cost of construction of this refinery was estimated at Rs. 81.10 crores with Rs. 24.37 crores worth of foreign exchange component. But ultimately this multi-product company was commissioned at a cost of Rs. 450 crores.

The refinery units which includes- Crude Distillation Unit (CDU), Kerosene Treating Unit (KTU), Delayed Coker Unit (DCU) and Coke Calcination Unit (CCU) were commissioned one by one in phased manner by 1979. Initially, total production capacity of this refinery was 1.35 million tonnes.

The petrochemicals units which include xylene, deimethyl terephthalate (DMT) and polyester staple fibre (PSF) plants were commissioned by 1988 with xylene plant commissioned in 1984 and the DMT unit in 1985.

Products Spectrum of BRPL: The main refinery products of BRPL today include- SR Naptha Motor spirit (Petrol), MR Naptha, Aviation Turbo Fuel (ATF), HSD, LDO, Calcined Petroleum Coke (CPC), Kerosene (SKO), RPC (Net), Reformer Naptha, BRPSOL-100.

The petrochemical products produced by BRPL include- Para-xylene, Ortho-xylene, Cee-nine Solvent, DMT, Polyester Staple Fibre (PSF) and PSF Waste. Among these, the most prestigious product is the PSF under the trade name "Bonpoly". The production capacity of PSF is 30,000 MT and that of DMT is 45,000 MT.

Production Position of BRPL : Total production of various refinery products and petrochemicals of BRPL have been increasing at a satisfactory rate. In 1992-93, total production of some of the petrochemicals was as follows:

Again in 1996-97, the production position of BRPL has improved further. The production report of BRPL shows the following figures of refinery products and Petrochemicals in 1996-97, which had shown an upward swing on all fronts.

The above reveals that the total crude (processing) throughout in BRPL refinery has increased from 1.216 million tonnes in 1995-96 to 1.542 million tonnes in 1996-97 which was 26 .8 percent higher than that of previous year. The total production of various refinery products in 1996-97 include- S.R. Naptha 121224 MT, Motor Spirit -41255 MT, Naptha -20623 MT, BRPSOL-5410 MT, Reformer Naptha-69760 MT, ATF-71767 MT, SKO-140866 MT, HSD-558138 mT, LDO-19806 MT, RPC-63126 MT, CPC-22112 MT and LPG-14553 MT.

Again the total production of various petro-chemical products produced by BRPL during 1996-97 was as follows-Para-xylene-27003 MT, Ortho-xylene-2061 MT, Cee-Nine-10330 MT, DMT, 38089 MT, PSF-21871 MT and PSF waste-1210 MT. Among the various petrochemicals produced by BRPL the production of Cee-Nine and PSF has increased by 21.6 percent and 3.81 percent respectively, whereas the production of other petro-chemicals have either remained constant or declined to some extent.

Gross Sales : The gross sales turnover of BRPL gradually increased from Rs. 534 crores in 1992-93 to Rs. 624 crores in 1993-94 and then to Rs. 725 crores in 1994-95. Again the net profit of the company had also increased from Rs. 29.03 in 1992-93 to Rs. 37.92 crores in 1993-94 and then to Rs. 60.12 crores in 1994-95.

Marketing of Products : Refinery products of BRPL are marketed properly and the petrochemicals produced by the Company are also getting its market gradually. The most prestigious petrochemical produced by BRPL, i.e., the polyester staple fibre (PSF : "Bonpoly" ) has not only achieved operational stability but has also been able to generate quality products which are well accepted in the market throughout the country. Spinning mills of Assam particularly, Assam Polyester Co-operative Mills (APOL) at Rangia depends entirely on BRPL for its requirement of fibre. The other three spinning mills in Tilu, Noapara and Jagiroad are also the main buyers of PSF from BRPL. Again the Prag Bosimi Synthetics Ltd. which is recently set up in Assam in the joint sector is also utilising PSF produced by BRPL for the manufacture of PFY/POY. These mills of Assam consume only 9 percent of PSF and the remaining 91 percent of PSF has been marketed in Bombay and Western part of the country.

Exports : With the increase in the production of polyester staple fibre (PSF), BRPL started regular export of PSF from the 1993-94. The volume of export of BRPL fibre has increased from 901 tonnes in 1993-94 to 2906 tonnes in 1994-95. In the year 1993-94, the total PSF export was worth US$ 1 million. In 1994-95 with the increase in the volume of export of PSF to countries like Belgium, Bangladesh, France, Nepal and Iran, total value of export would be above $3 billion (US). Meanwhile, efforts have been made to start exporting to South-east Asian countries like Indonesia, Philippines and Vietnam. The products exported by BRPL includes regular fibre for apparel use and specialty fibre, i.e., fibre fill PSF, which is used for making pillows, mattresses, quilt and for stuffing purposes in upholstery.

Product Application Centre (PAC) : A Product Application Centre has been commissioned which are providing application research on PSF (bonpoly) in the fields of spinning, weaving and wet processing. PAC would help in achieving the highest quality norms and assurance for "bonpoly" fibre and also diversify the uses of petrochemical products produced by BRPL.

Installation of New Projects : Over the last three years since 1992, BRPL has invested Rs. 205 crores in developing certain new projects. Accordingly, a glycosis plant for recycling of wastes generated during the production of PSF was commissioned in 1993 ; additional crude oil and POL product tankages have been built and facilities for rail and road dispatch of different products were commissioned in 1993-94 ; a new product �Cee Seven Solvent� was developed by modifying the aromatics plant in 1994 ; facilities for storage and dispatch of bulk LPG were constructed in 1994 and a digital control systems were installed for captive power plant operations, improving the reliability of power supply and resulting in optimum use of fuel.

BRPL Expansion Project : BRPL proposed a refinery expansion project to raise its production capacity from 1.35 MMTPA to 2.35 MMTPA involving the capital outlay of Rs. 223 crores, including foreign exchange component of Rs. 32 crores, which was subsequently approved by the Cabinet Committee on Economic Affairs (CCEA) and Public Investment Board (PIB). The project was sanctioned by the Government of India on December 31,1991.

The refinery expansion project consists of two unit- (i) crude distillation unit (CDU) and (ii) delayed coker unit (DCU). The project also includes LPG recovery facility and debottlenecking of reformer in the existing aromatics plant.

The BRPL has been executing these expansion schemes since January 1, 1992. The work of the refinery expansion project has been completed by May, 1995 and this will now double the refining capacity from 1.35 million tonnes per annum to 2.7 million tonnes per annum. Another major project, i.e., LPG recovery project has already been completed.

Significantly, while the original cost of this expansion project was Rs. 223 crores, but the same is almost completed within Rs. 190 crores, resulting in a saving of Rs. 30 crores. In the mean time, the production has also been started.

In addition, BRPL�s xylene production capacity would also be increased from 29, 00 TPA to 35,000 TPA at a cost of Rs. 5 crores.

In the mean time LPG plant with 22,000 million tonne per annum capacity has already started commercial production at this complex. Besides, a crude distillation unit (CDU) and a delayed Coker Unit were commissioned in 1995-96. This has increased the crude processing capacity from 1.35 MPTA to 2.35 MTPA and the gross fixed asset of the company from Rs. 480 crore to Rs. 659 crore. Other expansion programmes of BRPL include PSF and DMT expansion plant, Methanol plant, Benjin plant, and the Aromatic plant.

In the mean time, although the refining capacity of BRPL has been expanded to 2.35 MTPA but the actual crude throughout in 1996-97 in its refinery unit was only 1.54 MTPA, leading to under-utilisation of its refining capacity to the extent of 0.81 MTPA which was about 34.5 percent of the total refining capacity of the BRPL. If immediate steps are not taken to utilise its untilised expanded refining capacity, then it will create a serious impact on the financial health of the NRPL. Thus steps must be taken to increase the crude throughout in the refinery as per its expanded refining capacity.

Moreover, another impending problem of BRPL is that with the commissioning of the Numaligarh refinery, the BRPL will cease to receive crude produced in the state and will have to depend on imported crude. Of the 5.08 million tonnes per annum (MTPA) or crude oil produced by OIL and ONGCL in the State, 3 MTPA would be required for Numuligarh refinery and the remaining 2.0 MTPA would have to be distributed between Digboi and Guwahati refineries, whose respective capacities are at present 1.6 MTPA and 1.0 MTPA. This would compel the BRPL to import crude to keep the refinery functioning. But as the imported crude has different components, the BRPL refinery, designed as per indigenous crude component, do not possess that much of flexibility to adopt imported crude immediately. In that case, some necessary changes are to be made in the refinery structure.

Besides, the financial condition of BRPL is also greatly strained in recent years. One of the major reasons is the low refinery margin of Rs. 308.41 per tonne paid to the BRPL barely covers the operation expenses and thus it needs to be revised without any delay. Another factor responsible for this financial strain is the downfall in the profitability of the petrochemicals division resulting from the increase in the price of naphtha, fall in the prices of para-xylene and DMT in naphtha, fall in the prior of para-xylene and DMT in both domestic and international markets and the reduction of import duties of DMT PSF. Thus considering the situation immediate steps must be taken to restore financial discipline in BRPL.

Perspective Plan of BRPL: The public sector Bongaigaon Refinery and Petrochemicals Limited has also chalked out a perspective plan to consolidate its growth through various expansion and diversification programmes which after completion will increase the annual sales turnover of the company to Rs. 2000 crores.

Accordingly, the refinery expansion scheme is almost completed. Meanwhile, the BRPL has also received approval for expansion of its DMT plant capacity from 41,000 TPA to about 60,000 TPA and PSF plant capacity from 30,000 TPA to 36,000 TPA at a cost of Rs. 90 crores. Another project to recover methanol and costly catalysts from waste stream of the DMT plant is now in an advanced stage of completion. This would help in reducing the cost of raw materials and minimise discharge of particles to the atmosphere, thus improving the air quality. Another step to reduce environmental pollution is being taken with the commissioning of a tertiary treatment plant within a year. After the commissioning of this plant, there would be no liquid effluent disposal as the treated water would be reused. All these recently completed and on-going projects would result in an increase of the sales turnover of the company to more than Rs. 1000 crores.

This perspective plan finalised in 1994, involved growth in the petro-chemicals field by taking advantage of additional quantities of aromatic-rich naphtha that would be available with the expansion of the refinery as well as setting up of the Numaligarh refinery.

Failure of BRPL to Develop Down-stream Industries in Assam and its Future Prospect :

BRPL was established with a high hope of developing various downstream industries based on the petrochemicals and refinery products produced by it. Accordingly, the people of Assam expected that a chain of downstream industries would come up so as to utilise the various petrochemicals and refinery products produced by BRPL. But unfortunately, people�s expectations remained a distant dream, as the state has completely failed to develop these downstream industries. The factors which are mostly responsible for such failure to develop down-stream industries in Assam are as follows :

(a) Inappropriate product mix of the BRPL is highly responsible for such failure to develop downstream industries in the state. Present product mix of the BRPL would never permit the development of small scale down-stream industrial units within the state. To start an industrial unit with such product mix requires a huge investment, which is very much difficult in a state like Assam.

(b) State sector participation in the application of such product mix for the development of down-stream industries has been totally missing.

(c) Capital Intensive : Development of down-stream industries with the present product-mix of BRPL will be a capital-intensive one. Such type of capital-intensive investment project is unlikely to develop in a state like Assam.

(d) Co-operative sector has also failed to develop down-stream industries in Assam, excepting APOL project established at Rangia.

(e) Lastly, the lack of involvement of local entrepreneurs is also highly responsible for such failure to develop down-stream industries based on the products produced by BRPL.

Prospect : But the amount of polyester staple fibre (PSF) produced by BRPL has a high prospect of developing textile industry within the state. The only textile project that has been successfully developed in Assam is the APOL textile project established at Rangia. But the amount of PSF produced by BRPL (21871 MT in 1996-97) could be utilised to develop and run 25 numbers of spinning mill within the state. One such spinning mill could have 25 thousand looms and can employ about 1 to 1.5 lakh people both directly and indirectly. In such spinning mill, blending of polyester yarn with cotton yarn is quite necessary. Moreover, with the development of spinning mill, a good number of weaving, dying, printing etc. can also be developed within the State. All these projects, if implemented, would create ample employment opportunities to millions of people within the state. Thus instead of establishing any more new refinery, the state should try to develop a good number of spinning mill and other associated projects, both in small and medium scale, so as to develop a broad-based textile industry within the state, on which the people of the state has their inclination from its origin. If this textile industry can be developed in Assam then only it can serve the real purpose of establishing a capital intensive project like BRPL and thereby the benefits of establishing BRPL can percolate to the local people at the grass root level. This will also create an ample scope for income and employment generation within the state. But in order to materialise these projects, the private sector participation is highly essential and also the only alternative, which demands a conducive investment climate within the state.

The Government of India has finally decided to set up the fourth refinery in Assam at Numaligarh under the Golaghat district of Assam. This new company, Numaligarh Refinery Limited (NRL) was formed in April 22, 1993 and the construction work of this mega project has already been started. This refinery is being set up in the joint sector. Total refining capacity of this refinery (NRL) would be around 2 million tonnes.

This refinery is promoted by Bharat Petro Chemicals Ltd. (BPCL), Indo-Burma Petroleum (IBP) and Government of Assam with equity participation of 32 percent, 19 percent and 10 percent respectively. The remaining 39 percent of the equity will be offered to public and other financial institutions. The required loan for this project is to be obtained from the Central Government through Oil Industry Development Bank (OIDB).

This refinery is being set up in the assisted sector in pursuance of the commitment in the Assam Accord of 1985 with major equity participation of the IBP and Assam Government. After much hue and cry and dilly-dallying of seven years, the State Government has finally agreed to accept 10 percent equity participation while the IBP got 51 percent leaving the rest to the primary market.

The original cost estimation of this refinery was Rs. 1830 crores including the foreign exchange component of Rs. 323.50 crores. This Rs. 2000 crores joint venture NRL, an of shoot of Assam Accord was completed in 1998. Though the cost of the project was estimated at Rs. 2000 crores but taking the other link projects and cost escalation into account, the ultimate cost of the entire project was higher by another Rs. 1000 crores.

The acquisition of land for the project being completed, the State Government formally handed over 509.7 acres of land for the project in April, 1993. The soil investigation work, awarded to Regional Research Laboratory (RRL), Jorhat. Initially the detailed feasibility report of the project was prepared by Engineers India Limited (EIL) and the approval for the site was accorded by the Ministry of Environment in 1991.

EIL has been appointed as prime consultants and the process of design, basic engineering and detailed engineering for the indigenous technology based plants had almost been finalised.

The volume of crude oil for the Numaligarh refinery would be supplied from the nearby oil fields of Oil India Limited (OIL) and the Oil and Natural Gas Commission (ONGC). It is expected that the refinery would be completed by the end of 1998.

The high tech. refinery is designed to process 3 million metric tonnes per annum of Assam crude oil. It will have various processing units viz., Crude Distillation Unit (CDU), Vacuum Distillation Unit (VDU), Delayed Coker Unit (DCU), Hydro Cracker Unit (HCU), Hydrogen Unit (H₂ U), Coke Calcinations Unit (CCU), Sulphur Recovery Block (SRB), Catalytic Cracking Unit (CCU) and a Captive Power Plant (CPP). The refinery will meet the objective of maximizing middle distillates like kerosene and diesel. Besides this, the refinery will produce LPG, naphtha, high speed diesel, aviation turbine fuel (ATF), Kerosene and Calcined Coke.

The NRL has already initiated steps to enter the capital market from which it expects to realize Rs. 707 crore. Of the funds already realized, part has come from equity contributions and part from an OIDB loan of Rs. 438 crore.

The total project cost of NRL is now revised at Rs. 2,722 crore, of which Rs. 225 crore is for setting up a marketing terminal adjacent to the refinery. The entire cost of the project will be realized through debt (Rs. 1,815 crore) and equity (Rs. 907 crore) at a ratio of 2:1. The Centre has allocated Rs. 100 crore in the revised budget estimate and committed to provide adequate funds during the new two years to ensure completion of Numaligarh Refinery project as scheduled.

It may be mentioned that the refinery will annually process three million tonnes of Assam crude. The crude will be tapped off at Badalipara from the pipeline which supplies to Bongaigaon from the oil fields at Lakwa and Duliajan. OIL is providing 60 percent of the crude and the ONGC the remaining 40 percent. Moreover, the refinery can absorb around 700 people through direct employment and around 5,000 people through indirect employment. At present, the project spans a total area of 1,000 acres, including 250 crores of the marketing terminal plots.

The Petroleum industry of Assam is at present facing a serious shortage in the supply of petroleum crude due to the prevailing demand supply gap. At present, the petroleum crude crisis is reflected from the fact that although the refining capacity of BRPL has already been expanded from 1.35 MTPA to 2.35 MTPA but the actual amount of crude through input in 1996-97 in this refinery was only 1.54 MTPA , leading to under-utilisation of its refining capacity to the extent of 0.81 MTPA, which was about 34.5 percent of total refining capacity of the BRPL such under-utilisation of the expanded refinery capacity has been creating a serious impact on the financial health of BRPL.

With the Commissioning of the Numaligarh Refinery scheduled on December 1998, the demand-supply gap of the petroleum industry would be worsening further, if no immediate steps are taken to avert the crisis.

Statistics reveal that crude oil production in the North-east, both by Oil India Limited (OIL) and Oil and Natural Gas Commission Ltd. (ONGCL), stood at 5.08 million tonnes in 1995-96. The production is again not likely to increase until exploration efforts are intensified, which is again unlikely considering the ground situation of the country.

The combined capacities of the refineries at Digboi, Guwahati (both belonging to Indian Oil Corporation), Bongaigaon(BRPL) and Numaligarh(NRL), after completion of their on going schemes, will be around 7.5 million tonnes.

The present crisis in the supply of crude arises due to the fact that the OIL and ONGCL have failed to increase the production of petroleum crude in the entire North-eastern region. Although the Petroleum Ministry has projected the total crude production in the North-east to be around 7.0 million tonnes at the end of Eight Plan and accordingly planned for the expansion programme of BRPL refinery and commissioning of Numaligarh but due to the failure of ONGCL to increase crude production both in Assam and Nagaland, such projection could not materialise. Now the ONGCL is planning to tap the oil reserves available of the North Bank of Brahmaputra, mostly in the Lakhimpur district as the oil reserves in Arunachal Pradesh could not be tapped due to its peculiar geographical problem and infrastructural bottlenecks.

In order to avert the crisis of petroleum industry of Assam, the Ministry of Petroleum proposed a Rs. 130 crore project to supply imported crude to the crude-starved refineries in Assam. Moreover, the Oil Co-ordination Committee and Engineers India Ltd (EIL) have been asked to work out a strategy to examine the various alternatives to supply the refineries with imported crude via Haldia port.

As per the Ministry�s plan, Assam will stop crude supply to Barauni the moment Haldia-Barauni pipeline is commissioned. In this connection, the IOC has already started bringing in crude, though in small quantities in wagons from Haldia to Barauni.

Both the Oil Co-ordination Committee and the Engineer�s India Limited have jointly submitted a proposal to the Petroleum Ministry with three options. (a) to bring in imported crude from Haldia port in wagons ; (b) to use barges to carry imported crude via Bangladesh (option is already in existence as Numaligarh refinery is using barges to transport equipment to Assam) and (c) utilize the BRPL�s existing Naharkatiya-Guwahati-Barauni pipeline to pump back imported crude brought from IOC�s 4.2 million-tonne Haldia-Barauni pipeline.

It is understood that the ministry is in favour of the third option, considering the fact that the Haldia-Barauni pipeline capacity can be increased to six million tonnes with the help of boosters. Moreover, the BRPL has also proposed to the Petroleum Ministry to increase the Haldia-Barauni pipeline capacity to 7.5 million tonnes per annum at an additional cost of Rs. 400 crore, so as to meet the future scarcity of crude for achieving full capacity utilisation. The Ministry is not in favour of transportation of crude by rail, since it is not feasible on a long term basis, considering the existing inadequate railway network. Under the present situation, it would be better to use the existing pipeline between Barauni-Bangaigaon-Naharkatiya pipeline which is economically and environmentally safe and more importantly on the consideration of the utilisation of the existing costly pipeline.

In order to utilise the petroleum waste available from refineries in Assam, the Assam Petrochemical Complex was established at Namrup with a total investment of Rs. 5 crores. This complex was established with the help of a Japanese Company. This complex was based on the natural gas available from Lakwa and Moran Oil fields at Sibsagar District.

Based on natural gas as main feed stock, the company started its commercial production of methanol and formaldehyde in 1976 from its two plants of 21 mt. per day and 37 mt. per day capacity respectively. The methanol unit of the company had the distinction of being the country�s second producer of methanol, pioneering production of the chemicals from natural gas in India.

The company entered the market through tough competition coupled with location disadvantages. It also suffered major interruption in power and natural gas supply during the peak period of Assam agitation, resulting in under utilization of plant capacity.

However, the company survived the competition, gained advantages and marched ahead and within 14 years operation the company expanded its manufacturing capacity of methanol and formalin from 7000 TPA to 40,000 TPA and 12,000 TPA to 16,500 TPA respectively. Besides, successfully commissioning capacity by another 100 TPD was being implemented.

APL is making sustained profit since 1990-91 on the average of Rs. 5.00 crore per year. The Oil India Ltd. (OIL) which was formed in 1959 and was subsequently made a public sector company in 1981 by amalgamating Indian Oil with Assam Oil Company , has now shifted its headquarters from Delhi to Duliajan in Assam. This OIL is providing necessary support to the petroleum industry of Assam. Besides, the Oil and Natural Gas Commission (ONGC) was established in 1959 in order to run the exploration activities for finding oil in India. The ONGC is having its office at Nazira in Sibsagar district and is playing an important role in conducting exploration activities in the region along with other parts of the country.

There was a long standing demand from the people of Assam to establish a gas cracker project in Assam so as to utilise a huge quantity of unutilised natural gas, being flared up since long back. Accordingly, after a long exercise, it was finally decided that the Assam Gas Craker Project will be set up as a joint sector project by the Government with Reliance Industries Ltd., Bombay. With that purpose, a memorandum of understanding (MOU) was signed by the Government of Assam and Reliance Industries Ltd. on October 25, 1994 and a company named "Reliance Assam Petrochemicals Ltd." has been formed.

The idea for setting up such a project for utilization of natural gas available in Assam was mooted far back as in 1982 and the Assam Industrial Development Corporation (AIDC) submitted an application to the Government of India for obtaining the letter of intent in December 1984. Accordingly, the Government of India issued a letter of intent in February 1991.

On 24th November 1995, the then prime Minister, Mr. P.V. Narasimha Rao laid the foundation of the prestigious Assam Gas Cracker Project at Tengakhat, about 22 kms. from Dibrugarh. This gas cracker project, the biggest of its kind in this part of the country would be completed at a cost of Rs. 4,000 crore and the project would provide employment to a huge number of educated unemployed youths besides helping in the growth of numerous ancillary industries in the state. This ambitions gas cracker project, when completed, would directly provide employment to about 2,000 persons and indirectly to more than 1 lakh persons.

The main objective of Assam Gas Cracker Complex is the conversion of natural gas into value-added petrochemical product, promote industrialisation in backward area, import substitution and generation of employment.

Utilising associated natural gas, which is now flared and wasted, this project will convert the petrochemical fractions of the gas into valuable polymers which are substitutes for costlier items such as wood, metal and glass. It will save foreign exchange because polymers are now deficit products and are imported.

What is more significant is the fact that this project will act as a catalysts for the future industrial development of Assam, and the entire North-east. Besides, the tremendous technology impact and fillip to trade with the neighbouring countries it will boost up the investment climate in the state and give moral support to the entrepreneurs to put up new ventures specially in the small scale and down-stream sectors where large-scale employment opportunities can be expected to be created in the near future.

There is enough reason to believe that this natural gas project will go a long way in making Assam a competitive industrial force for years to come. For our, it is highly employment-oriented project with potential for large scale development of downstream industries in the years to come, which include chemicals, packaging, implements, paints, foam, rubber etc. It is also a highly attractive investment proposition, and in the time to come, will invite a lot of financial support. Secondly, this project is a step in keeping with declared national policy of speedy industrialisation of North-eastern region.

The Assam Gas Cracker Project will be converting valuable fraction of natural gas flared into valuable petrochemicals. It will also meet the deficit of petrochemicals in the country and save foreign exchange. But, most of all, it is a project based on readily available local resources that can use local manpower.

The feedstock of the project is the associated gas available from the oil fields of Upper Assam to the extent of 7 million SCM per day. The annual capacity product pattern of this project is :- Ethylene-3 lakh tonnes, Propylene-51,000 tonnes, Polythylenes-3 lakh tonnes, Oxo-Alchohols -65,00 tonnes. The completion schedules of this project are 3 years from zero date.

The down stream units of this gas cracker project include mainly polymer processing units in the small and medium scale sectors in the areas like-Packaging, Household, Industrial, Agricultural, Building construction, Wires and Cables etc.

But the implementation of this project is delayed due to problem of shortage of required quantity of natural gas available from oil fields in Upper Assam. It is now revealed that the amount of gas to be supplied by OIL and GAIL would facilitate the production of no more than 2.3 lakh tonne per annum (TPA) of ethylene for the project whose capacity, as per MOU should be three lakh TPA. This shortage of natural gas has thus created a problem in the implementation of the project. Alternative proposals are also mooted which are expected to be finalised soon. The Central Government has already granted a cost subsidy of Rs. 377 crore to this project in view of the regional constraints to be faced by the project. In the mean time, the Reliance has proposed to raise the capacity of 4.5 lakh TPA of ethylene (based on composite feedstock) and sought the Petroleum Ministry�s Commitment on allotment of surplus naphtha, a costly alternative fuel. The Government of India has very recently given final clearance for setting up the ambitions Assam Gas Cracker Project at Tengakhat in Dibrugarh district by M/s. Reliance Industries Ltd., which is expected to contribute significantly to the industrial and economic development of the state.

Thus we have seen that the petroleum industry is the biggest industry of Assam. This industry is doing a lot for the improvement of both national economy as well as the economy of the State. With the establishment of four refineries and petrochemical complex it is now expected that this industry will earn a special position in the industrial development of the country as well as of the state.

Plywood industry is one of the forest-based industry. For manufacturing plywood, several piles of veneers are combined with glue in order to prevent shrinkage. System of plying increases the strength and thickness of the ply board. Commercial plywood and tea chest are main products of plywood industry. Plywood is mostly used in the manufacture of tea chest, boxes, furniture, panels, boards, flush doors, bodies of vehicles and railway compartment etc. With the increase in the demand for plywood, the plywood industry of Assam is gradually expanded in recent years.

In 1984, there were 52 plywood factories in Assam of which 13 belongs to large and medium scale. Moreover, about 40 factories were located in the districts of Dibrugarh, Jorhat and Sibsagar. Total production of plywood in the state gradually increased from 31 million sq. metre in 1982 to 43 million sq. metres in 1986 and then gradually declined to 42.7 million sq. metres in 1994. At present there are about 48 plywood factories in Assam, which has generated employment opportunities to nearly 5,600 persons directly and nearly to 1.0 lakh persons indirectly.

Initially Assam had plenty of woods suitable for the production of plywood. But unplanned cutting of trees has resulted huge deforestation in the state resulting in ecological imbalance. The State Government has, therefore, imposed severe restrictions on unplanned cutting of trees, which has threatened the prospect of plywood industry due to shortage of raw material. The plywood manufactures, therefore, has been forced to import a large part of their raw material from Malaysia by ship. In order to solve this scarcity of raw material, the plywood industry should go for captive plantation of soft wood in the state.

The manufacture of plywood which originated in Assam as early as in 1917, has been transformed into a major industry with the gradual growth and development of private enterprise, particularly after independence with the assistance and encouragement from the Government and the people of the State. The plywood industry is now the second largest industry in the private sector in Assam after tea industry. This plywood industry of Assam approximately meets 60 percent of the country�s total need for plywood. At present the annual turnover of this industry is Rs. 200 crores. This industry has got immense employment potential for the people of Assam. Thus more plywood factories should be established on the basis of suitable timber available in the forest of Assam.

But unfortunately, the plywood industry of Assam is now facing an imminent closure following the interim injunction issued by the Supreme Court of India on December 12, 1996, banning movement of all forest goods in the north-eastern region.

The industry, which is the second biggest in the state, after tea, has altogether 48 mills scattered in the upper Assam districts and many of them closed down following paucity of raw materials.

Notably, the state produces 60 percent of the total requirement of plywood of the entire country and most of the leading brands of plywood market have their factories located in Tinsukia district. Plywood is basically made of holong and mekai timber which is solely available in the reserve forest of Upper Assam, neighbouring Nagaland as well as Arunachal Pradesh. The plywood industry consumed only 4 percent of the total consumption of timbers in the country. Though working on 55 percent of the rated capacity, this plywood industry of Assam meets 60 percent of the country�s requirements. Given the adequate supply of raw materials, it has the potential to meet the entire requirement. The Rs. 200 crore annual turn-over industries are credited with producing the finest variety of plywood in the country.

But recently, Supreme Court�s interim order banned felling of trees in Changlang and Tirap district of Arunachal Pradesh beside closing down of all plywood mills situated within 100 km. of the Arunachal Pradesh border. This process literally hammered the final nail in the coffin of the plywood industry which was already facing the shortage of good quality timber. The Rs. 200 crore annual turnover of plywood industry of Assam, whose functioning has come to a grinding halt since December 12, 1996, following the verdict of Supreme Court is going to incur a huge loss of several crore of rupees due to stocks of inventories becoming useless for the mills.

Accepting the reality and the necessity of the ban, the wood workers have urged authorities to allow controlled felling as well as import of timber from South-east Asia for the survival of this large industry. Thus considering the grave crisis faced by this industry, immediate steps must be taken on alternative lines, so as to save this industry from its imminent closure. Moreover, on the long term basis, the State Forest Department and the Plywood Manufactures should also take up plantation of those trees required for the production of plywood.

If we can properly develop this plywood industry on scientific and long term basis with easy flow of raw materials produced within the State in collaboration with the State Government, this industry will no doubt contribute immensely towards the economic development of Assam.

On the basis of the plenty amount of forest products like bamboo, soft wood etc. Assam has a good potentiality for establishing a good number of paper and paper pulp mill. The forests of Assam are supplying raw materials to different paper, paper pulp mills within and outside the state. During the Fourth Plan Period Ashok Paper Mill Ltd. was established at Jogighopa with a total investment of Rs. 15 crores. Total production capacity of this mill was 90 tonnes of paper and 120 tonnes of paper pulp. But due to various irregularities, this mill had to face huge loss and ultimately it was closed. Considering the huge potentiality for the growth of paper industry in Assam, another two paper mills has come up in the public sector. One of this Mill is established at Jagiroad of Nagaon District under the patronage of Hindustan Paper Corporation Ltd. This Jagiroad Paper Mill has started its Commercial production. Another paper mill is established at Panchagram in the Cachar District of Assam. This has the production capacity of 150 tonnes of paper per annum which will be ultimately doubled within a short time. This Cachar paper mill has started its production. Both of these two mills are controlled by Hindustan Paper Corporation. Besides Bengal Paper Mill Private Ltd. is also trying to set up another paper mill at the North Cachar Hill District. In 1981, total production of paper in Assam was 14 thousand metric tonnes. But since then the total production of paper in Assam started to decline particularly after the closure of Ashok Paper Mill at Jogighopa and it reached to only 0.5 thousand metric tonne in 1983. Moreover, the two paper mill run by HPC in Assam is also struggling for survival.

Although the Jagiroad Paper Mill of HPC was set up with a capacity of 300 tonnes per day, but due to various problems, the mill was producing only 230 tonne per day. During the past few years, the mill had a capacity of utilization of just 55 percent but presently this had been improved to 70 percent. Accordingly total production of paper in this Jagiroad Paper Mill has also increased from 57,544 MT in 1991-92 to 72,000 MT in 1994-95. This paper mill is still running under loss. It is expected that once the mill could reach the mandatory 80 percent production mark, it would start making profit. Recently, the Government of Assam has signed a memorandum of understanding (MOU) with Sanghi Group of Industries, Hyderabad for the revival of sick Ashok Paper Mill at Jogighopa. In the mean time the renovation work of the mill has also been started.

After 13 years, Sanghi Textile Limited, a Hyderabad based private business house, came forward to take over the mill by signing a MOU on a lease contract for 25 years. On April 1, 1995 the Sanghi Textile Limited (STL) shouldered the responsibility of bringing the mills back on the rails. Ultimately, with the untiring efforts of STL team, the mill became operational after a prolong gap of 13 years. After remaining idle for a period of 13 years, the machines became useless and needed major renovation and replacement. The three boilers are modified and are brought back to operational level.

After the overhauling of the major parts, the production of paper mill had been restarted from November 1, 1996 to a tune of 50 to 60 metric Tonnes (MT) of paper per day. The STL management has planned to increase the production phase by phase and the final target is 110-120 MT of paper per day and 30 MT of pulp-sheet per day.

Although the expansion programmes was progressing smoothly, but suddenly the Sanghi Textiles Ltd has declared �Lock out� in its Ashok Paper Mill at Joggighopa with effect from 6 A.M. of May 2, 1997 following the strike resorted by the workmen resulting stoppage of operator of the entire unit. This is really a setback for the APM, when the paper mill was revived after a stalemate of 13 years. Thus immediate steps must be taken by all concerned to reopen the mill as soon as possible.

For the proper utilisation of Natural Gas at Naharkatiya Gas, Utilisation Committee of Government of India permitted to establish one fertiliser plant at Namrup on the basis of natural gas available at Naharkatiya oil field of Assam just after that Namrup Fertiliser Plant was established in Assam. This is a public sector plant under the control of Hindustan Fertiliser Corporation Limited (HFCL). The commercial production of this plant started in March, 1965. In the initial stage the plant was expected to produce 50,000 tonnes of Urea and 50,000 tonnes of Ammonium sulphate. In 1970 this plant produced 27.5 thousand metric ton of Urea and 60.5 thousand metric ton of Ammonium sulphate. Later, to increase the production of fertiliser Plant Assam Gas Company set up another pipeline from Moran Gas grid to Namrup in order to supply necessary amount of gas to this fertiliser plant. Due to this, the production capacity of Ammonium sulphate by this Namrup Fertiliser Plant was increased by nearly three times: At present the total production capacity of this fertiliser plant is 16.7 million metric tonnes of Urea and 304 million metric tonnes of Ammonium sulphate. But the total production of fertiliser in Assam has gradually declined from 31.6 thousand metric tonnes in 1992 to 12.9 thousand metric tonnes in 1994.

The giant gas based Hindustan Fertilizer Corporation Limited (HFCL), Namrup Unit, once the pride of Assam, is on the verge of total collapse with its last working unit, Namrup III, virtually gasping for every cubic metre of natural gas to its self functioning. The Namrup III, set up with a cost of Rs. 285.55 crore, and which began commercial production on October 1, 1987 is today running at a minimum load of 60 to 70 percent due to a severe natural gas crisis, which has been on the rise since June 1987. The operation of the other two units Namrup I and II had to be suspended in 1986 and 1993 respectively for the same reasons.

The Namrup plant was established on the basis of an assurance by Oil India Limited (OIL) to supply required amount of gas to the extent of 1.76 million metric standard cubic metres (MMSCMD) per day from its Naharkatiya and Moran field. But much to the surprise of all concerned, OIL started to reduce the pressure and reached the level of 0.05 MMSCMD during 1992-93. This has resulted in shutdown of the production of urea and ammonium sulphate in Namrup I, built at a cost of Rs. 24.26 crore. Shortly after, the second unit had to shut down after the total gas shortage rose to 0.70 MMSCMD which was the required pressure for this unit.

The gas supply agency OIL and GAIL has also lowered its pressure from the assured amount of 0.45 MMSCMD to 0.39 MMSCMD in August 1994, resulting in shutdown of Namrup II which could not be restarted after a prolonged suspension of operation.

But as the demand supply gap of gas remained wide, the high powered Task Force intervened in 1995 to sort out the crisis. But all these remain in vain. In January 1996, total amount of gas supplied by OIL and GAIL remained at 1.25 MMSCMD which was of no help for any of the three units as the requirement of plant I and II alone was 1.35 MMSCMD at full load. It is observed that unless the required amount of 2.21 MMSCMD of gas is met, the three plants of Namrup will fail to survive.

It is really a very sad situation where on the one hand, a huge number of gas is being flared up by the ONGCL and OIL at their oil-fields and on the other the gas-based fertiliser unit of Namrup is facing an imminent closure due to scarcity of gas supply. Under such a situation, proposals are mooted from different corners to set up a National Council for Oil Development headed by the Union Petroleum Minister and comprising Ministerial and company representatives from all the oil-producing states. However it remains to be seen whether the proposals would to accede to by the centre as it would mean giving up its proprietary rights over the oil and gas. The same can be said of the demand that the State Government should have proper representation on the boards of OIL and ONGCL as well as the plan to introduce a law by which the State Government would have adequate control and say over its natural resources.

Enough harm has already been done to HFCL plant at Namrup by OIL and ONGCL by cutting down repeatedly the supply of gas, causing in shut-down of its first two units and the third one is gasping for every cubic metre of gas.

Under such a situation, formation of such a council would result in transparency over the availability of gas and would also result in rational utilisation of oil and gas and maximum capacity utilisation of all existing gas and oil based industrial units lying within the State�s territory.

Assam is one of the famous state of India in respect of Jute production. Every year a good quantity of raw jute is produced in the Nagaon, Goalpara, Barpeta and Darrang Districts of Assam. Previously as there was no jute mill in Assam the whole amount of raw jute produced in Assam were exported to Calcutta. As there was sufficient demand for various jute products viz., gunny bag, rope etc. in Assam, Co-operative Jute Mill was established at Silghat of Nagaon district. In 1970 this mill started its commercial production. In 1971-72 this jute mill produced 729 tonnes of jute products. After that total production of this jute mill was increased to 4299 tonnes in 1979 and then to 5951 tonnes in 1981. Total production of jute products has further increased to 6 thousand tonnes in 1982 and then it declined to 5.0 thousand tonnes in 1994. At present Assam is regularly exporting about one million tonne of raw jute per annum to Calcutta.

In the mean time the Government of Assam has laid foundation stone for two jute Mills, one at Mangaldoi and another at Barpeta area. The jute mill of Mangaldoi area will be established at Dalgaon under the co-operative sector. In December, 1994, the AIDC has set up another Jute mill in Assam.

It is really a matter of pity that Assam in spite of being the second largest jute producing state in India has not been able to draw sustenance from development and diversification of jute products. About 70 percent of total jute produced in Assam is purchased for processing outside the state. Unfortunately, the State�s efforts for starting and operating jute mills have not been a happy experience, in spite of having a good potential for the same.

At a time when Assam has been making endeavours for promoting industrial development and investment, jute holds a promise which can be translated into a reality provided private entrepreneurship developed by various entrepreneur assistance schemes introduced by National Centre for Jute Diversification (NCJD).

Among the various districts of Assam a good amount sugar cane farming is done at Kamrup and Sibsagar district. At present there is only one sugar mill at Barua Bamungaon of Golaghat district. The commercial production of this sugar mill started in 1958. This mill has the capacity to press 320 quintals of sugar cane daily. In 1959-60, the total production of sugar by this mill was 48,000 maunds. The major problem of this mill is that it has to collect sugarcane from far flung areas. However, sugar cane cultivation is gradually being extended at good rate in the Golaghat District. Total authorised capital of the Assam Co-operative sugar Mill Limited of Barua Bamungaon is Rs. 2 crore and the working capital of this mill is Rs. 40 lakhs. Total share of the Government of Assam is to the extent of Rs. 27 lakhs. This mill has generated employment opportunities to nearly 1000 persons.

Considering the bright prospect for the growth of sugar industry, the foundation stone of another sugar mill was established in 1971 at Ratabari in Cachar district of Assam. This sugar mill is having the capacity to press 1250 tonnes of sugarcane per day. This mill had started its commercial production and soon after became sick and had to be closed down in its initial stage. In 1986, another co-operative sugar mill was started at Kamrup in Nagaon district. During the Fifth Five Year Plan, the Government of Assam had decided to establish another 6 sugar mills in Assam under the public sector. With that intention it was proposed to set up a separate corporation to meet this purpose. But the work could not proceed much in this regard. In 1982, total production of sugar in Assam was 12 thousand metric tonnes and the total number of sugar mills in Assam was 3. After that, total production of sugar in Assam declined to 6 thousand metric tonnes in 1989 and then in 1991 it declined further to 1.5 thousand metric tonnes. In the mean time, the Central Government sent a Expert Committee to study the problems of these two sick sugar mills of Assam and the committee has suggested certain measures for the revival of these sick sugar mills.

In 1925. one Swedish industrialist established one match factory at Dhubri of Assam. Initially the match factory was known as Assam Match Company. The name of the company is now changed to "WIMCO". about 7 percent of the total match produced in India is being produced by this company. At present, the company has been modernised. In the Cachar district of Assam, another match factory is established. In 1982, total production of match was 6 million gross boxes. In 1994, total production of match has declined gradually to 4.5 million Boxes. In the forests of Assam a good quantity of raw materials is available for the production of matches. At Bijni of Bongaigaon district one match splint factory was established for the production of match sticks. Further, it is expected that more match factory will be developed in Assam very soon.

Assam Cement Company was established with the intention to establish and develop cement industry in Assam. The State Government contributed a good amount towards the share capital of this company. The Assam Cement Company established its first cement factory at Cherrapunjee. This is the first cement project in the North-East India. This factory has total production capacity of 68,000 tonnes of cement per annum. Now this factory is lying within the state of Meghalaya.

Cement corporation of India has established another cement factory at Bokajan of Karbi Anglong district. Total production of cement of the Bokajan cement factory was 110 thousand metric tonnes in 1978 and then the production increased to 196 thousand metric tonnes in 1981.

Total production of cement in Assam which was 129 thousand metric tonnes (MT) in 1980, suddenly increased to 197 thousand MT in 1981 and then it started to decline to 169 thousand MT in 1985 and to 156 thousand MT in 1988. With the inclusion of few mini cement plants, total production of cement in Assam gradually started to increase and reached the level of 178.8 thousand MT in 1991 and then to 275 thousand MT in 1994.

Considering the huge reserve of limestone available in the Karbi Anglong and North Cachar Hill districts of Assam some more cement production units have been set up in Assam in recent years. Besides Bokajan cement factory of CCI, the other mini and micro cement production units of Assam include- Vinay Cements Ltd. (Umrangshu), NECL (Umrangshu), Prag Shiv Cements (Sonapur). Moreover, two VSK Cement plants of 7500 TPA capacity were set up at Guwahati and Lanka (Nagaon).

Development Efforts : Considering the huge potential for the development of cement industry in Assam along with its growing demand, the Government agencies are trying to set more mini cement plant in the state. A few cement plants and paper grade lime plants have already been proposed on the basis of raw materials to be made available by the Assam Mineral Development Corporation Ltd.

The Regional Research Laboratory (RRL), Jorhat has developed Vertical Shaft Kiln (VSK) technology for production of ordinary portland cement, which has been commercially accepted in our country. RRL, Jorhat has developed the VSK technology for different plant capacities ranging from 6000 TPA to 30,000 TPA. The cement plants based on this VSK technology are low capital intensive having a short gestation period resulting in quick return on investment. Two such VSK cement plants have already been set up in Assam at Guwahati and Lanka. Again the RRL, Jorhat has entered into an agreement for a turnkey consultancy assignment worth Rs. 50 lakhs with Karbi Anglong Chemicals Limited (KACL) for a 30,000 TPA VSK Cement plant at Karbi Anglong in Assam.

Accordingly, the Karbi Anglong Chemicals Ltd. is going to establish a mini cement plant in the village Amlokhi in Diphu. The project is of a 100 TPD cement plant based on VSK technology of RRL., Jorhat. The Assam Hills Small Industries Development Corporation Ltd. is also the holder of equities of the project on direct fund participation. Means of finance has been arranged from IDBI, promoter shares, Assam Government subsidy and bank borrowing for working capital. The total cost of the project comes around Rs. 8.67 crores.

Moreover, a large cement plant of one million tonne per annum capacity is also proposed by the AIDC Ltd. in joint sector with private entrepreneurs, at N.C. Hills in Assam and the work of which has already started.

The North-Eastern region is having a rich potential for the development of cement industry. Side by side, the demand for cement is also increasing at a fast rate in the entire north-eastern region. The major cement production industrial units in Assam includes-Bokajan Cement Factory under CCI, MCCL at Cherrapunji (Meghalaya), Vinay Cements Ltd. and NECL at Umrangshu of N.C. Hills district of Assam, Virgo Cements Ltd. at Garo Hills, Prag Shiv Cements at Sonapur and VSK Cement Plants at Guwahati and Lanka.

In spite of the fact that 10-odd cement industrial units are on production in the entire north-eastern region at present and 3 more are to begin commercial production shortly, there is a standing shortfall of 3.70 lakh tonnes of cement in the north-eastern states as up to 1993. In 1994 the gap between the demand and supply ratio went far more. Total demand for cement in the entire north eastern region is projected at 10 lakh MT and all the cement producing units could contribute hardly 3 lakh tonnes. The remaining 7 lakh MT is met by the cement manufacturing units from outside the north-east.

Under the present demand supply scenario of cement in the north-eastern region, is now-a-days facing frequent scarcity in the supply of cement due to non-availability of cement from other parts of the country. Thus considering the huge demand-supply gap and sound development potential for cement projects, the North-Eastern states must take adequate steps to set up more medium mini and micro cement producing units within the region.

Coal is one of the major mineral resources of Assam. Coal was first discovered in Assam in 1925. A good quantity of coal is available at Makum, Margherita, Ledo, Nazira, Lanka Daman, Jaipur and Namdam area of Assam. The Assam coal has a good demand for railway, water transport, tea gardens, cement plants and for domestic uses. Thermal electricity can also be generated with the help of these coal. Total production of coal has increased from 5.75 lakh tonnes in 1980 to 9.82 tonnes in 1991 and then to 12.92 lakh tonnes in 1994. The coal fields of Assam are under the control of Coal India Ltd. The sulphur content of Assam coal is quite high.

Shellac Industry of Assam was established at Chaparmukh, Nagaon district. A good amount of shellac would be produced in Assam and the major portion of this shellac would be utilised at the shellac industry of Chaparmukh. In future, this industry has a very good prospect. There is a good demand for shellac products in the foreign countries like America, Great Britain etc. With the help of these shellac, gramophone record, French polish, Lekars, electric insulator etc. are being produced in Assam.

A good amount of raw leather is available in Assam. Thus a few tannery factory could be established in Assam. On the basis of these tannery, Assam could develop a good number of shoe making factory. Although there are some small tanneries in Assam but there is no factory for producing shoes. Assam is regularly exporting all these leather to other states of India. There is a small unit of tannery processing industry in existence at Jorhat of Assam. But its activity is centred round processing of raw materials only which it supply outside the state. At present there are 2 leather and leather products factories in Assam.

Recently, the East India Tannery Co-operative Society Limited at Badarbhita near Barpeta road township of Assam has undertaken a project of a multi-million worth of tannery, the first of its kind in entire NE region. Total investment of this project would be about Rs. 153 lakh. The tannery society of Barpeta road will not only process the raw material but also convert them into finished products. In the mean time, 10 bighas of land has already been acquired and the construction work is going on in full swing. Out of the total investment of Rs. 153 lakh, 60 percent will be met by Assam Financial Corporation, Rs. 62 lakh by the Apex Bank and Rs. 32 lakh will be given by the State Government and the remaining Rs. 20 lakh will come from ownership shares.

Moreover, there is a proposal to set up a tannery at N.C. Hills in Assam. These units will supplement the growth of a viable leather industry in Assam like packing and utility consumer materials.

Besides these major industries developed in Assam, a good number of medium and small scale industrial units are also operating within the state in scattered manner. These includes- two medium sized railway workshops at Bongaigaon and Dibrugarh, and engineering workshop at Tinsukia, aluminum ware factories at Bongaigaon and Karimganj, Assam Carbon Limited, India Carbon Limited, Spun Silk Mills, Cotton Spinning Mills, Assam Syntex Limited, Tihu, The Prag Bosimi Synthetics Ltd., Fruit Processing Plants, Hard Board Factory, Jax board factory, Glass factory, Vegetable (Vanaspati) factory of STATFED at Amingaon, Assam Asbestos at Bonda, Assam Ispat at Amingaon, Sawing Mills, Flour Mills, Motor repairing and engineering workshops etc.

Assam Steel Plant (SAIL) : The Authority of India Limited (SAIL) has finally decided to set up a steel plant in Assam. The name of plant is finalised as "Assam Steel Plant". The first phase of this plant will cost Rs. 44 crore which will manufacture 40,000 tonnes of galvanised plain sheets as well as galvanised corrugated sheets. The foundation of this project has already been laid on 23rd March 1997, at Dagaon in Kamrup district. This plant will go a long way in filling the demand-gap for galvanised corrugated sheets in the north-eastern region.

Although the project was initially stated to cost around Rs. 200 crore, that will become a reality only after the first phase started production. The initial plant capacity of 40,000 tonnes per annum of galvanised sheets would go up to 1,00,000 TPA in due course. The plant will not only contribute to the economic and infrastructural development of the seven states but also open up new avenues for employment. The plant is cited to have direct man-power requirement of 231persons besides having the potential to generate indirect employment for 1,000 other persons.

At present, there are only two galvanising units operating in the North-eastern region which together have a total capacity of 40,000 tonnes with a projected availability of only 32,000 tonnes. Fulfilling the need for a third plant, SAIL is setting up its Assam STEEL Plant at Dagaon in Kamrup district.

Industrial Estates : Moreover, the Industries Department of Assam has also developed 17 industrial estates in different parts of the state for the development of small scale industries. In 1993-94, total number of sheds constructed in these estates was 279, out of which 255 sheds were allotted and again out of this 164 sheds were functioning. In the mean time, 4 new industrial estates are also being constructed by the Govt.

Growth Centres : Again for the promotion and development of small scale (SSI) and tiny industrial units the State Industries Department has so far opened 7 Growth Centres in the state, the location of which being at Barpeta, Goalpara, Duliajan, Kalapahar, Bonda, Lilabari and Sariharjan. In 1993-94, total number of sheds constructed and allotted in these centres stood at 52 and 46 respectively, However, of the 42 number of sheds occupied till 1993-94, only 31 sheds were actually functioning.

Thus with the development of existing industries along with the development of infrastructural facilities in the state, it can expected that Assam will be able to develop a powerful industrial sector, provided a sound socio-political atmosphere prevails in the state.

Over the last couple of years, a good number of large and medium sector industries have been set up in the state and a few more are in the offing. Some such projects under various stages of implementation include : Industrial Papers (Assam) Ltd. at Ding, Polyester Filament Yarn project at Sipajhar, Textile Processing House at Nalbari, Cement Project at Amlokhi near Diphu, Tannery project near Barpeta Road and Galvanised Plain and corrugated sheet project at Changsari. Moreover, the fourth oil refinery at Numaligarh and the massive Gas-cum-Naphtha Cracker project in the state, when materialised, are likely to usher in a new era of industrial development in Assam in near future.

Industrial development in Assam is largely confined to tea, jute, and oil. While other states have a more diversified industrial structures, Assam�s industrial sector is still dominated by "miscellaneous food products" the most important of the group being tea factories which alone account for more than 50 percent of the net output from manufacturing industries of the state. But the state possesses various natural resources which can be utilised for the diversification of industries in Assam. Yet the state could not achieve a diversified industrial development in the following areas :

(a) Forest-Based industry- This includes paper and pulp industry, plywood industry, match industry, tanning and finished leather goods industry, hard board industry, furniture and construction etc.

(b) Petro-chemicals based industry- This includes polyester textile industry, plastic, pesticides, photo film industry, resins, PVC compounds, detergents etc.

(d) Agro-base-industry- This includes growth of sugar, jute, medicines and chemical industry and expansion of tea based industry.

(e) Textile industry- This includes expansion of Eri, Muga, silk industry and establishment of polyester fibre from B.R.P.L.

(f) Small scale industry-This can cover a wide area covering handloom, bell-metal, match, hand made paper, soap, candle, straw, fruit processing, leather goods, chemicals, garments, bread, biscuits, pencils, ropes, steel trunk, exercise books, surgical bandage, plug pins, plug socket, tyres and tubes, cement pipes, garment, spices, carpentry, jewellery etc.

The development of above mentioned industries naturally demands active interest from the Central sector, active initiative from the State sector and active participation of the private sector.

The State Government is also patronising establishment of various industries in the private sector. Besides, the State Government is also being increasingly involved in undertaking many industrial ventures of its own. As a result of these efforts, a few important resource and demand industries have come up in the State in the recent past and a few are in the offing. The process of industrial development in the State is expected to get further fillip in near future with the completion of a few diversified range of industries being set up under public and Co-operative sectors.

Since the last few years, a steady growth is observed in the number of registered factories. Total number of registered factories in the State which was 1604 in 1971 increased to 2670 in 1991. Tea factories account for about one-fourth of the total registered factories in the State. At present, only 8 factories are there in the state which employs 1000 or more workers. The product-wise classification of the factories can throw some light about the present status of diversification of industries in the State. There are Tea factories numbering 570 which account for the highest number of registered factories in the State followed by saw mills and plywood factories (461), rice/flour/oil mills (419). Among the large and medium industries, there are ten oil and oil products industry, 7 Cement and Cement product factory, 1 Fertilizer factory, 24 Cotton and Cotton products industry, 3 sugar mills, 4 Jute mills, 2 Bicycle factory, 2 Oxygen units, 3 Paper mills, 3 Steel and Steel products unit, 1 Rods & Wire Unit, 22 Wood products factories and 10 wheat products factories. Total number of large and medium size factories in Assam, as on 31st March, 1994, was 116.

The Regional Laboratory at Jorhat one of the chain national laboratories has started functioning in 1994. The charter of laboratory includes development of technology for effective utilisation of immense natural resources of the north-eastern region and to undertake long as well as short range problems which would help in the economic development and industrialisation of the region. This Laboratory with its R&D activities, has identified a number of projects along with processes, which could be developed for effective utilization of various raw materials available in this region. The identified projects are mentioned below :

(I) Phyto Chemicals : Medicinal and economic Plants which include plants like Bassil, Citronella, Eucalyptus Citriodora, Japanese unit, Lemon grass, paper mint-essence oil-mostly needed in perfumery pharmaceuticals and cosmetic industries.

(iii) Inorganic and Mineral based chemical projects- Which include project like-Mini Cement plant with the capacity of 35 to 100 tonnes per day, oil-well cement additives (required for drilling operation in oil exploration), cement-like product from paddy husk ash. Molecule sieves from paddy husk, silica gel, silica sol and potassium silicate, water filter candles, petro-chemicals from petroleum waste.

(b) Utilisation of cellulose raw materials and Recycling of waste products : This includes the projects for production of matrix poard, Low cost roofing sheet, paper Board and paper like carbon-less copy paper.

(c) Utilisation of coal in the N.E. Region : this includes production of Carbon Blacks. Fluidized Bed combustion for power generation.

Thus the Regional Research Laboratory, Jorhat has identified a long list of projects along with the preparation of project design and process. On the basis of these designs and processes, a good number of a small and medium scale industry could be developed in Assam. Already some of these projects have been selected in the private sector for its development on the basis of raw materials available in Assam. If all these projects could be developed in Assam within the shortest possible time, a wide range industrial diversification in Assam would be possible soon.

With the intention to accelerate the process of industrial development and diversification of the State. The State Government announced a package of incentives so as to attract investments, promote the establishment of new industries and to facilitate the expansion and diversification of existing industries in Assam. The package of incentives offered consists of mainly :

(iii) Concessional power tariff for new industries and for existing units undertaking expansion and diversification.

(iv) Sales tax exemption on purchase of raw materials and sale of finished goods for the first five years of Commercial production.

(v) Capital investment subsidy on the line of central investment subsidy scheme in the non declared backward district.

(vi) Allotment of developed lands in industrial areas etc. This package incentives comes into effect since Oct.� 1982 and those were further included in the Industrial Policy (1991) of Assam.

The State Government of Assam has set up a host of organisations for carrying out the task of industrial development Corporation, The Assam Small Industrial Development Corporation. The Assam Hills Small Industries Development Corporation, The Assam Industrial Promotion and Infrastructure Corporation. The Assam State Textile Corporation (AIDC) has set up three industrial projects under the public sector in the State viz ; the Assam Conductors and Tubes Ltd. and the Chemical units of Associated Industries(Assam) Ltd. have also been revived and taken over by the Corporation. Other projects undertaken by AIDC and which are either commissioned or under implementation are : a 17,280 spindle capacity polyester blended yarn spinning mill Nathkuchi (Tihu), a 100 TPD Methanol plant (Expansion project of APL) with foreign know-how, a cigarette factory in Joint sector, a 7,200 TPA phthalic Anhydride plant based on raw materials from BRPL with foreign know-how and 200 TPD Mini Cement Plant at Umrangshu (N.C. Hills district). The Assam State Textile Corporation Ltd. is designed for setting up spinning Mills and other textile industries in the State. The corporation was engaged for setting up spinning mill of 15,552 spindle capacity at Noapara in the district of Bongaigaon and the project is now transferred to a private sector company.

The Assam Small Industries Development Corporation (ASIDC) is also actively engaged in building up small scale industrial base in the State and has opened a number of small scale units under its own management. Besides, the Corporation is also rendering services for the promotion of various schemes such as seed money assistance scheme. Scheduled caste/tribe development scheme, marketing assistance scheme, raw materials scheme, stipendiary training programme etc.

Besides, after announcement of new industrial policy by the Central Government in July 1991, Assam Government introduced various schemes in order to accelerate the industrial development in the State through the development of local-resource-based industries. Besides providing incentives to new entrepreneurs for attracting them to establish new industrial units, the State Government has also undertaken various measures to develop infrastructural facilities in the state.

Initially for the implementation of various schemes, Assam Government made provision of Rs. 250 lakh in 1992-93. Again the Eighth Five Year Plan has made provision for Rs. 1,200 lakh for the industrial development in Assam.

Under the new industrial policy, 1991, various schemes undertaken by the State Government includes : equity participation in the industrial projects of the Government assisted sector, sales tax exemption, advancing industrial subsidy, providing factory sheds to small industrial units, development of human resources, revival of sick industries, subsidy on electricity bill, investment of Government capital and reduction in the rate of State Finance tax.

In 1990-91, in total 2746 small scale industrial units were set up which have generated additional employment potential for 11,000 persons. On the other hand, in this year 2,201 hand trade and cottage industries were set up. Moreover, considering the increasing demand for readymade factory sheds and infrastructural facilities, the Government of Assam set up 4 Industrial Estates, i.e., one each at Digboi and Dimoh and the other two at Guwahati.

Due to giving increasing priority on large and medium scale industrial units in the Eighth Plan, in the mean time about 114 such industrial units were set up in the private and co-operative sector.

Moreover, responsibility to create market of 15 items produced by local small industrial units of Assam has been given to Assam Small Industrial Development Corporation (ASIDC). The Assam Industrial Development Corporation (AIDC) has been playing an important role to set up large and medium scale industrial projects in Assam and it set up a cement project at Umrangshu on the basis of limestone reserve of North Cachar hills at the cost of Rs. 2.40 crores. Moreover, by utilising 1.5 lakh tonnes of cement grade limestone and paper grade lime, some mini cement industrial units will also be set up.

In the mean time, the Central Government has taken a decision to set up a Gas-cum-Naphtha Cracker project in Assam. The estimated amount of expenditure of this project is fixed at Rs. 2,118.30 crores and it will generate employment directly to the extent of 2000 persons. AIDC with the help of private sector company (Reliance Group) will set up this project.

In order to set up large and medium scale industrial unit, AIDC is playing an important role through subsidised term loan and equity participation scheme. In the mean time, the Corporation (AIDC) has set up successfully the Prag-Bosimi Synthetics Limited in the joint sector near Guwahati at the total investment of Rs. 330 crores. On the basis of raw materials available from BRPL, this plant having the production capacity of 25,000 TPA has started producing Polyester Filament Yarn (PFY) and Partially Oriented Yarn (POY), which will give a boost to the vast weaving population of Assam.

In the mean time, it has become imperative for the State to embark upon the high road of liberalisation, privatisation and globalisation. Accordingly, on 29th March, 1997 the State Government introduced its New Industrial Policy, 1997 with a great promise for adopting a smooth path for rapid industrialisation in the State. The new industrial policy provides an effective thrust for "expeditious promotion and growth of all industries with a view to creating a strong industrial base and employment opportunities in various directions".

In a backward State like Assam, Small scale industries have a big role to play. There is ample scope for the development of small industries on the basis of factor endowments available in the state. This development of small industries will not mobilise local resources but will also increase income and generate employment opportunities. Cottage and small industries have great importance in a agrarian economy like Assam. Rural agricultural families of the state are getting subsidiary occupation from these village industries. As these industries require minimum capital and ordinary tools and implements, thus rural families can run these industries.

At the end of December, 1995 Assam had a total of 18,637 registered small scale industrial units (i.e. units registered with the Directorate of Industries, Assam) with an employment of approximately 84 thousand persons. These included industries engaged in manufacturing various products such as tea machinery, commercial and tea chest plywood, building materials, chemicals, textile, transport equipment, food manufacturing, printing, publishing etc.

The village and cottage industries include handloom weaving, rope-making brass and bell-metal, cane and bamboo work, gold and silver work etc. these industries provide subsidiary employment to good number of people in the rural areas. Some of these industries are organised and managed by artisans and Craftsman.

With the growth and development of these Cottage and village industries, many poor families have been able to raise their income and improve their standard of living. This subsidiary occupation also promotes the habits of thrift and investment among the poor families in the rural areas of the state. Cottage industries of Assam are producing different types of artistic goods, e.g., muga and silk products which have wide market throughout the country.

In Assam, there is ample scope for the expansion of small and village industries. These industries would be able to produce different types of consumer goods to meet the demand for both the rural urban people of the state.

With the development of infrastructural facilities in the State, there is a gradual growth of small industries both in its number and sizes. In 1951, there were only 94 registered factories in Assam. The number of factories again increased to 146 in 1958. Total number of workers employed in these factories of Assam was also increased from 4,908 in 1951 to 5,320 in 1958.

A survey of small industries in the unorganised industrial sector of the state, undertaken by the Directorate of Economics and statistics, Assam, revealed that the number of small industrial units in the urban areas of the state stood at 91 in 1971-72. These small industrial units provided employment of 6,286 persons. These industrial units were in the production group of cotton textiles, Silk, Bakery, Wooden furniture, Letter Press, Biri, Saw milling, Soap, welding, Bell metal, Motor vehicle repairing. Among these industries, textile manufacturing industry had the largest number of units (365 units) followed by manufacture of transport equipments (104 units).

A Census of small scale industries, conducted in 1973-74, shows that there were only 1984 registered units in Assam in 1975-76 and the largest number were accounted for by metal products followed by units engaged in manufacture of timber product.

At the end of March, 1978, total number of small industries registered with the Directorate of industries of the State Government stood at 7562 units. These include industries engaged in manufacturing various products like tea machinery, commercial and tea chest, Plywood, building materials, chemicals etc. Again, at the end of December, 1994, Assam had a total of 17,048 registered small scale industrial units with an employment of approximately 84 thousand persons. A total of 1751 units were registered with the Directorate of Industries, Assam during 1994 as against 2310 units registered during 1993. This shows the trend in the growth of small industries in Assam. Classification of these small industries shows that in 1984 there were 2350 Agro-base industrial units, 1290 Forest-base industrial units, 2633 Engineering base industrial units, 1275 chemical base industrial units, 1326 Textile based industrial units and 8079 miscellaneous based industrial units in the State. After that, at the end of December, 1995, the total number of registered small scale industrial units increased to 18,637.

With a view to promoting and developing a chain of small industries in the State, the programme of establishment of Industrial Estates has been taken up by the State Government. These Estates will provide infrastructural estate have been set up. These are located at Guwahati, Nalbari, New-Bongaigaon, Dhekiajuli, Nagaon, Jorhat, Sibsagar, Tinsukia and Badarpur, Lahowal, Bihupuria, Gauripur, Bokajan, Digboi, Dimow and two more at Guwahati. These industrial estates have provided a total of 269 sheds for setting up small scale units, out of which 255 sheds were in occupation till March, 1994. However, only 164 factory sheds were actually functioning on that date.

Further, a number of growth centres have also been identified which aim at reduction or elimination of time lag between the date of completion of the factory shed and coming up of an industrial unit through provision of infrastructural facilities like road, power etc. Up to March 1994, the State had seven such Centres, one each at Kalapahar (Guwahati), Barpeta, Goalpara, Duliajan, Bonda, Lilabari and Sariharjan under the management of State�s Industry Department. A total of 52 sheds were provided by these centres up to that date, of which 42 sheds were in occupation.

Besides, in February 1985,the Government of Assam had decided to develop one industrial area in every district headquarters in the Seventh Plan Period. This has no doubt, created a congenial atmosphere for the successful growth of small industries in the State.

During the Seventh Plan, about 8,000 small industrial units were set up in Assam.

After that, in August, 1991 the Central Government introduced a special New Small Sector Industrial Policy. On the basis of this policy, the Government of Assam formulated and announced its own industrial policy, 1991. In this policy, special measures were undertaken to set up various types of Khadi and village industries, small, tiny and ancillary industries.

As the State Industrial Policy, 1991 has failed to initiate the process of industrialisation in the State under the regime of economic reforms, thus the new AGP Government has introduced its New Industrial Policy, 1997 to embark upon the high road of liberalisation, privatisation and globalization with a great promise for adopting a smooth path for rapid industrialisation in the state.

In the mean time, the union Ministry of Industry has approved three industrial growth Centres in Assam in February 1997, for the first time and the first of which will be set up in the Sonitpur district. A total outlay of Rs. 30 crore has been sanctioned for the entire Sonitpur project to be developed and completed during the Ninth Five Already 1500 bighas of land have been handed over for this industrial growth centre. The proposed industrial growth centre would greatly benefit and brighten the prospect of industrialisation of this most backward region in the north bank of Brahmaputra. The centre will act as the agency to facilitate provision of all kinds of requirement for setting up various small and medium industries in the complex. Assistance will be given for preparation of investment and proposals, banking and financial support, infrastructure facilities like electricity, telecommunication, transport etc. and also for the development of technical and managerial skills. The centre is also expected to serve as a catalytic agent for the promotion of industries and business ventures outside the Balipara complex to feed the units in the centre and also in marketing their products.

Moreover, in order to advance financial assistance to small scale industries of Assam, the Assam Small Industries Development Bank of India (SIDBI) sanctioned loan to the extent of Rs. 75 crores in 1991-92 and 1992-93, out of which Rs. 65 crore has been disbursed. This bank has prepared a long term plan to assist the cottage and small industries of Assam in different manner.

The Small Industries Development Bank of India (SIDBI) inaugurated the Regional Development Centre (RDC) Guwahati on March 16, 1996 for the development of small scale industries in the state.

A comprehension Rural Industries Programme (RIP) is currently being implemented in Assam by the SIDBI, together with ten other states in the country, which have been identified on the basis of the largest concentration of rural population below the poverty line. The programme aims at commercial exploitation of local resources in order to set up rural industries with the involvement of local institutions for effective co-ordination and implementation. Fund support is given to NGO�s for on lending to the rural poor as well as for generating employment for women under Mahila Vikash Nidhi. Besides, support is also given for conducting Entrepreneurship Development Programme (EDP) in rural areas. SIDBI has so far provided funds amounting to Rs. 258.28 lakh to 33 NGOs in the country which would help about 12000 rural people in their income generating activities.

Khadi and Village Industries are playing a very important role in the economy of Assam. Different types of Khadi and Village industries are operating in the various parts of the State. As per information made available by the Khadi and Village Industries Board, Assam, a total of 660 bee keeping centres, 488 oil extraction centres, 2125 pottery centres, 177 hand pounding (rice processing) centres, 1476 gur and khandsari centres, 59 khadi (cotton & silk) production centres, 26 soap making centres, 15 cottage match and agarbatti factories, 180 footwear unit, 17 hand paper unit, 765 cane and bamboo centres and 44 gobar gas plants were in operation in the State during 1994-95. These Khadi and Village Industries provided employment to nearly 93 thousand persons. Following are the values of production by a few of these centres during 1994-95 : Bee keeping centres- Rs. 123.35 lakhs, oil extraction centres- Rs. 468.75 lakhs, pottery centres- Rs. 173.50 lakhs, gur and khandsari centres-Rs. 330.00 lakhs, Khadi production centers-Rs.122.81 lakhs and soap making centres Rs. 49.14 lakhs.

Total value of the production of Khadi and village industrial units under the Assam Khadi and Village Industries, Board has increased from Rs. 15.67 crores in 1989-90 to Rs. 20.98 crores in 1994-95. Total number of employment generated by these industrial units was 0.94 lakhs in 1994-95.

In the field of khadi and village industries, various schemes are under implementation in the State. For the development of handicrafts in the State "Common facility centre" have been initiated for red glazed pottery at Barpeta, brass-casting at Hajo, brass-bell metal at Sarthebari and dying of yarn at Soalkuchi. The Assam Khadi and Village Industries Board are running 20 training-cum-production centres in the State. Further, for the marketing of khadi and village industries goods, the board has been running 34 Khadi Bhandars in different commercial areas of the State.

The Khadi and Village Industries Commission (KVIC) have recently decided to set up a raw material bank in the north-eastern zone for storing cotton, eri muga etc. The raw material bank forms a part of the development strategy drawn up for the north-eastern zone to give a boost to KVIC activities in the NE region.

The KVIC has also proposes to set up a central "Vastragar" as well as central godown for village industries for extension on marketing assistance to tiny units.

The other measures undertaken for strengthening KVIC in the NE zone included introduction of special funding patterns for infrastructural facilities and managerial support, enlargement of organisational base for rapid implementation of activities by enlisting new institutions and setting up of mother units to feed small and weaker units by extending all input supports to viable institutions in the NE zone, out of which 38 are in Assam, one each in Meghalaya and 15 Mizoram, two in Arunachal Pradesh, four each in Nagaland and Tripura and in Manipur.

Handloom, sericulture and weaving play an important role in the rural economy of Assam. The State is particularly famous for her variety of handloom products such as eri, muga and silk fabrics. It is worthy to mention here that almost every household in the rural areas of the State are connected with the weaving industry. Being a production and employment oriented industry, it can reshape the rural economy to a great extent. The State Government is taking this opportunity through the establishment of a number of eri-seed grainages, eri-concentration centres, sericulture farms. Tassar farms, muga farms, huge food plantation centres and mulberry silk farms etc. in different parts of the State.

The Sericulture Training Institute and the sericulture research station at titabar are the two institutions which are imparting training and undertaking research works on sericulture in the State. The Training Institute has continued to impart training to trainees not only from Assam but also the neighbouring states of the Region.

The handloom industry of Assam is well known for its quality and originality. It is estimated that there are more than 7 lakhs of handloom in the State which provides part time and full time employment to nearly 8 lakhs of people. It is also worth mentioning here that almost every household in the rural areas of the state are connected with the weaving industry. But only a small proportion of State�s 7 lakhs looms (estimated in 1974-76) are operated on commercial lines. A good number of these looms are operated mostly for self-utilisation.

The use of modern technology in the textile industry of Assam is far from being satisfactory. In order to revitalise the handloom sector, various schemes have been introduced which includes providing avenues for the production of quality fabrics, modernisation of looms, motivation of weavers for taking up the industry on commercial lines, extension of training facilities to artisans etc. During 1994-95 there were 263 Weaving Demonstration Circles under the supervision of the Directorate of Sericulture and Weaving, Assam, which covered a total of 7819 villages of the State. A total of 2.81 lakh part-time weavers and 26171 whole-time weavers were engaged through these circles during 1994-95, and the Directorate also distributed 7254 handlooms in different areas of the State.

Assam�s Handloom and Textile Industry which support nearly 20 lakh people both directly and indirectly is now facing a tough challenge. Massive irregularities, continued negligence and lack of foresightedness due to which this important industry which has still remained unorganized despite engaging nearly 10 percent of the total population of state, at least partially, have forced the industry towards its premature death. It may be mentioned that against a target of producing 155.50 million metric tonnes (MT) of clothes, the Handloom and Textile Industry could produce only 133.44 million MT of cloth in 1993-94 and Department has also failed miserably to supply adequate power looms ; and there are only 1372 power looms all over the state. Due to shortage of electricity, many industries like handloom and textile industry in Assam are now facing premature closure.

The department for last several years failed to supply the required quantity of yarn to the weavers the department requires 165.25 lakh kg. of cotton, 90,000 kg. of silk, 1.80 lakh kg. of Wool, 42,000 kg. of muga, 95,000 kg. of eri and15,000 kg. of other varieties of yarn every year. The industry is incurring losses due to failure to supply required quantity of yarn to the weavers in time.

In respect of sericulture, there are 389 institutions engaged by the Department of Sericulture for the development of eri, muga, mulberry and tasar, but it also a common fact that the silk industry of Assam has not progressed as expected. Assam, with about 2.70 lakh persons engaged in sericultural activities offers good scope for development and is also the major muga and eri silk production state in the country and enjoys monopoly in the production of muga silk. The Central Silk Board (CSB) has already ten institutions for the development of mulberry non-mulberry silk in Assam. The prominent among them are Regional Muga Research Station, Boko, Regional Sericulture Research Station, Titabar and a Muga Seed Development Project, Guwahati.

In the mean time, the state had developed some basic infrastructure for the production of different types of silk, i.e., muga, mulberry etc. In 1995-96, for the development of eri, the state has about 26 eri seed grainages, 91 eri concentration centres and 22 eri spinning units. For the production of muga, the State has 23 muga forms, 61 village grazing reserves and 15 muga reeling units and also for mulberry, the State has 12 mulberry farms, 102 collective mulberry gardens, five mulberry gardens and 27 reeling units. There are also 5 tasar centres in Assam. In the case of Sericulture, the State had 8,127 sericulture villages under the supervision of the Directorate of Sericulture & Weaving in 1994-95. These villages engaged nearly 1.28 lakh families in eri-culture. 28 thousand families in mugaculture and about 39 thousand families in pat-culture. In 1994-95, the production of silk yarn from the sericulture villages was of the order of 75,477 kg. of muga, 23,500 kg. of pat. Besides, the Directorate also maintains a number of sericulture farms, eriseed grainages, basic muga seed farms, eri-concentrations centres, reeling units etc. In 1988-89, total production of Raw Silk and silk yarn in Assam were 12.67 lakh kgs.

In order to activate the sericulture industry, the state Government had at the instance of Central Silk Board requested Agricultural Finance Corporation Ltd. to formulate the integrated sericulture development project for Assam, covering mulberry, muga and eri 1986. Though the report was submitted in 1987 but it could not be implemented due to administrative and other constraints. In view of the progress and developments that had taken place in sericulture industry during the liberalization era, a need was felt to update the report. The AFC prepared a fresh project report in 1994 and submitted the same in 1995. But the implementation process has not yet been started.

The project aims at increasing the production of eri, muga and mulberry over a period of 10 years from the present level of 75,416 tonnes to 2,75,777 tonnes and in terms of value, the value will increase by five fold i.e., from Rs. 23 crore to Rs. 108 crore. The total investment called for is Rs. 177 crore and the total employment generation will be 75,000 man years. The project, if implemented, will also improve the socio-economic condition of the people from the present yearly income level of Rs. 1,225 to Rs. 5,750 per family adopting sericulture and will also change the present practice of kitchen garden sericulture to commercial sericulture.

Thus considering the high potential and suitable environment for the development of sericulture industry, it is expected that concrete steps be taken by the concerned agencies to develop the sericulture industry in such a manner so that it can attain the commercial viability at its earliest.

Among the Cottage Industries of Assam the position of bell metal industry is next to handloom industry. Sarthebari of Barpeta district is the main Centre of this hereditary cottage industry. This is household industry where workers are mainly unpaid family members. The industry produces various types of utensils made of brass and bell metal and other decorative pieces with the help of simple traditional tools and equipments. But the industry has not been modernised due to want of finance and lack of technical know-how. This industry is facing competition from large scale bell metal, aluminum and stainless steel industries. There is no definite system for supplying raw materials to these industries at a reasonable price and also to supply cheap bank credit. Thus due to all these difficulties faced by this industry the very existence of this industry is at stake.

For the development of this bell metal industry one "Common facility service Centre" has been established at Sarthebari. This centre provides some modernised common facilities to these bell-metal artisans. Besides, the Khadi & Village Industries Board is also helping in marketing its product through their Khadi Bhandars established at various commercial areas of the state.

Besides, the Small Industries Development Bank of India (SIDBI) has decided to boost the bell metal industry at Hajo. The Bank has plans to help improve the design, production and marketing of the bell metal products in big way. For this purpose artisans will be brought from Moradabad. The entire cost will be borne by the SIDBI. In 1993-94, this modernisation works has already been started.

The North East Handloom and Handicrafts Development Corporation (NEHHDC) have been playing an important role in the promotion and growth of handloom and handicrafts industry of Assam and other North-eastern states. This corporation was established in 1977. This corporation offers the facility of -(a) supply of raw materials, (b) advancing working capital and (c) marketing arrangements to handloom and handicrafts industrial units of this region. With the patronage of this corporation, the handloom products of Assam and North-eastern states has been sent to Brussels, Tokyo, New York, Berlin etc. for exhibition. Moreover the handloom products of Assam is also having a good market in the countries like England, Italy, France, Switzerland, Singapore, Saudi Arabia etc. Like the handloom industry, the handicrafts industry of Assam as well as of other north-eastern states is also a potential industry. The Assam Government Marketing Corporation and North Eastern Handloom and Handicraft Development Corporation have taken the responsibility for the modernisation and market diversification of the products of handicrafts industry like bamboo and cane works, wooden works, doll making, ivory works etc.

Although the heritage of small and cottage industries in Assam is very rich but these industries are handicapped with innumerable difficulties . Some of these important difficulties and problems faced by cottage and small industries are enumerated below :

Firstly, ignorance, illiteracy and conservative attitudes of the people connected with these industries are standing in the way of modernisation and expansion of cottage and small industries in Assam. Due to ignorance these industries are using outdated tools and old methods of production and thus could not keep pace with other sectors of the economy. They fail to adopt newer and scientific methods of production and thus produce old designed traditional goods. This is no doubt a big problem for this industry.

Secondly, dearth of capital is the next problem of the cottage and small scale industries in the state. Rural artisans and craftsmen are very poor and thus they depend on village money lenders to meet their financial needs. As the village money lenders charge high rates of interests the cost of production of these industries is raised. Necessary funds are not made available to the rural artisans and craftsmen from the commercial banks and other financial institutions like Assam Financial Corporation. Thus for the want of finance, these industries cannot modernise their production process.

Thirdly, scarcity of raw materials is next major problem faced by cottage and small scale industries in the State. As they are facing the difficulty of getting regular supply of raw materials at a reasonable price, this creates a problem for smooth functioning of these industries. This retards the growth and expansion of these industries.

Fourthly, absence of proper training facilities to the artisans is the next hurdle which these industries are facing. Thus in the absence of proper training, the artisans are still following outdated methods and produce goods of old design and styles.

Fifthly, lack of proper marketing facility stands in the way of expansion of these small and cottage industries. Due to this absence of proper marketing arrangements these industries sometimes go for distress sell of their products to the private dealers at a poor price.

Lastly, the cottage and small industries of the state are facing increasing competition from the large scale organised industries. Due to this high cost structure poor quality and design, they cannot stand in the competition with the organised industries and thus their very existence has been threatened.

The cottage and small industries of the state have been playing an important role in building the state�s economy. Even with the growth of large and medium industries these small industries are still maintaining their importance, providing a good volume of income and employment in the rural areas. As these industries are suffering from may loopholes, to plug these loopholes following remedial measures are important :

Firstly, efforts are made for modernisation and expansion of these industries. Workers engaged in these industries should be acquainted with modern scientific technique and methods of production. Steps must be taken to provide improved tools and implement it at fair prices.

Secondly, commercial banks and other financial institutions should come forward with various schemes of short term and long term credit for the cottage and small industries in the state. Moreover, credit should be made available at cheaper rates, these will help in other expansion and diversification of these industries in the state.

Thirdly, proper agencies and scheme should be developed for supplying raw materials to small and cottage industries at convenient time and rates.

Fourthly, necessary efforts should be made to train workers of these industries. Thus arrangements are to be made for setting up training institutes at different places of the state for the said purpose.

Fifthly, proper marketing arrangements should be developed in different parts of the state for the smooth sale of the product of these industries. This arrangement will save the workers and artisans from the clutches of middleman.

Sixthly, more "common facility service centre" should be developed in the state in and around these small and cottage industries from where these industries would get all the necessary common services in times of their need.

Lastly, Industry Department of the state should chalk out plan for the modernisation and expansion of these small and cottage industries and involve all these industries into such plan.

The State Government of Assam has introduced different measures to sort out difficulties of the small and cottage industries of the state during these 44 years of planning. Steps have been taken with some specific measures to revive and develop these industries during the plan period.

The state Government has introduced a long-term scheme of advancing loans at cheaper rates to these industries. Besides, Assam Financial Corporation, Co-operative Apex Bank and the nationalised Commercial banks are also offering long-term credit to these small and cottage industries.

Further, the Government has taken steps to offer basic infrastructural facilities for the smooth growth of small industries in the state. With this purpose, 17 industrial estates have been built up at different parts of the state to extend basic facilities. The Government has also taken the initiative to supply improved quality of adequate raw materials at fair prices to these industries. Besides, some "common facility service centre" have been established in some selected places where there is a concentration of small and cottage industries. These centres are offering some common facilities to these industries. Some Growth centres have also been developed by the State Government for the speedy development and growth of small industries in the state. Moreover, some training centres have also been created by the Government throughout the state to impart necessary skill and know-how to the artisans, craftsmen and workers. The State Government has also set up emporiums and Khadi Bhandars in various towns to provide a good market for the product produced by these small and cottage industries.

Further, the state Government has set up a host of organisations for the development of small and cottage industries in the state. These includes : The Assam Small Industrial Development Corporation, The Assam Hills Small Industries Development Corporation, Assam State Textile Corporation and Khadi and Village Industries Board.

The Assam Small Industries Development Corporation (ASIDC) is actively working for building small scale industrial base in the state. The Corporation has also opened a number of small scale units under its own management. The Corporation has also been engaged in the promotion of various scheme, marketing assistance scheme, scheduled caste/tribe development scheme, marketing assistance scheme, raw materials assistance scheme, stipendiary training programme etc.

During the Seventh Plan about 8000 small industrial units were established. In 1990, about 2,030 new SSI units were set up. In 1990-91 all total 2746 new SSI units were established which have generated employment of more than 11,000 persons. In 1992 about 2835 new SSI units were established in Assam. On the other hand, in 1990-91, about 2201 cottage and handicrafts industries were established. Moreover, considering the growing demand for factory sheds and other infrastructural facilities, the State Government has started to develop 4 more industrial estates-one each at Digboi and Dimoh and two more at Guwahati. Taking these new 4 industrial estates, the total number of industrial estates in Assam would be now 17. Moreover, in order to create demand for the sale of 15 commodities produced by local small scale industrial units, the State Government has assigned the responsibility to Assam Small Industries Development Corporation (ASIDC).

Further, the State Government announced a package of incentives to attract investments, promote establishment of new industries and to facilitate the expansion and diversification of existing industries in the state. These incentives include, contribution towards preparation of feasibility reports, subsidy on industrial housing, concessional power tariff, sales tax exemption on the purchases and sales of the company, capital investment subsidy and allotment of developed land in industrial areas.

In the mean time, on August, 1991, the Government of India announced one new Small Sector Industrial Policy, 1991 separately for the development of small industries. On the basis of this policy, the Government of Assam has announced its Industrial Policy, 1991. This policy has undertaken certain special measures to provide incentive to set up various types of khadi and village industries, small, tiny and ancillary industries for the balanced regional development of the state.

During the Eighth Plan, the State Government has introduced 14 schemes in order to provide incentive to local entrepreneurs to set up industries and for accelerating the pace of industrialisation of the state. As per Government estimate, about 2610 industrial units in the handicrafts sector has been established which have generated employment to 7,492 persons. During this period, scheduled caste and scheduled tribe entrepreneurs have set up 504 and 567 small industrial units respectively. Through another industrial scheme, 3480 educated unemployed youths have received certain benefits. Moreover, the State Industries Department has selected 12 entrepreneurs to produce paper grade lime for supplying it to Hindustan Paper corporation. Again this department has also selected 10 entrepreneurs to set up mini and micro cement plants in Assam on the basis of local available resources. Therefore, due to all these efforts, total number of registered small scale industrial units has increased to 20,552 in January, 1994. As per this new industrial policy the State Government has taken certain steps to set up new industrial units in the rural areas. Thus the future of this small scale industry sector depends upon the successful implementation of these measures.

Thus all these reveals that an industrial climate is being gradually created in the State and thus the state will be able to develop a solid base of small scale and cottage industries in the years to come.

Future Prospect of Small Scale Industries in Assam in view of the Current Economic Reforms

Assam is endowed with huge volume of different types of natural resources like mineral forest resources, water resources etc. However, the state is yet to experience industrial development on a scale achieved by many states in the state of the country. The current economic reforms introduced in India in the form of industrial policy reforms, fiscal policy reforms, monetary policy reforms, foreign investment policy reforms, foreign trade reforms etc. with the sole objective to bring a new element of dynamism in the process of economic growth of the country. Economic reforms have broadly widened this scope of industrialisation in the country.

Assam being a industrially backward state, having a huge potential for industrial development, can be able to make much headway in the path of industrialisation under the current process of economic reforms. In this respect, small scale industries have a special role to play in the industrial development of the state. The new Small Sector Industrial Policy, 1991 introduced by the Central Government has made ample provision to boost the growth of small scale industries. Moreover, keeping in conformity with the Industrial policy of the Centre, the State Government had also formulated its Industrial Policy, 1991where it made ample provision to ensure balanced regional development through rapid promotion of a host of Khadi and village industry, cottage industry, tiny, small and ancillary industries throughout the state on the basis of the techno economic potential surveys. But unfortunately, the Industrial Policy, 1991 could not create much impact on the development of industrial sector of the state. Thus in order to embark upon the high road of liberalisation, privatisation and globalisation, the State Government introduced its New Industrial Policy, 1997 with a great promise for adopting a smooth path for rapid industrialisation in the state. Thus under the new industrial policies introduced by both the central and the State Government, the future prospect of small scale industries in Assam is quite bright.

Secondly, under the fiscal policy reforms, the Central Government has made provision for either tax holiday or tax concession to the newly developed industries in a backward state like Assam. Such tax reliefs have brightened the scope for the promotion and development of small scale industries in an industrially backward state like Assam.

Thirdly, the Central Government in its 1995-96 Budget has made provision for setting up the North Eastern Development Finance Corporation Ltd. (NEDFi) and accordingly, on 23rd February, 1996, the NEDFi was set up with this main object to provide finance and other facilities for the promotion, expansion and modernisation of industrial and infrastructural project in the North eastern region. NEDFi has also made special provision for financial support, data bank etc. for the small scale industries of the state, which has already brightened the prospect of the development of small scale industries in Assam. The NEDFi will concentrate on downstream petrochemical units, plantations, sericulture cane and bamboo projects.

Thus in view of the current economic reforms, it is observed that the prospect of small scale industries in Assam is quite bright. But the ultimate success of economic reforms in promoting small scale industries in the State depends finally on the improvement of law and other situation of the state which will simply create suitable environment conducive for industrial development of the state. Moreover, in order to promote different types of small industries based on local resources, local entrepreneurs should come forward and participate actively in the industrialisation process of the state.

Considering the current situation prevailing in the state, it can be finally observed that although the current economic reforms has already created a favourable impact on the industrialisation process of some of the industrially developed states but it could not create any considerable impact on the process of industrializing in Assam. But considering the rich resource base, it can be observed that the prospect of industries, especially of small scale industries, is quite bright, provided an investment-friendly climate is created in the State.

Agro-industries include all those industries which could be developed on the basis of agricultural produce. Assam being an agricultural state, possesses wide scope for the development of agro-based industries in its various parts. These include tea, Jute, Sugar, fruit processing, medicines, chemicals sericulture and weaving, paper boards, hard boards, insecticides, building materials, coffee, rubber etc. The Agro-industrial potentialities of some crops have already been exploited in the State and these include tea, Jute, Sugarcane, fruits. The other potentialities still largely remain untapped. If all these potentialities could be developed, the economy of the state would be much benefited out of it.

Agro-industries of Assam are playing a very important role in the economy of the State. Tea industry is the biggest agro-industry of the State. The economy is dominated by this tea industry, influencing both the income and employment of the State. Following are the important roles of this agro based industries in the State :

1. Utilisation of huge volume of agro-based raw materials and agro-waste is possible with the growth of agro-industries in the State. Assam is possessing huge volume of agro-based raw materials and agro-waste which still largely remain unutilised. Utilisation of these resources could supplement income of the agriculturists in the State.

2. Development of agro-industries would increase the job opportunities for huge number of population in the State. Agro-industries, mostly being a labour-intensive industry can engage a good number of workers both male and female. Tea industry of Assam alone provides employment to more than 5 lakhs of persons daily. If other agro-based industries materialise fully, the problem of unemployment could be easily solved in the State.

3. Agro-based industries of the State are contributing a good portion of State income. As these industries can provide employment to huge number of workers thus a huge section of rural people derives their income from these industries. Thus it is a source of livelihood to a good number of people and their level of living has been improving with the gradual growth of these agro-industries in the State.

4. With the growth of various agro-industries in the State many agricultural produce and agricultural waste are gradually getting market easily. If all these industries could not be developed in various parts of the State, a good market for agricultural raw materials and agricultural waste would be created. This would, no doubt boost the State�s economy.

5. Agro-based large and medium industries have an important role in the development of cottage and small industries of the State. A good number of cottage industries would also be revitalised with the growth of these agro-industries.

6. This will help good in the creation of industrial climate in the State. The expansion of tea industry in Assam has led to the growth of many small industries viz., industries producing tea machineries and implements, tea chests and plywood industry etc.

Although there is a huge potential for the growth of agro based industries in the State but problems faced by these industries are always going against its expansion and growth. The main problems of these industries are enumerated below :

1. Inadequate investible resources : Agro-based industries in the State are facing the problem of getting investible fund from external sources. They cannot collect sufficient fund for their modernisation. They are not getting sufficient bank credit for meeting their purposes. Further, in spite of huge development potential, many agro-based industries could not be developed due to lack investible resources.

2.Lack of transport and communication facility : Inadequate transport and communication facility in the State is the next major hurdle for these agro-industries in the State. This creates problem for their collection of raw materials and in the sale of their products. Further, the transportation cost in this state is also quite high in comparison to other states which always goes against the growth and expansion of both and old agro-industries in the State.

3. Problems of marketing : Inadequate marketing arrangements are the next drawback which these agro-industries are facing. Excepting tea industry, other agro-industries in the state are facing acute problem of marketing of their products. There are no proper marketing arrangements for this product of agro-industries and transport and communication gap is also adding to this problem. In the absence of marketing facilities these industries are sometimes bound to go for distress sale. This creates disincentive for its expansion and growth.

4. Lack of technology : Agro-based industries in the state are also suffering from lack of technical know-how. Proper technology has not been developed which always goes against the modernisation of these industries in the state. These agro-industries are still following old technique of production and thus producing old style products. This creates difficulty in the marketing of their products.

5. Lack of initiative and enterprise : Agro-based industries in the states could not achieve sufficient rate of growth and expansion due to the lack of initiative and enterprise from the part of local entrepreneurs in the state. In spite of possessing a huge development potential for the growth of agro-industries, the state could not achieve sufficient development in the field of agro-based industries. Proper utilisation of these huge agro-industrial potential require active initiative and enterprise from the local entrepreneurs.

Assam is blessed with vast agro-industrial potentialities. Some of these agro-industrial potentialities have already been exploited. These include tea, jute, sugarcane, pineapple, orange and some other fruits. But other potentialities are still largely remaining unutilised. The richest agro-industrial potentialities which can be developed in the state are mentioned below.

Citronella, an aromatic crop, recently has emerged as an important crop with much industrial potentiality. Similar to this, rubber and coffee are two other crops which have shown potentiality of large scale cultivation in the state. Another important group of crops which is yet to be explored but having a high potential is the spice crops. These include ginger, black-pepper, turmeric, large cardamom and cinnamon.

There are plants like yams, tapioca, sweet potato and maize which are widely grown in this state. These plants are important sources of carbohydrate and starch and thus can be utilised for producing starch power and ingredient of livestock feed. Soya bean also grows extremely well in some hilly parts of Assam along with other North-Eastern States. Oil and nutritious Soya protein food can be produced from soybeans. Besides, soybeans can also be used as an ingredient of livestock feed as it possess high protein contain.

Ramie is another underutilized plant. It has a great prospect of being grown in Assam which could be utilised as a source of blendable fibre for the polyester complex proposed to be established there. Besides there are huge variety of orchids growing wild in the various parts of the state which have sufficient potentiality in the export market.

Utilisation of agro-waste is another area on which good number agro-industries could be developed in the state. The Regional Research Laboratory (RRL) established at Jorhat has prepared many schemes for the development of agro-based industries of different types. The laboratory has already prepared the technique and designs necessary for these projects. These include;

(a) Photochemical : The laboratory has developed know-how for the cultivation of various medicinal essential oil bearing and other economic plants like Baseil, citronella, Eucalyptus, citriodora, Japanese mint, lemon grass, pepper mint etc. The Laboratory has already designed a suitable distillation plant for these above projects.

(b) Agro-chemicals : The laboratory has also developed technology and necessary design for producing agro-chemicals like pesticides (phosphamidon, quinophas), furfural (industrial chemical) and organic chemicals on a commercial basis by utilising agro-waste of the state. Rice straw, paddy husk, jute stick and baggage have been used for the production of furfural.

(c) Building materials and others: The laboratory has developed a process for making masonry cement using paddy husk ash on commercial basis. Molecular sieves have also been produced by the laboratory from paddy husk. Similarly, jute stick, biogases, paddy straw and decaffeinated tea waste have been utilised for making paper boards and building materials. The laboratory has already prepared manufacturing details along with information for machineries etc. for setting up small as well as medium size paper board mills from fibrous raw materials and agro-industrial waste.

Besides those Agro-chemicals identified by the R.R.L (Jorhat) Assam has the potentiality of producing certain other agro-chemicals. Ethanol and its derivative can be produced from sugarcane and tapioca.

Citric Acid is the chemical which can be produced in good quantity from a large number of citrus species available in Assam along with other North-Eastern states. Some of these species contain very high percentage of citric acid. Production of enzymes is the next prospective area which needs exploitation. These include pramalin from pineapple waste and papain from papaya. Engenol a suitable ingredient for preparation of perfumery chemicals can also be produced in the state from Tezpatta (cinnamomum taranta) which is available in large quantity both in Assam and Meghalaya.

Further, for producing biomass as a source of energy as well as for making paper boards weeds like water hyacinth has been successfully utilised.

Another established agro-industry of Assam is sericulture. Assam has the potentiality of raising of all the four varieties of silk worm, namely, eri muga, mulberry and oak tsar. Thus the development potential of these sericulture industry is very good.

Assam is also well known for its huge forest resources. Proper utilisation and management of these forest resources like bamboos, canes, soft wood etc. will be able to develop a good number of land based enterprises which in turn will generate sufficient employment opportunities.

Considering all the potentialities and problems of these agro based industries some steps need to be taken for converting the endowments into assets. These steps includes developing - (a) a package of feasible technology, (b) a package of service to the people involved in growing in and utilising the technology for developing suitable enterprises and (c) a package of public to create the needed environment of growth. Steps are also needed to solve the problems of transportation, communication and marketing. Sufficient incentives in the form of subsidies, duties, tax exemptions etc. have to be offered for providing initial impetus. Steps are also to be taken for avoiding internal competition within the region for the market.

It is also necessary to gear up research and development (R&D) efforts in this area. More investments are required in this field. It is important to consider the use lf land and water resources (agro materials) in a scientific way after paying due consideration to ecology, energy consumption, economies and employment generation.

Considering the inherent problems of the State, sufficient stress must be laid for the development of various types of land and water resources potential. If these agro-industries can be developed properly, these will help the State in increasing production, generating gainful employment and also in the increase of income of rural people of the State.

Institutional finance is an important part of industrial finance everywhere. Sufficient flow of institutional finance is extremely essential for the successful development of industries in an area. Institutional finance is also playing a vital role in the process of industrial development in various states of the country. But the flow of institutional finance in Assam is still at a very low ebb in comparison to its flow in other states of the country. Thus one of the basic reasons for industrial backwardness of the State is the inadequate availability of required finance.

Commercial banking sector is advancing a big portion of institutional finance for the industrial development of each State. In Assam, total outstanding credit of scheduled commercial banks to the industry sector of the State, at the end of December, 1979, stood at Rs. 75.4 crores only of which Rs. 18.3 crore were meant for small scale industry sector. The share of this industry sector out of total outstanding blank credit was nearly 40 percent. This share of State compares very unfavorably with Rs. 2442 crores (58 percent) of Maharashtra, Rs. 1334 crores (70 percent) of West Bengal, Rs. 815 crores (66 percent) of gujarat, Rs.979 crores (57 percent) of Tamil Nadu, Rs. 295 crores (55 percent) of Haryana, Rs. 638 crores (47 percent) of Uttar Pradesh and Rs. 9863 crores (48 percent) for all India. At the end of December, 1980 total outstanding credit of scheduled commercial banks to the state increased to Rs. 104.7 crores which includes Rs. 21.3 crores for the small scale industry sector. Thus, the industry sector shared nearly 46 percent of the total outstanding bank credit in the State.

So far as the role of scheduled commercial banks in the State�s industrial sector is concerned, it is revealed from RBI publication, "Basic Statistical Returns, Bank Credit, Quick Estimates, June 1986" that the share of the industry sector in the total outstanding bank credit in the state stood at 40.4 percent at the end of June, 1986 as against a comparatively higher share of 47.2 percent at the end of December 1982 was 45.8 percent. Of the total outstanding credit, as at the end of June, 1986, the small scale industrial sector accounted for nearly 12 percent of the total.

Industrial Credit and Investment corporation of India Ltd. (ICICI) opened a development office at Guwahati in February 1982 with the intention to serve the needs of north eastern region. The ICICI has so far assisted 18 industrial projects of which 14 projects are established in Assam. While looking at the figures of financial assistance sanctioned and disbursed by various all India financial institutions it is found that Assam compares very unfavourably with many other states in the country. For example, the average per capita assistance sanctioned by these all-India institutions up to the end of March 1982 amounted to only Rs. 61.9 lakhs in Assam compared with Rs. 213.9 lakhs in Gujarat, Rs. 458.0 lakhs in Maharashtra, Rs. 292.6 lakhs in Tamil Nadu, Rs. 287.1 lakhs in Karnataka and Rs. 270.5 lakhs in Punjab.

In respect of performance of Industrial Finance Corporation of India (I.F.C.I.) during the plan periods, it is found that during the First Plan I.F.C.I. sanctioned financial assistance increased to Rs. 165.29 lakhs during the Second Plan and to Rs. 363.00 lakhs during the Third Plan in Assam. During the Annual Plans assistance was Rs. 78.50 lakhs only. During the Fourth Plan the net financial assistance from I.F.C.I. to Assam came down Rs. 203.00 lakhs and then to Rs. 249.00 lakhs in the Fifth Plan. Thus the aggregate assistance from I.F.C.I. to Assam till the Fifth Plan was Rs. 1103.79 lakhs.

The track record of this financial institution (IFCI), like that of any other operating from this region is a dismal one. During the period from 1948 to 1995, the IFCI had sanctioned only Rs. 125.44 crore to some industrial projects in Assam which is as low as 0.5 percent of its sanctions vis-�-vis the rest of India. Moreover, the North-eastern regional office of the IFCI is recently on the verge of closure following a directive from its higher authorities to transfer all its files to the Calcutta regional office as a part of restructuring of the IFCI.

It would be better to look into the position of Assam vis-�-vis some other states of country in respect of amounts sanctioned and disbursed by various all India financial institutions (covering IDBI, IFCI, ICICI, LIC, UTI, GIC, IRCI, SFCs and SIDCs) up to the end of March 1982 as well as during 1981-82 from the following table:

In 1981-82 total amount of industrial loan sanctioned by these financial institutions to Assam was Rs. 11.99 crores against which Rs. 7.42 crores was only disbursed. Out of cumulative amount of loan sanctioned to the extent of Rs. 123.11 crores by these institutions to Assam up to the end of March 1982, the total cumulative disbursement was only Rs. 108.75 crores, which was 88.3 percent of the total amount sanctioned.

Further, this cumulative amount of loan sanctioned to Assam up to the end of March 1982 was only 1.08 percent to that of all-India as against 20.9 percent of Maharashtra, 9.7 percent of Tamil Nadu, 8.04 percent of West Bengal and 4.03 percent of Rajasthan. Thus Assam�s figure compared very badly, to that of above mentioned state in this respect. This reflects the prospect of industrial development in Assam.

Moreover, the "Report on Development Banking in India, 1989-90" published by the Industrial Development Bank of India, reveals interesting statistics on state-wise volume of assistance sanctioned and disbursed by the term lending institutions. According to this Report, the volume of per capita cumulative assistance sanctioned and disbursed by term lending institutions (comprising IDBI, IFCI, ICICI, LTC, NTC, TIC, IRBI, SFCs, SIDC) stood at Rs. 191.40 only in Assam as at the end of March, 1990, while it is as high as Rs. 1950.21 in Gujarat, Rs. 1632.53 in Maharashtra, Rs. 1206.88 in Punjab, Rs. 1108.16 in Haryana and Rs. 797 at all India level. However, over the recent few years, the volume of assistance sanctioned and disbursed by the term lending institutions in the State is recording a steady upward trend as it increased from Rs. 24.75 crores and Rs. 48.16 crores respectively in 1985-86 to Rs. 21.82 crores and Rs. 64.04 crores respectively in 1989-90. As a result, the total cumulative assistance sanctioned and disbursed to the State stood at Rs. 622.62 crores and Rs. 380.89 crores respectively as at the end of March, 1990. Thus it is revealed that the state continued to enjoy a very meager share (less than even 1 percent) of the total volume of assistance sanctioned and disbursed for the country as whole.

The entire North-eastern region comprising seven sister states is endowed with rich natural resources like oil, gas, limestone, other minerals, forests resources and water resources. In spite of that the Region is yet experience industrial development on a scale achieved by many states in rest of the country. The reasons for such backwardness consist of infrastructure bottlenecks, inadequate finances low level of local entrepreneurship and complex local systems. The local entrepreneurs, although very small in number, are not familiar with complex banking procedures and thereby failed to take full advantage of the presence of various financial institutions and banks. Considering the situation, it has become imperative to set up an institution with special knowledge of the Region and dedicated exclusively to its requirements.

Accordingly, Union Finance Minister, in his Budget speech for the year 1995-96, announced the setting up of a separate development bank for the Region. Keeping in conformity with such announcement, the North-Eastern Development Finance Corporation (NEDFi) Ltd. was incorporated on August 9, 1995. After receiving a certificate to commence business operation from September 1995, the North-Eastern Development Finance Corporation Ltd. (NEDFi) was inaugurated on 23rd February, 1996 with headquarters at Guwahati with the objective of providing focused attention to the industrial and infrastructural development of the Region. The Board of Directors of NEDFi is also constituted by inducting eminent persons from the North-Eastern Region and also from outside the Region, having widening experience in industry, economics, finance and management.

The main object of NEDFi is to provide finance and other facilities for promotion, expansion and modernization of industrial and infrastructure projects in the region. Eventually, the NEDFi will provide a wide range of facilities and services, tailor made to meet various requirements of industrial units, including discounting or re-discounting of bills, guarantees, subscription to and/or underwriting of shares and securities, issuing letters of credit and providing consultancy, information and research facilities NEDFi will also help first generation entrepreneurs during implementation and early operation stages of their projects by providing hand holding services so as to mitigate the problems arising out of inexperience. The corporation will prepare and from time to time, update profiles of projects that have been identified as having good scope for success in the progress of the region and would be able to solve the problems of small investors to a large extent.

NEDFi�s mission is to be dynamic responsive organisation for assisting the development of the Region by identifying and financing commercially viable industrial and infrastructure projects so that it leads to fixed capital formation without causing any significant environmental degradation and through this maximise the wealth of the Region and the well-being of its people. Thus NEDFi got underway with the promise to the people to make a distinct improvement in the industrial and infrastructure development scenario of the region within the shortest possible time. In short, NEDFi is considered as the development bank of the North-East, for the North-East.

NEDFi has been incorporated with authorised share capital of Rs. 500 crore and IDBI, SIDBI, IFCI, UII, LIC, GIC, and its subsidiaries and SBI have agreed to contribute Rs. 100 crore towards etc initial capital. This would enable NEDFi to raise further resources by way of borrowings through issue of fixed deposits, bonds, Government loans, grants etc. To meet its requirement NEFDi will also raise further equity as required for its operations in due course. NEDFi can draw upon the wealth of experience financial strength of its promoter institutions to raise resources to meet its requirements. The Government of India with its commitment for development of the Region will provide all support and is sure to extend necessary concessions to NEDFi to enable it to achieve its objectives.

In spite of having vast natural resources the North-Eastern Region is quite dependent on supplies from other parts of the country even for food items such as cereals, fish, eggs etc ; besides other requirements. Goods coming in from other parts of the country and those going out of the Region have to bear additional transport cost; this state of affairs offers considerable scope for producing the goods within the Region so as to meet the local demand. The Region can also process its available resources and serve the markets outside of region. NEDFi has made detailed study on the scope of industrial development in the Region and has identified a fairly wide spectrum of industries having potential in the region.

Firstly, NEDFi will assist all industrial concerns in the North Eastern Region promoted by limited companies or co-cooperative societies, for setting up new units or expansion and modernisation of existing enterprises. NEDFi will provide assistance in the form of term loans, direct subscription/underwriting of equity and/or debt instruments, provide financial guarantees and participate in deferred payment guarantees. It will provide term loans to eligible industrial concerns to start with and will also selectively extend direct subscription/underwriting facilities, both independently and in co-ordination with other institutions. As NEDFi may provide finance in consortium with other institutions and banks, their norms may generally be followed while assessing viability of the projects to be assisted. One of the main objects pursued by NEDFi is encouraging and promoting private capital both internal and external. The corporation will not dilute its norms of project viability comprising break-even point, debt repayment, servicing capacities for determining their eligibility for financial assistance.

Secondly, NEDFi will independently finance small scale industries ordinarily with a minimum loan component of Rs. 25 lakh and assemble a consortium of commercial banks and other financial institutions for projects with loan component for exceeding Rs. 25 lakh ; the minimum term loan from NEDFi will, however, be Rs. 25 lakh. NEDFi will consider smaller and medium scale projects costing up to Rs. 2 crore independently and may join a consortium with other institutions and banks for assisting larger ones. NEDFi would provide underwriting/direct subscription to share capital to the maximum extent of 25 percent of the share capital of the industrial concern with a maximum limit or Rs. 1 crore.

Thirdly, the NEDFi considers providing the entire working capital requirement of small scale industrial (SSI) units promoted by any first generation, entrepreneur till the point of time the project is expected to reach optimum level of operations. The corporation may explore a consortium arrangement with other institutions or banks for such working capital term loans.

The NEDFi will concentrate on downstream petrochemical units, plantations, sericulture, cane and bamboo projects.

Fourthly, the NEDFi will build up and maintain a data bank of the natural, human, and technological resources, market opportunities incentives available in this region for helping industries in identifying new technologies, markets, trends in economy and other relevant information. It will also compile profiles of projects with sound research for the benefit of entrepreneurs. It will soon be a think tank for the region and for this an elaborate information system and technology plan is being operationalised to support the setting up and operation of the data bank.

Fifthly, the business plan of the NEDFi has already been prepared by Tata consultancy Services (TCS), which has identified 62 projects which would be feasible industrial projects in all the seven North-eastern states. Out of these projects identified by TCS, 31 industrial projects are identified for Assam followed by 21 in Meghalaya, 19 each in Nagaland and Arunachal Pradesh, 15 each in Manipur and Tripura and 9 projects in Mizoram.

The identified projects, included fruit and vegetable processing, rubber processing, handloom and handicraft, meat and milk processing, lime stone, petrochemicals, urea fertilizer plant, minipower plant, wood based plant, bamboo mat board and silk processing. The 62 projects have been located and updated to prepare brief pre-investment studies which could be used by the eligible entrepreneurs to put together a few bankable proposals with the help of independent industrial and technical consultancy organisation.

Two major agreements that were arrived at the first anniversary of NEDFi include-firstly, a pact for joint financing in the small scale industries sector with Small Industries Development Bank of India (SIDBI) and secondly, a promise by the State Bank of India (SBI) to provide working capital to NEDFi assisted projects.

The Corporation (NEDFi) has approved assistance aggregating Rs. 12.18 crore to two projects both engaged in oil exploration and production sectors of the region. It disbursed its first assistance of Rs. 20 lakh towards form allotment of shares to premier Cryogenics Ltd. a Guwahati based firms for a project on liquid nitrogen, in July 1996. The second project which is being financed is for the working of oil well under ONGC, OIL by SVUI Projects Ltd. The NEDFi was helping the company with a loan of Rs. 12 crore.

The NEDFi, after the completion of the one year of its incorporation had received 30 inquiries for projects involving total investment of Rs. 46 crore with an employment potential for 1,500 persons and covering wide areas of industrial activity which include sectors like tea, food processing, textiles, cement, hosiery, hotels and nursing homes. These projects are mainly from Assam, Meghalaya, Manipur and Tripura.

It may be mentioned that the NEDFi has been registered as a Category I merchant banking institution by the Securities and Exchange Board of India (SEBI) and will provide project advisory service and take part in merchant banking, including lead management. It has also taken up compilation of a data bank for all the seven states of the region to help local as well as outside entrepreneurs to take investment decisions.

Thus it is expected that NEDFi with the support from Government of India and the state Governments of the Region will work actively towards catalyzing industrial development of the Region. This would facilitate the progress of the North-Eastern Region towards its rightful place on the industrial map of the country.

State Level Public Sector Units (SLPSUs) Assam- Large Scale Sickness Causes and Remedies

Like the other states of India, the government of Assam has already established a good number of State Level Public Sector Units Enterprises (ALPSUs) and also invested a considerable amount of resources on it, with a high hope of getting a rational rate of return. But unfortunately, things are not moving in right direction. There are at present 51 State PSUs in Assam. But the state of affairs of these PSUs are not at all encouraging. At the end of 1996-97, 48 PSUs of the State had taken monetary assistance worth about Rs. 2,500 crore over the past years and their accumulated losses stood at a total of about Rs. 1500 crore. Barring 3 units, all PSUs in the State were incurring losses continuously over the past years and had become dependent on budgetary support from the state government. This is no doubt an unhealthy practice adopted by these PSUs. In order to face the situation, the State Government had to cut plan budgets for various departments which was affecting the development activities seriously.

The accumulated loss has eroded the capital base of SLPSUs completely and negative rates of return on capital and paid-up capital have been 12 and 30 percent respectively. The turn-over of the SLPSEs has been poor and it is in the range of 20 percent of the capital investment while in terms of paid-up capital, it is only about 50 percent thereby implying that a very significant portion of the investment have gone into fixed costs. The growth of turnover has been of the order of only 10 percent against the growth in investment of the order of 20 percent per year.

The dividends have been declared by only three of the state public sector units (PSUs), namely the Assam Mineral Development Corporation, Assam State Warehousing Corporation and Assam Financial Corporation. The contribution to the State exchequer by 24 SLPSUs as on March 31, 1992 has been a meager Rs. 11 crore. About 30 of the SLPEs retain positive net worth of Rs. 170 crore, but the remaining SLPEs brought down the net negative net worth to about Rs. (-) 270 crore. This would have been in the order of Rs (-), 110 crore had the capital structure of the ASEB been not changed by conversion of loan of Rs. 800 crore to equity in 1991-92.

Among the State PSUs, the ASEB is responsible for the highest amount of loss. The ASEB alone accounts for 66 percent of the total accumulated loss of Rs. 1500 crore incurred by SLPSUs. The growth in the employment in the employment in the SLPSEs during the period from 1987-8 to 1991-92 has been of the order of five percent except in 1991-92. The turnover per employee has remained almost constant at around Rs. 0.7 lakh per employee per year. The total employment in the SLPEs have increased from 56,200 in 1987-88 to 64,490 in 1991-92.

The following are the 30 losing SLPSEs : Assam Electronics Development Corporation Ltd. (AMTRON), ASEB, ASTC, Statfed, Assam Syntex Ltd., Assam State Textile Corporation Ltd., Assam Polytex Ltd., Cochar Sugar Mills Ltd., Fiertichem Ltd., Assam Plantation Development Corporation Ltd., Assam Co-operative Spinning Mills Ltd., Assam Small Industries Development Corporation Ltd., Assam Fisheries Development Corporation Ltd., Assam State Housing Board, Assam State Minor Irrigation Development corporation Ltd., Assam State Fertilizer and Chemicals Ltd, Assam Seeds corporation Ltd., Assam Conductors and Tubes Corporation Ltd., Assam Tourism Development Corporation Ltd., Assam Khadi & Village Industries Board, Assam State Development Corporation for Scheduled Castes, Assam State Development Corporation for OBC Ltd., Assam Hills Small Industries Development Corporation Ltd., Assam Polyester Co-operative Society Ltd., Assam Film (Fin.Dev.) Corporations Ltd., Assam State Weaving and Manufacturing Co., Ltd., Assam Co-operative Sugar Mills Ltd. and Nagaon Co-operative Sugar Mills Ltd. However, a few of the above SLPSEs have already been handed over to the private sector. The report of the Comptroller and Auditor General of India (CAG) for the year 1996 reveals that out of 38 government companies in Assam, 28 suffered losses during the past two years or more. The 38 companies included 10 subsidiaries and four statutory corporations as on March 31, 1996. The companies had total investment of Rs. 477.47 crore (equity Rs. 248.27 crore, long term loan Rs. 46.15 crore) at the end of March 1996. As per the latest finalized accounts of these companies, 28 companies had incurred accumulated losses of Rs. 124.27 crore and the remaining five companies earned accumulated profits of Rs. 1.11 crore. Three companies have not yet started commercial function and two companies have not finalized accounts since inception. Almost all the 38 private sector undertaking of the state have been unable to finalize their annual accounts for a period over 14 years due to non-appointment of a statutory auditor by the Comptroller and Auditor General of India since 1981-82, resulting in non-accumulation of profit and dividend incurred by PSUs of the State.

It may be noted that SLPSEs were created to export the natural resources of the state, to produce goods and services and to implement development programmes for the weaker sections of the society and were expected to yield reasonable rate of return on investment. However, the rate of return has been negative over the years and therefore, creation of new SLPSEs was restricted.

The public enterprises in Assam are suffering from major problems which are mostly responsible for their large scale sickness. The following are some of the important causes of such large scale sickness of state PSUs :

1. Loss incurring enterprises are suffering from endowment constraints as the selection of sites of SLPSEs were done on political considerations rather than rational considerations.

3. Absence of rational pricing is also responsible for large scale sickness of state PSUs.

4. The state PSUs are suffering from technological gap as these enterprises could not adopt up-to-date technologies.

6. Much government interference in the day to day activities of state PSUs reduced their degree of autonomy of the managements in respect employment pricing, purchase etc.

7. Heavy social costs of SLPSEs is also responsible for their large scale sickness.

9. Evil competition from the private sector units and sabotaging of State PSUs are also responsible for their large scale sickness.

10. Marketing constraint of state PSUs is a big problem for which they could not collect good market for their commodities, resulting huge losses.

11. State PSUs are suffering from surplus manpower, which is creating drainage of resources unnecessarily, followed by sickness.

12. Workers engaged in the State PSUs are lacking sincerity and devotion to their job leading to wastage of productive capacities. Moreover, external factors like trade unionism, union rivalries and labour troubles are also responsible for disruption in smooth functioning of State PSUs.

13. Non-updating of accounts and non-holding of annual general meeting or Board meetings for years together are the two deterrent practices resorted to by most of the State PSUs, which are also largely responsible for their growing sickness.

14. Inefficiency in management and poor corporate plan have been also largely responsible for growing sickness of SLPSEs.

15. Finally, management of the PSUs have been politicized over the years to sub serve the interest of the ruling party and they have been made to employ too many people to make them unviable as economic entities.

The status report on the state PSUs prepared by the exports observed that "the inefficiency in management has led to the poor planning ......... In spite of repeated advice most of the SLPSEs have failed to draw up a corporate plan to justify their continuance in existence."

The following measures are worth-mentioning for bringing a dynamic change in the horizon of state level public sector units in Assam :

(ii) technological upgradation of these revivable enterprises to make it more competitive and viable ;

(iv) adoption of rational pricing policy for the improvement of economic performance of these undertakings ;

(iv) removing evil competition between the public and private sector units by integrating enterprises of both the sector.

(vii) making the management more accountable to the public as well as to the government ;

(viii) relieving the State PSUs from unnecessary government interference in their normal activities ;

(ix) Diversifying both internal and external markets for the products produced by the enterprises through standardization of quantity, advertisement and popularization of the product through different agencies;

(xi) gradual privatisation of some SLPSUs, through open mind, where such privatisation is permissible and where crowding out effect takes place ;

(xii) undertaking a time bound programme for the revival of those loss incurring enterprises and also to raise their degree of viability by raising their efficiency and productivity ;

(xiii) State PSUs must not think of keeping themselves running only with governmental support any longer, but should devise means of their own to ensure how they could survive as self-sustained ;

(xiv) attaining sound financial and managerial capabilities to make them stand on their own feet ;

(xv) State PSUs should proceed with limited objectives instead of diversification of business till they become self sustained ;

(xvi) State PSUs should submit review reports regularly to the Government and to take up corporate plans for internal resource generation ;

(xvii) and finally State PSUs should make serious efforts for their revitalization through effective management, innovative ideas, checking of wastages, sincerity and dedication.

New Industrial Policy (1997) Guidelines for State level PSUs and Government Efforts

Considering the poor financial condition and mismanagement of State Level Public Sector Units (SLPSUs), the new Industrial Policy, 1997 has observed that henceforth all state level PSUs would have to survive on their own. State public sector undertakings which were for a long time enjoying budgetary support from the State Government, will now have to change their strategies and discover new avenues for their survival. The State Government would help the PSUs in their revitalization strategies and urge the managements to find out ways to make profit. The State Government recently (in 1997) declared six public sector units in the state as sick and initiated efforts for revival of these sick PSUs by handing them over to the joint sector or to private sector.

The State Government has incorporated various incentives in the industrial policy, apart from liaisoning with banks and financial institutions to finalise package for revival of potentially viable sick PSUs.

The advisory Committee appointed by the State Government had also recommended privatization of loss making PSUs excepting two profit making units viz., Assam Petrochemicals Ltd. and Assam Gas Company Ltd. The Committee also suggested that those units which cannot be revived should be sold as scrap and its proceeds be paid to labour and debts. In the second category, in which the State PSUs can be revived, it should be made into co-operatives by workers and management.

The State Government, after deciding to transfer six of its loss-making PSUs to the joint sector, has finally advertised in top business dailies of the country for private participation. Among the six loss-making units, three are textile units, two are fertilizer units and four paper unit. These six PSUs are- Assam Syntex Ltd. Nathkuchi ; Assam State Weaving and Manufacturing company Ltd. Katmari ; Assam Spun Silk Mills Ltd. Jagiraod ; Assam State Fertilizer and Chemicals Ltd, Chandrapur, Fertichem Ltd. Bonda and Industrial Paper (Assam) Limited, Dhing.

The policy of privatizing sick PSUs may also be considered as cropper because the objectives for which these PSUs had been set up are either no longer an economic feasibility or the new, private managements are unable to bail them out for obvious reasons. The entire fault, in this connection, lies with the inability of the Government and our policy makers to see development as being much beyond just the immediate need to employ more and more people without any regard to whether employees would be able to generate enough resources to meet their own expenses. Such a far-sighted policy adopted by the earlier Governments is mostly responsible for such uncomfortable situation.

As the State Government has decided to withdraw budgetary support to State PSUs from the year 1998, thus the Government should prepare necessary guidelines for all state PSUs regarding how they could manage their affairs and thereby survive on their own. The State PSUs should also get them ready to face the challenges and prepare a well worked out plant of action to change their strategies for generating resources for their own, without diverting the objectives for which they had been set up. In this connection it can be suggested that while determining the strategies, the rationality approach should prevail upon the plan of actions to be adopted by the State PSUs.

Although the pace of industrialisation in Assam had started during the British period, with the growth of tea and oil industry, but the State could not attain much progress in its industrialisation path even after completing more than four decades of economic planning.

Assam is lagging behind other states in regard to industrial development. This is due to absence of large investments in industry during preceding plans and Assam�s geographical isolation. The volume of private investment in Assam is very low due to heavy risk involved in the investment. These risks are both natural risks, arising through natural calamities and political risks as the State itself is a border State. Thus the factory industries in the State are growing at a very slow rate. Following are the main reasons behind this low rate of industrialisation in Assam :

1. Lack of adequate capital formation : The state is experiencing a very poor rate of capital formation. The volume and rate of savings in Assam are very poor. As the level of per capita income in Assam is very poor, the saving potential is low. Possibly, there are large accruals of additional income in the rural sector. But there are inherent difficulties of mobilizing these incremental rural incomes. Thus this lack of capital formation is a very important hurdle on the path of industrialisation of the State.

2. Shyness of capital : Shyness of capital is the another reason behind this slow rate of industrialisation in the State. Investors whether from within or from outside the State are not willing to invest their capital in Assam. Further, geographical isolation and high cost of production of the State inhibit private investment from other regions.

3. Inadequate economic and basic infrastructural facilities: The economic and basic infrastructural facilities which includes power, transport and communication facilities etc. are not yet sufficiently developed in the state. Without a sound infrastructural base, the State cannot develop various industries on the basis of its natural endowments.

4. Dearth of technical personnel: There is dearth of technical personnel in Assam. In the absence of a good number of technical personnel, the state has always been depending on other states of the country. Further, the industrial activities in the State are suffering due to this dearth of technical personnel creating a huge delay in the commissioning of the project.

5. Lack of entrepreneurial motivation: There is lack of entrepreneurial motivation on the part of local people of the State. Local initiative and enterprise are lagging behind the requirement necessary for the successful industrialisation in the State. This a very important hurdle in the path of industrialisation in the State. Without active entrepreneurial motivation on the part of local people the industrial development of the State would be incomplete.

6. Lack of credit facilities : Credit facilities in the State are not easy. The problem is more complicated particularly for the small and medium scale industries of the State Banks and other financial institutions in the State are not offering helping hands towards the establishment of small and medium scale industrial projects by offering credit on easy terms. In fine, lack of industrial credit is one of the very important problem of industrialisation in Assam.

7. High cost structure : Cost structure in the State is very high in comparison the other states of India. High cost structure always reduces the profit outlook of the industries. This is mainly due to the existence of higher price level in the State in comparison to other States. This is also aggravated by higher unit cost of transport which acts as a further disincentive to external private investment in the State. Besides, this high cost structure in the State has been raising the cost of all industrial projects in the State which works as a dampener towards the establishment of new industries.

8. Investment risks : Due to heavy risks involved in the investment arising through natural calamities and political risks as the state itself is a border state, the volume of private investment in Assam is very low. Assam is unfortunately one those few states which are every now and then visited by natural calamities such as floods and draughts. Particularly flood has raised the problem of insecurity for the new industrial projects in the State.

9. Disturbed law and order situation : Due to various socio-political reasons, the law and order situation in the State is not always smooth rather it is often disturbed. Thus the industrial development of the State has been suffering due to lack of suitable law and order situation. Besides, the State Government had to spend a heavy amount on police administration for the maintenance of law and order. This unduly heavy expenditure on law and order maintenance has put severe strain on the already slender finances of the State Government and has, to that extent, hampered the Government�s ability to finance various schemes for industrial development.

10. Lack of Markets : Proper market has not yet developed in the State for the marketing of produced by the industries in Assam. Excepting the Guwahati Tea Auction Centre, the marketing arrangements for other industrial sectors are totally lacking. This creates a problem for the industries to sell their products. Thus both these large and medium industries had to depend on the markets outside the State resulting higher unit cost of transport and higher administrative cost.

11. Lack of efficient administrative machinery : The lack of efficient administrative machinery is always going against the industrial development of the State. A sound industrial development always requires an efficient administrative system, the state�s industrial sector is bound to suffer.

12. Low level of central sector investment : The central sector investment on industrial development of the State was all along poor. During the planned period only a few medium and large scale industrial units have been developed under the central sector in spite of having huge development potentialities in the State. Moreover, these investments were mainly centralised around the oil sector only neglecting the other potentialities of the State.

Major Constraints in the Growth of Large Scale Industries in Assam and its Prospect under Economic Reforms

Assam has already established two sets of large scale industries, i.e., tea and petroleum industry from the first stage of its development in spite of having serious constraints. The state is quite rich considering its endowment position having rich potential for the development of some large scale industries. The state is having the prospect of developing some large scale industries in the areas of petro-chemicals and its down stream industries, polyester spinning and textile industry, jute products, cement, food processing etc.

In spite of having rich potential, the state is facing some major constraints in the growth of large scale industries. The following are some of these major constraints :

1. Poor capital formation : Poor rate of capital formation in Assam is considered as one of the major constraints in the growth of large scale industries in the state.

2. Infrastructural backwardness : The state is too much backward in respect of basic infrastructural facilities which include power, transport and communication etc. In the absence of adequate power supply and suitable transport and communication system (viz., improved rail, road and telecommunication network) the development of large scale industries neither desirable nor possible.

3. Shyness of Capital : Another important constraint in the path of developing large scale industries in Assam is the shyness of capital. Investors both from within and from outside are not willing to invest their capital in Assam. The problem has gained its momentum in recent years with the rise of insurgency problem in the state, leading to huge amount of capital flight, money transfers and increased amount remittances from Assam. Moreover, the investment flow from outside the state has also been obstructed seriously by the problems of growing insurgency, geographical isolation and higher unit cost of production.

4. Dearth of skilled and efficient person : There is dearth of skilled, efficient and technical person in Assam which is also considered as an important constraints in the growth of large scale industries.

5. Lack of Industrial Credit : The State is not having adequate credit infrastructure. In the absence adequate credit arrangements, the State cannot expect to develop large scale industries easily.

6. Poor Capital Market set up : The capital market set up in Assam is also very poor. The newly established Guwahati Stock Exchange is yet to play a major role in developing the capital market set up. Therefore, developing large scale industries in the absence of sound capital market would be a difficult proposition.

7. High Cost Structure : High cost structure prevailing in the state not only increases the project cost but also aggravates the problem which also acts as further disincentive to external private investment flow in the State, dampening the spirit of developing large scale industries.

8. Lack of Markets : One major hurdle in the path of developing large scale industries is the lack of proper marketing arrangement for different industrial products excepting Guwahati Tea Auction Centre. Being located in the remote corner of the country, the large industries of the state will always have to bear additional cost of transport for marketing their products in the absence of adequate marketing arrangements.

9. Investment Risks : Another constraints in the growth of large scale industries is the investment risks arising out of natural calamities like flood and political risks as the state itself is a border state. Moreover, growing insurgency has also raised some kind of insecurity in the minds of external investors. Such insecure environment is also a great hurdle in the path of industrialisation in the state.

10. Disturbed Law and Order Conditions : Growth of large scale industries in Assam is also being constrained due to disturbed law and order conditions arising out various socio-political reasons.

11. Lack of Entrepreneurial Motivation : Another important constraint in the growth of large scale industries in the state is the lack of entrepreneurial motivation of the local people of the state, resulting in lack of initiative and enterprise for the development of such industries.

Bright Prospect of the Development of Large Scale Industries under Economic Reforms :

In spite of various constraints the prospect of the development of some large scale industries in Assam is brightened under the ongoing process of economic reforms. The economic reforms introduced in India has paved the way for smooth sailing of some prospective large scale industries in Assam. Economic reforms in the form of industrial policy reforms, foreign investment policy reforms, tax reforms, trade policy reforms etc. have widened the scope of developing large scale industries in Assam in certain specific areas like-Petrochemicals, Natural gas, Power generation, textile, food processing etc. Assam Gas Cracker Project, Tengakhat, to be promoted by Reliance Industries Ltd. is an offshoot of economic reforms introduced in Assam. Assam is also having a wide scope for the development of power generation projects for which some foreign investors have shown their interest. The establishment of North Eastern Development Finance Corporation Ltd. (NEDFi) is an encouraging step in this direction. Thus it is expected that a good number of large scale and medium scale industrial projects may be developed in Assam in near future provided suitable investment friendly climate is created in the state, which requires an active support from both the Central and State governments and also from the local people of the State.

In spite of having a huge potential for industrial development, Assam remained an industrially backward state even after 46 years of economic planning. Although the industrial development process started in Assam even in the early British period with the development of tea and petroleum industry but the industrial development in the State could not be given its momentum due to various constraints faced by the State. Thus immediate steps must be taken for promoting industrial development in the State. The following are some of the important remedial measures to remove industrial backwardness in Assam :

1. Removing Bureaucratic Obstacles : The first step in the path of industrial development of the state is to remove bureaucratic obstacles by adopting the various policy of deregulation, delicencing introduced under economic reforms. The government should also take adequate steps to simplify procedural formalities on allotment of land, sheds, capital, interest, power subsidy, tax exemption etc.

2. Government support : The State government should provide active support for the promotion of new industries as well as for the expansion of the existing industries of the state. In the mean time, the State Government has announced its New Industrial Policy, 1997 to embark upon the high road of liberalisation, privatisation and globalization. The State Government has also introduced "1997 Incentive Schemes" to provide various subsidies and sales tax exemption benefit for the promotion of new industrial units and also for revitalization of the sick industrial units of the state. The Government should see that the schemes be implemented in proper shape and time.

3. Infrastructural Development : Adequate steps must be taken for the development of infrastructural facilities as early as possible. In this connection the State Government should try to develop power sector by inviting foreign investors for promoting new power projects in the state. Moreover, the State government should also try to develop the transportation and communication facilities, industrial sheds water supply, developed lands etc. adequately. Moreover, the State Government should also encourage private participation infrastructure development.

4. Ensuring Credit Flow : In order to remove industrial backwardness in the state, the various financial institution should ensure easy flow of credit in adequate proportion.

5. Revitalising SLPSUs : Revitalising State Level Public Sector Units (SLPSUs) will be an important step in the direction of removing industrial backwardness in Assam. Moreover, the State Government should try to adopt the path of privatisation of loss-making state PSUs for their revitalisation.

6. Revitalising CPSUs : In order to reorient the industrialisation process in Assam, the Central PSUs should be revitalised immediately. Moreover, the flow of Central sector investment to Assam must be increased considering its poor industrial base.

7. Developing Capital Market : In order to remove industrial backwardness of Assam, steps must be taken develop active capital market in the state for providing easy capital flow to industries. The newly established Guwahati Stock Exchange should be activated to enlarge its area of operations adequately.

8. Export Oriented Industries : The State should also try to develop export oriented industries so as to diversify its industrial base. The State Government may also explore foreign collaborations with the SSI who can make 100 percent buy back from the SSI units of the state.

9. Development of New Industries : The Government should also try to encourage the setting up of new industries in the area of fruit processing, vegetable processing, spice processing, aquaculture, horticulture based projects in the State.

10. Enlarging the SSI Base : In order to remove industrial backwardness of the State, the SSI base of Assam should be enlarged. Considering the huge volume of natural resources and Agro-based potential, the State should try to develop different types of small scale and village industries throughout the State.

11. Reviving Water Transport Route : In order to remove the problem of higher unit cost of transport, arising out of geographical isolation the Central and the State Government should try to revive the traditional water transport route linking Guwahati and Calcutta via Bangladesh immediately. Such revival of water transport routes would increase the competitive strength of industries in Assam to explore market both within the country and also for export promotion.

12. Developing Information Cell and Linkages : The State Government should take necessary steps to develop information Cell or data bank for updating the knowledge on new products, new processes, sources of raw materials, machinery, market linkages etc. in all the District Industry Centres (DICs). Moreover, necessary linkages may be developed with national and international organisations or institutions for information, upgradation of technology, skills etc.

Finally private investment is considered as one of the most important factors for industrialisation. During the last one and a half decade, Assam has witnessed a series of social and political upheavals. Insurgency problem is on the rise, resulting in a halt to private investment. Besides, the tea industry is not ploughing back its profits in the State. Given a conducive environment, proper infrastructure and a productive labour force, private investment will automatically flow in. Considering the problem of poor capital formation, small such industries seem to be best choice. Countries like South Korea, Taiwan are the best examples of such situation. In order to tap these possibilities, the State government should be able to bring back peace to the State, make the situation industrial friendly, lessen bureaucratic intervention to pave the way for investments. And, above all, people of the State must be mobilized and motivated to take part in a State-wide industrialisation process.

Considering all these problems of industrialisation in the State, the State Government should take up appropriate schemes for the successful growth of endowment based industries both in the state and private sector. These would include both the infra-structural projects and direct industrial investments in the State. While saying this, it should be equally stressed that the Centre has also a responsibility for Assam in view of the need to fully utilise the practically untapped but huge development potential of the State. If needed the Centre should send a team of experts to prepare project and feasibility reports. Otherwise, it will be just a case of �bargaining federalism� without any serious thought given to the national wastage involved in underutilization of national resources located within State territory.

Finally, the people of the State should also come forward with their inner zeal, active initiative and enterprise for the establishment and smooth running of various types of endowment-based industries, particularly small and medium scale industries, in the State without further delay. In the absence of such motivation from the people of the State, it would be impossible on the part of the State to achieve a solid base on its industrial sector.

Under the present regime of economic reforms introduced in the country as a whole, the State Government as well as the people of the State should take adequate initiative for accelerating the pace of industrial development in the State so as to reap maximum benefit from the policy of economic liberalisation adopted throughout the country.

The Government of Assam set up a 15-member Advisory Committee headed by the noted economist and Chairman, North Eastern Development Financial Corporation Ltd. (NEDFi) Dr. Jayanta Madhal to assess the industrial scenario and to recommend long term and short term measures for attracting investment in the State. Dr. Madhal submitted a two-volume report to the State government on 6th August, 1996. The main recommendations of the advisory committee on industries include a strategy to export the state�s untapped potential in agriculture and allied activities, measures for increasing power generation, tenancy reforms, action plan for industrial growth and the development of tourism as an industry in Assam.

The committee, having reviewed the entire industrial scenario in the terms of reference specified, has also suggested specific time frames within which it wishes its recommendation to be implemented. Apart from recommending an action plan for the industrial growth of Assam, the report suggest measures for the revitalization of the sick units in the public sector and for smooth flow of credit to industrial units, particularly those of the small scale.

The action plan for development was suggested after a thorough scrutiny of the Dinesh Goswami Report on economic development of the State, the L.C. Jain Committee Report on Clause Seven of Assam Accord and the Coopers and Lybrand report on development strategies for the State.

The report suggested that the Government should take concrete steps towards removing the constraints in getting the project going. Recommending a detailed development strategy through exploitation of agriculture and other untapped potentialities- such as horticulture, livestock farming, pisciculture and floriculture- the report observed that the double cropped area of the state, if increased from the present 20 percent to 60 percent in the next five years, will bring about a large surplus in the agricultural sector. This will provide a strong infrastructure for fostering industrial growth. The report suggests that big tea companies be invited to take up big plot of land and a practical example to farmers about the profitability second and third crops.

Apart from making elaborate suggestions on various measures to be adopted for increasing the volume of power generation from the abundantly available resources, the committee urged the Government for effective suitable tenancy reforms so as to enable industries to acquire as much land as required for their development.

The report finally recommends that tourism be developed as an industry and calls for improvement of transportation facilities, particularly those for inland water transport.

The entire world economy has been experiencing dramatic and momentous changes during the decade of late eighties and nineties. Various countries of the world are now favouring economic reforms because it promises more rapid and more sustained economic growth.

India has also adopted the policy of economic reforms during eighties and the first phase of economic reforms in India had its origin in 1985. Accordingly, India started to respond to various changes in the nature of markets and institutions, industrial organisations and structures and social relations of production in relation to increasing globalisation of economic process. But the first phase of economic reforms failed to yield the expected result in most of fronts and the country has been plunged into a serious balance of payments crisis. In order to restore both internal and external confidence, the second phase of economic reforms, comprising a good number of stabilisation measures, were initiated in 1991-92 by the Government of India. The memorandum submitted by the Finance Minister observed that, " The thrust will be to increase the efficiency and international competitiveness of industrial production, to utilize foreign investment and technology to a much greater degree than in the past, to improve the performance and rationalise the scope of the public sector and to reform and modernize the financial sector so that it can more efficiently serve the needs of the economy."

The various policy measures introduced in the second phase of economic reforms include- (a) fiscal policy reforms, (b) monetary policy reforms, (c) pricing policy reforms, (d) external policy reforms, (e) industrial policy reforms, (f) foreign investment policy reforms, (g) public sector policy reforms, (h) trade policy reforms and (I) social policy reforms.

In the mean time, the State Government have also introduced the relevant economic policy reforms. The Government of Assam has also introduced the policy, of economic reforms as a part of national policy. The Government has already introduced New Industrial Policy in 1991 and then recently in 1997 and also incorporated other policy reforms like public sector policy reforms, fiscal policy reforms etc.

Among the various policy reforms introduced in Assam, mention may be made of industrial policy reforms. In 1991, the then Congress Government introduced the Industrial Policy, 1991 wherein various incentives and subsidies offered by the State Government for promoting a solid base of industrial development within the State. But unfortunately, this policy has failed to bring favourable change in the industrial scenario of the state and the state has failed to reap the benefit of economic liberalisation adopted throughout the country. Under the precarious situation, it has become imperative on the part of the State Government to redraft its new industrial policy considering its emerging problems and potentialities. Therefore, it has become imperative for the State to embark upon the high road of liberalization privatisation and globalization.

Accordingly, on 29th March 1997, the AGP-led State Government introduced its New Industrial Policy, 1997 with great promise. The AGP led alliance Government�s new industrial policy aimed to provide an effective thrust for "expeditious promotion and growth of all industries with a view to creating a strong industrial base and employment opportunities in various directions."

It is really frustrating for the people of Assam and the North-East that the economy of the state as well as of the entire region did not face any impact at all of the liberalization process which has been underway throughout the country since the past few years and from which almost all the states, including even the backward ones, have benefited.

Although the process of economic liberalization has already been initiated but the private investors have been very shy of investing in the region. This point may be reflected from the fact that out of the total investment proposals of Rs. 5,88,000 crore received by the country during the first four years of liberalization since 1991, the share of all seven states in the North-East including Assam was only Rs. 4,200 crore. Moreover, total capital raised in the country from public issue of shares was about Rs. 30,000 crore during 1995-96 out of which the share of Assam and North Eastern states was paltry Rs. 5 crore which is as good as nothing.

There has been a lot of talk about the great potential of the food processing sector and development of floriculture, pisciculture. But very little has been done to develop these sectors.

Moreover, Assam is also facing a peculiar problem of flight of capital and exodus of business firms out of the State following insecure environment arising out the problem of insurgency.

Thus the economic reforms introduced throughout the country has failed to create any favourable impact on the economy of Assam. The country�s liberalization policy had no impact on the process of industrialization in Assam. Although industrial development gained its momentum in different states of the country as a result of economic reforms but Assam has completely failed to reap any considerable benefit in industrialisation process out of economic reforms. It needs to be recognized that the constraints coming in the way of industrial development in Assam are geographical isolation, lack of infrastructure shortage of power and lack of surplus capital.

The state has also failed to invite projects for the development of infrastructural sector. The power situation in the state still remained grim despite the state is having a huge potential for the development of hydro-electric projects and natural gas based power projects. The State has also failed to attract both domestic and foreign investors for the construction of highways and bridges etc. under Build, Operate and Transfer (BOT) scheme.

Investment climate in the State has not yet improved considerably. International confidence on the state�s economy is yet to be restored as the foreign investors did not show any active interest to participate in any major industrial and infrastructural projects. The flow of foreign direct in investment into the state is also very minimum.

Thus it can be stated that state�s economy has not been able to derive any considerable benefit out of economic reforms. Considering such poor performance, the AGP led alliance Government has taken some steps recently to embark upon the high road of liberalization, privatisation and globalization. Announcement of New Industrial Policy, 1997 is a right step in this direction. Finalization of investment proposal of Assam Gas Cracker Project at Tengakhat with the Union Petroleum Ministry recently, privatisation of six state PSUs, decision to transfer all loss-making state PSUs to the joint sector, signing of MOU with US-based company Ogden Energy of New Jersey by the State Government recently on June 1997 for taking over a lease of the Bongaigaon Thermal Power Station (BTPS) for its renovation and upgradation, submitting proposals by another US based company, American Power Gen System Association for setting up a 300 MW coal based power project at Borgolai, inauguration of North Eastern Development Finance Corporation (NEDFi) at Guwahati, entry of some new Indian company for promoting new industrial projects like Premier Cryogenics Ltd., SVUI Projects Ltd. etc. are no doubt a strong indication of the change of investment climate in the State to a favourable direction.

Thus it is expected that Assam will soon be able to change the investment environment in the State adequately so that can reap the benefits of economic reforms at least belatedly.

Present state of Industrial Development in Assam and Future Prospect of Industrial Development in Assam under the Policy of Economic Liberalizations

The present state of Industrial Development in Assam is not up to the mark. Although the pace of industrialisation in Assam had its origin during the British period, with the growth of tea and petroleum industry but the State could not attain the required progress in its industrialisation path even after completing more than four decades of economic planning. In spite of having a rich potential for the development of different types resources based industries, the state could not achieve much diversification in its industrial base, leading to restriction of its industrial activities mostly into tea and petroleum. The factors which are mostly responsible for such industrial backwardness include-geographical isolation, lack of capital formation, lack of infrastructure, shyness of capital, insecure investment climate, lack of markets, lack of entrepreneurial motivation etc. All these constraints are always standing in the path of industrial development of the state. The poor state of industrial development in Assam can be reflected from the fact that the contribution of the manufacturing sector to the state income which was 15.6 percent in 1950-51, subsequently rose to 17.7 percent in 1960-61, remained at the poor level of 15.5 percent in 1993-94. Moreover, total number of registered factories in Assam which was 2677 in 1990 gradually declined to 2438 in 1993. There are at present 191 large industrial units and 18,637 registered small scale industrial units in Assam, out of which a good number of such units are lying in non-operational stage.

There are at present 51 state PSUs in Assam. But the state of affairs of these PSUs are not at all encouraging. At the end of 1996-97, 48 PSUs of the State had taken monetary assistance worth about Rs. 2500 crore over the past years and their accumulated losses stood at a total of about Rs. 1500 crore. Barring 3 units , all PSUs in the state were incurring losses continuously over the past years and had become dependent on budgetary support from the state Government. Recently, the state Government has taken steps to privatize this state PSUs for their revival.

Moreover, the investment environment in the state is considered to be insecure considering the growing problem of insurgency, prevailing in the entire region. The state is facing the problem of huge capital flight and exodus of business firms out of Assam due to growing problem of insurgency. Such insecure investment climate is always going against the interest of industrial development in the state. International confidence on the State economy is yet to be restored as the foreign investors did not show any active interest to participate in any major industrial and infrastructural projects.

Future Prospect of Industrial Development in Assam under the Policy of Economic Liberalization:

Although the process of economic liberalization could not create much impact on the industrial development of the State but the state is still maintaining a bright prospect for the development of different industries in the state under the policy of economic liberalisation introduced in the state.

In order to embark upon the high road of liberalization, privatisation and globalization, the State government introduced its New Industrial Policy, 1997 on 29th March, 1997 with a great promise. The new policy aimed to provide effective thrust for expeditious promotion and growth of all industries with a view to creating a strong industrial base and employment opportunities in various directions. With the introduction of this new policy, the prospect of industrialisation is brightened, considering the new package of incentives introduced in the policy. Thus under the new industrial policies introduced by both the Central and State Government, the future prospect of small scale and large scale industries are quite bright.

Secondly, steps are being taken to develop infrastructural facilities adequately which will pave the way for industrial development in the State. The announcement of the comprehensive economic package for the development of the North-East involving Rs. 6,100 crore by the Central Government for a number of new and ongoing project will definitely improve the infrastructural status of the region.

Thirdly, the ongoing process of economic reforms has also brightened the prospect of development of both small, medium and large scale industries considering the huge development potential of the state. In a capital scarce economy like Assam, the development of small scale industries will be quite suitable. Besides, economic reforms have widened the scope of developing large scale industries in Assam in certain specific areas like-Petrochemicals and down stream industries, Natural gas based project, power generation, textiles, food processing etc. Assam Gas Cracker Project, Tengakhat to be promoted by Reliance Industries Ltd. is an off-shoot of economic reforms introduced in the State. Assam is also having a wide scope for the development of power generation projects for which some foreign investors have shown their interest. There is also a wide prospect for the development of downstream industries based on petrochemicals already available from Bongaigaon Refinery Petrochemicals Ltd. (BRPL) and would be available from Numaligarh Refinery and Assam Gas Cracker Project.

Fourthly, the establishment of North Eastern Development Finance Corporation Ltd. (NEDFi) at Guwahati has also widened the scope of industrial development under the process of economic reforms.

Finally, it no longer appears to be in vogue to consider the geographical isolation has the potential of turning into an advantage instead. Isolated as the North-east is from the rest of the country, Coopers and Lybrand has taken note of its close proximity to South-east Asia, the fastest growing region in the world. The agency has attributed the North-east with the potential of becoming a strategic base for investors wishing to tap the markets of South-east Asia.

Thus it is expected that a good number of large scale and medium scale industrial projects may be developed in Assam in near future provided suitable investment friendly climate is created in the State. This requires an active support from both the Central and State Governments and also the active participation of the local people of the State. However, the Government of India will have to play a much greater and active role in Assam and the North-east for promoting industrialisation process. The Centre must provide the infrastructure, if not, then provide counter-guarantees and other necessary incentives to private investors in creating the infrastructure, without putting any burden on the State Government. The State Government should also take active steps to promote an investment friendly environment for attracting private investors, both domestic and foreign, so as to develop different small, medium and large scale industries based on the industrial potential of its state. In this connection the steps taken by the Government of India for setting up three Industrial Growth Centres in and an Export Promotion Industrial Park at Amingaon near Guwahati are right steps in this direction.

Like national income, the State income represents total amount of income originated within the territory of a particular state during a particular period. The estimation of state income provides the most comprehensive single indicator of the level of development of a particular state. Normally, income is deemed to originate in the territory on which the income-generating economic activity takes place. Thus any amount of income originating within the boundary of Assam is known as the State Domestic Product (SDP) or the State Income of Assam. The Directorate of Economics and Statistics, Assam is authorised to measure the state income for every year regularly. A combination of the income and inventory or product methods are generally applied by the department concerned for the measurement of state income in Assam with fair success. On different occasions, the product method and the income method have also been applied separately by the department concerned.

Sectoral contribution of state income reveals a clear idea about the contribution of various production sectors to the state income and its various sources. Among the various sectors, agricultural sector has been contributing the major portion of state income from the very beginning and earned a notable position in this regard. The following table shows the sectoral contribution of state income in Assam.

Industry	At 1948-49 prices			At 1980-81 prices
	1950-51	1970-71	1980-81		1985-86	1990-91	1993-94
A. Primary Sector : (Agriculture, Forestry, Fishery, Mining and Quarrying) 1.Agriculture : B. Secondary Sector : 1.Manufacturing: 2. Construction : 3. Electricity, Gas and Water supply : C. Tertiary Sector : 1. Transport,Communication and Trade 2. Finance and Real Estate : 3. Community and personal services Net State Domestic Product at Factor Cost	136.0(66.6) 106.7 (52.2) 31.3 (15.3) 31.6 (15.0) 0.7 (0.3) ---- 35.4(17.3) 20.5 (10.1) 1.5 (0.7) 14.6 (6.5) 204.4(100.0)	175.8(45.9) 123.1(32.1) 79.5(20.7) 70.0(18.3) 9.5(2.4) --- 116.8(29.3) 51.3(13.5) 6.1(1.6 (14.2) 389.9(100.0)	126.8 (52.0) 1183.7 (50.2) 277.0 (11.8) 163.4 (6.9) 102.8 (4.4) 10.8 (0.5) 810.2 (36.2) 316.0 (13.4) 265.1 (11.2) 229.1 (9.7) 2356.1 (100.0)		1612.1 (49.0) 1354.5 (41.3) 573.4 (17.0) 395.9 (12.0) 157.4 (4.8) 20.1 (0.6) 1096.4 (34.0) 465.3 (14.0) 344.1 (11.0) 287.0 (9.0) 3281.9 (100.0)	1598.9 (40.3) 1417.4 (35.7) 772.1 (19.5) 531.0 (13.4) 202.3 (5.1) 38.9 (1.0) 1599.8 (40.3) 567.9 (14.3) 499.6 (12.6) 532.3 (13.4) 3970.9 (100.0)	1711.5 (33.5) 1501.6 (29.4) 1179.3 (23.0) 792.5 (15.5) 295.7 5.8 91.1 (1.8) 2225.4 (43.5) 861.3 (16.8) 621.0 (12.1) 743.1 (14.5) 5116.3 (100.0)

Sources : 1. Statistical Handbook, Assam, 1973,1995 2. Economic Survey, Assam, 1989-90

The sectoral contribution of state income, which throws light on the state domestic product (SDP) by industry of origin, both at current and constant prices, shows that in 1950-51, the primary sector composed of agriculture, forestry fishery, mining and quarrying accounted for 66.6 per cent (Rs. 136.0 crores) of the total state income. But the contribution of Agriculture alone was 52.6 per cent of the total state income in 1950-51. In the same year, the contribution of the secondary sector to the state income was 16.1 per cent (Rs. 31.3 crores) which constitutes, manufacturing (15.0 per cent), construction (0.3 per cent) and electricity, gas and water supply. Again the contribution of the tertiary sector to the state income was 17.3 per cent (Rs. 35.4 crores) in 1950-51 which is constituted by transport, communication and trade (10.1 per cent), Finance and Real Estate (0.7 per cent) and community and personal services (6.5 per cent).

In 1960-61, the share of agriculture and allied pursuits at constant prices came down to just over 55 per cent and then to 45.2 per cent in 1969- 70. But the primary sector has been still playing an important role and has contributed 45.9 per cent of the total state income in 1970-71, out of which the contribution of agriculture alone was 32.1 per cent. In this year, the contribution of secondary and tertiary sector was 20.7 percent and 29.3 percent.

Again the net State Domestic product (SDP) at factor cost by industry of origin at constant (1980-81) prices in 1980-81 reveals that the primary sector still dominated the show accounting 52.0 per cent of total SDP. The share of other sectors, i.e., the secondary and tertiary sectors in 1980-81 was 11.8 per cent (Rs. 277 crores and 36.2 per cent (Rs. 810.2 crores) respectively. The share of other heads within this state income in 1980-81 was as follows : Manufacturing (6.9 per cent), Construction (4.4 per cent) ; Electricity, Gas and Water supply (0.5 per cent); Transport, Communication and Trade (13.4 per cent), Finance and Real Estate (11.2 per cent) and community and personal services (9.7 per cent).

Again in 1990-91, the sectoral contribution of state income in Assam has changed thoroughly and the share of primary sector in the state income was 40.3 per cent and the share of agricultural sector alone was only 35.7 per cent. This shows that contribution of agricultural sector to the state income has come down significantly. The share of secondary sector to the state income of Assam has increased to 19.5 per cent out of which the contribution of the manufacturing industry was 13.4 per cent, construction 5.1 per cent and that of electricity, gas and water supply was 1.0 per cent. The share of tertiary sector to the state income has increased considerably to 40.3 per cent (Rs. 1599.8 crores) in 1990-91 out of which, the contribution of transport, communication and trade was 14.3 per cent, finance and real estate 12.6 per cent and that of community and personal services -- 13.4 per cent.

Moreover, in 1993-94, the contribution of primary sector to the state income at constant prices further declined to 33.5 per cent out of which agriculture alone has contributed only 29.4 per cent (Rs. 1501.6 crores) of total state domestic product of Assam. The share of secondary sector has further increased to 23.0 per cent out of which the contribution of manufacturing sector was 15.5 per cent, construction 5.8 per cent and that of electricity, gas and water supply 1.8 per cent. Again the sectoral contribution of the tertiary sector to the state domestic product in Assam has remained steady at 43.5 per cent in 1993-94, out of which the contribution of Transport, Communication and Trade to the SDP was 16.8 per cent, Finance and Real Estate 12.1 per cent and that of Community and Personal services was 14.5 per cent.

Thus, we have seen that sectoral contribution of state income has changed considerably in the mean time. At present the primary sector and the tertiary sector are playing the dominant role in determining the state income of Assam. Among these three sectors, tertiary sector is contributing the highest amount in the state income. But in spite of several initiatives, the contribution of secondary sector did not increase considerably and the share of the manufacturing sector to the state income of Assam remained very poor (15.5 per cent). Thus we find that the economy of the state is not yet diversified at a fair level.

Since the inception of planning in the state, the state income of Assam has started to show an increasing trend at varying rates during different years. The following table shows the trend of the state income in Assam.

	In Crores Rs.		In rupees
Year	State income (SDP) at Current Prices	State income (SDP) at constant prices ( at 1948 - 49 prices up to 1968-69 & at 1970-71 prices up to 1980-81)	Per capita income at constant prices in Assam	Per capita income at current prices in Assam	Per capita income of India at current prices	Gap between per capita income in Assam and India
1	2	3	4	5	6	7
1950-51 1955-56 1960-61 1965-66 1968- 69 1970-71 1975-76 1979-80 1980-81 1885-86 1989-90 1990-91 1992-93(P) 1993-94(Q)	236.5 254.6 336.0 499.7 694.9 773.5 1314.2 1908.3 2356.1 5117.6 7741.0 8679.6 12324.6 14034.0	(at 1948-49 prices) 204.4 240.4 267.8 328.0 366.7 (at 1970-71 prices) 773.5 938.6 968.7 (at 1980-81 prices) 2356.1 3281.9 3817.3 3970.9 4683.7 5116.3	(at 1948-49 prices) 258.6 262.1 251.3 264.9 270.9 (at 1970-71 prices) 538.6 559.4 509.12 (at 1980-81 prices) 1317.0 1483.0 1576.0 1799.0 2018.0 2157.0	299.2 277.6 315.3 398.7 513.4 538.6 783.3 1003.5 1317.0 2313.0 3196.0 3932.0 5310.0 5916.0	238.8 233.1 328.2 458.7 604.5 674.7 1064.6 1390.4 1630.1 2730.2 4346.5 4982.8 6255.0 7060.0	+60.4 +44.5 -12.9 -50.0 -91.1 -136.1 -287.3 -386.9 -313.7 -417.2 -1150.5 -1050.2 -9095.0 -1144.0

Sources : (i) Statistical Handbook, 1967,1968,1982, 1990,1993,1995 (ii) Economic Survey, Assam, 1970, 1981-82, 1989-90 (iii) Economic Survey, Government of India, 1981-82, 1994-95

The above table reveals that the state income of Assam at current prices has more than doubled during the first fifteen years, i.e., from Rs. 236.5 crores in 1950-51 to Rs. 499.7 crores in 1965-66, whereas there is a ten-fold increase in the state income during the last thirty years, i.e., from Rs. 236.5 crores in 1950-51 to Rs. 2,356.1 crores in 1980-81. In 1985-86, the net SDP has reached Rs. 5117.6 crores.

Again, the net state domestic product at current prices has increased from Rs. 5117.6 crores in 1985-86 to Rs. 14034.0 crores (Q) in 1993-94 which shows a growth of 174.2 per cent during this period of eight years. Thus the state income at current prices has recorded a fifty nine fold increase during the last 43 years(1950-51 to 1993-94).

But the state income of Assam at prices (as shown in column no : 3 shows a little bit different picture although showing the same increasing trend. The state income at 1948-49 prices has increased from Rs. 204.4 crores in 1950-51 to Rs. 328.0 crores in 1965-66 and then to Rs. 366.7 crores in 1968-69, which shows a growth of 79.4 per cent during these 20 years. Further, the state income at 1970-71 prices has increased from Rs. 773.5 crores in 1970-71 to Rs. 968.7 crores in 1979-80 showing a growth of 25.2 per cent during these 9 years.

Further, the state income at 1980-81 (constant) prices has increased from Rs. 2356.1 crores in 1980-81 to Rs. 3281.9 crores in 1985-86 and then to Rs. 5116.3 crores (Q) in 1993-94, which shows an increase of 117.5 per cent over the figure of 1980-81, covering the period of 13 years. Thus it is found that during the last 43 years, the state income (NSDP) at constant price with different base has recorded about a twenty five-fold increase. Moreover, the state income at constant prices (at 1980-81 prices) in 1993-94 (Q) has recorded a growth rate of about 9.20 per cent over the previous year as compared to that of only 3.86 per cent achieved in 1990-91 over the previous year.

Growth of State income of Assam in comparison with National income of India.

It would be better to look into the growth of state income in Assam in comparison to that of national income in India, which would provide a better idea about the pace of development attained in Assam as compared to that of all India. In order to make a better assessment of the situation, it would be important to make comparative estimate of Index number of both State Domestic Product (SDP) and Net National Product (NNP) on the one hand and also another comparative estimate of the rate of growth of state income and national income on the other.

Comparison between the Index Number of State Domestic Product of Assam and Net National Product of India

It will be better to throw more light on the growth of State Domestic Product (SDP) in Assam and Net National Product (NNP) of India if we can make a comparative estimate of index numbers of both SDP and NNP mentioned above.

Index Number of State Domestic Product (Assam) and Net National Product (India) (At current prices)

Year

Index Number of SDP of Assam

Index Number of N.N.P. of India

1950- 51

1955- 56

1960-61

1965-66

1973-74

1977-78

1979-80

1980-81

1985-86

1989-90

1990-91

1991-92

1992-93

1993-94

100.0

107.7

142.5

208.8

402.4

661.2

806.9

996.2

2163.8

3273.1

3670.0

4410.1

4962.4

5934.0

100.0

106.8

166.1

259.5

610.7

930.1

1076.8

1290.2

2404.2

4167.1

4875.9

5586.7

6398.0

7354.3

Source : a) Economic Survey, 1981-82, 1995-96, Government of India. b) Economic Survey, Assam, 1981-82,1988-89 c) Statistical Handbook, Assam 1995

The above table reveals that the index numbers of State Domestic Product of Assam at current prices could not keep pace with the index number of Net National Product of all India. Taking 1950-51 as base year, the index numbers of SDP of Assam and NNP of India reached the level of 142.5 and 166.1 respectively in 1960-61 showing marginal gap during the first decade of planning. But the same index number reached the level of 402.4 for Assam and 610.7 for all India during 1973-74, which showed that the gap between two indices were increasing at a quicker rate. Again both the indices reached the level of 996.2 for Assam and 1290.9 for all India in 1980-81 which showed a wide gap between these two indices.

After that the index number of SDP of Assam and NNP of India reached the level of 2163.8 and 2404.2 respectively in 1985-86 which showed the gap between the two indices rose further to the level of 240.4 points. Again at the end of the Seventh Plan, i.e., in 1990-91, both the indices reached the level of 3670.8 for Assam and 4875.9 for all India which shows that the gap between the two indices has widened further to the range of 1205.9 point. Again in 1993-94, the two indices has widened significantly to the level of 1420.3 points as the index number of state income of Assam and Net National Product of India reached the level of 5934.0 and 7354.3 points respectively.

Thus, we find that the State Domestic Product of Assam is progressing at a slower pace than that of Net National Product of all India. This is a very bad trend for the economy of Assam as the gap between the index numbers of State income of Assam and National income is gradually becoming wider and wider.

The respective growth rates of the state income of Assam and National Income of India during the three Five Year Plans and ad-hoc Annual Plans are given below :

Period

Growth of State Income of Assam in Percentages

Growth of National income of India in Percentages (NNP)

at current prices

at 1948-49 prices

at current prices

at 1948-49 prices

First Five Year Plan (1951-56)

Second Five Year Plan (1956-61)

Third Five Year Plan (1961-66)

Three ad-hoc Annual Plans (1966-69)

1975- 76

1980- 81

1985- 86

1989-90

1990-91

1991-92

1992-93

1993-94

7.7

32.7

54.3

44.5

(-) 1.7

23.4

8.3

17.9

12.1

10.2

18.1

13.8

19.8

10.6

24.9

13.4

(at 1970-71 prices)

8.9

13.1

(at 1980-81 prices)

4.0

6.3

4.0

9.0

8.2

9.2

4.7

41.8

46.3

34.9

5.4

19.9

11.4

15.5

17.0

14.7

13.7

14.9

18.42

21.47

15.5

15.0

(at 1980-81 prices)

9.5

7.5

3.9

7.0

5.2

- 0.1

4.9

4.2

Source: 1. Economic Survey, Assam, 1970, 1989-90 2. Economic Survey, India, 1995-96 3. Statistical Handbook Assam, 1995

The table presents that during the first plan period, the rate of growth of State income was higher than that of National Income of India. But the rate of growth of state income during the Second Plan was much lower in comparison with the rate of growth of National income of India. During the Third Plan the state income at current prices increased by 54.3 per cent but at constant prices the rise was only 24.9 per cent. But the rates of growth of National income of India during the Third Plan were 46.3 and 15.5 per cent at current prices and at constant prices respectively which is slightly lower than that of Assam. During the three ad-hoc Annual plans the rate of growth of State income at current prices was 44.5 per cent in comparison with 34.9 per cent rate of growth of national income of India. But the rate of growth at constant prices for state income of Assam (13.4 per cent) was slightly lower than that of national income of India (15.0 per cent) during the Ad-hoc plan period. During the period of 23 years, from 1950-51 to 1973-74 the state domestic product in real terms increased by 109.4 per cent.

The State income at constant prices in 1973-74 showed an increase of only 2.1 per cent over 1972-73 against 4.9 per cent in 1972-73 over 1971-72. For the country as a whole, the net national product at constant prices in the year 1973-74 increased by 3.1 per cent over 1972-73.

The state income of Assam in 1975-76, at constant prices showed an increase of 89 per cent over 1974-75 as against a 9.5 per cent increase of national income of India during the same year.

In 1977-78, the state income at constant prices rose by 4 per cent as against 8.8 per cent increase in the national income. There were declining trend in SDP at constant prices from 1977-78 to 1979-80, there was also an appreciable negative growth rate estimated at 5.4 per cent in G.N.P. at 1970-71 prices, due to worst ever draught in the country.

In 1980-81, the State Domestic product at constant prices stood at Rs. 1095.1 crores as against Rs. 968.1 crores in 1979-80 showing a rise of 13.1 per cent over 1979-80. National income of India recorded a rise of 7.5 per cent in 1980-81 over 1979-80 showing an appreciable recovery in real terms.

In 1981-82, State income of Assam at constant prices, increased at a very poor rate of 1.1 per cent over 1980-81 whereas national income was estimated to have risen by about 4.5 per cent during the same year.

Again in 1985-86, the state income of Assam at constant prices achieved a growth rate of 4.0 per cent as compared to that of 3.9 per cent for net national product of India.

Moreover, in 1990-91, the state income of Assam at constant prices rose by 4.0 per cent over 1989-90. But the net national product of India at constant prices rose by 5.2 per cent in 1990-91 over the previous year.

But in 1993-94, the situation has changed totally as the state income (SDP) has recorded a growth rate of 9.4 per cent over the previous years whereas, the net national product in India has recorded a growth rate of 4.2 per cent in 1993-94 over the previous year.

We find that there have been wide fluctuations in the rate of growth of national income as well as of state income of Assam, as our economy, in general, is dominated by agricultural sector which is greatly vulnerable to the changes in the natural factors. Further, we find there is lack of correlation between the rate of growth of national income of India and state income of Assam.

Moreover, the study further reveals that the rate of growth of state income (SDP) at constant prices since 1977-77 remained lower in most of the year as compared to that of net national product of India excepting 1980-81 and 1991-94 where the growth rates of net national product for all India remained lower as compared to that state income in Assam and even it faced a negative growth rate of (-) 0.1 per cent in 1991-92 over the previous year as compared to that 9.0 per cent for Assam.

Per capita income is an alternative analysis of income in connection with the size of population which provides a rough idea about the average income and standard of living of the people of the country. In the early stages of planning, per capita income figure of Assam was comparatively better in comparison to that of India. But thereafter as size of population of the state increases at a faster rate and the state income increases at a poorer rate than that of all India, the per capita income of Assam could not keep pace with that of India. The growth of per capita income from the early period of planning is not at all encouraging. The rate of growth of per capita income during the First Plan (1951-56) was 3.3 per cent, and during the Second Plan (1956-61) it declined to 2.2 per cent. But during the Third Plan (1961-66) it increased to 4.1 per cent and again there was a decline in the rate of growth of per capita income to 3.4 per cent during the Fourth Plan period.

The per capita income figure of Assam, as available from table 5.2, shows fluctuations in its movement. The per capita income at constant prices (1948-49 prices) in Assam rose from Rs. 258.6 in 1950-51 to Rs. 262.1 in 1955-56 and then declined to Rs. 251.3 in 1960-61. The per capita income being Rs. 264.9 in 1965-66, reached to Rs. 270.9 in 1968-69.

The per capita income calculated at constant (1970-71) prices gradually increased from Rs. 538.6 in 1970-71 to Rs. 550.1 in 1973-74 showing an increase of 2.1 per cent only. Then it gradually increased to Rs. 559.4 in 1975-76 and then declined to Rs. 544.2 in 1976-77 and then reached to Rs. 573.5 in 1977-78 showing an increase of 6.4 per cent over 1970-71. The per capita income then declined to Rs. 554.6 in 1978-79 and then to Rs. 509.1 in 1979-80 showing a decline of 9.0 per cent over 1975-76.

Again the per capita income in Assam at constant (1980-81) prices increased from Rs. 1317.0 in 1980-81 to Rs. 1483.0 in 1985-86 and then to Rs. 1799.0 in 1990-91 and then finally to Rs. 2157.0 (Q) in 1993-94 showing an increase of 63.8 per cent over 1980-81.

If we look into the per capita income figures of Assam at current prices then we find (from Table 5.2) that there was a gradual increasing trend with some marginal fall in it during some particulars years. In 1950-51, per capita income at current prices in Assam stood at Rs. 299.2 as against Rs. 238.8 for all India. But in 1955-56, the per capita income figure then declined to Rs. 277.6 and then started to increase at a fair rate from Rs. 315.3 in 1960-61 to Rs. 398.7 in 1965-66 showing an increase of 26.4 per cent. The figure then rose to Rs. 513.4 in 1968-69 showing an increase of 28.8 per cent over 1965-66. There was slow growth in the per capita income of Assam in 1970-71 and in 1971-72 at Rs. 538.6 and Rs. 549.7 respectively. But the figure again started to jump from Rs. 577.3 in 1972-73 to Rs. 650.1 in 1973-74 and then to Rs. 826.5 in 1974-75 due to increased spiral in price level showing an increase of 60.9 per cent over 1968-69. Then the per capita income, being declined at Rs. 783.3 in 1975-76, showed an increasing trend from Rs. 1003.5 in 1979-80 to Rs. 1317.0 in 1980-81 and then to Rs. 2313.0 in 1985-86 and finally reached Rs. 5916.0 in 1993-94 showing an increase of 349.2 per cent over 1980-81.

Again in 1993-94, the per capita income of Assam at current prices increased to Rs. 5916.0 (Q) showing an increase of 11.4 per cent over the previous year.

Thus, we have seen that at both current and constant prices, the rise in per capita income in Assam has not been continuous. Whenever the increase in income was less than projected increase in population, the level of the per capita income of the state went down. In terms of constant prices such falls in the per capita income occurred in the years 1951-52, 1953-54, 1956-57, 1957-58, 1959-60, 1962-63, 1965-66, 1966-67, 1969-70, 1976-77, 1978-80 and 1981-82. Again in terms of current prices such falls in the per capita income were recorded in 1952-53, 1955-56, 1957-58, 1959-60, 1962-63, 1968-69, 1969-70,1970-71 and in 1975-76.

Comparison of the State Per Capita Income (Assam) and National Per Capita Income or Capita Income Gap between Assam and India

Since the beginning of planning era, the per capita income of Assam is trailing behind the per capita income of India. But the gap was marginal in the early period. Although the per capita income at current prices of Assam was higher than that of India in the early period but the per capita income at constant prices of Assam was all along lower than that of all India. What is more important that the gap between the per capita income of Assam and national per capita income has been gradually increasing, i.e., in terms of constant prices, there were gaps of Rs. 9.00 only in 1950-51 which increased to Rs. 71.10 in 1973-74 and the gap finally reached Rs. 106.50 in 1980-81.

The divergence in the per capita income at constant (1980-81) prices between Assam and all India has been increasing at a considerable proportions since 1980-81. The following table will clarify the position.

Divergence or Gap in Per Capita Income at constant (1980-81) prices between Assam and all India since 1980-81

Year

Per capita income at constant (1980-81) prices in Assam

Per capita income at constant (1980-81) prices in India

Divergence or Gap in per capita income

4= (2 -3)

1980- 81

1985- 86

1989- 90

1990- 91

1991- 92

1992- 93

1993- 94

1317.0

1483.0

1576.0

1799.0

1887.0 (Q)

2018

2157 (Q)

1630.1

1841.4

2157.1

2222.5

2177.8

2224.0

2334.0

- 313.1

- 358.4

- 581.1

- 423.5

- 290.8

- 225

- 177

Source : 1. Statistical Handbook, Assam 1995 2. Economic Survey, Assam, 1989-90. 3. Economic Survey, India, 1995-96

The table given above reveals that the divergence in per capita income at constant (1980- 81) prices between Assam and India has been increasing considerably from Rs. 313.1 in 1980-81 to Rs. 358.4 in 1985-86 and then to Rs. 581.1 in 1989-90. This type of situation has been resulted from the fact that the growth of per capita income in Assam could not keep pace with that of per capita income in all India leading to a huge negative gap between these two.

But in 1990-91, the negative gap between the per capita income of Assam and all India declined to Rs. 423.5 and then it further declined to Rs. 177.0 in 1993-94. This declining trend in the gap between the per capita income in Assam and India has mostly resulted from relatively slow growth of per capita income in India in 1990-91 and a negative growth of per capita income in India to the extent of (-) 2.1 per cent in 1991-92 over the previous year.

The gap between the per capita income in Assam and all India measured at current prices are much higher which can be estimated by finding the difference between Col. No. 5 and 6 of Table no. 5.2 as shown in col. no. 7.

In terms of current prices, the gap between the per capita income of Assam and national per capita income was much higher in the later period of planning. In 1950-51, the per capita income of Assam was higher by Rs. 60.4 than that of all India and maintained that positive gap till 1955-56 to the extent of Rs. 44.50 only. In 1970-71, the per capita income of Assam become lower than that of all India by Rs. 161.30 only and the same negative gap reached the level of Rs. 430.10 in 1980-81.

Again in 1985-86, the per capita income of Assam became lower than that of all India by Rs. 417.2 and then the same negative gap increased significantly to Rs. 1050.8 in 1990-91 and to Rs. 1144.0 in 1993.94.

Thus the per capita income of Assam at current prices continued to be much poorer in recent years than that of national per capita income.

The following table reflects the differences in the rate of growth of per capita income between Assam and all India during different plan periods.

Source : (a) Third Five Year Plan,Vol. I, P&D Department, Assam (b) Economic Survey, Assam 1981-81, 1989-90 (c) Economic Survey, Government of India, 1981-82, 1995-96 (d) Statistical Handbook, Assam, 1995

The above table reveals that during the Second Plan (1956-61) period the rate of growth of per capita income for India was 9.3 per cent whereas it was (-) 4.1 per cent for Assam, showing a negative growth. During the Third Plan (1961-66), Assam registered a spectacular 19.8 per cent in its rate of growth of per capita income in comparison to that of all India�s 13.7 per cent. During the Annual Plans and the Fourth Plan period the growth rate of per capita income of Assam maintained a slightly lower rate than of all India. But during Fifth Plan and thereafter (1974-78), Assam again registered a growth rate of 3.0 per cent as against all India rate of growth of 3.1 per cent in its per capita income.

But in recent years, the rate of growth of per capita income at constant price in Assam remained comparatively better than that of India as the rate of growth of per capita income in Assam as 3.3 per cent in 1985-86 as against all India rate of growth of per capita income to the extent of 1.7 per cent. Again in 1993-94, the rate of growth of per capita income (at constant prices) in Assam was 6.9 per cent as compared to that of 2.3 per cent for all India. But the per capita income of Assam in real terms has grown by 3.6 per cent per annum in 1989-90 over 1980-81 while for the country as a whole the corresponding growth rate was 3.3 per cent per annum.

The economic growth in Assam has been entirely inadequate and incommensurate as against its high demographic growth rate. Because of the inadequate growth rate compared to its population growth, the per capita income in Assam since 1950-51 at constant prices. shows a very sluggish growth even compared to all India. Unless the domestic product rises faster than the population of the State, a stagnant or backward trend will continue. If we think in terms of price level differences when price level in Assam is all along 20 per cent higher than that of all India, the level of real per capita income in Assam would be much lower than that of all India. Thus the per capita state income compares very unfavorably with the per capita national income much more so when viewed against the higher price level in Assam. This sort of inequality between per capita income of Assam and the rest of India is a cause for social tensions militating against the cohesion of society and integrity of the country.

Factors Responsible for growing Divergence or Gap between Per Capita Income of Assam and India :

It has been observed that the divergence or gap between the per capita income of Assam and India has been growing year after year excepting a few slippage in certain years. The per capita net domestic product of Assam was much higher than the all India average during the period covering 1950-51 to 1955-56 whereas it is much below the all India average at the moment. There are several factors which are responsible for this growing divergence or gap between the per capita income of Assam and all India in recent years. Following are some of the important factors responsible for such growing divergence :

1.Higher growth rate of population : The most important factor which is responsible for such growing divergence or gap between the per capita income in Assam and all India is that the rate of growth of population in Assam is all along higher than that of all India. The rate of growth of population in Assam is one of the highest in the country. The decadal growth rates of population in Assam in 1951-61 and 1961-71 were 34.97 per cent and 34.95 per cent respectively as compared to that of 21.64 per cent and 24.8 per cent for all India. Again in 1971-81, the decadal rate of growth of population in Assam was 36.1 per cent as compared to that of 24.9 per cent for all India. Thus whatever increase in state income has been achieved in the state, it is being swallowed up by the increased population, leading to a growing divergence between the per capita income in Assam and all India.

2. Slow growth of State Income : Another important factor responsible for the growing gap between state per capita income and national per capita income is the slow growth of state income in Assam as compared to that of national income. Moreover, from the very beginning, the existing base of the state income in Assam remained all along poor leading to a wide gap between the per capita income in Assam and all India.

3. Excessive dependence on Agriculture : The state�s economy is depending too much on agriculture. Of the total working population of the state, about 77 per cent were engaged in agriculture and allied activities. As non-agricultural occupations could not grow sufficiently due to lack of sufficient investment in other sectors, the agricultural productivity per worker in Assam has been declining gradually leading to a slow growth of per capita income in Assam as compared to that of all India.

4. Lack of industrial development : The growing divergence between the per capita income in Assam and India has also resulted from lack of industrial development in the state. This is mostly due to absence of large investments in industry during the preceding plans, Assam�s geographical isolation, transport bottlenecks and lack of industrial friendly socio-political climate in the state.

Thus, all these factors has resulted widening gap between the per capita income in Assam and India. Thus under the present circumstances there is the urgency to raise the rate of development in Assam to check this widening gap, not to speak of catching all India per capita income.

Economic planning is a well accepted method of economic development everywhere now-a-days. There cannot be a dilemma about the acceptance or non-acceptance of planned method of development.

The per capita income of India is extremely poor due to under-development of the Indian economy. Moreover, some poor states of India like Assam, Orissa etc. are facing acute problems of economic deficiencies. To cure all these economic planning has a special role to play. Thus along with the other states of Indian Union economic planning has also been started in Assam to set the economy of the State at a right level.

As per guidelines forwarded by the Planning Commission of India, the State Planning Board finalises the economic plans of Assam. The State Planning Board is again divided into two parts-(a) State Planning Board (Plains) for plain areas of the state and (b) State Planning Board for Hill Areas. Various departments connected with administration and development prepares the plan in the initial stage. Finally the Planning and Development Department and Hill Areas Development Department of Assam finalise the state plan as per the instructions forwarded by the Indian Planning Commission and the State Planning Board.

Again since 1st April 1986, the Assam Government has introduced the system of decentralised planning as per the recommendations forwarded by the Hanumantha Rao working Group (1984) in connection with district level planning. But the decentralised planning introduced in Assam is confined to sub-divisional level instead of district level as introduced in other states of our country.

The fundamental objective of economic planning is to accelerate economic development of the region through optimum utilisation of its resources so that a reasonably high standard of economic well being can be attained by the masses. Another very important objective of economic planning in Assam is to reduce the disparities in income and wealth to the minimum level.

Thus the main objective of economic planning in Assam is almost the carbon copy of the basic objectives of Indian economic planning. So, it can be said �Growth with social Justice� has been considered as the main objectives of economic planning in Assam.

Although some attempts were made to start systematic planning in the country before independence, however, the real beginnings of planning in India were made when in March 1950, the Indian planning Commission was appointed with Pt. Jawaharlal Nehru as its chairman. The draft outline of the First 4 Five year Plan covering the period from April 1, 1951 to March 1956 was presented by the Commission in July 1951. Similarly, state plans were also presented by different State Governments of Indian union before the Planning Commission for its approval. In this way the First Five Year Plan had its start also in Assam along with other States. The first Five Year Plan was duly followed by the Second and Third Five-Year Plans.

At the end of Third Five Year Plan on March 31, 1966, Indian economy experienced various problems like droughts, recession, devaluation of the rupee, uncertainty of foreign aid etc. and thus the planners had to declare the next three-year period formulated by the planners to carry on the work of planning during this period which was again followed by the Fourth Plan, 1969-70 to 1973-74. The Fifth Plan, originally scheduled for completion at the end of 1978-79, was terminated at the end of 1977-78 by the Janata Government that came in power and draw up its own Draft Five Year Plan, 1978-79 to 1982-83 based on rolling plan concept reflecting its own policies and priorities. Again this Plan was terminated after it had run through a year and a new Sixth Plan (1980-81 to 1984-85), prepared by the Congress (I) government, was replaced. At the end of the Sixth Plan in March 31, 1985, the Seventh Plan (1985-86 to 1989-90) was formulated by the Planning Commission, Similarly, the Government of Assam has also finalised its Seventh Plan with other States of India and implemented the same successfully.

In the mean time, the Eight Plan of the States has already been finalised and it is being implemented since 1992-93 along with other states of the country.

The First Five-Year Plan of Assam, though aimed at an integrated development of all sectors, was conceived as a modest effort designed to attain the following two objectives:

(i) removing the shortage and disequilibria in the economy following the world war and partition and (ii) fulfilling the need of a few most essential items of development in which the State was hitherto lacking. With these objectives in view, high priority was attached to items like agricultural production, setting up and development of Communication in the rural area and inaccessible hills, etc.

The programme also had a long-range objective in view viz ; to strengthen the economy at the base and initiate institutional changes which would pave the way for more rapid advance in future.

The First Five Year Plan in Assam was officially stated to air at "strengthening the economy at the base and to initiate a process of institutional changes wherever required". Again the First Plan report of Assam clarified that "The objective of the plan was to provide the people of the state with minimum amenities which they could legitimately expect from a modern and progressive administration. Further, it was mentioned that "care was taken to see that the plan was a practical and realistic one and provided only for the barest minimum of the schemes, the implementation of which was considered to be of utmost urgency.

Thus the First Plan of Assam could not frame a long list of ambitious objectives due to paucity of state�s resources and heavy dependence on central assistance. Rather the plan simply emphasised to strengthen the basic infrastructural facilities and administrative machinery along with the improvement in the standard of social services.

Initially, the planning commission accepted the size of First Plan in Assam at Rs. 17.5 crores. Later, due to further efforts by the state Government and subsequent adjustment in the overall National Plan the ultimate size of the State�s First Five-Year Plan stood at Rs. 21.5 crores. Against this provision, the size of actual expenditure of the plan was to the tune of Rs. 20.50 crores (94.5 percent). The following table (Table No.-1) shows the sector-wise distribution of plan provision and actual expenditure of the First Five-Year Plan in Assam.

The above table reveals the plan provision and actual plan expenditure of the First Plan in Assam under its different heads: Among the different heads of plan expenditure, the highest amount of expenditure was incurred on social services, Rs. 746.18 lakhs, which was 36.39 percent the total expenditure and followed by irrigation and power- 22.45 percent, agriculture - 17.68 percent Transport and Communication- 17.02 percent and Co-operative and community development-5.99 percent. Expenditure under different heads as percent of plan provision varied between 86.93 percent to 108.18 of the against the total plan provision of Rs. 2084.88 lakhs, the size of total plan expenditure was Rs 2050.79 lakhs which was 9.3 percent of the total plan provision during the First Plan.

Just like other states Assam had financed its plans out of own (state�s) resources and central assistance in the form of loans and grants. The following table will show the financing of the First Plan in Assam. Out of total outlay Rs. 20.5, crores, the share of state�s resources was Rs. 3.2 crores and the rest Rs. 17.3 crores came in the form of central assistance. Thus the central assistance accounted for 84.3 percent whereas the share of state�s resources was only 15.7 percent of the total outlay of the first Five-Year Plan in Assam. Thus the State Government had to depend much on central assistance for financing its plan.

The First Five-Year Plan of Assam followed a little bit different pattern of priorities from that of India. Irrigation and power received the topmost priority in the national plan claiming 29 percent of the total outlay. But social services received the highest priority in the state plan of Assam claiming 36.39 percent of the total outlay and irrigation and power received the next priority which claimed 22.45 percent of the plan outlay.

In the national plan, transport and communication got the second place whereas it got the fourth place in order of priorities in the state plan of Assam.

Agriculture and community development occupied fourth place in the national plan claiming 15.0 percent of the total outlay whereas the same head occupied third place in the state plan of Assam claiming 17.68 percent.

In both national plan and state plan of Assam , industry and mining occupied the last place in order of priorities claming 6 percent and 0.47 percent of the total outlay respectively.

It would be better to look into the achievements of the First Plan on the economy of Assam in terms of growth rates of state income, per capita income, employment etc.

In case of growth rate of state income, the state income at constant prices rose by 19.8 percent during the First Plan as against the target of 12 percent. Thus there was an increase in the state income at constant prices from Rs. 223.6 crores in 1950-51 to Rs. 267.9 crores in 1955-56. The growth rate of state income (19.8 percent) was even higher than that of national income which was 18.4 percent during the first plan. Further the percentage of the income of Assam to the national income increase from 2.51 in 1950-51 to 2.55 in 1955-56.

But at current prices, the state income of Assam rose by only 7.7 percent as against 4.7 percent growth rates of national income during the First Plan. Growth prices due to fall in the price level both in India and Assam during the First Plan period.

The achievement of the First Plan in respect of per capita income in Assam was very poor. The growth rate of per capita income at constant prices was only 4.9 percent in Assam as against 8.2 percent in case of all-India. This is mainly due to a higher annual compound growth rate of population in Assam which was 3.1 percent as against only 1.7 percent in all-India. Further, the growth rates of per capita income in Assam were much slower than those of state income during the First Plan period. The annual compound growth rate of per capita income was only 1.0 percent as against 3.5 percent in respect of state income of Assam.

Assam is suffering from the problem of both unemployment and underemployment. Although the 1951 census revealed that out of the total employable persons in Assam 99 percent were employed but it concealed a considerable amount of underemployment in the rural areas. The density of population per 100 acres of net area sown in Assam was 232 as against 135 in India as a whole. This is a reflection of the pressure of population on land in Assam. In the absence of precise measurement of the volume of unemployment, it can be easily understood that unemployment posed a great problem at the time of beginning of First Plan in Assam. As per Government�s calculation it is found that during the First Plan period about 0.4 lakhs jobs were created in Assam. Due to non availability of data it is not possible to measure the rate of growth of employment generation or the rate of change in the size of unemployment for the economy of the state as a whole during the First Plan period.

Further, during the First Plan period in Assam, 231.14 thousand tonnes of additional food grains was produced and 1613.59 thousand acres of land were brought under the minor irrigation system, 1105 miles of Road was also constructed ; 5 basic training schools, 1958 primary schools, 508 ME & MV Schools and 959 high schools were opened. Besides, for the improvement of health facility, 544 beds were created in the State hospitals and 5 T.B. clinics, 41 leprosy centres and 5 malaria control units were also established during this period. Further, the volume of food grains production was increased by 10 percent whereas the non-food output increased by 7.9 percent only during the First Plan period. The size of net capital formation in Assam increased from Rs. 11.0 crores in 1950-51 to Rs. 23.9 crores during 1955-56. Further, the compound growth rate of net production at factor cost in Assam also increased from (-) 2.8 percent in 1950-51 to 5.8 percent and in 1955-56. The compound growth rate of per capita net production achieved an increase from (-) 4.7 percent to 2.8 percent during the same period. While the compound growth rate of agricultural production declined from 5.9 percent to 3.4 percent but that of industrial production also declined from (-) 19.9 percent to 6.4 percent during the same period.

The Second Five Year Plan of Assam was more or less, a continuation of development efforts commenced in the First Plan. The plan sought to carry forward the institutional changes to make the economy of the State more progressive in terms of defined economic and social ends on the one hand, and on the other, aimed at balanced distribution of plan funds under the different developmental sectors. The Second Plan laid emphasis on the provision of adequate transport facilities, an expanded and diversified industries and agricultural programmes, much larger programmes for the improvement of tribal and other backward sections and sizable provision for power development.

The Second Plan was a bit more ambitious and effective than the First Plan as it put much emphasis on industrialisation and also tried to re-build rural economy with the objective of attaining socialistic pattern of society.

The Second Five Year Plan of Assam mentioned the same objectives in its plan document as mentioned in the national Second Plan. The Second Plan of the State did not formulate any specific objectives for the regional economy of the State and thus neglected its specific regional problems. Therefore, following objectives of the national second plan were incorporated in the Second Five Years Plan of Assam.

1. "a sizable increase in the national income so as to raise the level of living in the country :

2. Rapid industrialization with particular emphasis on the development of basic and heavy industries;

4. Reduction of inequalities in income and wealth and more even distribution of economic power."

Thus the Second Plan of Assam could not formulate any specific objective. The state�s economy suffered from specific problems of its own. It would have been better if the Second Plan of the state put much emphasis on the improvement of both agricultural productivity and socio-economic infrastructure to lay the foundation of industrialisation in the State.

The plan provision for the provision for the Second Five Year Plan in Assam was to the extent of Rs. 57.73 crores. Against this provision, the size of actual plan expenditure was to the tune of Rs. 54.48 crore which was 94.3 percent of the plan provision during the Second Plan period in Assam. The following table (Table No. 9.3) shows the sector-wise distribution of plan provision and actual expenditure of the Second Five Year Plan in Assam.

The plan provision and actual plan expenditure of the Second Five Year Plan in Assam under its different heads. Among the different heads of plan expenditure, the highest amount of expenditure was incurred again on Social services. Rs. 2017.36 lakhs, which was 37.02 percent of the total expenditure and followed by Co-operative and community development-14.02 percent, Agriculture 13.5 percent, Irrigation and power- 12.7 percent, Transport and Communication 12.2 percent and Industry and mining 8.05 percent. Further, expenditure under different heads as percent of plan provision varied between 73.6 percent and 153.9 percent. Against the total plan provision of Rs. 5,773,69 lakhs during the Second Plan, the size of total plan expenditure was Rs. 5,448.21 lakhs which was 94.3 percent of the total plan provision during the Second Plan period.

The total final outlay of the Second Five-Year Plan in Assam was Rs. 5,448.2 lakhs. From the table no. 9.3 it can be estimated that increase in the actual outlay in the Second Plan of Assam over the First Plan was 166 percent as against the corresponding increase by 135 percent in the case of the national Second Plan. Further, the First Plan outlay of Assam as percent of that of all India was only 0.9 percent but the Second Plan outlay of Assam constituted 1.2 percent of that of all India. But considering its relative economic backwardness, population ratio and development potential, this higher ratio and development potential, this higher ratio of plan outlay was inadequate.

The pattern of priorities followed in the Second Five-Year Plan of Assam was little bit different than that of all India. Transport and Communication received the topmost priority in the national plan claiming 28.0 percent of the total plan outlay followed by industry and mining (24 percent). But in the Second Plan of Assam, social services received the top most priority claming 3702 percent of the total plan outlay and Co-operative and community development received the next priority in the plan claiming 14.02 percent of the total state plan outlay.

In order of priorities, industry and mining secured second place in the national plan claiming 24 percent of the plan outlay whereas the same head secured sixth place in the state plan claiming only 8.05 percent of the state plan outlay. Thus it reveals that there was a definite shift in the priority of the Second Plan of India for building a strong industrial base. But in Assam�s plan, although the percentage of outlay for industry has increased from 0.5 percent under the First Plan to 8.05 percent under the Second Plan but the response is very poor in comparison to national priority. Thus this cannot be considered as a shift towards industrialisation in the State.

Further, there were sharp decline in the percentage of the outlay from First Plan to Second Plan both for irrigation and power from 52.4 percent to only 12 percent and for transport and communication fro m 17.02 percent to 12.2 percent. Thus the pattern of priority followed in the Second Plan of Assam had no systematic basis. As the social services received much importance under the Second Plan of Assam at the cost of two very important sectors like irrigation and power and transport and communication which could have build up a solid economic infrastructure, thus the pattern of priorities followed in the plan cannot be termed as economically, sound, judicious and effective for the State�s economy.

The following table presents the financing of the Second Five-Year Plan in Assam

Out of total outlay Rs. 54.5 crores, the share of state�s resources was Rs. 23.5 crores which was 43.1 percent of the total outlay and the rest Rs. 31.0 crores came in the form of central assistance which was against 56.0 percent of the total plan outlay of the Second Five-Year Plan in Assam. Thus the state�s dependence on the central assistance for financing its plan has declined from 84.3 percent during First Plan to 56.9 percent during the Second Plan. Consequently, the share of state�s resources to total plan outlay has increased from 15.7 percent during the First Plan to 43.1 percent during the Second Plan in Assam.

Let us now look into the achievements of the Second Plan on the economy of Assam in terms of growth rates of state income, per capita income, employment and other sectoral heads.

In case of growth rate of State income the State income at constant prices rose by 10.7 percent during the Second plan period and its annual compound growth rate was 1.9 percent as against the corresponding rates of growth of 19.8percent and 3.5 percent respectively during the First Plan. Thus performance of the Second Plan of Assam in respect of growth rates of state income at constant prices was very poor than that of First Plan. Further, in comparison to total growth rate national income of 21.2 percent and its annual compound growth rate of 3.0 percent, the corresponding growth rates of state income were also very poor.

About the growth of income at current prices the picture is quite opposite. The increase in the total and annual (compound) growth rate in Assam during the Second Plan was remarkably sharp over the First Plan. The total growth rate increased from 7.7 percent and the annual growth rate from 1.5 percent to 3.7 percent. But it can be simply understood that these high growth rates were contributed mainly by the inflationary forces than by the real growth of output and services.

The State income of Assam as percent of national income gradually had a downward turn over the Second Plan period, thus, in 1955-56 the state income of Assam accounted for 2.55 percent at constant prices and 2.75 percent at current prices of national income but in 1960-61, these percentages came down to 2.33 and 2.57 respectively which reflects on doubt relatively a slower growth rate in the economy of Assam than the national economy.

The achievement of the Second Plan in respect of per capita income in Assam was not at all encouraging. If we look at the growth rates of per capita income at constant prices it can be observed that as against the total and annual growth rate of per capita income at constant prices it can be observed that as against the total and annual growth rate of 4.9 and 1.0 percent respectively during the First Plan period were only negative, i.e., -5.3 and -1.2 percent respectively.

Further, the per capita income of Assam was higher than that of India in 1950-51 and in 1955-56, the figure became similar to that of India, but since 1855-56, the per capita income of Assam was not only maintained a downward trend but also lagging behind that of India. In 1955-56, the per capita income was Rs. 268.0 in Assam and Rs. 267.8 in India where as the per capita income of Assam was the result of comparatively slower growth of state income than all India and higher growth rate of population in Assam than all-India growth rate. At current prices, the per capita income of Assam, although registered a positive growth rate during the Second Plan period, but was comparatively lower than that all India. For example, in 1955-56, the per capita income at current prices was Rs. 244.1 in Assam and Rs. 225 in India, but in 1960-61, the value become Rs. 311.4 in Assam and Rs. 255 in India, but in 1960-61, the value become Rs. 311.4 in Assam and Rs. 326.2 in India.

In the case of agriculture, the Second Plan set the target of additional food grains production at 3.83 lakh tonnes but the actual realisation of the target was of the order of 2.5 lakh tonnes. The production of other commercial crops was either declined or increased marginally. The response of agriculture sector to the developmental efforts was not up to the expectations mainly due to considerable weather fluctuations during the Second Plan period. The total agricultural production in Assam was increased by 3 percent only as against 20 percent increase in India during this period.

In the animal husbandry area, intensive cattle development work was taken up in the key village areas. At the end of 1960-61, the number of veterinary hospitals and dispensaries increased from 127 in 1955-56 to 155 at the end of 1960-61. The number of rural key village blocks and key village centres increased from 11 and 29 to 71 respectively. The intake capacity of the Assam veterinary college was increased from 68 to 93.

In the case of forest, about 7900 additional acres had been afforested, while areas under the various plantations increased by about 3,000 acres during the Second Plan period. About the development of fisheries, 6 additional seed farms and 10 seed collection centres were established and 1026 acres of additional water-areas were developed.

During the Second Plan the achievement in the Co-operative sector of the state was also satisfactory. During this plan, three thousand three hundred and sixty one (3361) service Co-operatives, 37 Co-operative unions, one cotton spinning mill, one Co-operative rice mill, 200 large sized Co-operatives, 111 primary marketing societies and 174 additional godown were established. Besides, the number of Co-operative farming societies increased from 105 to 157. During 1958-59, the Co-operative sugar mill went into production. The preliminary work of the Jute Mill had its start during this plan.

In the area of community development under the Second Plan, 57 new blocks were opened covering 9,112 villages and serving a population of 25.4 lakhs, covering an area of 18.482 square miles.

During the plan, the net area irrigated increased from 10.3 lakhs acres in 1955-56 to 16.9 lakh acres in 1960-61. Besides, 12 lakh acres of lands had also been protected from floods and about 13,000 acres of lands were reclaimed.

In respect of power, the Second Plan took some important steps for both increased generation and consumption of electricity. The per capita consumption of electricity was increased from 0.91 KWH at the end of 1950-51 to 5.63 KWH at the end of Second Plan. The other achievements during the Second Plan period were as follows :

In July1957, the Umtru Hydro Electric Scheme, with an installed capacity of 8,400 K.W. was Commissioned. Besides, considering the acute power crisis in the state, two more new schemes- (a) Umium Hydro Electric Project (b) Naharkatiya gas turbine project were sanctioned by the Planning Commission during this plan period. Immediate steps were initiated for these projects and the Umium project was undertaken in 1960.

In spite of having huge development potential, the State�s industrial sector was very much backward mainly due to lack of communication and power facilities. The stabilisation of railway link line in 1956, the formation of Assam State Electricity Board and taking up of the Umium Hydro Electric Project and Naharkatiya gas turbine project created a new optimism for industrialisation in the State. The National Council of Applied Economic Research conducted a survey on the industrial potentialities of the State and an Industrial Conference was also held during the Second Plan which created an additional tempo of industrial development in Assam. Application for the establishment of small, medium and major industries began to come in. During this plan period licenses for major projects for rayon paper, carbon-black, synthetic rubber, and polyethylene were issued. Two industrial estates-one at Guwahati another at Dhekiajuli were established for the growth of small scale industries in the State during this Plan period.

During the Second Plan, the industrial projects which started its production were the sugar mill in the Co-operative sector, the spun silk mill, the bamboo mill in the public sector, two cycle factories, one commercial plywood factory, a few barbed wire-nail factories, some engineering workshops, several foundries, some treating and seasoning plants, a meter factory, many brick fields but the most important achievement was the establishment of Noonmati Refinery with crude pipe line during this plan period. Besides a coke carbonisation plant, a sulphurdioxide plant, a super-phosphate plant, two spinning mills, some power looms were also under erection during this Second Plan period.

During this plan period both the general and technical educational services were improved. On an average, the State has not only fulfilled the all India targets, in respect of enrolment of students in the various categories of school but has also exceeded them. The number of primary schools went up from about 13 hundred to 19 hundred, high schools from 376 to 631, multipurpose schools from 14 to 23, high and higher secondary schools with general science from 45 to 98. Besides, twenty two secondary schools also started functioning during this period.

In respect of technical education, besides increasing the intake capacity of the, Engineering College at Guwahati a second Engineering College was established at Jorhat. There were 6 training institutes for training of craftsmen in the State. The number of admission for the degree course increased from 60 at the end of the first Plan to 180 at end of the Second Plan. Further, training facilities for diploma course increased from 80 to 450 during the same period. The number of admission in the Dibrugarh Medical College had been increased to 100.

During the Second Plan period besides intensifying the measures initiated under the First Five Year Plan, additional schemes were started to extend health facilities to the rural areas as far as practicable. Total number of hospitals increased to 52. Total number of beds in the different hospitals increased from 2829 at the end of 1955-56 to 4003 at the end of 1960-61. The number of dispensaries increased from 311 to 568. These hospitals were provided with up to-date equipments and appliances. Particular emphasis was laid on the training of technical personnel like medical graduates, nurses; auxiliary nurses, midwives, pharmacist�s sanitations etc., 70 primary health units and 60 family planning centres were also established. The public Health Engineering organisation, also took up 16 projects for implementation in the different subdivisions under the programme which includes mainly the works, National programmes of malaria control, filaria control, leprosy control and small pox control etc. were also pushed through with vigour.

Besides, to solve problem of both in the rural and urban areas, various housing schemes, viz, Low Income Housing Scheme, Industrial Housing Scheme Slum clearance Scheme and building advances for State Government employees etc. were introduced during this plan period.

For the welfare of tribal and backward population the State Second Plan had an additional programme under the head " Welfare of Backward Classes" to make up the shortfalls between the levels of development of the tribal and Rs. 755.00 lakhs was incurred under this head.

Along with all the States of India the Third Five Year Plan in Assam had its scheduled start from 1st April, 1961. The Third Plan of India accorded greater importance to the achievement of a balanced regional development. It was emphasised that a state plan should be treated as essentially a regional plan which should consider the needs and requirements of the region concerned. But while formulating its objectives, the Third Five-Year Plan of Assam could not focus its specific regional needs, problems, past progress and lags in development. Rather, the Third Plan of Assam accepted the broad aims and objectives as set out in the National Third Five Year Plan. These are as follows :

1. to secure an increase in the national income of over 5 percent per annum, the pattern of investment being designed also to sustain the rate of growth during subsequent plan periods.

2. to achieve self-sufficiency in food-grains and increase agricultural production to meet the requirements of industry and exports ;

3. to expand basic industries like steel, chemical industries, fuel and power and establish machine building capacity, so that the requirements of further industrialisation can be met within a period of the years or so mainly from the country�s own resources ;

4. to utilise to the fullest possible extent the manpower resources of the country and to ensure a substantial expansion in employment opportunities ; and

5. to establish progressively greater equality of opportunity and to bring about reduction in disparities in income and wealth and a more even distribution of economic power.

While formulating the objectives of state�s third plan, within the limits of these above mentioned national objectives, proper consideration had also been given to the special problems of the state�s economy. Although it is not proper to apply flatly all the objectives of the national plan in a state plan, particularly in respect of attaining self-reliance and egalitarian distribution of income, but these national objectives were sometimes hammered unintentionally in the state plan. This generally creates confusion in the minds of both planners and general people.

Although primarily there was a plan provision of Rs. 120 crores for the State Third Plan but the actual expenditure actually reached up to Rs. 120 crores for the State Third Plan but the actual expenditure actually reached up to Rs. 132.4 crores which was 110.3 percent of the plan provision. The following table reveals (Table 9.5) the sector wise distribution of plan provision and actual expenditure of the Third Five-Year plan in Assam.

The above depicts a clear picture of the plan provision and actual plan expenditure of the Third Five-Year Plan in Assam under different heads. The Third Plan of Assam was much bigger in size than that of the Second Plan. Plan expenditure in the Third Plan rose nearly 160 percent in comparison to the Second Plan expenditure. The actual amount of expenditure of the Third Plan in Assam was to the extent of Rs. 132.4 crores. Among the different heads of Plan expenditure the highest amount of expenditure was incurred on irrigation and power (Rs. 57.37 crores) which was 43.3 percent of the total plan expenditure. The other heads of expenditure according of their sizes were-Social services- 27.1 percent, Agriculture and allied subjects- 16.7 percent, Industry and mining 60 percent and Transport and communication-5.9. Percent.

Further, different heads expenditure as percent of their plan provision varied between 73.7 percent and 164.90 percent. Although the total plan provision for the Third Plan in Assam was Rs. 120.0 crores but ultimately the actual amount of plan expenditure reached the level of Rs. 132.4 crores which was 112 percent of the total plan provision during this plan period.

The total outlay (final) of the third plan of Assam was Rs. 132.4 crores, the increase in the actual outlay in the Third Plan of Assam over the Second Plan was nearly 160 percent. The Third Plan outlay of Assam as percent of that of all India was only 1.54 percent but the Second Plan outlay of Assam constituted 1.2 percent of that of all-India. Although the third Plan outlay compares favourably with the Second Plan outlay but considering the relative backwardness of the State and development potential, this little higher ratio of Plan outlay was inadequate.

The pattern of allocation and priority followed under the Third Plan of Assam were little bit different from that of Third Plan of India and the previous two plans of Assam. Because of the relatively under-development nature of state economy, social services, which include education, health, labour welfare, social welfare, welfare of the backward classes and other miscellaneous services have so far contained a very high percentage of the allocations. In comparison the expenditure on social services under the first two plans, however, percentage of expenditure on these subjects during the Third Plan period was lower. Against 36 percent and 37.02 percent of total expenditure under the previous two plans, the expenditure on social service under the Third Plan was only 27.1 percent of the total expenditure.

Like the previous plan, Transport and Communication received the top most priority in the national Third Plan claiming 24.6 percent of the total plan outlay. But in Assam�s Third Plan, Irrigation and power received top most priority claiming 43.3 percent of the total plan outlay as against only 12.7 percent under the Second Plan. Of the total allocation for irrigation and power in the State, it is significant that as high as 79 percent was earmarked for power development, 14 percent for flood control and only 7 percent for irrigation.

The Third Plan of India increased the priority to agriculture as the plan allotted 13 percent of the total outlay for agriculture and allied subjects as against 11 percent under the Second Plan. But in the case of Assam, in spite of the dismal performance of the agriculture in the State during the Second Plan period, the outlay for agriculture as percent of total was lowered from 27 percent to 16.7 percent and the absolute amount of outlay for agriculture increased only by about Rs. 7 crores. Further, as the medium irrigation received only 7 percent allocation, thus agricultural as a whole remained relatively a neglected sector under the Third Plan of Assam in spite of its sufficient potentiality.

Industry and mining secured second place in order of priorities, in the national Third Plan claiming 22.9 percent of the total plan outlay whereas the same head secured fourth place in the State plan claiming 6.0 percent of the total plan outlay. Thus it reveals that industry and mining sector of the state plan received much less priority in comparison to that of national plan. In absolute terms, the industrial sector received Rs. 462 lakhs more in the Third Plan than in the Second Plan, among which large 3 and medium industries received Rs. 402 lakhs. Although there was increase in the allocation of resources in industry, but this sector still remained a neglected sector under the Third Plan of Assam as under the First and the Second Plan.

In respect of transport and communication, although the Third Plan of India accorded top priority allocation 24.6 percent 24.6 percent of the total plan outlay as against of 28 percent in its second plan but the same head secured fifth place claiming only 5.9 percent of the state Third Plan outlay as against 12 percent allocation in its second plan. In absolute amount the increase in outlay in this head from the Second Plan to the national Third Plan was Rs. 872 crores as against the increase of only Rs. 1.38 crores in the Third Plan of Assam. Thus considering the bottlenecks in the transport and communication system in the State, this outlay of Rs. 7.85 crores under this head was totally inadequate to provide a sound and reliable transport and communication system.

The above reveals that out of total outlay of Rs. 132.4 crores, the share of state�s resources was Rs. 23.5 crores which was 24.5 percent of the total outlay and the rest Rs. 99.9 crores came in the form of central assistance which was again 75.5 percent of the total plan outlay of the Third Five-Year Plan in Assam. Dependence of the State on the central assistance for financing its plan has increased from 56.9 percent during the Second Plan to 75.5 percent during the Third Plan. Consequently, the share of state�s resources to total play outlay declined from 43.1 percent during the Second Plan to 24.5 percent during the Third Plan in the State.

It would be better now to look into the achievements of the Third Plan on the economy of Assam in terms of growth rates of state income, per capita income, employment and other sectoral heads.

During the Third Plan period, the State�s income at constant prices rose from Rs. 296.2 crores to Rs. 396.9 crores as against the target of Rs. 403.9 crores during this plan period, i.e., by 24.9 percent as against the stipulated growth of 34.8 percent. In Assam, as against the growth rates of income 19.8 percent and 10.7 percent during the First and the Second Plan respectively, total growth rate of state income was 24.9 percent during the Third Plan period. In respect of its annual compound growth rate also, it was 4.4 percent only during the First and Second Plan. This high rate of growth was made possible by the high performance in the construction and service sectors.

Further, the total and annual growth rates of state income at both constant and current prices were higher than that of all India during the Third Plan Period.

State income which was 21.5 percent of national income during 1950-51 gradually increased to 2.6 percent in 1955-56 and then declined to 2.3 percent in 1960-61 and finally reached to 2.5 percent in 1965-66.

The per capita income of Assam (at constant prices) rose from Rs. 253.5 percent in 1960-61 to Rs. 275.8 in 1965-66 as against the target of Rs. 308 giving a rate of growth of 7.4 percent over the five-year period as against the plan target of 19.6 percent. But the total and annual compound growth rates of per capita income in Assam at both constant and current prices were higher than those rates of all India. This relatively high growth rate of per capita income in Assam was due to some, adventitious factors like drought conditions causing more precipitous fall in output in all India.

In spite of its higher growth rates, the per capita income in Assam at both current and constant prices remained lower than that in India at the end of third Plan period. During this plan period, agricultural production rose by 3.5 percent as against what should have been 20 to 25 percent on the basis of individual crops targets. Food grains rose by 6 percent only as against the plan target of 24 percent while jute production actually declined. Due to this, the food situation becomes difficult throughout the plan period. The general price level rose by 34 percent, food prices by about 37 percent and prices of raw materials by 48 percent. Cost of living index of the working class jumped by 33 percent.

The number of job seekers in the live registrar of the employment exchanges increased by over 80 percent in the state. Regarding the target of employment generation, it was estimated that during the Third Plan period, 5.76 lakhs additional full-time jobs had to be created. But the employment potential generated by the Third Plan was estimated at 3.86 lakhs although the total requirements of employment generation was 7.06 lakhs as against 0.4 lakh and 1.83 lakhs during the First and Second Plan period. Again, 36 percent of the potential created was estimated to be still in the agricultural sector. The Third Plan thus created was estimated to be still in the agricultural sector. The Third Plan thus created a backing of about 1.86 lakhs unemployed persons as against the backlog of 0.94 lakh of jobless persons during the Second Plan. Thus it can be said that the unemployment situation in Assam deteriorated during the Third Plan period on the basis of volume of backlog left behind the plan.

Regarding the progress of employment in the registered factories of Assam during the Third Plan period, the picture was very gloomy. The annual growth rate of employment during this period was only 1.2 percent as against 4.4 percent during the previous plan period.

During the Third Plan, the net capital formation was to the extent of Rs. 352.2 crores which was 20 percent of State income of Assam in comparison to that of 8.8 percent 4.9 percent during the Second and the Five Plan respectively.

During the Third Plan, agricultural production behaved erratically during the period of the Third Plan. Both the food non-food crops suffered from severe setback in the second year of the plan and also in 1965-66. On the whole, overall agricultural production rose by only 7.2 percent over the plan period as against what should have been 20 to 25 percent on the basis of individual crops targets. During the Third Plan period, the yield of food-grains per hectare fluctuated rather widely between 817 kgs. in 1962-63 and 9.89 Kgs. in 1964-65. In none of the major crops the output target was realised. In food grains against the target of additional produced potential of 4.2 lakh tonnes. Only 3.897 lakh tonnes potential was created.

In respect of minor irrigation, the gross total area benefited from the works by Agricultural Department was reported to be 453 thousand hectares and from the works of Flood control and irrigation Department 231 thousand hectares. The combined target of additional area benefited was 254 thousand hectares and against which the achievement was 264 thousand hectares. In respect of major and medium irrigation, on projects were taken up in Assam in the first two Five Year Plans. A provision of Rs. 228 lakhs was made in the Third Plan for four medium irrigation schemes, namely, the Jamuna, the Sukhla, the Longa and the Patra-Disa irrigation projects. Against this provision, the expenditure over the five year period was only Rs. 142.34 lakhs. Since none of the projects was completed in the Third Plan, the physical targets remained unrealised.

Programmes for forest development recorded satisfactory progress in the Third Plan as in the preceding two plans. In 1960-61, the area under reserved, protected and unclassed forests was 4.56 million hectares and in 1965-66, 4.57 million hectares. The Third Plan envisaged 600 hectares under regeneration programme. Against this, the achievement was 1895 hectares of creation and 604 hectares of maintenance at the end of the plan. In the scheme for constitution of forest reserves an area totaling 3,259 sq. Kms was undertaken. In forest communication, 146 kilometers of new roads and 3 bridges were constructed and a total of 1.290 kilometers of forest roads was also improved. The out turn of timber has increased from 176 thousand cubic metres in 1960-61 to 373 thousand cubic metres in 1965-66.

In respect of fisheries, the achievement during the Third Plan was not satisfactory. On the physical side, 106 persons were trained and 71 fish farm associations were organised and assisted 23.5 million fish seeds was produced as against the plan target of 30 million seeds. As a result of the programmes a total of 179.6 tonnes of fish was produced as against the target of 1526 tonnes.Total production of fish in the State at the end of the Plan was estimated to be 18,000 tonnes as against the estimated requirements of 48,000 tonnes.

During the Third Plan, the achievement of the Co-operative sector was satisfactory. The programme of the Co-operative Movement was re-oriented on the lines of the recommendations of the Rural Credit Survey Committee. In the Third Plan greater emphasis was laid on credit. The objective was to bring down the number of societies by reorganisation. Liquidation and integration that only strong and sound units would remain. Accordingly, the number of societies came down from 8,894 in 1960 6761 to 7,683 in 1965-66. Although, total membership was increased from 511 thousand to 592 thousand.

At the end of the Third Plan, there were 1 State Co-operative Bank, 9 central banks, 1 central land mortgage bank, 4088 agricultural credit societies, 320 non-agricultural credit societies and 16 primary land mortgage banks. There were also Apex Marketing Society and 204 central and primary marketing societies, 2 cotton ginning societies, 1 sugar mill, 1 Jute milling society 23 milk unions and societies, 272 farming societies, 8 wholesale consumers� stores and 461 primary stores. In other fields, there were 1221 weaver�s Co-operatives, 203 fishery Co-operatives, 2 housing societies, 5 live stock societies, 25 non-credit agricultural societies and 69 on-credit non-agricultural societies.

The Co-operative farming programme was under implementation since 1961-62. Under the plan, 155 societies (pilot project and non-pilot project) were taken up and assisted the scheme for accelerating development of consumers Co-operative stores was started from 1962-63. At the end of the plan, 8 wholesale stores and 461 primary stores were functioning.

In the case of community development starting of the remaining 68 blocks was completed by the middle of the Third Plan and the entire rural area of the State was covered by 162 blocks. During this Plan period, Rs. 810.36 lakhs was spent on various socio-economic projects against the plan provision of Rs. 835 lakhs.

In the case of power, the Umium Hydel Project Namrup Thermal Project with a total installed capacity of 105 MW was commissioned while the other power projects included in the plan were in different processes of implementation. This has resulted in increasing the installed generating capacity from 20 MW in 1960-61 both in the public and private sectors, 160.3 MW by 1965. Generation has increased from 33 million KWh to 70 million KWh. In per capita terms, generation has gone up from about 3 KWh to more than 6 KWh. These achievements have carved out a place for Assam in the power map of India. In respect of rural electrification, 96 towns and village were electrified as against the plan target of 179 electrified villages.

In communications, the length of State Roads and National Highways has increased by 34 percent.

During this plan period, remarkable achievements were made in the large and medium industries sector of Assam. The Central Government continued the works on its two projects in Assam, namely, the Noonmati Refinery and Namrup Fertiliser Project. The refinery was completed and went into production in January 1962, while the fertiliser was in progress at the end of the plan. In the private sector, four major units, that is, the two cotton and spinning mills at Chandra Pura and at Charduar, the Calcined Petro-coke plant and the Mixed fertiliser plant at Guwahati were also commissioned during 1963. Another fruit preservation plant at Nagaon was also sent up by the private sector. The private sector also took up the Hard Boards plant at Guwahati in which the State Government associated itself by participating in its share capital. The State Government on their part competed the Spun Silk Mills and the meter manufacturing projects. Besides the Cherra Cement Factory and the Natural Gas Distribution Projects were under progress and allowed to spillover into the Fourth Plan.

Further, for the promotion of industrial growth in the State the State Government took some important measures during this plan period. To encourage private entrepreneurs in setting up industries, scheme for developing industrial areas were introduced during this plan period. The Assam Major Industrial Development Corporation Ltd. (later on changed to Assam Industrial Development Corporation) was also formed with an authorised capital of Rs. 2 crores for the growth of major industries in the State.

Further, to promote the growth of small industries the Small Industrial Development Corporation was registered in 1961-62 with an authorised capital of Rs. 50 lakhs which resulted in the establishment of several small industries in the state, for example, a Jax board factory at Tinsukia in 1963-64, a match splint and veneer factory at Bijni in Goalpara district.

Besides, the Third Plan of Assam continued the policy of encouraging the development of handicrafts, sericulture, handloom by means of subsidies in cash and kind, training and other incentives.

In the year 1966-67, economy of country along with the economy of Assam suffered from a series of set-back both in its agriculture, industry and foreign trade resulting in postponement of the Fourth Plan and adoption of ad-hoc annual plans for a period of three years (1966-67 to 1968-69).

Ad-hoc Plans did not contain the normal ambitious objectives of economic development but incorporated only some stop-gap measures since these plans were not normal and regular plans. Officially it was stated that �the annual Plans were drawn up as ad-hoc plans due to delay in finalisation of the Fourth Five Year Plan. These Ad-hoc Annual Plans were designed mainly to maintain the level of development reached at the end of the Third Plan and also to prepare ground for implementation of bigger programmes in the Fourth Five Year Plan." Thus these Ad-hoc Plans were concerned more with consolidation than expansion. Thus, efforts were made towards completion of the half completed schemes brought over from the Third Plan instead of taking up new schemes of development during these plans.

The three year period (1966-69) of the ad-hoc Plans short though it was, full of sharp contrasts in the economy of country and of Assam as well. The first two years (1966-68) were among the most difficult time which the economy has had to pass while the third year (1968-69) witnessed a remarkable recovery and proved to the turning point for the economy of the country as well as the State.

For the year 1966-67, the outlay initially approved by the Planning Commission was Rs. 26.45 crores as against the State Government proposal of Rs. 34 crores. With this schemes meant for development of Hill areas under a number of heads were also identified. The total provision for 1966-67 thus comes finally to Rs. 29.85 crores. But the total Plan expenditure during the year amounted to Rs. 26.47 crores. Rs. 21.58 crores under the General Plan and Rs. 4.89 crores under the Hill Plan.

For 1967-68, the Planning Commission approved an outlay of Rs. 30 crores-Rs. 23 crores in the General Plan and Rs. 7 crores in the Hill Plan as against the State�s draft proposal for Rs. 39 crores. The expenditure under the State Plan during this year amounted to Rs. 32.12 crores- Rs.25.04 crores in the General Plan and Rs. 7.08 crores in the Hill Plan.

For the year 1968-69, the outlay approved by the Planning Commission was Rs. 29.40 crores-Rs. 22.40 crores in the General Plan and Rs. 7 crores in the Hill plan. But the total plan expenditure during the year was Rs. 27.79 crores-Rs. 21.07 crores in the General Plan and Rs. 6.72 crores in the Hill Plan.

Thus taking these three years together, the plan programme proposed by the State Government was Rs. 115.27 crores, the outlay approved by the Planning Commission was Rs. 90.25 crores and the amount spent Rs. 86.39 crores. The following table reveals the sector-wise distribution of plan provision and actual expenditure of the Ad-hoc plans in Assam.

The above reveals a clear picture of the plan provision and actual plan expenditure of the Ad-hoc plans in Assam under different heads. Among the different heads of plan expenditure, the highest amount of expenditure was incurred on Irrigation and power (Rs. 31.39 crores) which was 36.3 percent of total plan expenditure. The other heads of expenditure according to their sizes were hill areas programmes Rs.18.70 crores (21.7 percent). Social services Rs. 11.82 crores (13.7 percent). Industry and mining Rs. 5.28 crores (6.2 percent) and Transport and Communication 4.05 crores (4.7 percent).

Further, different heads of plan expenditure as percent of their plan provision varied between 77.9 percent and 108.1 percent. Although expenditure on most of the heads were below the provision but only in the case of irrigation which was 108.1 percent. Finally, the total expenditure of the Ad-hoc plan was below the provision, which was 95.7 percent of the plan provision. The shortfall of expenditure in relation to provision was rather significant in land reforms, Agriculture and allied subjects, Mineral Development, large, medium and small industry, Roads and Bridges, Town planning, Planning and Evaluation and other social services. As to the causes of shortfall, it appears non-sanction, delayed sanction and non-recruitment of staff were among the cases.

Assam�s plan outlay as in percentage of all India�s plan expenditure was further declined from 1.5 percent in the Third Plan to only 1.3 percent during these Ad-hoc plans.

About the relative priorities to the sector, it is found that the Ad-hoc plans of Assam followed the same pattern of priorities adopted in its Third Plan excepting the inclusion of a new head-"Hill Areas Programmes" which accounted for as high as 21.9 percent of the total plan expenditure. Thus excluding this item, top most priority was given to irrigation and power on which 31.39 percent for all India. This was followed by agriculture and community development (14.65 percent) and then followed by social services (11.82 percent). Further, industry and mining and transport and communication were the two neglected sectors on which less priorities were paid which as much as 5.28 percent and 4.05 percent respectively of the total plan expenditure during these Ad-hoc plans.

It is shown that out of total outlay of Rs. 87.73 crores, the share of state�s resources was Rs. 3.79 crores which was only 4.33 percent of the total outlay and the rest Rs. 83.94 crores came in the form of central assistance which was again 95.67 percent of the total outlay of these Ad-hoc plans in Assam. State�s dependence on the central assistance for financing its plan has increased from 56.9 percent during the Second Plan to 75.5 percent during the Third Plan and then to 83.94 percent during Ad-hoc plans. Consequently, the share of state�s resources to total plan outlay declined from 43.1 percent during the Second Plan to 24.5 percent during the Third Plan and then only to 4.33 percent during these Ad-hoc plans. This shows a gradual increase in the dependence on the Centre in financing the plans.

The three years period (1966-69) of the Ad-hoc plans, short though it was, full of sharp contrasts in the economy of the country and of Assam as well. The first two years (1966-68) were among the most difficult the Indian economy has had to pass while the third year (1968-69) witnessed a remarkable recovery and also proved as the turning point for the country�s as well as States economy.

So, far about the general achievements of Ad-hoc plans over the state�s economy are concerned, it would be nice to look into its achievements in terms of growth rates of state income, employment and other sectoral heads.

During the period 1965-66 to 1968-69, the state income of Assam at constant prices increased from Rs. 369.9 crores to Rs. 419.6 crores and thus maintained a growth rate of 4.3 percent in comparison to 13.6 and 4.6 percent respectively in case of the national income of India. But at current prices, the State income of Assam increased from Rs. 560.9 crores in 1965-66 to Rs. 810.4 crores in 1968-69 and thus registered much higher total and annual (compound) growth rates of 44.5 and 13.0 percent respectively in Assam as compared with 39.3 and 11.7 percent in India. But this annual compound growth rate of state income of 4.3 percent (at constant prices) during these Ad-hoc plans was almost the same as 4.4 percent during the Second and Third Plan.

The per capita income of Assam (at constant prices) increased from Rs. 275.8 in 1965-66 to Rs. 287.9 in 1968-69 i.e., at the rate of 4.4 percent as against 6.3 percent in case of India during the period of Ad-hoc plans. Again the per capita income at current prices increased from Rs. 418.2 in 1965-66 to Rs. 556.1 in 1968-69 i.e., at the rate of 33.0 percent as against 30.9 percent for India during this plan period.

As the Third Plan of Assam left behind a backlog of unemployed persons over 3 lakhs and thus with the growth of population in the state the Ad-hoc plans were faced with a huge problems of providing jobs for 6.75 lakhs of persons. During this period, the employment in the registered factories declined from 82,038 in 1967 to 79,429 in 1969 and maximum fall was noticed in case of tea factories. As per employment exchange statistics, there was a deterioration in unemployment problem of the state during this period as the number of registered job seekers increased from 57,433 in 1967 to 66,049 in 1969. Further there was disguised rural unemployment to the extent of 566 thousand persons in Assam during 1968-69.

In agriculture, most of the crops failed during 1966-67. During 1967-68, there was recovery in the production of 21.89 lakh tonnes during 1968-69. The production of Jute also recovered to 10.12 lakh bales during 1967-68 but again crashed to 7.25 lakh bales during 1968-69. The area covered by improved seeds including HYV increased from 129 thousand hectares in 1967-68 to 187 thousand hectares.

In minor irrigation, the target in 1966-67 was exceeded both by Agriculture and Flood Control and Irrigation Department while in 1967-68 both failed to realise the target. In 1968-69, the target was reached by Flood Control and Irrigation Department . In medium irrigation, the Jamuna Irrigation project was completed while the sukhla and investigation schemes were continued. The Patra-Disa Irrigation Project was completed and 2400 hectares have been covered till 1968-69 under hill areas programmes.

In the case of forests, both the physical and financial targets were fulfilled and the progress in such schemes as plantation communication, fast growing species and forest resources survey was almost entirely satisfactory during these Ad-hoc plans period.

In Fisheries, the target of spawn collection was exceeded while the target of fish production was not reached. In training 20 persons were trained at Joysagar during these plan.

In respect of co-operation, greater attention was given to consolidation and for the improvement of operational efficiency of the societies at village an additional levels through reorganisation. Under the hill areas programmes, 3 more sub-area co-operative marketing societies have been set up in Khasi and Jainta hills and registered with 80 affiliated service Co-operatives. Under the community development programme, top priority has been given to agriculture. Distribution of tractors and powers pumps has been undertaken for the purpose of reclamation and irrigation during Ad-hoc plans.

In respect of power, the umium stage (II) project was nearing completion and an additional 2.8 M.W. set was installed at Umtrew power house. The Guwahati Thermal Station, and the Garo Hills Thermal Project and the 290 KV Guwahati, Nagaon line was in the peak of construction. Extension work of Naharkatiya Thermal Station was also started. Though none of these projects was completed in 1968-69, the generating capacity already installed was increasingly utilised. Generation of electricity increased from 70 million Km. in 1965 to 143 million KWH in 1967 and to 237 million KWH in 1967 and to 237 million KWH in 1968-69. The 132 KV line from Badarpur to Churaibari was completed, 379 villages were electrified and 54 pump sets energised. The major portion of Kopili investigation was completed and the investigation of the Umium Khri, Lower Umium and Kydem-Kulai (Umtrew) was continued during the Ad-hoc plans.

In respect of industry, the first phase of Cherra Cement Project was completed and has gone into production. The gas distribution project was also completed. Some lands were brought for industrial areas but development was slow till 1968-69.

In cottage industry, the schemes for quality making and control, service working and control, service workshops, training centres, Small Industrial Development Corporation and marketing Corporation were continued. 220 parties were given loan during these plan period and 58 parties were given power subsidy. The Guwahati and Nalbari Industrial Estates were finally competed in 1966-67 while estates at Nowgong, Tinsukia, Jorhat, and Sibsagar were in progress till 1968-69.

In the case of construction of roads, the targets of road length were generally achieved but during 1968-69, there was substantial shortfall in respect of unsurfaced roads. During these three years 84 kms. (target 515 kms.) of unsurfaced roads were constructed. Under the hill area programmes, the length of surfaced road was constructed. Under the hill programmes, the length of surfaced road increased by 15 Kms. and that of unsurfaced roads increased by 407 Kms. during these Ad-hoc plans.

Further, in the areas like health, water supply, housing, town planning and welfare of backward classes, the Ad-hoc Plans achieved the targets to the limited extent.

The State Government of Assam submitted to the Planning Commission the Draft Fourth Five Year Plan of Assam with a total outlay of Rs. 394.82 crores made up of Rs. 314.89 crores for General Areas and Rs. 79.93 crores for Hill Areas. Against the above proposal, the Planning Commission agreed to the outlay of Rs. 225.50 crores consisting of Rs. 160.50 crores for the General Areas and Rs.65.00 crores for the Hill Areas.

But on 21st January 1972, the full state of Meghalaya and Union Territory of Mizoram came into existence. With the formation of Meghalaya, the outlay of the Fourth Plan of Assam was pruned to Rs. 223.75 crores made up of Rs. 191.75 crores for the General Areas and Rs. 32.00 crores for the two Hill Districts of Assam including the Union Territory of Mizoram. Further pruning became necessary when it was found that the State Government would not be in a position to raise in full their share of resources.

The Fourth Plan period witnessed serious national concern when Bangladesh was being liberated in 1971. Again in 1972 and 1973, serious floods caused extensive damage to crops, cattle, houses etc. and the losses were Rs. 24.62 crores in 1972 and 16.75 crores in 1973. During the Fourth Plan, the State also experienced upward spiral in prices and inflation continued. All these factors brought about strains and stresses in implementation of the plan and affected the growth of the State�s economy.

The objectives of the Fourth Plan in Assam were formulated considering both the national objectives of Fourth Plan, level of economy of Assam and the various problems of growth peculiar to the state. Following are the main objectives of the Fourth Plan in Assam.

(1) To achieve a growth rate of 5 percent per annum in the agricultural sector, achieve self-sufficiency in food grains and to raise the production on industrial raw materials;

(2) To develop extensively medium and small industries so as to enlarge the supplies of essential consumer goods and also to provide a firm base for industrialisation of the state in the near future;

(3) to develop internal communication of the state with emphasis on village and hill road ;

(5) to provide adequate employment opportunities to the new entrants to the labour force and ensure fuller utilisation of manpower.

Besides, these, importance was given on such aims as completion of all industrial and power projects started, power development, adequate flood control measures, control of population growth, provision of minimum amenities like drinking water, medical facilities, primary education etc.

As advised by the Planning commission to prepare a plan on the basis of visible resources, total outlay of the Fourth Plan stood reduced to Rs. 206.00 crores including 32.00 crores for the Hill areas of Assam and the Union Territory of Mizoram. Although, initially these was a plan provision of Rs. 206.00 crores for the Fourth Plan of Assam but the actual expenditure reached up to Rs. 198.39 crores which was 96.3 percent of the plan provision. The following table reveals the sector-wise distribution of plan provision and actual expenditure of the Fourth Five Year in Assam.

The above table reveals that the actual amount of expenditure of the Fourth Plan of Assam was Rs. 198.39 crores. The Fourth Plan of Assam was bigger in size than that of the Third Plan. Plan expenditure in the Fourth Plan increased nearly by 5.00 percent in comparison to the Third Plan expenditure of the state. Among the different heads of plan expenditure the highest amount of expenditure was incurred on Irrigation and power (Rs. 71.16 crores) which was 35.87 percent of the total plan expenditure. The other heads of expenditure according to their sizes were-social services-18.99 percent, Agriculture and allied programmes 18.33 percent, Transport and communication-13.10 percent, Industry and mining 8.53 percent, Co-operation and community development 3.87 percent.

Besides, plan expenditure under different heads as percent of their plan provision varied between 85.1 percent and 107.6 percent. In spite of total plan provision of Rs. 206.0 crores, total amount of expenditure was Rs. 198.39 crores during the Fourth Five Year Plan in the State. Thus, the total plan expenditure under 96.3 percent of total plan provision during this period. Total expenditure under Irrigation and power and Co-operation and Community Development has exceeded the plan provision by 7.6 percent and 1.8 percent respectively. On the other hand, expenditures under the remaining heads were below the plan provision during the Fourth Plan period in the State.

Actual outlay of the Fourth Plan of Assam was Rs. 198.39 crores. There was 50 percent rise in the outlay of the Fourth plan compared to that of the Third Plan. This was remarkably smaller in comparison to the previous plan. The Fourth Plan outlay of Assam as percent to that of all India was only 1.25 percent while the Third Plan outlay of the State constituted 1.54 percent of the all India plan outlay. Further, when the population ratio of Assam to the national population was 2.7 percent (according to 1971 census) then the ratio of state�s Fourth Plan outlay of 1.25 percent in comparison to that the national plan outlay compared very badly in this respect.

The pattern of allocation and priority followed under the Fourth Plan of Assam were more or less similar to that of previous plans of the State whereas it was little bit different than that of national Fourth Plan. Like the previous plan Irrigation and Power received the top most priority in this plan which accounted 36 percent of the total outlay. However, out of the total outlay for this sector, 58 percent of the outlay was meant for power, 33 percent for flood control and only 9 percent for irrigation. Thus, the importance of irrigation was again ignored in the Fourth Plan. The national Fourth Plan also gave top priority to Irrigation and Power.

Social services accounting for 19 percent of the outlay which come second in the list of priority in the Fourth Plan of the state. Thus, the share of the social services sector in the total plan outlay is declining from 37.02 percent during the Second Plan to 27.1 percent in the Third Plan and then to 19 percent during the Fourth Plan. In the national Fourth Plan, social services also accounted for 10 percent of the total plan outlay.

Agriculture and allied programmes accounted for 18.38 percent of the total outlay of the Fourth Plan as against 16.7 percent during the Third Plan. Thus, in the allocation of Fourth Plan outlay in Assam agriculture received third position in the list of priority whereas it received lowest priority in the national plan.

Industries and mining sector, like the previous plans, was a neglected sector in Assam�s Fourth Plan on which 8.5 percent of the outlay was allotted to it. But in the national Fourth Plan, Industries and mining sector received second priority which constituted about 20 percent of the total outlay.

Transport and communication received the fourth priority and claimed 13.10 percent of the total Fourth Plan outlay of Assam whereas the same sector received third priority in the national Fourth Plan claiming 19.5 percent of the total outlay.

Thus we find that there was marked difference in the pattern of priorities followed in the Fourth Plan of Assam and all India.

It is shown that out of the total outlay of Rs. 207.05 crores, the share of state�s resources was only Rs. 33.80 crores, which was 16.33 percent of the total Plan outlay and the rest of Rs. 173.25 crores came in the form of the Fourth Plan in Assam. In financing the Plan the state�s dependence on the central assistance has increased from 56.9 percent during the second Plan to 75.5 percent during the Fourth Plan. Naturally, the share of state�s resources to total Plan outlay declined from 43.1 percent during the Second Plan to 24.5 percent during the Third Plan then to 16.33 percent during the Fourth Plan in the state. Thus, Assam had to depend much on central assistance in financing its plan as state own resources were meager. This shows a gradual increase in the dependence on the centre in financing her plans.

Let us now look into the achievements of the Fourth Plan on the economy of Assam in terms of growth rates of state income per capita income employment and other sectoral heads.

The state income at constant prices, increased from Rs. 419.6 in 1968-69 to Rs. 45.1.1 crores in 1973-74, registering a total growth rate of 7.5 percent during the Fourth Plan period which was lowest of all the previous plan. During the Fourth Plan, the annual compound growth rate of the state income of Assam was only 1.4 percent as against 3.5 percent, 1.9 percent, 4.4 percent and 4.3 percent during the First, the Second, the Third and the Annual plan period respectively. Further, both the total growth rate and the annual compound growth rate of the state income were much lower than those of the National Plan during this plan period.

The state income at current prices, also increased from Rs. 810.4 crores in 1968-69 to Rs. 1009.9 crores in 1973-74. Total growth rates of state income during this plan period were 24.6 percent as against 73.1 percent of the growth rate of national income in India.

The per capita income of Assam at constant prices, declined from Rs. 287.9 in 1968-69 to Rs. 286.4 in 1973-74 registering a negative total growth rate of (-) 2.3 percent as against the growth rate 5.2 percent in the national per capita income of India during this period. The annual compound growth rate of per capita income of the State was (-) 0.46 percent for all India. But the per capita income at current prices, increased from Rs. 556.1 in 1968-69 to Rs. 641.2 in 1973-74 and thus registered a total growth rate of 15.3 percent as against the growth rate of 53.5 percent for national per capita income of India. At the end of Fourth Plan period, the gap between the per capita income (at current prices) of Assam and all-India was as high as Rs. 210.6. This shows that the state plan failed to achieve a high rate of economic growth which would raise the level of per capita income of Assam to the national level.

Although generation of employment on a large scale was one of the principal objectives of the Fourth Plan of Assam but the plan could not do much in reducing the severity of the problem of unemployment and under-employment in the State. The employment situation was difficult year after year. Employment situation in the registered factories improved only a little during this plan period. The "average number of workers employed daily in these factories increased from 75.7 thousand in 1970 to 78.3 thousand in 1974". The average annual number of persons seeking jobs through the employment exchanges in the State during the period 1970-74 was 91,430. But the annual average number of placements affected was only 6415 which were only 7 percent of the total job seekers. This reveals that much is to be done to solve the aggravating unemployment problem in Assam. Besides, there was sufficient disguised unemployment in the agriculture sector in the State. Total number of surplus farm workers in Assam was 764 thousand in 1973-74.

During the Fourth Plan period, production of food grains rose from 18.26 lakh tonnes to 21.71 lakh tonnes against the target of 25 lakh tonnes. But the production did not rise steadily. The increase in the production of food-grains against the target were (a) lack of adequate irrigation support, (b) inadequate agricultural credit and (c) lack of adequate extension support. Production target of Jute was nearly achieved by an increase in areas. Jute production reached a high level of 11.36 lakh bales in 1973-74. Production of sugarcane and oil seeds had exceeded the target. Production of tea rose from 2.08 lakh tonnes in 1969-70 to 2.52 lakh tonnes in 1973-74. By the end of the Fourth Plan period, the yield rates of the crops were not satisfactory. These were below the all India average yield rates. The average yield rate of rice in this State was 1010 Kgs. per hectare against the all-India average of 1151 Kgs. per hectare in the year 1973-74. i.e., by the end of the Fourth Plan.

Industrial production in the State recorded a continuously rising trend since 1971, the annual rate of growth being about 4 percent. The index of industrial production in Assam gradually rose from 13.57 (Base 1970-100) in 1971 to 115.08 in 1973. Works on three industrial areas at Tezpur, Managadia, and Golaghat were completed during this plan period. Construction works of the industrial projects like Assam Petrochemical Project at Namrup, Cachar Sugar Mills, Caustic Soda Chlorine Plan at Jogighopa, NPK Granulated fertiliser factory at Narangi, Rice Bran Oil Mills at Rowta, M/S Ashok Paper Mills at Jogighopa and Assam Gas Company Ltd. were either completed or under nearing completion.

For the development of small scale and cottage industries in the state, industrial estates, growth centres and service workshops were set up during the Fourth Plan period. The industrial estate at Sibsagar, started during the Fourth Plan. The new industrial estates at Jorhat and Nagaon were set up during the Fourth Plan. As many as 75 units had been set up in the eight estates providing employment to about 1500 persons and produced goods and services worth Rs. 2.50 crores.

In the case of forest, adequate attention was given to economic plantation to meet the growing demand of forest based industry. Again the target for creation of 10,272 hectares and area of 10,300.6 hectares were created. An areas of 4404 hectares of plantation was completed.

In respect of power, there was substantial progress during the Fourth Plan period. At the beginning of the Fourth Five Year Plan, there was an installed capacity of 153 MW with the corresponding per capita consumption of 14.8 units. The objectives of the Fourth Plan was to increase the power generation to 246 M.W. Against this estimated level of generation, the achievement was 202.95 MW increasing the per capita consumption to 20.45 units by the end of the Fourth Plan period. Thus, the power generation in Assam (including Meghalaya) rose from 413.2 million K.W.H. in 1971 to 539.9 million K.W.H. in 1974. During the Fourth Plan, the work was carried out on the following generation schemes :

The Irrigation Potential created during the Fourth Plan Period was 118.90 thousand hectares in respect of major irrigation and 5 thousand hectares in respect of major and medium irrigation.

In communication, the road length under P.W.D. stood at 19280 K.M. in 1974 as against 17030 K.M. in 1971. Achievements in respect of roads and bridges during the Fourth Plan consists of (a) improvement of low standard P.W.D. road which includes gravelling to the extent of 402 K.M. and metalling and black topping-210 K.M. (b) construction of 12 major bridges, (c) construction of 950 K.M., of new roads and construction of 60 K.M. of municipal roads.

Further, the progress in education, health and other welfare programmes during the Fourth Plan period substantially contributed to the expansion of facilities of social services, the weaker sections of the population like scheduled castes, Scheduled tribes and other backward classes were taken care of special programmes during this plan period. All these achievements have strengthened the base so as to sustain greater developmental activities in the subsequent plans to follows.

The Fifth Five Year Plan in Assam accepted the basic objectives of the national Fifth Plan as prepared by the Planning Commission and approved by the National Development Council. Among these, the most important objectives were : removal of poverty and attainment needs for the people. The plan also envisaged the importance of the creation of large employment opportunities and on the provision of basic minimum needs for the people. The plan envisaged a growth rate of 5.5 percent per annum and also laid emphasis upon the objectives of improving the conditions, of backward classes and removing regional imbalances.

Besides, in the perspective of the state�s requirements, some more specific objectives were formulated for the Fifth Five Year Plan of Assam. Considering the large gap between the per capita income of Assam and India it was aimed at making substantial progress towards catching up with all-India per capita income during the Fifth Plan period.

It was envisaged during this plan towards removal of imbalances in essential spheres, like power, roads, education and health and in the programme of basic minimum needs.

The plan also aimed to build infrastructure consisting of power, rail/road and inland water communications, irrigation, a network of banks for provision of overall credit and adequate strengthening, toning-up and orientation of the administrative set up.

It was felt that self-reliance in the matter of food-production and basic consumer goods must be attained during this plan period through diversification of agriculture and by setting up consumer goods industries.

The Fifth Plan of Assam decided to have conscious effort for fuller utilisation of natural resources of the state for production of hydel and thermal power, production of coal and establishment of coal-based industries, strengthening of forestry and forest-based industries.

With the objective of maintaining stability in the economy, the Fifth Plan of Assam envisaged on the development of flood control and irrigation system to save the economy from the grip of floods and droughts.

Thus, for the first time in the State, the plan objectives of the Fifth Plan of Assam were finalised considering the needs and problems of the State.

Total outlay of the Fifth Five Year Plan of Assam was finalised to Rs. 551.20 crores costing of Rs. 454.20 crores for general areas, Rs. 23.00 crores for Hill areas and Rs. 73.00 crores for the supplementary plans for backward classed. Against this plan provision of Rs. 551.20 crores, total actual expenditure during this Fifth Plan was only Rs. 277.97 crores which was only 50.4 percent of the plan provision. It is necessary to mention here that the Fifth Plan was terminated one year before its regular term. The following table shows the figures of plan outlay, sector-wise distribution of outlay and ratio of priorities under the Fifth Five Year Plan of Assam.

It is quite noteworthy that there was tremendous interest in the Fifth Plan outlay of both Assam and All-India over the Fourth Plan. In case of Assam, the rise was 178 percent as against 136 percent in case of All-India. Further, Assam�s Fifth Plan outlay as percent of that All-India was only 1.5 percent although the state possesses 2.8 percent of total population of the country.

The priority pattern of the Fifth Five Year Plan of Assam was more or less similar to that of Fourth Plan. Among the different heads of plan outlay. Irrigation and power once again received the top most priority which accounted for nearly 33 percent of the total allocation. Again 84 percent of the total outlay for this sector was allotted to power development keeping the rest 6 percent only for the development of irrigation potential but the national Fifth Plan gave second priority to this sector and the expenditure of this sector was 24 percent of the total outlay.

Social services received the second priority in the Fifth Plan of Assam which claimed 22 percent of the total outlay whereas the national plan gave third priority to this sector claming 20.6 percent of the total plan outlay.

Agriculture and community development was given third priority in the Fifth Plan of the state accounting for nearly 21 percent of total outlay as against only 12.7 percent in all India.

Industry and mining was again neglected in the Fifth Plan of Assam as only 12.70 percent of the total outlay was allocated for this sector. Again, only 15 percent of the total outlay of this sector was allocated to village and small industries keeping the remaining 85 percent for the large industries in the State. But in the national Fifth Plan, industry and mining received the topmost priority accounting 24 percent of the total plan outlay.

Transport and communication received lowest priority in the Fifth Plan of Assam like earlier plans accounting for only 10 percent of the total outlay as against the allocation of 19 percent of the total outlay in the national Fifth Plan.

As the Fifth Five Year Plan was terminated one year before its regular term, so the achievements of this plan were assessed with shorter periodicity. Let us now look into the achievements of Fifth Plan in terms of growth rates of state income, per capita income, employment and other sectoral heads.

The state income at constant prices (1970-71) increased from 851.5 crores in 1973-74 to Rs. 1030.9 crores (P) in 1977-78 showing a total growth rate of 21.07 percent during the Fifth Plan period as against the total growth rate of 7.5 percent during the Fourth Plan period. The Fifth Plan of Assam fixed the target of achieving an annual growth rate of 5.5 percent in the state income and at the end of the Plan it was found that the target was more than fulfilled.

The state income at current prices, also increased from Rs. 1013.7 crores in 1973-74 to Rs. 1651.3 crores 1977-78 showing a total growth rate of 62.9 percent as against the total growth of 24.6 percent during the Fourth Plan period. Thus, the growth rates of state income both at constant and current prices were really satisfactory.

The per capita income at constant (1970-71) prices, increased from Rs. 540.7 in 1973-74 to Rs. 581.6 (P) in 1977-78 registering a total growth rate of 7.5 percent during the Fifth Plan period. Again, the per capita income at current prices increased from 643.6 in 1973-74 to Rs. 931.6 in 1977-78 showing a total growth rate of 44.6 percent during the Fifth Plan period as against the growth rate of 15.3 percent during the Fourth Plan period. At the end of Fifth Plan period, the gap between the per capita income at current prices of Assam and all-India was as high as Rs. 232.6 whereas the same gap at constant prices was Rs. 109.6. Thus, it reflects that the rare of economic growth achieved in the state plan could not keep pace with that of national plan.

Let us now look into the achievement of the Fifth Plan in respect of employment generation as removal of unemployment was one of its major objectives. It was estimated that an addition of 8.30 lakhs would be included in the working force of the state during the Fifth Plan. Employment in the private sector establishments in Assam increased from 459.36 thousand persons in 1974 to 496 thousand persons in 1978 displaying an increase of 7.9 percent. The average number of workers employed daily in the registered factories also increased from 77.7 thousand in 1973 to 84 thousand in 1978. Total number of employees working in the public sector in Assam also increased from 263.38 in March, 1974 to 309 thousand in March 1978 showing an increase of 17.3 percent in the employment of this sector. The unemployment situation in Assam continued to be critical during this plan period. The number of applicants on the live Register of employment exchanges in Assam which was 1, 21, and 539 in 1973 rose to 287.2 thousand in 1978. Further, the number of registrants in the employment exchanges also increased from 105 thousand in 1973 to 142 thousand in 1978. The annual average number of placements effected was only 7002 which were nearly 6 percent of total job seekers. It is revealed from the information made available by the employment exchanges that the number of educated job seekers in the live Register increased from 44,371 in 1973 to 1, 19,369 thereby registering an increase of 169 percent over 1973. Besides, disguised unemployment in the rural sector of Assam had also been increasing year by year as the agricultural output/income per agricultural worker declined from 564 Kgs. and Rs. 449 in 1973-74 to 513 and Rs. 439 in 1976-77 respectively. It was also estimated that the number of surplus workers increased from 764 thousand in 1973-74 to 1215 thousand in 1976-77.

During the Fifth Plan Period, target for bringing total area under the production of food grains was 1924 thousand hectares against which 2203 thousand of area was brought under this scheme. Thus the target was over-fulfilled.

The Fifth Plan set the target of bringing 114 thousand hectares of new area under minor irrigation of which but at the end of 1977-78, 91.65 hectares of new area was brought under the minor irrigation. Although total potential under minor irrigation was 274.89 thousand hectares but the Fifth Plan set the target of total utilisation of the extent of 145 thousand hectares of which 120 thousand hectares potential was utilised at the end of Fifth Plan period. In respect of major and medium irrigation the Fifth Plan set the target of bringing 65.75 thousand hectares of new area was brought under the scheme at the end of plan period.

Further, against the target of bringing 25 thousand hectares of area under forests in Assam, the achievement under the Fifth Plan was only to the extent of 17.30 thousand hectares.

Under the Fifth Plan, the achievement in respect of power was satisfactory. The Fifth Plan has fulfilled the target of raising, installed capacity of power to the extent of 141.5 MW. Against the target of 2780 MW of electricity generated, the achievement was 2740 MW during the Fifth Plan period. Under rural electrification scheme, the target of the Fifth Plan was to electrify 1975 villages of which only 660 villages were electrified during this plan period.

In the case of construction of roads under the Fifth Plan 1592 Km of total road length was constructed against the target of 1871 Km., of which 47 Km. was surfaced and the rest 1545 Km.was unsurfaced.

During the Fifth Plan Period, 1239 new small scale industrial units were established against the target of 2 thousand units. The Fifth Plan set the target of increasing the number of Industrial Estates/Areas to 6 numbers but at the end of the Plan it was found that only 3 Industrial Estates/Areas were functioning. Total production of handloom industry during this plan period was 45.48 m. metres against the target of 55.00 m. metres. Again, total production of raw silk under sericulture industry was 21.20 thousand Kgs. during this plan period against the target of 24 kgs.

Thus, from the above facts it reveals that the achievements of the Fifth Plan under its various heads were more or less satisfactory.

In 1977-78, the Fifth Plan was terminated by the Janata Government and a draft Sixth Plan (1978-83) was prepared which ultimately could not take the final shape. In August 1980, a draft of the new Sixth Plan (198--85) was prepared by the newly constituted Planning Commission which was approved by the National Development Council on February 14, 1981.

The Sixth Five Year Plan in Assam more or less accepted the basic objectives of the national Sixth Plan as prepared by the Planning Commission and as approved by the National Development Council, these are as follows :

(i) A significant step-up in the rate of growth of the economy by promoting efficiency in the use of resources and improved productivity ;

(ii) Strengthening the impulses of modernisation for the achievement of economic and technological self- reliance ;

(iv) a speedy development of indigenous sources of energy with proper emphasis on conservation and efficiency in energy use.

(v) improving the quality of life of the people in general with special reference to the economically and socially handicapped section through a minimum needs programme ;

(vi) strengthening the re-distributive basis of public policies and services in favour of the poor and thus contributing to a reduction in inequalities of income and wealth ;

(vii) promoting policies for controlling the growth of population through voluntary acceptance of the small family form ;

(viii) bringing about harmony between the long-term and the short-term goals of development by promoting the protection and improvement of ecological and environmental assets ; and

(ix) Promoting the active involvement of all sections of the people in the process of development through appropriate education, communication and institutional strategies.

While formulating the objectives of State�s Sixth Plan, within the limits of these above mentioned national objectives, proper consideration had also been given to the special problems of the economy of the State.

The main strategy of the Sixth Plan in Assam was to strengthen the infrastructure for both agriculture and industry which was similar to the national plan. This strategy was adopted for creating necessary conditions for an accelerated growth in investment, output and export. Creating increased opportunities for employment, particularly in the rural areas unorganised sector and to meet the minimum needs of the people for improving living conditions of the masses were some of the major goals finalised for the Sixth Plan in the state. Securing active involvement of the people for the formulation of various schemes of development at the local level along with speedy and effective implementation of these projects were the other strategies finalised for the Sixth Plan in State which were similar to that of national Sixth Plan.

Planning commission finalised the total outlay of the Sixth Five Year Plan to Rs. 1115.00 crores including Rs. 80.00 crores for the Hill areas. Although, initially there was a plan provision of Rs. 111.50 crores but the actual expenditure of the plan exceeded the plan provision and reached up to Rs. 1282.60 crores which was 115.03 percent of the plan provision...

It is shown that the actual amount of total expenditure of the Sixth Plan in Assam was 1282.60 crores. The size of the Sixth Plan was more than double than that of the Fifth Plan. Plan expenditure in the Sixth Plan increased nearly by 132.5 percent in comparison to the total expenditure of the Fifth Plan.

One very striking feature of the Sixth Plan was that in most of the sectoral heads expenditures exceeded the plan provision excepting rural development and miscellaneous heads where expenditure were 99.38 percent 85.6 percent respectively of the plan provisions. Plan expenditures under different heads as percent of their plan provisions varied between 85.6 percent and 320.04 percent. Total expenditures under respective heads as percent of the plan provisions were mainly 117.01 percent for agriculture,100.80 percent for Co-operation, 123.49 percent for power, 102.94 percent for industry and mining 104.72 percent for transport and communication, 320.04 percent for scientific services and research and 121.31 percent for social services. Thus, the total expenditure under agriculture, irrigation and flood control, power, industry and minerals, transport and communications, scientific services and research and social services and research and social services had exceeded the plan provisions by 17.01 percent, 6.30 percent 23.49 percent 2.94 percent, 4.72 percent, 220.04 percent and 21.31 percent respectively.

Total outlay (actual) of the Sixth Plan of Assam was Rs. 1282.60 crores. There was 132.5 percent rise in the outlay of the Sixth Plan over the outlay of Fifth Plan. This was remarkably low compared to the previous plan�s increase in the outlay by 178 percent. The state plan outlay as in percentage of national plan outlay during the Sixth Plan in Assam was only 1.31 percent as against 1.5 percent, 1.25 percent and 1.54 percent during the Fifth, Fourth and Third Plan respectively. This again compared very badly in respect of population as the State possess 2.8 percent of total population of the country.

The priority pattern followed in the Sixth Five Year Plan in Assam was although similar to the previous plan but some changes were made in some other respect too. Among all the heads of plan outlay, power alone received the topmost priority claiming 35.69 percent of the total plan allocations during this plan period. The national Sixth Plan also gave top priority to power but the expenditure of this sector was 19.8 percent of the total outlay.

Social services again received the second priority in the Sixth Plan of Assam which claimed 19.46 percent of the total outlay but the national plan gave third priority to this head which allocated 14.4 percent of plan outlay.

Irrigation and Flood control was given the third priority in the Sixth Plan of the State which accounted nearly 13.45 percent of total outlay as against 12.5 percent in case of all India.

Agriculture and allied services received fourth priority as only 11.17 percent of total plan outlay was allocated in this head. But in the national plan 5.8 percent of the total outlay was allocated in this head.

Transport and communication was the next sector on which 8.24 percent of the total outlay was allocated during the Sixth Plan in Assam, whereas in the national plan 15.9 percent of the total outlay was allocated in this sector.

Rural development was the next sector on which 4.69 percent of the total outlay was allocated in it and in the national plan 5.5 percent of the outlay was allocated in it.

Co-operation and Scientific services and research were in the other two sectors on which lowest priority was given in the Sixth Plan of Assam.

Let us now look into the achievements of the Sixth Plan on the economy of Assam in terms of growth rates of state income, per capita income, employment and other sectoral heads.

The state income at constant prices, increased from Rs. 982.3 crores in 1979-80 to Rs. 1107.2 crores in 1981-82, registering a growth rate of only 12.7 percent during the first two years of the Sixth Plan. Again the state income at current prices, increased from Rs. 2022.9 crores to Rs. 2798.4 the first two years of the plan period.

The per capita income of Assam at constant prices, increased from Rs. 516.4 in 1979-80 to Rs. 546.0 in 1981-82 registering a growth rate of 5.7 percent. But the per capita income at current prices, increased from Rs. 1063.4 in 1979-80 to Rs. 1380.0 in 1981-82 registering a growth rate of 29.8 percent during the first two years of the plan.

Generation of employment was one of the major objectives of the Sixth Plan. The total employment in the organised sector (i.e., under public and private sectors together) increased from 834.7 thousand in March, 1980 to 861.9 thousand in March, 1983 displaying an increase of 3.2 percent. The average number of workers employed duly in registered factories increased from 87.7 thousand in 1980 to 90.7 thousand in 1981. The unemployment situation in Assam continued to be critical during the first three years of the Sixth Plan. The number of applicants on the Live Register of employment exchanges in Assam rose from 347.5 thousand in 1980 to 403.1 thousand in 1982. The annual average number of placements effected was only 6542 during the first three years of the plan which was only 1.6 percent of total number of applicants. The total number of educated job seekers as per the live of the employment exchanges increased from 1.45 lakhs in 1980 to 1.76 lakhs in 1982. Educated jobseekers thus constituted nearly 44 percent of the total jobseekers on live register in 1982 compared with about 40 percent in 1981 and about 42 percent in 1980.

In the various other sectoral heads like agricultural rural development power development , irrigation and flood control, transport and communication etc. necessary information about their physical achievements were not yet available but in most of these sectors, amount of expenditures incurred exceeded the allocation made during the Sixth Plan in Assam. This is no doubt a good indication as the fund allotted to various sectors are fully utilised during this plan period.

The draft Seventh Five Year Plan, which was prepared in 1948 under the leadership of then Prime Minister, Late, Smt. Indira Gandhi, put much emphasis on development, equity and social Justice through the achievement of self-reliance, efficiency and increased production. The draft Seventh Plan which was approved by the Planning Commission on 17th September, 1986, thus laid much importance on generation of employment and eradication of poverty. Thus, the Seventh Plan is mainly devoted to carry on ceaseless works on food, work and production. The Seventh Five Year Plan of Assam also followed the same line as shows by the national plan.

The Seventh Five Year Plan in Assam accepted the basic objectives of the national Seventh Plan as prepared by the Planning Commission and approved by the National Development Council. These are as follows:

(i) Achievement of Self-sufficiency in the production of food grains by raising the rate of growth of production in the agriculture sector;

(ii) Generation of productive employment for maximum utilisation of human resources and solving the problem of unemployment through the development of agriculture and industry in such a fashion which can create employment potential for huge number of people ;

(iii) Improving the quality of life and standard of living of the people in general, with special reference to the economically and socially handicapped sections through a minimum needs programme :

(iv) A speedy development of power generation along with utilisation of existing generation capacity;

(vi) Promoting the active involvement of all sections of the people in the process of development through appropriate education, communication and institutional strategies;

(viii) to decentralise planning and to achieve full public participation in development works ;

(ix) to provide services like education, health, nutrition, sanitation and housing ;

(xi) to reduce infrastructural bottlenecks and shortages and to improve capacity utilisation ;

Although the above mentioned objectives are finalised for the Seventh Plan but generation of power providing more irrigation facilities and overall improvement in the agricultural sector will continue to be the main thrust in the Seventh Plan of Assam.

Thus, accelerated growth of agricultural production, creation of employment opportunities and to improve and increase productivity is the three major objectives of the Seventh Five Year Plan in Assam. So, the Seventh Plan aims at growth, equity social, self-reliance, improved efficiency.

The Seventh Five Year Plan of Assam was discussed in the detail in December, 1984 in the Working Groups set up by the Planning Commission. The working groups recommended an outlay of Rs. 2464.60 crores for the Seventh Plan in Assam. Again the State Plan Division recommended an outlay of Rs. 1750 crores only for Seventh Plan, the state Government proposed an outlay of Rs. 3718.95 crores but ultimately the outlay of the Seventh Plan in Assam was finalised to Rs. 2100 crores. At the end of Seventh Plan the actual expenditures of the plan exceeded the proposed outlay and reached the level of Rs. 2489.57 crores.

In the approach paper of both the National and the State Seventh Five Year Plan it was estimated that the growth rate of the economy during the plan period will be little over 5 percent. Agriculture will grow at a rate of 4 percent: food grains will grow at 5 percent; industry to grow at 7 percent. In respect of capital formation, savings will grow at a rate of 25 percent. It was further estimated that in order to secure an improvement upon the level of per capita income, the rate of growth shall have to be 1.8 percent per annum.

It is revealed that the Seventh Plan of Assam was bigger in size than that of the Sixth Plan. Among the different heads of expenditure, highest amount of outlay was allocated on power sector on which 23 percent of the total outlay was allocated. The second highest priority was given to irrigation and flood control on which 15.9 percent of the total outlay was allocated. The Seventh Plan of Assam gave third highest priority on Agriculture and allied services which claimed 14.6 percent of the total outlay. The other heads of expenditure according to their size were- water supply, housing and urban development-9.0 percent, Transport and Communication-8 percent and Rural Development-6.2 percent, Industry and minerals-5.0 percent. Thus, nearly 37 percent of the total outlay of the Seventh Plan was allocated on the sectors like agriculture, rural development co-operation, irrigation and flood control which would go a long way in eradicating poverty and reducing food deficit in our state. At the end of the Seventh Plan actual total expenditure stood at Rs. 2489.59 crores.

The Seventh Five Year Plan of Assam has set the targets for different sectors of the State.

We can see that the Seventh Plan of Assam had finalised the targets under different heads as-state per capita income will increase annually by 7 percent; total production of food grains would increase by 4400 thousand tonnes; Irrigation potential to be developed by 13 thousand hectares; employment to be generated by N.R.E.P. would be extent of 180 lakh man days etc.

During the Seventh Plan the Government introduced the system of decentralised planning at the sub-divisional level by forming an sub-divisional Planning and Development Committee for preparing various development plans on Agriculture, minor irrigation, primary education, village roads, village industries etc.

Further, during the Seventh Plan, the Government of Assam introduced the 14 point Socio-Economic Programmes which were not included in the Minimum Needs Programme and the 20-Point Programmes of the Central Government adopted earlier. These 14-Point Programmes were related to the provision of employment generation for the youths, improving the methods of cultivation, modernization and expansion of village industries, expansion of primary education and primary health centres, development and improvement of village roads and communication etc. Besides, the Seventh Plan of Assam also took some ambitious programmes for the establishment of a College of Agriculture, an Agricultural Engineering College, a College of Fishery, an Electronic Development corporation, some mini hydel projects and schemes like Char area development, backward area development etc. As per interim assessment, the growth rate of the economy during the Seventh Plan would be slightly more than 5 percent; agricultural production would step up by 4 percent and that of food grains would increase by 5 percent.

Let us now look at the achievements of the Seventh Plan on the economy of Assam in terms of growth of state income, per capita income and other sectoral heads as per interim assessments.

During the Seventh Plan the state income at constant price (1980-81) increased from Rs. 3155.4 crores in 1984-85 to Rs. 3817.3 crores in 1989-90, registering a growth rate of 24.14 percent and the annual average growth rate of 4.82 percent. The state income at current prices has also increased from Rs. 4725.0 crores in 1984-85 to Rs. 7741.0 crores in 1989-90, registering a growth rate of 63.8 percent and the annual average growth rate of 12.7 percent during the Seventh Plan.

The per capita income of Assam at constant prices (1980-81) increased from Rs. 1457 in 1984-85 to Rs. 1576 in 1989-90 showing a total growth rate of 8.2 percent during the Seventh Plan. The per capita income of Assam at current prices also increased from Rs. 2182 in 1984-85 to Rs. 3196 in 1989-90 registering a total growth rate of 46.5 percent during the Seventh Plan. Thus, at the end of the year 1989-90, the gap between per capita income at current prices of Assam and all-India was as high as Rs. 1095 whereas the same gap at constant prices was Rs. 572 in 1989-90 as against the same gap of Rs. 356 in 1984-85.

During the Seventh Plan Rs. 2489.57 crores was spent as against the total outlay of Rs. 2100 crores under different heads. Total production of food grains has increased from 26.70 lakh tonnes in 1984-85 to 30.35 lakh tonnes in 1985-86 and then declined to 26.18 lakh tonnes in 1988-89 due to unprecedented drought and flood conditions. Production of oil-seeds has increased from 1.50 lakh tonnes in 1985-86 to 2.41 lakh tonnes in 1968 and then declined to 1.46 tonnes in 1989-90.

Under the Integrated Rural Development Programme (I.R.D.P.) Number of persons benefited were 51,843 in 1985-86 and more than 61,146 1989-90 and thus achieved 87.3 percent of the target in this respect.

Under National Rural Employment Programme (N.R.E.P.) nearly 83 percent of the target was achieved during the first four years of the Seventh Plan.

In respect of irrigation potential, during the Seventh Plan 101.0 thousand hectares of area was irrigated and thus 47 percent of the target was achieved. Moreover, in March 1990, total amount of irrigated land in Assam was to the extent of 5.5 lakh hectares which was only 20.4 percent of the total cultivated area of the state.

In respect of drinking water supply in the problem villages 9110 villages were covered till in 1989-90 out of the total target of 64493 villages.

Under the rural electrification programme 9178 number of villages was electrified during the Seventh Plan (up to 1989-90 as against the total plan target of 9.663 villages). Thus, at the end of 1989-90, 20984 villages were electrified which was nearly 95 percent of the inhabited villages of the state.

In the case of construction of PWD roads under the Seventh Plan 3633 Kms. of road were constructed till 1989-90 as against the total plan target of 5457 Kms.

On the basis of available data, we can see that excepting removal of gap between the per capita income of Assam and all India, the other targets of the plan have been almost fulfilled.

Moreover, the long standing demand of Assam of getting a status of special category state in respect of granting Central assistance has been accepted by the Central Government. Accordingly, Assam will get her Central assistance for plan by 10 percent as loan and 90 percent as grant instead of previous system of providing 30 percent as grant and 70 percent of English Plan in Assam and would go a long way for achieving a higher level of plan investment and attainment of higher rate of growth in the State�s economy.

Although the approach paper of the Eight Plan was approved earlier by three different Governments at the centre but due to political instability the Eight Plan could not commence from 1990-91. After the formation of a new Congress (I) Government at the centre, Prime Minister Mr. P.V. Narasimha Rao announced in the financial year 1992-93 taking the earlier two financial years (1990-91 and 1992-93) as Annual Plans. Thus, the revised time frame of the Eight Plan is from 1992-93 to 1996-97.

Accordingly in Assam two Annual Plans for 1990-91 and 1991-92 were finalised and the outlay to the extent of Rs. 1991-92 were finalised and the outlay to the extent of Rs. 675 crore and Rs.800 crores respectively were approved. But the actual expenditure of these two Annual Plans in Assam was estimated at Rs. 596.62 crores and Rs. 800 crores respectively. After that a new document of the Eighth Plan (1992-97) was prepared by the government of Assam with an outlay of Rs. 7913 crores and the same was placed before the Planning Commission for its final approval.

During the formulation of the Eighth Plan, the state had to face a serious financial crisis and thus the Government introduced various fiscal and economic reforms at par with National economic policy.

The Eighth Five Year Plan in Assam accepted the basic objectives of the National Eighth Plan as prepared by the planning Commission and approved by the National Development Council along with some specific objectives of the state. These objectives are as follows :

(i) Generation of adequate employment opportunities to achieve near full employment by the turn of the century;

(ii) Reducing the gap between per capita State Domestic Product (SDP) of Assam and per capita net national product of the Country as a whole ;

(iii) Strengthening of infrastructure (energy, transport, communication etc.) in order to support of growth process on a sustainable basis ;

(iv) Decentralization of planning process as introduced in 1986 with greater emphasis on integrated local area planning,

(vi) To achieve higher growth and diversification of agriculture for attaining self-sufficiency of food grains;

(vii) expending irrigation, flood control and other measures for increasing agricultural production and productivity;

(viii) attaining higher level of rural development and creation of durable assets;

(ix) reducing the percentage of people living below the poverty line and increasing the income generation capacity of the rural sector ;

(x) developing value-addition activities in the secondary sector, more particularly in small scale and village industries.

(xi) develop power sector with special emphasis on generation and distribution of industrial and agricultural power and also on rural electrification ;

(xii) giving more emphasis on early completion of projects under construction and more efficient utilisation of existing facilities and production capacities ;

(xiii) development of human resources through expansion of education, in general universalisation of elementary education, eradication of illiteracy among people in the age group of 15 to 33 years, improvement of health and other social services ;

(xiv) Provision of state drinking water and primary health care including immunization to all village and the entire population;

(xv) adequate protection of forests environment and ecology and also to develop waste-land ;

The Eighth Five Year Plan of Assam is consisting of three sub-plans, i.e., (a) Hill areas development plan for two autonomous hill districts of Karbi Anglong and North Cachar Hills (b) Tribal sub plan for the scheduled tribes of plain areas of the state and (c) scheduled caste sub-plan for the development of scheduled caste population. The other two important component of the Plan include-development of riverine areas (Char Areas) and the development of border areas covering inter-state boundaries.

The State Government proposed an outlay of Rs. 791.330 crores for the Eighth Five Year Plan of Assam which was made up of two plan components, i.e., Rs. 7566.34 crores for the development of general areas and Rs. 346.96 crores for development of hill areas. But on 21st April 1992, the Planning Commission finally approved the outlay of Rs. 4672 crores for the Eighth Plan at 1991-92 prices and Rs. 960 crores for the Annual Plan of 1992-93, i.e., the for the first year of the Eighth Plan and also approved Rs. 1027 crores for 1993-94.

It is revealed that the approved total outlay of the Eighth Plan of Assam, i.e., Rs. 4672 crores in much bigger in size than that of the Seventh Plan. Among the different heads of provisional expenditure, highest amount of outlay was allocated on social services on which 35.536 percent of total outlay was allocated. The second priority was given to energy and power on which 24.56 percent of the total plan outlay was allocated. The Eighth Plan of Assam gave third priority on agriculture and allied services on which 11.04 percent on the total outlay was allocated. The other heads of expenditure as per their allocation include-irrigation and flood control-8.00 percent, industry and minerals- 6.70 percent transport and communication -6.30 percent, Rural Development- 4.04 percent and general economic services-1.68 percent. Thus, about 23 percent of the total provisional outlay of the Eighth Plan was allocated on sector like agriculture and allied services, rural development, irrigation and flood control which would go a long way for eradicating rural poverty and achieving self-sufficiency in the production of food grains.

The Eighth Plan of Assam also gave special priorities on the industrial and infrastructural development of the state. Moreover, as per the national priorities of the Plan, the Eighth Plan of Assam also attaches priorities on employment generation population control, literacy, education health, drinking water and provision of adequate food. Provision of the basic elements which help development of human capital will remain the primary responsibility of the Government.

Let us now look at the achievements of the Eighth Plan on the economy of Assam in terms of growth of income, per capita income other sectoral heads as per interim assessments.

During the Eighth Plan, the state income at current prices has increased from Rs. 10632 crore in 1991-92 to Rs. 14538 crore in 1994-95, registering a growth rate of 36.7 percent and the annual average growth rate of 12.15 percent during the Eighth Plan. The state income at constant prices (1980-81) increased from Rs. 4284.5 crore in 1991-92 to Rs. 511.3 crore in 1993-94 registering a growth rate of 19.3 percent and the annual average growth rate of 9.6 percent during the first two years of Eighth Plan.

The per capita income of Assam at current prices increased from Rs. 4683 crore in 1991-92 to Rs. 5999 crore in 1994-95 (Q) registering a growth rate of 28.1 percent during the first three years of the Eighth Plan and an annual average growth rate of 9.34 percent. The per capita income in Assam at constant prices (1980-81) increased from Rs. 1887 crore in 1991-92 to Rs. 2157 in 1993-94 (Q) showing a total growth rate of 14.3 percent and the annual average growth rate of 7.15 percent over the first two years of the Eighth Plan. Thus at the end of 1995-96 the gap between per capita income at current prices of Assam and all India was as high as Rs. 2282.5 whereas the same gap at constant prices was Rs. 177 in 1993-94 as against the same gap of Rs. 288 in 1991-92.

Total production of food grains has increased from 33.80 lakh tonnes in 1991-92 to 35.36 lakh tonnes in 1993-94 and then declined to 34.90 lakh tonnes due to unprecedented draught and floor conditions.

During the first three years of the Eighth Plan the industrial production could not make much headway as the index number of industrial production has increased marginally from 193 in 1992 to only 204 in 1994, showing an increase of 11 percentage points during these three years.

Under the Integrated Rural Development Programme (IRDP), the number of persons benefited was 38.483 in 1992-93 and 62.584 in 1994-95 and thus achieved 102.0 percent and 113.9 percent of target respectively.

Under the Jawahar Rozgar Yojana (JRY), total number of employment generated was 109.7 lakh man days in 1992-93, 223.5 lakh man days in 1993-94 and 260.9 lakh man days in 1994-95 and nearly 107.8 percent of the target was achieved during the first three years of the Eighth Plan. In 1996-97. 189 lakh man days of employment were generated under JRY.

In respect of irrigation potential created during the first three years of the Eighth Plan, total irrigation potential created has increased from 4.45 lakh hectares in 1991-92 to 4.77 lakh hectares in 1994-95 showing an increase of 0.32 lakh hectares during the first three years of the plan.

During the first two years of the Eighth Plan, 31 number of village were electrified. Thus at the end of 1993-94, 21,495 villages were electrified which was nearly 80.8 percent of the total 26.600 villages in the state.

Thus on the basis of available data it is observed that the achievement of the Eighth Plan was more or less satisfactory.

The National Development Council (NDC) in its meeting held on 16th January, 1997 unanimously approved the draft approach paper for the Ninth Five Year Plan (1997-2002) with a call for collective efforts to raise the maximum possible resources for implementing the plan. As there is no revision in the time frame of the plan thus the time frame of the Ninth Plan stands from 1992-93 to 1996-97.

The draft approach paper has identified the "growth with equity" as the main focus of the plan. The draft paper also observed that the Ninth Plan will emphasize strongly on the development of the small scale industry sector which contributes significantly to the gross domestic product, besides according a prominent place to agriculture. The "basic thrust" of the Ninth Plan would be on providing basic minimum services to the people and thereby double the provision for rural development in the Ninth Plan and enhance capital investment in critical infrastructure areas.

The draft approach paper to the Ninth Plan has outlined some important objectives for the plan which includes : (a) accelerated economic growth with stable prices ; (b) strengthening efforts to build self reliance ; (c) attaining food and nutritional security for all ; (d) basic minimum services of safe drinking water ; (e) primary health, education and shelter to all in a time bound manner ; (f) containing population growth ; and (g) promoting panchayati institution, co-operative and self-help group.

The draft approach paper to the Ninth Plan also seeks to find out ways and means to operationalize the decentralization of the planning process keeping with the objective of co-operative federalism. Local Government institutions will be given more powers, authority and responsibilities along with ensuring transparency in decision making, accountability for execution and effective system of grievance redressal.

The approach paper to the Ninth Plan (1997-2002) approved by the National Development Council has accorded a high priority for the economic, infrastructural and educational development of the north-eastern region. The approach paper observed that the Ninth Plan would focus attention on identifying gaps in these regions in terms of power, communication, roads, railways, education and agriculture so that efforts could be made to bridge the gaps through supportive measures to enable these regions to join the mainstream of economic development of the country. There would be closer interaction between the central agencies and the states of these region. The central agencies concerned, with the development of this region, would be suitably strengthened to be able to fulfill the tasks of accelerated development of each of the state in the region.

The approach paper observed that the development programmes of North-Eastern region would aim at creation of employment opportunities, provision of basic minimum services, promoting efforts towards land and water management and flood control. Communications, credit availability, industrialisation, tourism, exports, transport infrastructure and power would be accorded highest priority.

The Union Ministries has already instructed all the ministries of Central Government to allocate 10 percent of total allocation for the north eastern states from their budgetary outlay of various schemes. This is in addition to the Prime Minister�s announcement of Rs. 6,100 crore economic package for specific scheme for all the North-Eastern States.

The State Government proposed an outlay of Rs.17,271 crore for the Ninth Five Year Plan of Assam, which also included the requirement of the proposed project to set up a permanent capital at Dispur. But on 6th June, 1997, the Planning Commission worked out the resources for financing Assam ; Ninth Plan at Rs. 8,963.93 crore. Of the total amount, the major contribution will be in the shape of central assistance amounting to Rs. 7169.25 crore. There will also assistance for externally aided projects to the extent of Rs. 327.77 crore.

The State�s Ninth Plan size will be finalized by adding to the allotted amount outlay of Rs. 8.983.93 crore, the following elements :

(a) Additional fund for meeting the infrastructural deficiencies as per recommendation of the High Level Committee for the North East (HLC) headed by S.P. Shukla of the Planning Commission in pursuance of ex-Prime Minister�s economic package for the North-east ;

(b) Funds for some centrally sponsored and central sector schemes being transferred to the states along with the resources; and

The state�s annual plan outlay for 1997-98 has been fixed at Rs. 1500 crore by the Planning Commission which shows an increase 4.60 percent over the previous year.

The draft paper of the Ninth Plan of Assam emphasized the need for development in productive sectors like agriculture, irrigation, industry, handlooms, sericulture, co-operative, rural development, power, road and transport, which are at par with the main thrust of Ninth Plan formulated by the Planning Commission.

Decentralised planning is a kind of percolation of planning activities or process from the Centre State to sub-state level, i.e., district sub-division, block and village level. Since the inception of First Plan, the importance of decentralised planning was emphasised in the planning process. In 1957, the Government appointed the Balwant Raj Mehta Team which recommended constitution elected statutory local bodies with its required resources, power and authority along with a decentralised administrative system operating under its control. Accordingly, the Panchayati Raj system was introduced in India.

Since then the process of decentralisation in the planning and development activities was continued. In 1969, the Planning Commission issued some guidelines on the introduction of district planning. Again in 1977, M.L. Dantwala Working Group recommended specific guidelines for the introduction of block-level planning. After that Ashok Mehta Committee has also submitted in report on Panchayati Raj in 1981. Moreover, the economic Advisory Council to the Prime Minister finally presented its Report on Decentralisation of Development Planning and its implementation in the States in 1983. Finally, in 1984, the Group on District Planning submitted its report and this was considered as the basis of proposals on decentralised planning under the Seventh Plan.

Accordingly, the Planning Commission of India introduced the decentralised Planning in the Country for the first time during the Seventh Plan.

During the Seventh Plan the Planning Commission of India introduced the decentralised planning for the first time. In Assam, the decentralised planning was introduced in 1st April, 1986. Although in other states of India, the decentralised planning was extended to district level but in Assam the same plan was decentralised up to sub-division activities at the sub divisional level, the Sub-divisional Planning and Development Council was formed in every Sub-division of the state with the public representative from different levels. This Council is preparing various development plans for agriculture, irrigation, elementary education, road building, social afforestation, fishery, industrialisation, Community development etc. of different sub-division of the state. The Council is presided over by a Cabinet minister. The Council is entrusted to submit the required estimates of development work difference departments and then prepared and implement sub-divisional plan as per the approved outlay. Decentralised planning is very much important in a country like India, where majority of our population live in rural areas. This type of plan raises the involvement of the people in implementing the plan. Moreover, decentralised planning is being prepared in the light of local problems and on the basis of local resource potential. Thus, under the present economic scenario, the decentralised planning, is considered as most important strategy in respect of planning for economic development.

2. Ensuring balanced regional development for meeting minimum needs for the people :

3. To ensure active public participation in the development process of different sectors.

Thus, the main objective of the decentralised planning is to attain balanced development throughout the country with active participation of the people and to eradicate poverty.

Thus, under the present system, the planning machinery was restructured up to grass-root level. Moreover, District Development Committee was also formed taking the Deputy Commissioner as its Chairman and all the heads of Development Department as its members. At the district level, implementation of all development schemes is being kept under the jurisdiction of Deputy Commissioner. Moreover, development Commissioners of different departments has also been entrusted to organise development work of different departments.

In the mean time, various schemes of Seventh Five Year Plan are implemented through Sub-divisional Planning and Development Councils in Assam. The Annual plans of 1990-91, 1991-92 are also implemented through these Councils. Moreover, the annual plans of the Eighth Plan are also implemented by these councils.

The draft approach paper to the Ninth Plan prepared by the Planning Commission seeks to find out ways and means to operationalize the decentralization of the planning process in keeping with the objectives of co-operative federalism. Local Government institutions will be given more powers, authority and responsibilities along with ensuring transparency in decision making, accountability for execution and effective system of grievance redressal.

In Assam, the sub-divisional planning and Development Councils are now being geared up for preparing the annuals plans of each sub-division under the Ninth Plan as per the recent fresh directives of the Central Government.

Report of the Task Force, constituted in 1987 for overall Economic Development of Assam

The Task Force Constituted by the State Government in May, 1987 to recommend measures for overall economic development of Assam (as envisaged in clause 7 of the Assam Accord) that are to be taken by the Central and State Government was presented to the Chief Minister of Assam on April 5, 1988. The Task Force has viewed with great concern that despite four decades of planning, a process of deceleration is clearly discernable in the State.

The per capita SDP has over the years been lagging behind the corresponding figures for the rest of the country. This has continuously widened the gap between Assam and the rest of the country. Similarly, in respect of a number of key indicators of developmental infrastructure, such as availability of power, irrigation, roads and the like, Assam has lagged behind the rest of the country.

After identifying the major factors hampering the balanced economic development of the state, the Task Force has held that migration from neighhouring state has created an excessive pressure on land and thereby has resulted in overdependence on agriculture.

The report says that floods have been a constant stumbling block in the path of modernizing agriculture which has remained preponderantly traditional. The Co-existence of traditional agriculture along side two modern and well-developed industries oil and tea has sharpened the dual character of the State�s economy. The excessive dependence by the State on the rest of the country for its requirements of consumer goods and intermediate and capital goods has given rise to a reverse flows of resources from Assam.

The factors that have played their roles in perpetuating economic backwardness in Assam are low capital formation, very weak communication links with the rest of the country, absence of entrepreneurship and inadequate infrastructural facilities.

The report notes that what should really be a matter of great concern is that infrastructural facilities that are very essential for economic development could not be provided over the past seven plans even to the level of all India standards, despite the fact that all these mainly fall within the jurisdiction of the State Government.

The Task Force is of the opinion that the State Government ought to be more positive and dynamic in the implementation of its policies and also in putting pressure on the Centre and NEC to act positively in time to discharge their obligations to the State.

The Task Force has recommended expeditious completion of border fencing and border road, gearing up of Assam Police to adopt a more dominant position closer to border, settlement of landless indigenous people near the border etc.

It was also felt by the Task Force that large-scale inter-state migration from the more advanced States would tend to restrict and curtail economic opportunities for the local; people. The report also suggests various measures to contain the high population growth within the State.

For strengthening communication links in Assam, the Task Force recommended extension of broad-gauge railway line from Guwahati to Tinsukia and from Lanka in Nagaon to Silchar and establishment of all weather motorable roads to link wall Sub-Divisional towns.

The report has also recommended location of Vayudoot�s base of operation for North-East region in a Central place in Assam, establishment of telecom network and development of inland water transport network.

The Task Force recognised the fact that transformation of agricultural scenario is of vital importance as agriculture is the backbone of state�s economy the flood control is extremely essential for inducing larger private investments in Agriculture. Thus, the Task Force opined that the Brahmaputra Board should be directed to identify short and medium term measures that could be taken within Assam itself-schemes and that could mature within a reasonable time frame. This has been suggested in view of the uncertainties of the inter-state long term projects contemplated in the Master Plan prepared by the Board.

The report also called on the State Flood Control Department to play a more positive role like drawing up a Master Plan for controlling the tributaries of Brahmaputra. The emphasis should be on quick maturing schemes and the overall objective should be on the containment of floods rather than on ad-hoc measures that result in drawing away of resources year after year.

The report of the Task Force states that for the transformation of agricultural scenario in Assam irrigation is an important factor. It observed that the major thrust of the Irrigation Department has been on flow and lift schemes which has neglected the ground water potential of the state.

Branding the thrust as wrong strategy, the Task Force felt that the Irrigation Department should immediately shift the thrust from flow and lift irrigation ground water exploitation which is cost and time effective. It also suggested that an enquiry by a competent team should be instituted to determine the wisdom of continuing the flow and lift irrigation schemes in view of the enormous time and cost over-runs.

The report of the Task Force stated that the land reform measures taken in the past have not yielded the desired result. But, if land is withdraw from the non-agriculturists and re-distributed amongst actual marginal farmers and landless agricultural labour, then only the economically vulnerable sector of the rural economy will be benefited. The report also called for consolidation of holdings.

The report states that for the transformation of agriculture in Assam, multipurpose technology oriented farmers co-operative could be a potent weapon. These co-operatives are by far and away the most effective in fulfilling the needs of small farmers, as very positively shown by the results obtained in Japan, Taiwan, Korea and Egypt. These multipurpose co-operatives would provide inputs, finances, marketing and know-how for their farmer members.

In view of annual floods and uncertainty of Kharif crops, the Task Force has put emphasis on Rabi crops. It further, suggested going in for crops like market garden produce, oil seeds, wheat etc. which do not need much water like paddy.

The report states that to determine the actual status of the forest cover, which is presently unknown, a survey of the entire state through the National Remote Sensing Agency be conducted. A comprehensive afforestation policy should be formulated for, among other matters, identifying areas for afforestation and the species to be planted. The report also said that the concept of modern forest management should be introduced in place of traditional forest administration.

The Task Force has recommended the establishment of a new industrial growth centre, "Udyog Nagar" in a central location in Assam with an area of 2,000 hectares with all the infrastructural facilities.

The Task Force has expressed serious concern about the manner in which national gas is being flared by the oil exploration companies, which are incidentally owned by Government of India. The report urged that such project based on national gas that have found to be feasible should be cleared immediately.

The setting up of the fourth refinery envisaged in the Assam Accord has been inordinately delayed. This refinery should be set up without further delay.

The reports states that the power situation in the State has been most unsatisfactory. Thus, the Task Force has concluded that Assam State Electricity Board needs to the re-organised into three separate organisations- one for generation of power another for distribution and other for construction of power projects with the A.S.E.B. itself acting as an apex body for policy formulation and overall coordination.

Now if these package of policy measures recommended by the Task Force is implemented in letter and in spirit then the economic transformation of the State would come about easily, thereby creating, countless opportunities for self-employment among the people of the State.

The MLA�s Area Development Scheme was announced in Assam in March, 1994, which would enable the respective representative of 126 constituencies of the State to fulfill "locally felt" development needs.

The Planning Commission had already approved the scheme and the States Government had already earmarked Rs. 6.30 crores in 1994-95 for that purpose.

Assam is the only state in the region which was trying this new scheme on experimental basis in line with the Central scheme made for the members of parliament to develop to their respective constituencies.

The State Government directed Deputy Commissioners to help the members of legislative assembly to prepare their area development scheme to be implemented in every financial year 1994-95.

Under the scheme, each MLA would recommend to those respective Deputy Commissioners works to the tune of Rs. 5 lakh during each financial year to be under taken in a particular constituency.

The Department of Planning and Development, the modal body which would be overall in charge for implementation of the scheme at the state level has sent a set of guidelines to be followed while approving the development proposals, to all the Deputy Commissioners. It had also suggested the Deputy Commissioners to call for written suggestions from MLAs or hold meeting with all MLAs of the District concerned.

Works or projects suggested by MLAs and cleared by respective Deputy Commissioners would be implemented by different state government agencies such as public works, Department, Rural Development, Irrigation, Agriculture, health, Education, Water supply and Sewerage Board and Housing corporation.

The Deputy Commissioner would be responsible for the co-ordination and overall supervision of the works under this scheme at the district level.

Even though MLA�s Area Development Schemes do not require to pass through the sub-divisional or district planning committees and be directly taken up with the Deputy Commissioner as MLA�s choice but these schemes should lead to �creation of durable assets� and meet on local needs.

The buildings specified a few works under the scheme. These includes construction of school buildings, small sports, and recreation halls, Community Centres, public health care buildings, small irrigation bandhs, approach roads, foot paths, path ways, foot bridges, sub sheds and residential schools in tribal areas.

The scheme also had provisions for creating public amenities like electricity, water supply, public toilets in growing township areas and many other local based plans.

However, the guidelines disallowed under this scheme works exceeding Rs. two lakhs requirements, purchase of investor, equipments or stocks of any kind.

The fund also cannot be utilised from acquisition of land or compensation, places of religious worship and memorials. The scheme also bars grants and loans and work, which do not fall within the scope of the district plans. The proposed funds also cannot be utilised for completion of incomplete schemes of the Government.

It is being felt that the way the scheme was planned would to some extent benefit the rural and common people of the state. These schemes would be fastest way to bring development work to the people through the peoples representatives. Under the general plan a bulk of funds was channelised for few districts and a small group of people was usurping the benefit of the state investment. But the MLA�s Area Development Scheme would supplement the local needs of the people.

Co-operation has a very important role to play for the economic and social upliftment of an economy like Assam. The noted authority on Co-operation, Margaret Digby stated, "Only through Co-operative institutions can common man influence the direction of social and economic change in a decisive manner. In fact, Co-operation in India has been recognised as a part of the pattern of Indian socialism, especially interpreted in terms of rural society." For a country like India, Co-operation has a vast field for spreading its network in various activities. The second Five Year Plan rightly emphasized as �Economic development along democratic lines offers a vast field for the application of Co-operative principles in varying forms. Our socialistic pattern of society implies the creation of a large number of decentralised units, both in agriculture and industry. The character of economic development in India, with its emphasis on social change, therefore, provides a great scope for Co-operative activity."

For the material and moral advancement of the poorer persons, Co-operation, by combining with one another, has a definite role to play.

" The basis of association is (a) Voluntary, and (b) democratic ; Voluntary because those who enter it will be men of modest status, feel a real need, and if only the honest are admitted, will not resent equality, but will in fact meet easily on an equal footing."

Some of the fields where Co-operative principle has a definite role to play in the economy of Assam include farm credit, agricultural fields including irrigation facilities, animal husbandry and supplementary occupations, consumer�s Co-operation and other multipurpose services.

Assam, being a backward state in India, is lagging behind many other states in respect of its economic development. The economy of the state is mostly dependent on agriculture. This agricultural sector of Assam required various facilities like credit, irrigation, consolidation of holdings, and marketing, supplementary occupation by developing cottage and small industries and consumers Co-operation etc. which can be met effectively with the spread of the net-work of Co-operation in these above-mentioned fields.

Origin, Growth and Achievement of Co-operative movement in Assam during Five Year Plans

The Co-operative movement in Assam made its beginning with the passing of the Co-operative Societies Act, 1904. But the movement has never had a smooth sailing during its fifty years of working till 1951. There were series of setbacks particularly since the depressions of the thirties and the entire movement was on the very decay when the country achieved her political independence.

In Assam, the first batch of 12 Co-operative Societies, started some nearly eighty years ago, were agricultural credit societies. The economy of Assam was totally rural. Thus the major agricultural sector was composed of production where the tempo of agricultural development was to a considerable extent dependent on the development of agricultural Co-operative as a mode of organisation. With a view to assist successful implementation of the Agricultural production programme, the Co-operative have been functioning as an agency to provide rural credit and facilities for marketing, processing, distribution and storage of agricultural products. Further, the setting up of a chain of consumer Co-operatives and other miscellaneous types of Co-operatives have also been encouraged. But the movement in Assam has passed through various difficulties at different times and before the First Plan period; the societies were, for the most part, in a moribund condition, with a few exception here and there. Therefore, the efforts were mainly concentrated during the First Plan period to revitalise the Co-operative movement.

The introduction of national economic planning in 1951 brought about a fresh promise for the Co-operative movement in Assam. An expenditure of Rs. 20.00 lakhs was incurred out of the plan funds. In addition, an amount of Rs. 66.48 lakhs was also received from the Reserve Bank of India. A Co-operative training institute was founded in the year 1953 at Joysagar in the Sibsagar district for training of office bearers of the Co-operative societies as well as subordinate officers of the Co-operative department. A Co-operative cotton ginning mill was set up at Phulbari in the Garo Hills district for processing of cotton. Co-operative enterprise in the backward areas was further encouraged by giving interest free loans to the members of the Co-operative societies. During this First Plan period, the number of Co-operative societies rose from 2929 to about 4202 and the number of members from 287 thousand to 325 thousand. The working capital of Co-operative societies rose from Rs. 196 lakhs to Rs. 468 lakhs.

During the Second Plan period an allocation of Rs. 125.40 lakhs was made for the development of Co-operative movement in the state. Against this Rs. 169.47 lakhs was incurred. Total number of Co-operative societies in Assam increased to 8894 in 1960-61 which was more than double than the number at the start of the plan. Total membership also has increased to 511 thousand. Total working capital also rose nearly four times to Rs. 1602 lakhs of which Rs. 232 lakhs was realised out to share capital during this period. A sum of Rs. 27 lakhs was also incurred in the establishment of a Co-operative sugar mill. On the basis of village communities 3,361 service Co-operatives have been formed till the end of the Second Plan. Besides one state union Co-operative, 37 credit unions were formed in the hill districts. One cotton ginning mill in the Mikir Hills, and one Co-operative rice Mill in Darrang were also established. In different parts of the state, 200 large sized Co-operative, 111 primary marketing societies and 181 godowns were established. A Jute Bailing Society was formed in Nagaon. The Central Co-operative Land Mortgage Bank Ltd. and the Assam Co-operative Apex Marketing society started functioning. The Assam State Warehousing Corporation had been established. The Co-operative Sugar Mill at Baruabamoongaon went into production during 1958-59. The State Trading of Paddy has been taken up through Co-operative since 1959 and the Assam Co-operative Apex Marketing Society was given a license for monopoly procurement of paddy. Thus it is revealed that while the aim of the First Five Year Plan was rather modest being confined to rehabilitation of shattered credit structure, but it was during the Second Plan period when a systematic development of the Co-operative sector was seriously attempted at. As recommended by the Rural Credit survey committee of the Reserve Bank of India, the state plan programme on Co-operation represented four district features, viz; (a) state participation at different levels of Co-operative movement, (b) integration of different branches of Co-operative society through organisation of multi-purpose societies. Further, in pursuance of the National Development council�s policy decision, 1958, the state Co-operative movement underwent a further reorientation according to which emphasis was shifted from viability to close contact, social cohesion and mutual obligation among the members.

During the Third Plan period, a fresh move for rationalization of credit structure was initiated, the key stone of the drive being amalgamation of the weak and uneconomic units with the strong and viable ones wherever possible, and liquidation of the dormant societies. Due to this effort, the number of agricultural credit societies came down from 5,225 in 1960-61 to 4,008 in 1965-66. During this period, the crop loan system of credit was introduced in the areas of operation of the revitalized Cachar, Nowgong and Tezpur Central Co-operative Banks.

Total number of Co-operative societies in Assam decreased to 7,693 in 1965-66 due to the policy followed for the amalgamation of weak and uneconomic units with viable ones. But the number of membership has increased to 593 thousands. The working capital and the share capital of these societies also increased to Rs. 2493 lakh respectively.

In 1970-71, total number of Co-operative societies in the State was 6,710 and the membership and working capital of these societies were around 6,710 and the membership and working capital of these societies were around 686 thousand and Rs. 5518 lakh respectively. At the end of the three Ad-hoc plans in 1968-69, total number of agricultural credit societies in Assam was 3,764 with 386 thousand members and working capital worth Rs. 64,277 thousand. These societies advanced loans to the extent of Rs. 28,660 thousands.

In the Fourth Five Year Plan of Assam, increased reliance had been placed on stabilization and consolidation of the Co-operative credit structure. On the non-credit side, the state plan laid much importance on further expansion and diversification of the movement. The non-credit side included establishment of two sugar mills, a Jute Mill, and a number of fruit and vegetable processing units, rice and oil mills, dal mills, Jute bailing units and cold storage plants. In the year 1973-74 i.e., at the end of the Fourth Plan, the total number of Co-operative in Assam has increased to 7910 and the total membership recorded a significant increase of 799 thousand. Total working capital also rose to Rs. 6928 lakh.

The Fifth Plan had laid special emphasis on enlargement, consolidation and strengthening of Co-operative at all levels. At the end of the Fifth Five Year Plan i.e., at the end of March, 1978 total number of Co-operative societies has increased to 8112 and number of membership also increased manifold to 2972 thousand. Total working capital also reached at a high level of Rs. 12.961 lakh.

Then again there was a decline in the number of societies which reached the level of 7356 in 1980-81. And there was a slag in the increase of the number of membership which reached slowly the level of 3140 thousands. But the working capital of the societies suddenly increased to Rs. 16,357 lakhs in 1980-81.

During 1979-80, the State had 3148 credit societies as against 3442 in 1978-79, the number of non-credit societies during 1979-80 stood at 4372 as against 4512 in 1978-79.

In 1985-86, i.e., after the completion of the Sixth Plan, total number of Co-operative societies increased to 9285 and the number of membership also increased to 3500 thousands. The working capital of the society increased to Rs. 22,590 lakhs and the share capital rose to Rs. 3289 lakhs. In 1990-91, i.e., after the completion of the Seventh Plan, total number of Co-operative societies again declined to 7396 due to amalgamation weak and uneconomic units and the total membership has also declined to 2918 thousands. But the working capital of these societies increased considerably to Rs. 42857 lakhs and their share capital also rose to Rs. 4942 lakhs.

Again the total number of society which was 7612 in 1991-92 has increased considerably to 9416 in 1993-94(P). In 1993-94, total membership of these societies has also increased to 3023 thousands. Total working capital and share capital of these societies increased to Rs. 43,426 lakhs and Rs.4900 lakhs respectively.

It is revealed about a clear picture about the various types of credit and non-credit societies existing since 1980-81. Total number of credit societies in Assam which was 3166 in 1980-81, gradually declined to 2740 in 1990-91 and there to 2,690 in 1994-95 (P). Total number of Non-credit societies in Assam which were 4200 in 1980-81, gradually declined to 3,387 in 1990-91 and then it started to increase to 6730 in 1993-94 and then increased considerably to 6851 in 1994-95. This sudden increase in the number of non-credit societies in 1993-94 is mostly resulted from inclusion of 2486 women�s� co-operative in this year.

Thus it is revealed that the Co-operative movement in Assam has been gradually strengthened during the last 44 years since the introduction of planning in 1951.

Co-operative Movement is very much important particularly in a backward state like Assam where rural upliftment is of utmost necessarily. Co-operative can provide new vitality to economic development in a backward state like Assam. But it is very much unfortunate that the growth of Co-operative movement in Assam is neither well planed nor well-organized. To have a better understanding it is necessary to study the structural pattern of Co-operative movement in Assam. The structure of Co-operative movement in Assam can be analyzed as follows:

As per the prevailing structure of Co-operative bodies in India, the Co-operative Societies in Assam may broadly be divided into credit and non-credit societies. These credit societies offer credit to farmers at a comparatively cheaper rate of interest. Further, non-credit societies in Assam are consisting of farming societies, weaving societies, fisherman�s societies, marketing societies, warehousing societies, etc. The rural people of Assam are getting useful services from the non-credit societies in the line of organisation and improvement of their economic conditions. During 1994-95, the State had 2690 credit societies and 6708 non-credit societies. The non-credit Co-operative societies in Assam cover a wide range of activities like marketing, processing, storage, distribution, farming etc. Besides, there are some primary housing societies, contract and construction societies and forest societies which are gradually developing in the State.

Co-operative societies in Assam are again divided into agricultural Co-operative or rural Co-operative and non-agricultural or urban Co-operative societies. In Assam, most of the societies are agricultural Co-operative credit societies and they play vital role in the rural economy of the State. These societies provide credit requirements of agricultural sector substantially at a cheaper rate of interest. Moreover, in recent years, a good number of non-agricultural societies are also operating in different spheres of non-agricultural activities.

Similar to other states, in Assam is the Assam Co-operative Apex Bank at the top of the system. The District Central Co-operative Bank has been merged with the Co-operative Apex Bank of the State and is working as its branches. In 1994-95, there were one Central Co-operative Bank, 21 primaries Land (Development) Mortgage Bank, one Central Land Mortgage (Development) Bank, 1906 Primary Agricultural credit societies and 748 Primary Non-agricultural credit societies which has been rendering valuable services to the economy of the State. In1990-91, total amount of loan advanced by different agencies were as follows: Co-operative Apex Bank Rs. 75.36 crores; Central Co-operative Bank Rs. 15.35; Central Land Development Bank Rs. 48.05 Lakhs; Primary Land Development Bank Rs. 9.43 Crores; Primary Agricultural credit Societies Rs. 1.62 crores.

Further, the State Government participates in the share Capital of the Central Co-operative Bank. The activities of Central Co-operative Bank are supervised and Co-ordinated by the State Co-operative Bank besides providing loans and grants to carry on their credit operations. The Assam Co-operative Apex Bank grants loans and advances for the purposes of seasonal agricultural credit as well as for marketing of crops. The Apex Bank can borrow from Reserve Bank of India in time of its necessity. On the other hand, the Land Mortgage Bank is an important agency for granting long term credit facilities for purposes of development and expansion of irrigation, conservation and reclamation of land, i.e., for the permanent improvement of lands and agriculture. Besides this long term and short term credit, the Land Mortgage Bank promote marketing of crops and also render assistance to promote small and cottage industries in different corners of Assam. Thus by serving specially in the rural areas, Banks are contributing enormously for the growth and development of the economy of Assam.

As majority of the population in Assam lives in villages, it is quite natural that the Co-operative movement in Assam should spread its net-work mostly in rural areas for the general upliftment of the rural economy of the state. So the movement in the state is progressing in the right direction.

Agriculture is the main industry of the State. So it is quite natural that the Co-operative movement has been concentrated mainly in Agriculture. For a long time, the movement built up rural credit organisations in the state. These societies are providing credit to the poor and marginal farmers. This has helped the poor farmers to free themselves to a considerable extent from the clutches of the unscrupulous village money lenders besides enabling them to obtain funds for the improvement of agriculture.

A good number of Co-operative societies in Assam is credit oriented. During 1994-95, there were 2,690 credit societies in Assam as against the total number of 9,391 societies. The credit societies has partially solved the problem of obtaining finance for rural economic transformation in general and improvement of agriculture of the state in particular. Then credit societies are also providing credit to small and cottage industries and other non-agricultural occupations and thus helping in the gradual diversification of the rural economy of the State.

There has been a steady growth in the number of non-credit Co-operatives in the State. Most of these non-credit societies are operating in the rural areas leaving a few which are operating in the Urban Centres. In 1994-95, there were 6851 non-credit societies which were rendering valuable services to the economy of the state particularly to the farmers and poor rural artisans. These non-credit societies in Assam provide marketing societies, supply raw-materials and other inputs at fair prices to the agriculturists and rural artisans.

Thus Co-operative societies in Assam are playing a very effective role in the rural economic transformation of the State and the State Government has rendered very useful services towards the growth and development of various types of Co-operative societies in the state.

Since its inception, the Co-operative movement in Assam was suffering from some major weaknesses. Thus the movement could not gather its momentum and failed to provide necessary help and assistance to the poor farmers, artisans and craftsman. The main weaknesses are as follows :

Firstly, the Co-operative movement in Assam is lacking its spontaneous growth. The Co-operative societies in Assam are not growing in its size and importance at an expected rate. Rather many societies are dying before taking a good shape of its own.

Secondly, colossal ignorance and illiteracy of the rural people of Assam is standing on the way of the movement. Most of rural poor are illiterate, ignorant and conservative. They feel the need and importance of the movement but they are indifferent to the growth of the movement.

Thirdly, inadequate financial resources of the Co-operative societies in Assam is one of the major weaknesses of the Co-operative movement of the state. Only 25 percent of the rural credit is provided by Co-operatives of the state. Naturally poor farmers and artisans have to depend on other sources, mainly on money-lenders who are charging heavy interests on loans offered by them.

Fourthly, banking facilities in the rural areas of the State are very inadequate and thus it retards the progress of Co-operative movement in Assam.

Fifthly, there is lack of whole-hearted effort on the part of government official of the State which always goes against the interest of the movement.

Sixthly, there is lack of efficiency on the part of management personnel of the Co-operative societies in Assam. This inefficiency leads to mismanagement of the societies resulting in a huge loss on some occasions.

Seventhly, the movement of the State is much depending on external source of finance which restrict the independent operation of the movement in the State.

Eighthly, there is lack of trained and efficient personnel to run these societies in the State resulting in a huge loss of man power and economic resources involved in this movement.

Lastly, there is opposition from the vested interest group which results in serious hurdles in the progress of the movement.

Further, failure of the farmers to repay loans and lack of Co-ordination among the societies are some other weaknesses which always go against this movement.

Co-operative movement in Assam has not been able to make much headway although being an old movement. The weaknesses of the movement are responsible for it. Following remedial measures are to be adopted to revitalise the Co-operative movement in Assam.

Firstly, to make it a people�s movement, people in general need to be educated both in general and Co-operative lines. This will make them understand the structure and benefits of the Co-operative movement.

Secondly, the societies should be allowed to grow as a voluntary organisation to make the spirit of the movement spontaneous.

Thirdly, financial position of all the Co-operative societies must be improved to accelerate the growth of the movement. The State Government must play its specific role in this regard. To provide adequate financial assistance to the Co-operative institutions, both the Reserve Bank of India, the State and Union Government, have adopted a series of measures in recent years.

Fourthly, to revitalise the Co-operative movement, proper training should be given to the Co-operative personnel. Thus, determined efforts have to be made to impart proper training both in Co-operative management and accounting procedure so as to ensure efficient management and proper accounting procedure of the Co-operative institutions of the State.

Fifthly, non-credit Co-operatives should be organised in such a way so that their scale of operations can be extended throughout the State.

Sixthly, determined efforts should be made to free the organisation from corruption, nepotism, favouritism etc.

Seventhly, primary societies of the state should be converted into multi-purpose service co-operatives to reap maximum benefits out of it.

Lastly, step must be taken to stop unnecessary Governmental interferences in the working of the Co-operative societies in the State.

After the reorganisation of Assam State Co-operative Apex Marketing Society Limited, the Assam State Co-operative Marketing and Consumers Federation or �STATFED� was established in 1975. Since then the activities of this organisation was 554 in 1993-94. In 1993-94 total paid up share capital of this organisation was Rs. 1742.9 lakhs of which the Government�s share was Rs.1738.7 lakhs. Total working capital of this organisation has increased from Rs. 16.4 crores in 1097-79 to Rs.194.9 crores in 1990-91. In the mean time, the Government of Assam has made an arrangement to procure rice and paddy through STATFED at the price fixed by the Government and also to procure rice and paddy on levy basis from the Rice Mills. In 1982-83 Kharif year (till February 1983). STATFED procured about 3.03 lakhs quintal paddy and 491 quintal rice from the entire state. Again in 1993-94, STATFED has made a total turnover of RS. 5230.0 lakhs on the sale of paddy and rice.

Moreover. �STATFED� with its 145 retail outlets has made an arrangement to distribute various essential commodities like food grains agricultural inputs like seeds, fertilizers etc., consumer goods etc. In 1992-93, total value of seeds and fertilizers distributed by STATFED were Rs. 22.29 lakhs and Rs. 453.06 lakhs respectively ; total value of consumer goods sold was Rs. 3589. 1 lakhs and total sales of this organisation in 1993-94 was to the extent of Rs. 13459.2 lakhs. Moreover, in order to diversify into activities the STAT FED has also set up a highly sophisticated medium scale vanaspati industrial project at Amingaon near Guwahati. This project has started its commercial production and its brand vegetable product "Tripti" has already earned a good name in the market. In 1993-94, total sale proceeds of vanaspati of this project was Rs. 29.5 crores.

Thus the Co-operative movement in Assam which had by now a history of over 90 years during which it passed through several phases of expansion, stagnation, consolidation and development. As the economy of the state is predominantly rural in character, thus an extensive network of sound and viable Co-operatives can be of tremendous help in achieving the objectives of economic growth and social change in this area. Although Co-operative movement in the state has made considerable stride over the years but much more still remains to be done in this area so as to achieve the desired good. Moreover, the increasing incidence of uneconomic and dormant co-operative still continues to be a disturbing feature in the way of its progress in the state. As per available data, nearly 39 percent of the Co-operative societies in the state were reported non-functioning during 1984-85. In the mean time steps have been taken to amalgamate these dormant and uneconomic societies with the viable societies and more such steps would be taken in near future.

Moreover, in recent years various State Government sponsored state level societies and federations have also been promoted in Assam. These includes �STATFED�, �HOUSEFED�, �FISHFED�, �ARTFED� etc. Moreover, there are also a few big sized processing Co-operatives in Assam which include Co-operative sugar mill, Jute mill, cotton ginning mill, vanaspati plant, fruit processing units etc. In 1992-93, about 2482 women�s� Co-operatives have been formed to run gainful activities among the women folk of the State.

In recent years, the National Co-operative Development Corporation (NCDC) has classified the North-Eastern region as a backward area, specially in the sphere of development of the Co-operative sector in the country.

The NCDC has, therefore, evolved schemes which provide assistance up to 95 percent of the project and programmes for farmers and others in rural areas associated with agriculture and allied fields the NCDC was currently formulating a scheme to promote model Co-operatives, at least one in each backward district to serve as an extension of the education oriented pilot societies for the rural masses.

Since its inception, the corporation has released a total assistance of Rs. 11,265 lakhs as loan and subsidiary to promote different Co-operative ventures in the region. The state wise cumulative break up is : Assam- Rs. 7274 lakhs, Manipur -Rs. 1711 lakhs, Tripura- Rs. 918 lakhs, Nagaland- Rs.857 lakhs, Meghalaya- Rs. 599 lakhs, Mizoram- Rs.462 lakhs and Arunachal Pradesh- Rs. 92 lakhs.

Some of the important activities carried out by the NCDC in the North-East for the upliftment of rural economy included financial assistance to strengthen the share capital base of primary and district level marketing societies to develop business and rehabilitation of the weaker societies.

Besides giving margin money assistance to state level federation for raising working capital from banks for development of business activities, the corporation assists the Co-operative societies to store and retail horticultural produces by providing rural godowns through both loan and subsidy.

The corporation provides assistance to the Co-operative spinning mills. handloom weaves, agro-service centers and poultry and fishery Co-operatives in the form of infra- structure and share capital through the State Government. In the meantime Assam has received a good amount of assistance from this corporation.

The corporation has also offered assistance in activities such as horticulture, insecticides and pesticides formulation unit, seed development project, co-operative farmers service centre, scheduled caste and scheduled tribe Co-operatives, hill area Co-operatives, rural consumer Co-operatives, student Co-operative store and computerization in the North East.

Thus it can be fairly expected that with the help of the NCDC, the Co-operative movement in Assam will be strengthened further in near future.

Development of a region solely depends in its infrastructure. With a sound infrastructure base, a region cannot develop economically. The most important and difficult job in the development process is to provide the basic infrastructure facilities viz. power, irrigation, transport and communications, education and health etc. From the very beginning Assam lacked basic infrastructure facilities due to geographical isolation and difficult terrain surrounded by hills, rivers and dense forests. Five-year plans had its specific role to develop the infrastructure facilities of the State. Let us now see how much of the total resources of respective plans of Assam were utilized for the development of infra-structural facilities in the State.

It is revealed that expenditure on economic and social overheads in Assam increased at a rapid rate since the First Plan onwards i.e., from Rs. 11.16 crores during the First Plan to Rs. 69.22 crores during the Third Plan, and then to Rs. 324.20 crores during the Fifth Plan and to Rs. 866.12 crores during the Sixth Plan and to Rs. 1257.00 crores during the Seventh Plan in Assam and finally to Rs. 1863 crores during the Eighth Plan in comparison to the expenditure during the Third Plan increased more than six times. Again in comparison to the expenditure during the Third Plan, the expenditure on infrastructure during the Seventh Plan in Assam increased more than eighteen times. Further, expenditure on infrastructure as per cent of total outlay which was 54.46 per cent during the First Plan in Assam declined to 45.10 per cent during the Second Plan then gradually increased to 61.50 per cent during the Fourth Plan and again declined to 58.80 per cent during, the fifth Plan and finally reached to 67.50 per cent during Sixth Plan and 59.8 per cent during the Seventh Plan and finally 40.0 per cent during the Eighth Plan in Assam.

Let us now look into the development of power, transport and communication in Assam in details.

Power is one of the most important components of infrastructure for the economic development of a region. Modernization of agriculture and rapid industrialization in an economy depend on the availability of cheap and sufficient electric Power.

Assam possesses vast potential for generation o power based units locally available water, natural gas, coal and oil resources. Assam alone has 28 per cent of the total hydropower potential of the country, which remains underutilized. Besides, gas is also available in plenty, which can also be a good source of power in Assam. But due to a variety of factors, it has not been possible to carry out exploitation of power resources of the State to its fullest. So Assam lags far behind the national average ion the field of power development.

The Assam State Electricity Board, constituted in the year 1958, is responsible for Co-ordinate development of generation, transmission and distribution of power in the State. On 25th January 1975, the Board was bifurcated between Assam and Meghalaya as per provision made in the Northeastern Areas (Re-organisation) Act, 1971. After the re-organisation of Assam, the power generation within the reconstituted State slides down to a very low level as the hydroelectric projects stood transferred to Meghalaya due to their location within the state. But power supply from these sources continued to be made for the consumers in Assam without any break or restrictions.

Let us now look into figure of plan outlay on power development during the various Five Year Plans in order to find out both the rate of increase in the outlay on power along with the relative priority accorded to this sector under the different plans of Assam.

It is revealed that the power development programme in the first two plans could not be given the required attention having been consistent with the potential of the State command s. But power becomes a very favoured sector under the plans of Assam especially after the Third Plan. Total outlay on power increased from Rs., 44.62 crores during the Third Plan to Rs. 486.50 crores during the Seventh Plan which was more than ten times of the Third Plan outlay on power. Taking all the plans together, nearly 20.2 per cent of the total plan outlay was allocated to the development of power. Thus, under the successive plans, there was a sharp increase in the outlay for power in Assam. Thus, during the Second Plan, the actual outlay for power increased by 300 per cent over the First Plan again the outlay for power under the Third Plan increased by 720 per cent over the Second Plan. During the Fourth Plan, there was a little fall in this outlay from that in the third plan. But during the Fifth Plan, the outlay on power increased by 305 per cent over the Fifth Plan outlay. Finally, during the Seventh Plan, the outlay on power increased by only 63 per cent over the sixth Plan outlay. It is also found that these percentages of increase in the outlay for power were far above than those in the total plan outlay of the Five Year Plans except in the case of fourth and Seventh Plan. Besides, the annual average outlay on power in Assam gradually increased from Rs.24 lakhs during the First Plan to Rs. 109 lakhs during the Second Plan and then to Rs. 892 lakhs during the Third Plan. After that there was a fall in the annual average outlay on power to Rs. 931 lakhs during the Ad-hoc plans then the same outlay increased to Rs.783 lakhs during the Fourth Plan and to Rs. 3000 lakhs during the Fifth Plan and then finally increased to Rs. 9700 lakhs during the Seventh Plan period. In the Eighth Five Year Plan of Assam, 25.6 per cent of the total outlay is earmarked for the development of power in this State and thereby the allocation of outlay for the development of power and power and energy was Rs. 1194.46 crores.

Let us now look at the achievements of the Five Year Plans in respect of power development in Assam.

First Plan: During the First Plan period, the Government of Assam adopted a new policy of power development in the State and thereby the Government took up responsibility of execution, management and administration in the field of power. Thus, the Assam State Electricity Board was established according to the Electricity (Supply) Act, 1941. During this plan period, a start was made for the first time in Assam for the installation of Umtru Hydro-Electric project at Burnihat. Major portion of the construction work of this project was completed during the period. The project was designed to create an installed capacity of 75000 KW of power. At the end of First Plan, the total installed capacity was 8.4 M.W. and generation was 11 million Kwh or about 0.9 Kwh per capita consumption as against the all India figure of 28 Kwh.

Besides, a scheme for small town and rural electrification was taken up during this plan period and work on which was started in 1955-56.

Second Plan: In respect of power, the Second Plan took some important steps for both increased generation and consumption of electricity. The per capita consumption of electricity was increased from 0.91 Kwh at the end of 1950-51 to 5.63 KWH at the end of Second Plan. The other achievements during the Second Plan period were as follows:

In July 1957, the Umtru Hydro Electric Scheme with installed capacity, of 8,400 K.W. was commissioned. Besides, considering the acute power crisis in the State, two more new schemes- (a) Umium hydro-Electric project stage I (capacity, 36,00 K.W.) (b) Naharkatiya gas turbine project 9capacity 69,000.K.W) were sanctioned by the Planning Commission during this plan period Immediate steps were initiated for these projects and the Umium project was undertaken in 1960.

By the end of the Second Plan the installed capacity has come up to 20.5 M.W. and generation to 33 Kwh. Per capita generation has also come up to about 2.8 Kwh against 48 Kwh for All-India.

Third Plan: During the Third Plan, the following principal schemes of power development were implemented in Assam.

Firstly, the construction of Umium Hydro-Electric Project stage I, which started in the first year of the Third Plan was completed and commissioned during the letter part of the Third Plan period with an installed capacity of 36 M.W. The transmission voltage was raised to 132 K.V.

Secondly with the construction of above mentioned project, transmission programmes like- (a) 132 K.V. lines from Guwahati to Bongaigaon, Guwahati to Tezpur and Shillong to Badarpur, (b) 33 K.V. and 11 K.V. and lower voltage lines to supply power to lower Assam region, were undertaken.

Thirdly, substantial progress was made in the construction of the Umium Stage II project during this plan period. It was planned to install 2 generating sets of 9 M.W. each and another one of 2.8 M.W. and ultimately to have an installed capacity of 20.8 M.W.

Fourthly, in 1961, the Namrup Thermal Project based on the huge reserves of gas in the upper Assam oil fields was stated. The Stage I of the project was completed and commissioned in 1965 at the cost of Rs. 135.94 million. Total installed capacity of this project is 69 M.W.

Fifthly, the Guwahati Thermal project was another project included in the Third Plan, which consisted of two units. The first Unit-a gas turbine set at Narangi with the installed capacity of 12.6 M.W. was started in 1963 and completed and commissioned in 1964, and the second unit-a steam turbine set at Chandrapura based on surplus furnace oil of the Noonmati Refinery with the installed capacity of 30 M.W. on which only the preliminary works could be completed during this plan.

Sixthly, several power schemes were implemented during this plan period, which include installation of diesel, sets at Tezpur, Jorhat and Chabua with installed capacity of 8.20 M.W. 3.00 M.W. and 2.00 M.W. respectively.

Seventhly, Nangal-Bibha Thermal Station in the Garo hills a medium power scheme was also included in the Third Plan with an installed capacity of 5 M.W.

All these above mentioned projects has resulted in increasing the installed generating capacity from 20.6 M.W. in 1960-61, both in public and private sectors, to 160.3 M.W. by 1965. Generation has increased from 33 million Kwh to 70 million Kwh. These achievements have carved out a place for Assam in the power map of India. In respect of rural electrification, 96 towns and villages were electrified as against the plan target of 179 electrified villages. The per capita generation came up to about 6 Kwh as against 88 Kwh for India.

Ad-hoc plans: During the Ad-hoc plans in Assam; no new power project was undertaken rather this plan was devoted mainly to the completion of the projects stated earlier and consolidation and maximum utilisation of power generated with the help of increased transmission network.

The Umium stage II project was nearing completion and an additional 2.8 M.W.set was installed at Umtru powerhouse. The transmission lines under Umium Hydel project were completed. The Guwahati Thermal Station and the Garo Hills Thermal Project and the 220 K.V. Guwahati-Nagaon lines were in the peak of construction. The installation of 2*25 M.W. sets of Garo Hills project at Nangal-bibra and 1*30 M.W. steam Turbine Generating units at Namrup were continuing during this plan period. Extension work of the Naharkatiya Thermal Station was started. Though none of these projects could be completed till the end of 1968-69, the generating capacity already installed had been utilised increasingly. Generation of electricity increased from 70 million Kwh in 1965 to 143 million Kwh in 1967 and to 237 million Kwh during 1968-69. Besides, the 66K.V. line to Nagaland and 132 K.V. lines from Badarpur to churabari were virtually completed. Further, 379 villages were electrified and 54 pump sets were energised during these plans. The major portion of kopili investigation was completed while investigation of the Umium khri, Lower Umium and Kyrdemkulai (Umtru) was in progress, during these Ad-hoc plans.

Fourth Plan: There was substantial progress in power development during the Fourth Plan period in Assam. At the beginning of the Fourth Plan, there was an installed, capacity of 153 M.W. with the corresponding per capita consumption of 14.8 units. The objective of the Fourth Plan was to increase the power generation to 246 M.W. Against this estimated level of generation; the achievement was 202.95 M.W. increasing the per capita consumption to 20.45 units by the end of the Fourth Plan period. Thus, the power generation in Assam (including Meghalaya) rose from 413.2 million Kwh in 1971 to 529.9 million Kwh 1974.

Although, a number of power generation projects were undertaken but only a few of these projects could be completed and others remained at the different stages of implementation. Firstly, Guwahati Thermal Power Station (1*30 M.W.) was completed during the Fourth Plan. Secondly Umium Hydel Projects Stage (2*9 M.W.+1*2.8 M.W.) started during the third Plan was completed during the Fourth Plan period. Thirdly, Namrup Thermal Power Station Extension (1*30 M.W.) and shifting of 1*12.5 M.W. gas Turbine from Guwahati to Namrup were made in its construction. Fourthly, work of Garo-Hills Thermal Project (2*2.5 M.W.) was continued during this plan period but could not be completed, Fifthly, Kyrdemkulai Hydro-Electric Project (2*30vM.W.) which was undertaken during this plan, only preliminary works on this project could be completed. Besides, two projects of construction of transmission line from Guwahati to Now gong (220 K.V.) and now gong to Mariani (220 K.V.) were undertaken during this plan period. Bur only the first line was completed and the second line remained incomplete during this plan period.

Fifth Plan: In Assam, the power supply system faced some important changes during the Fifth Plan period. In 1972, the full state of Meghalaya came into existence. Thus, in 1975, the control over all the Hydel capacity of 67 M.W. from the two Umtru-Umium Hydel systems was transferred to Meghalaya State Electricity Board. Several power projects were undertaken in the Fifth Plan and in many of these projects substantial progress was made. These included (a) 45 M.W. Lakwah Gas Turbine Project; (b) 2*23 M.W. Namrup waste heat project; (c) 30 M.W. Chandrapur oil based extension project; (d) 2*60 M.W. Bongaigaon Thermal project based on coal from the Bengal-Bihar belt; (e) Lower Barapani (Kamrup) Hydel project; (f) kopili hydel (first stage) project etc.

Under the First Plan, the achievement in respect of power was satisfactory. The fifth Plan has fulfilled the target of raising installed capacity of power to the extent of 141.5 M.W Against of 1780 M.W. During the Fifth Plan period. Under the rural electrification scheme, the target of the Fifth Plan was to electrify 1975 villages of which only 660 villages were electrified during this plan period.

Sixth Plan: During the Sixth Plan period, the total amount of expenditure on power was Rs. 457.7 crores as against the allocation of only Rs. 370.68 crores. But the details of the physical achievement of this plan in respect of power were not yet available. Total installed capacity of the power projects of Assam, which was 201.5 M.W. in 1980-81, increased to 349.4 M.W. in 1984-85. The Sixth Plan set the target of raising the installed capacity to 500 M.W. by the end of the plan. Total units generated in Assam increased from 465 Kwh in 1980-81 to 852 Kwh. in 1984-85. The projects undertaken in the Sixth Plan were: extension of Bongaigaon Thermal Power Station (2*60 M.W.) Namrup waste Heat Power Projects (22M.W.) extension of Chandrapur thermal power station (30 M.W.) Karbio-Longpi Hydroelectric power (2*50 M.W.) etc. During this plan period, Kopili Hydro electric Project a venture of NEEPCO was almost completed. During the Sixth Plan about 7000 villages were electrified.

Seventh Plan : One of the objectives of the Seventh Plan is a speedy development of power generation along with utilisation of existing generation capacity. The Seventh Plan gives topmost priority to generation of power and thus 25 per cent of the total plan outlay in earmarked for the development of power sector in this State.

Accordingly, the total generation of electricity in Assam has increased from 845.10 million Kwh in 1985-86 to 1147.2 million of Kwh in 1989-90. Total installed capacity of power projects in Assam has also increased from 400.4 M.W. in 1985-86 to 514.4 M.W. in 1989-90. Moreover, in march 1988, 220 K.V. transmission line at Jogighopa Pancharatna and 220 K.V line at Silghat Bhomraguri have been completed.

In respect of rural electrification, total number of villages electrified in Assam till February, 1990 was 20,984 which accounted nearly 95 per cent of the total inhabited villages of the State.

Eighth Plan : During the Eighth Five Year Plan in Assam , 25.6 per cent of the total plan outlay is allocated for the development power sector of the State. In 1992-93, i.e. during the first year of the Eighth Plan, total installed capacity of power projects in Assam gradually increased to 514.4 M.W. Moreover , total units of electricity generated was 1068.3 million Kwh (unit) in 1992-93.

During the Eighth Plan period, two power projects which have been commissioned by the north Eastern Power corporation Ltd. (NEEPCO) include the Assam Gas-based Combined Cycle Project at Kathalguri (291 M.W) and Kopili Hydro-electric Extension Project (100 M.W.). In 1993-94, the State Government has signed MOUs, with private developers for completion of Karbi-Longpi Hydro-electric Project, Namrup Thermal Power Extension Project and Combined Cycle gas-based Projects at Amguri, Admtilla and Banskandi.

Although Assam is blessed with rich power potential but these potentialities were not exploited before the introduction of Five Year Plans. The installed capacity thus gradually increased with the start of planning in the State.

It is shown that the total installed capacity of the power projects in Assam increased from 3.3 M.W. in 1950-51 to 5.2 M.W. in 1955-56 i.e. by 58 per cent during the First Plan period. But the generation of electricity increased from 6.6 million Kwh in 1950-51 to 11.2 million Kwh in 1955-56 which showed a 71 per cent increase during this period.

The installed capacity increased from 5.2 M.W. in 1955-56 to 26.4 M.W. in 1960-61 showing an increase of 402 per cent during Second Plan period. Besides, the generation of electricity in Assam also increased from 11.2 million Kwh in 1955-56 to 43.4 million Kwh in 1960-61 i.e. by 286 per cent during the plan period.

Again the installed capacity and generation of electricity in Assam registered a spectacular increase during the Third Plan period. Thus, the total installed capacity which was only 26.4 M.W. during 1960-61 increased to 160 M.W. in 1965-66, i.e., 742 per cent. Total generation of electricity in Assam, which was 43.4 million Kwh in 1960-61 increased to 87 million Kwh in 1965-66 i.e., by 100.4 per cent during this plan period.

During the Ad-hoc plans, there was virtually no increase in the installed capacity in Assam although the generation of electricity increased by 79 per cent.

During the Fourth Plan period, the total installed capacity in Assam increased by 26 per cent i.e., from 161 M.W. in 1968-69 to 202.9 M.W. in 1973-74. But the generation of electricity increased by 108 per cent i.e., from 249 million Kwh in 1968-69 to 518 million Kwh in 1973-74.

Following the bifurcation of the Assam State Electricity Board (A.S.E.B.) in January, 1975 the installed capacity as well as the generation of electricity in the re-organised Assam got reduced considerably as the two hydro-electric projects under ASEB went over to Meghalaya. Thus, the total installed capacity of power in the State sto76yhod at 111.5 M.W. only in 1975-76. In 1980-89, total installed capacity of power in Assam increased to 201.5 M.W. However, due to persistent efforts in the end of 1984-85, 409 M.W. at the end of 1988-86 and further to 514.4 M.W. at the end of 1992-93 and finally to 534.4 MW at the end of 1993-94. The project-wise break up of installed capacity, as stood at the end of 1992-93, were as follows: (I) Namrup Thermal Power Project (133.5 M.W.) (ii) Chandrapur Thermal Power Project (30 M.W.) (iii) Bongaigaon Thermal Power Station c240 M.W.) (iv) Lakwa Thermal Power Station (4*15 M.W.) (v) Mobile Gas Turbine Sets at Kathalguri (4*2.7 M.W) (vi) Mobile Gas Turbine Sets at Geleky (vii)Bordikharu Micro Hydel Project (2*0.5 M.W.) (viii) kopili Hydroelectric Project (150M.W.) and stand by diesel sets (16.3 M.W.) With the completion of power projects of Assam undertaken during the Eighth Plan, the total installed capacity of power would be around 700 M.W. which would reduce the wide gap between availability and demand for power in the State.

The generation of electricity in the State has shown a steady upward trend since 1975-76 except for the year 1979-80 and 1980-81. The total units generated during 1975 -76 was 449 million Kwh which increased to 658 million Kwh in 1978-79. But in successive two years i.e., in 1979-80 and 1980-81 the unit generation dwindled to 513 and 465 million Kwh respectively. During 1985-86, power generation in the State reached the level of 845 million Kwh and further to a new peak level of 1206 million Kwh in 1990-91.

But, the total generation of electricity in Assam has declined to 1079.5 million Kwh in 1991-92 and then to 1068.3 million Kwh in 1992-93. Out of the four units of Bongaigaon Thermal Power Station (BTPS) total amount of power generated by its three units was nearly two-third of the total power generated in the State. But due to the absences of regular supply of coal and technical faults, the generation of power by the BTPS started to decline and the situation became so worse at the end of 1993, that the generation had to be stopped totally. Due to this, the generation of power in Assam had to face a serious situation and the economy of the state was very much affected out of it.

In the mean time, the power supply position in Assam has gained some momentum with the completion of some on-going projects. The availability of power within Assam has been improved considerably during the period from April to December, 1996. The system availability during the period is 1961.04 million unit which is higher by 167.56 million units compared to the same period of the previous year.

The installed generation capacity of ASEB till March 1997 has reached the -level of 574.4 MW. Share of power for Assam from central sector generation projects would increase to 244 MW on commissioning of all generating units of Gas-based Power Project at Kathalguri.

Moreover, there will be substantial improvement in power generation once adequate quantity of gas is made available to ASEM�s gas-based power stations at Lakwa and Namrup.

Although the total installed capacity of all power projects in Assam remained at 534.4 MW in 1993-94 but the actual generation of power declined to 150 MW during the period. During the present times while the peak hour load in Assam has increased to 440M.W. then the actual installed capacity has come down to only 150 M.W. leading to an abnormal situation in the State. In April, 1995, there was a large gap of about 250 M.W. between requirement and actual available.

Thus , the situation in this infrastructure sector is already going from bad to worse. Because of poor credibility as a buyer of power, recurring problems are arising in the matter of augmenting the shortfall by importing power from outside. As a result, rural areas including district headquarters are hardly getting any power supply during the peak hours and repeated unscheduled load shedding has become a way of life.

In the mean time, the work of Assam Gas-based Power undertaken by NEEPCO at Kathalguri of Dibrugarh district has been almost completed and the project in commissioned on 24th March, 1995. The project will ultimately generate 291 M.W. of power by utilizing on million standard cubic meter of natural gas per day made available from Kathalguri OCS of Oil India Limited. At present the project will generate 100 M.W. of power and by March, 1996 the project will be able to generate 291 M.W. of power. After completion, Assam will get 145 M.W. of power from this project.

But the other on-going power projects are not progressing at a satisfactory rate. The Ranganadi Hydel Project is of late kept starved of funds by the Center. Amguri Adamtilla and Baskadi gas-based projects are yet to get off ground. The infamous Karbi-Longpi Hydel Project is still to make any headway. Although the Bongaigaon thermal Power Station (BTPS) has already examined by Polish experts and most off its machineries are found in good condition but the state government was not able to provide any fund to meet the expenditures to modernize and alter not some of them as suggested by the experts.

According to the most optimistic estimates, it will be the turn of the century at the earliest before the new project the new projects are implemented and start generating power.

In order to meet this huge gap between the growing requirement and supply of power within the state, the State Government has taken steps to purchase power from the M.S.E.B. of Meghalaya and various power projects of NEEPCO located outside the State and also to bring power from Farakka Project of NTPC to tide over the present difficult situation in the state. Accordingly, the total volume of power purchased by the state has increased from 350 million units in 1981-82 to 923.5 million units in 1989-90 and then to million units in 1993-94.

the average plant load factor (PLF) reflects the operational efficiency of power projects in conditions of excess demand. In Assam, the average plant load factors of A.S.EB. projects in abnormally low. Comparing with the overall national PLF of 61.0 per cent in 1993-94, the
PLF of A.S.E.B. is steadily dwindling from 27.70 per cent in 1990-91 to 24.6 per cent in 1991-92 and then to 28.6 per cent in 1995-96. Thus, in respect PLF, as per national rating ASEB in ranked 15th Position amongst the state electricity boards in the country and is ranked just above Durgapur project and Bihar State Electricity Board.

Moreover, the State is also facing a problem of huge transmission and distribution losses which in estimated to be will over 25 per cent.

Power Potential and On-going Power Projects and Pipe-line Power Projects of Assam.

Assam along with the other North-Eastern states are having a huge potential for the development power in Assam. Though the entire north-eastern region has a large water, gas and oil resources and coal deposits which can be utilised for power generation but these resources have not been properly tapped for the benefits of the region as well as of the country in the sector of power generation.

Brahmaputra being the major river of Assam as well as the other north-eastern states is having around 43,269 MW of hydro power potential which have remained largely unexploited. At present, the total investigated potential of hydro-electric project s in the region is 30,000 MW approximately whereas only 492 MW has been developed and another 1250 MW being development for which construction work is going on.

The North-Eastern Electrical Power Corporation (NEEPCO), constituted in 1976, have come a long way to become instrumental in boosting the entire scene of power generation of the region. The Corporation started with the construction and commissioning of 150 MW Kopili Hydro Electric Project at Umrangshu In Assam. On 24th March, 1995 the NEEPCO commissioned the Assam Gas-based Power Project (291MW) at Kathalguri located at the Dibrugarh district of Assam. Initially the first three gas-turbine units are formally commissioned at Kathalguri which is scheduled to generate 100 MW of power at present. Another 3 gas-turbine units with installed capacity of 100 MW is scheduled to be commissioned in July, 1995 and the remaining 3 steam turbines with installed capacity of 90 MW is again scheduled to be commissioned by March, 1996. After the completion of this project, Assam in expected to get 145 MW (50 per cent) of power from it.

Another on going projects which is nearing completion includes Kopili extension hydel project having an installed capacity of 100 M.W. The Kopili extension hydel power project on completion will generate 502 million units of power per annum. This project being developed by NEEPCO is scheduled to be fully commissioned in 1997.

Thus, after the completion and commissioning of these two major projects the recent power policy of the Central Government the Government of Assam has already signed MOUs with private developers for the completion of Karbi-Longpi Hydro Electric Project, Namrup Thermal Power Extension Project and Combined Cycle Gas-based Projects at Amguri, Adamtilla and Banskandi. the primary power purchase agreements have also been signed with the developers of Amguri, Adamtilla and Banskandi project. The State Government has also extended State guarantee for the Amguri project and urged the Center to provide counter-guarantee of Government of India for the project expeditiously.

The responsibility of completing Karbi-Longpi hydel project was entrusted with Subash Projects and Marketing Limited (SPML). The Amguri Combined Gas Power Station with an installed capacity of 280 M.W. has been entrusted to Assam Power Partners Private Limited for its planning and execution. The scheme envisages installation of multiple units of gas turbine with associated infrastructure and machinery and equipment at an estimated cost of Rs. 990 crores. A memorandum of understanding (MOU) for setting up a 90 M.W. gas-based power station was also signed between ASEB, the State Government and the executor of the Rs. 360 crores project-the Assam Valley Power Corporation Ltd. on February 1995. Again the Baskandi Gas-based Power Projects has also been finalised at an estimated cost of 70 crores. This project is located at Cachar district of Assam and the foundation stone laying ceremony of this project has already been completed in April, 1995. The installed capacity of this project is 15.5 M.W. Moreover, the work of the 360 MW Amguri Gas-based Power Project will commence during 1995-96. The Centre is drawing up the final plans for the project which will be set up by the National Thermal Power Corporation (NTPC).

Meanwhile, the State Government after analysing various options has Thermal Power Corporation (NTPC) for execution. The Amguri Power Project which was earlier taken up by an American Consortium-Assam Power Partners Limited did no go ahead as it was denied counter guarantee by the Government . Moreover, the proposed gas based Amguri project, entrusted to NTPC has been downgraded to 290 MW from the proposed 360 MW due to non availability of the required gas.

Moreover, considering the failure of Subash Project and Marketing Ltd to revive Karbi Longpi hydel project, the Government of Assam has taken over possession of the Karbi-Longpi hydel project (100MW) and arrangement for execution of the balance work is being made.

Construction of Gas-based Power Projects at Adamtilla and Banskandi with combined capacity of 24.5 MW in Barak valley are progressing according to schedule and would be commissioned shortly.

Moreover, the Assam Government has singed a MOU with Us based company. Ogden Energy of New Jersey in June 1997 for taking over the Bongaigaon Thermal Power Station (BTPS) for its renovation and up gradation. Besides , the Assam Government has also decided to collaborate with a US based company to explore possibilities of setting up power projects in the State. Meanwhile, a US based Company, American Power Gen System Association has submitted a proposal to the Assam Government for setting up a 300 MW coal based project at Borgolali.

Looking into the future position, as per projections of the 13th Electric Power Survey of India conducted by CEA in 1987, the peak load of ASEB is likely to be around 849 MW after 1994-95 with its energy requirements being about 3890 million Kwh Installed capacity was projected to be around 799 MW and peak availability of 583 MW. The peak demand expected to increase 1190 MW in 1999-2000 and energy requirement up to 5890 million units.

Again, recently an assessment of the additional power requirement has been made by the Working Group on Power, set up by the Planning Commission for formulation of the Ninth Five Year Plan. As per this assessment it is found that the additional assessed power capacity requirement of Assam during the Ninth Plan (1997-2002) would be 287.5 MW.

The present installed capacity of Assam is 534.4 MW in 1993-94. Thus if this expected pipeline projects are implemented in time then it is expected that the state can be rescued from its severe power crisis.

Moreover measures have been initiated for setting up of 23 Mini Hydel Projects in Assam Locations of all there 23 hydel projects have been identified at various places of the state. These are : Bordikhanu (MW), Lungit (6 MW in two stages), Myntrirang (9 Mwin two stages), Jamma (2 MW), Jenam (4 MW) Dalaima (6 MW), Dhansiri Canal (20 MW in 5 stages), Nazirakhat (15 MW), kalmoni (200 KW), Deopani (250 KW), Amlong (100 KW), Major (15 KW), Champabati (500KW), Sunani (150 KW), Shamangsoo (25 MW), Anjupani (500 KW), Killinbg (3 MW), Ganapati (500 KW), Borjuri (2 MW), Upper Barjuri (2 MW) and Loongsoong (500 KW).

Investigations on these proposed mini-hydel projects have either been completed or are under process. The Bardikharu project is already completed but not functioning as yet. The Dhansiri Canal Hydel Project is already under implementation. In respect of Champabati, Borjuri, Upper Barjuri and Loonsoong Project, investigation are already undertaken by private parties.

In addition to the aforesaid projects, studies for micro hydel project, at Ukium, Kulsi, Rani, Dudhnoi, Hahim, Singra, Jinjiram, Bashistha and Chapanala are also being undertaken.

Since it is felt that public sector alone cannot meet growing demands of power adequately, the State Government has decided to handover the responsibility of setting up small and medium hydro-electric projects to the private sector. Such efforts would virtually ease the present shortage of power supply in the State and assure speedy growth of new economic avenues.

Thus, the state government has taken initiatives in bringing in private investment in the power sector both from within the country and abroad. Out of the total 190 private power sector proposals received by the country till June, 1995 with the estimated capacity of 75,259 M.W. Assam received five proposals for a total capacity of 500 M.W. at provisional investment cost of Rs. 2000crores.

Regarding the pattern of electricity consumption in Assam during the period 1950-51 to 1973-74, there was gradual fall in the percentage of electricity consumption for domestic, commercial and public lighting purposes and a continuous rise in the percentage of power consumed for industrial purposes from 13.1 per cent in 1950-51 to 58.8 per cent in 1968-69 again fell to 44.9 per cent in 1973-74. It is revealed that in recent years, the industrial sector ( including tea gardens) continued to be the biggest consumer of in the State which alone consumes about two fourth of the State�s total power consumption. Besides the industrial sector, other types of consumption are also recording considerable increase which also can be seen from the table.

Thus, it found that in Assam, the consumption of power by industry at low and medium voltage has increased from 61.00 million Kwh in 1980-81 to 149.00 million Kwh in 1990-91 and then declined to only 70.00 million Kwh in 1992-93. Again total consumption of power by industries at high voltage has increased considerably from 245.00 million Kwh in 1992-93. Again the total consumption of power by tea gardens in Assam has also increased from 99.71 million Kwh in 1980-81 to 284.00 million Kwh in 1990-91 and then declined to 180.00 million Kwh, in 1980-81 to 180.00 million Kwh , in 1990-91 and then to 232.00 million Kwh in 1992-93. Again, the bulk electric supply in the state sector has also increased from 110.29 million Kwh. in 1980-81 to 165.00 million Kwh in 1990-91 and then declined to 150 million Kwh in 1992-93. Besides, total units of electricity sold outside the State was 218.00 million Kwh in 1990-91 and 107.71 million Kwh. in 1992-93 Finally, total units of electricity sold by the State Electricity Board has also increased from 638.00 million Kwh in 1980-81 to 1636.00 million Kwh in 1990-91 and then slightly declined to 1590 million Kwh. in 1992-93.

Rural Electrification programme is gaining momentum since the last few years. This programme is very mush essential for the execution of development programmes both in the agricultural and rural sector. Rural electrification also helps in divers tries and of rural economy thought the establishment of agro based industries and other small and cottage industries.

It was only from the Second Plan the rural electrification was given due importance in Assam and allocation of Rs.46.38 lakhs was made on it .During the Third, Fourth and Fifth plan ,total allocations for rural electrification in Assam were Rs.25 lakhs, Rs. 514.25 lakhs and Rs.`48 crores respectively which showed a progressive rise in its outlay,

It is shown that number of villages electrified with was only 2 in 1956 increased to 96 in 1966 and then jumped to 1146 in 1974 and 2176 in 1978. In1981, the number of electrified villages became then double i.e., 5672 within 7 years and then further increased to 6673 and 7541 in 1981 and 1983 respectively.

Again the total number of villages electrified in Assam has increased considerably from 11,806 in 1985 to 20.984 in 1990 and then it further increased to 21,344 in 1991 and then to 21,495 in 1994

In Assam the percentage of small towns and villages electrified to total number of villages increased from nil in 1951 to 1.0 in 1969, 9.9 per cent in 1978, 25.6 per cent in 1981,30. 3 per cent in 1982 and to 34.3 per cent in 1983 as against the all India coverage of 53 per cent villages in 1982. Among the districts Kamrup district had largest number of electrified villages (1186) in 1983 white it was lowest in the district of N. C Hills, being only 86. However, proportion of village electrified to total inhabited village had been found to be highest in the district of Now gong ( 58.8 per cent) and lower in the district of North Lakhimipur (9.4 per cent ). During 1982-83 altogether 868 village were electrified in the stat as against electrified of 1046 villages in 1981-82 and 1401 villages in 1980-81.

Again in recent years, the percentage of village electrified to total inhabited villages in Assam has increased considerable from 45.4 per cent in 1985 to86.7 per cent in 1990 and then it slightly increased to 82.0 per cent in 1991 and them to 82.6 per cent in 1993. Moreover, among the various districts of Assam. Nagaon district had the largest number of electrified villages (1413) in 1993 while it was lowest in the North Cachar Hills district, bring only 271 villages.

The State Government has also embarked up to an ambitious programme in rural electrification and expected to achieve cent electrified of all villages by 1998. Accordingly the State government has decided to expand " Kutir Jyoti Scheme" and thereby 350 villages would be electrified in 1994-95, 900 villages in 1995-96, 940 villages in 1996-97 and cent per electrification of all villages by 1997-98. Besides, the State Government has decided to expand " Kutir Jyoti Scheme" covering one lakh households in the next year.

Considering the immense potential (based on hydel on hydel, natural gas, oil and coal reserves) of Assam the present rate of its exploitation is found to respect of meager I per cent of the country�s total installed capacity of power. Moreover, the average per capita consumption of power in Assam works out to be only 78 units as against 236 units for the country as a whole in 1990-91.

The main reasons behind the poor the development of power potential in the state are lack of industrialization, financial constraints and inefficient management of the State electricity Board.

(I) Wastage or leakage in plan expenditure on power projects should be stopped completely and be seriously dealt with for relishing the fullest benefits of each projects .

(ii) To avoid delay in completing the power projects there should he proper evaluation of each power project . There necessitate (a)Investment surveys (b) Concurrent evaluation and (c)Post-project evaluation of every power project.

(iii) The Assam State Electricity Board should tone up their efficiency level and generate surpluses at the rate of at least 6 per cent of the invested capital.

(iv) Corrupt practices followed by a section of customers and officials, resulting huge loss of revenue and wastage of materials must be dealt with seriously and be stopped completely.

(vi) In view of the need to fully utilise the practically untapped but huge power potential of the State, the centre should forward with its own schemes to develop power potential of the State, the center should come forward with its own schemes to develop power facilities in this State and must offer block grant and specific grants to the State Electricity Board for developing new power projects. The surplus power which can be made available by utilising huge untapped power potential in Assam can be supplying through a national power grid system.

Although the State is at present passing thought a serious power crisis the Government is trying to attract private investment for development of various power projects but as per the most optimistic estimates, it will be the turn of the century at the earliest before the new project are implemented and start generating power. It will therefore , be necessary to look how the best perceptible improvement can be brought in the key areas like better project management and system, improvement in plant load factor ( PLF), bringing down transmission and distribution losses and most urgently restoring the financial health of the Board.

In order to tone up the State Electricity Board for raising energy bills is times fixing minimum target for each subdivision per month introducing a system of rebate for timely payment of dues penalty for delay, stopping leakages and permanent disconnection as and when any attempt of tampering with is detected, pulling up spend thrift officials indulging in creation of dead stock-piling inventories and meting out exemplary punishment where needed, keeping tabs on purchases, restricting tours, imposing an on hiring of private vehicle for use in so called official works under one pretext or another, embargo on new appointment are some of the important areas worth considering. Following the above mentioned path, the surplus so generated and saving accrued can easily be ploughed back for productive purposes.

A well developed Transport and Communication system contributes to a great extent towards serving the social needs and providing necessary infrastructure for rapid economic development of a region. The importance of transport and communication facilities is very high in a State like Assam as the State imports practically all her requirements of consumer goods, machineries, equipments, raw materials for the industries and at the same time exports a huge amount of goods produced within the state, like tea, jute, timber, bamboo and bamboo produces, minerals and mineral oil. Moreover, Assam�s Central position in the north-eastern region makes its transport and communication facilities more important as all traffic in goods or passengers of other North-Eastern states have to pass though Assam.

But unfortunately Assam hardly enjoys a creditable position in this respect The State still continues to suffer from inadequate transport and communication facilities which still continues to act as an impediment to the economic development of the State. In view of the vital importance of this sector, the State Government so far made considerable efforts though successive five year plans to make up the leeway but much more still remains to be done. The North-Eastern Council, thought its own projects, has also lent support to this cause. Thus, a sizable improvement in this sector is likely to record in near future with the joint efforts of both the Central and State Governments.

There are different types of transport system in Assam viz, railways. roads, waterways and airways.

Railway transport system in Assam was initiated in 1881 when the Assam Railways and Trading Company was formed by the British under the leadership of Dr. John Barry White and the first railway line from Dibrugarh steamer ghat to Jaipur Road was inaugurated in the next year . Two more companies-Jorhat Provincial Railway and Tezpur -Balipara Railway were also set up in 1885to cater to the need of transport of tea gardens of Jorhat and Tezpur area.

In 1892, the Assam Bengal Railway was formed to provide railway connection to Assam with the rest of India In 1902, Dhubri was connected with Calcutta by the extension of Eastern Bengal Railway line. Again in 1909-10, Amingaon was connected with Calcutta through Dhubri the period of 1896 to 1993, there was rapid expansion of railway lines in Assam.

After independence, there was lot of changes in the railway system of Assam . After partition, the railway link between Assam and Calcutta was closed. Thus, the work of Assam railway link was started in 1948 and the same was completed in December, 1949. In 1958, the North-East Frontier Railway Zone (N.F. Railway Zone) was formed and its headquarter was established at Maligaon.

Railways serve as the main communication link between Assam and the rest of India. The total railway route length in Assam increased from 1758 Km in 1960-61 to 2361.82 Kilometers in 1994-95 (468.68 Kilometers under broad gauge and 1893.14 Kilometers under meter gauze) which constituted nearly 3.75 per cent of the total railway route length of broad gauze line to the extent of 801 kilometers from Guwahati to Dibrugarh total B. G railway route length of Assam stands at 901.0 Kilometers in 1995. However, the position of the State in the respect of broad gauge route length was very much disappointing since it accounted for even less than2.2 per cent of the country�s total. The State�s meter gauze railway rote length for every 100 sq. Km. of area was 2.0 k.m. as against the all-India average of 0.8 Km. But the broad gauge railway route length of the Stare was only 1.00 K.M. per 100 sq. k.m. of area in comparison to that of the all India average on 0.9 km.

In 1997, the proportion of broad gauge route length to total railway route length, thus worked out to be only 38.1 per cent Assam as against nearly 55.0 per cent for the country as a whole. Assam is , however, favorably placed in respect of position relating to railway route length per 1000 sq . km. of geographical area which worked out to be about 30 kms. in the State as against about 19 kms. for the country as a whole at the end of 1988-89.

The operating conditions of railway in Assam is very difficult due to incidence of breaches from natural causes like floods and heavy landslides in hilly regions during monsoon which affect the rail transport in Assam adversely every year .

The railways in Assam has great economic significance as the development of coal, oil and tea industry depend to a large extent on transportation facilities provided by the railway industry.

Besides , various developmental activities in the railway sector including extension of railway line have been continuing in the state. Amongst the important achievement mentioned may be made by opening of the Balipara Bhalukpong metre gauge to passenger traffic on 27th January, 1989 and Lala Bazar -Bhairabari metre gauge line on April. 1989. The completion of construction work BG/MG line form Amguri in Assam to Tuli in Nagaland in a notable achievement . Another important railway project under implementation in the state is the construction of a rail-cum road bridge (Naranarayan Setu) across the river Brahmaputra, connecting Jogighopa and Pancharatna in the Goalpara district along with construction B.G. railway line (136 kms.) on the south bank connecting Jogighopa with Guwahati. The construction work of the bridge is progressing satisfactorily and is scheduled to be completed by 1997-98.

Moreover , the Union Government has now decided to accordingly approve a large number of projects of rail network in the Northeast and accordingly approved a large number of projects for this area. The projects include

(a) Conversion of Simaluguri- Moranhat and Mariani -Jorhat - Farkating branch lines;

(f) Construction of a new 123 km. line from Diphu to Karong, (g) Construction of a new 35 km. line from Hurmuti to Itanagar and (h) Conversion of Siliguri New Bongaigaon 280 km. section into Broad Gauge.

In the mean time , the Guwahati-Dibrugarh 801 km. Uni gauge conversion has already been completed and same has been opened for passenger traffic recently. Moreover , the Tinsukia -Ledo 27 km. B.G> line and Chaparmuk-Haibargaone 35 km. line have already been opened for passenger traffic. Now in order to improve the railway transport condition in the North eastern region, the above mentioned new work of the state as well of this region .

There are unique opportunities for developing inland water transport in Assam . There are two river systems-the Brahmaputra and the Barak -kushirara and their tributaries in the south. Besides, country boats carry goods for internal trades in many other rivers of the State.

From the very beginning the people of Assam was conducting its trade with the neighboring states though its water transport. Again in the early part of their rule, the British authorities started to develop river transport in Assam considering the constraints in the development of roads and railway. The East India Company stared a steamer service in 1947. Later two more private companies were formed in 1864 to provide regular commercial services to Assam . These two companies were the India General Navigation Company and the River Steam Navigation Company . Afterwards, these two companies were joined together to from the Joint Steamer Companies which ultimately maintained steamer services in the Joint Steamer Companies which ultimately maintained steamer services in the State throughout the British period. The steamer services helped the state in exporting bulky products like tea, jute, timber. and also importing other consumer goods at a very low transit cost.

After independence, this inland water transport system was developed further to meet the growing needs of transportation.

Assam has a total navigable waterways to the extent of 4065.6 . kms. our of which 2, 193.6 kms, are navigable though out the year and rest 1,872 km. are navigable only during the monsoon. Previously about 93 per cent of tea and 90 per cent of jute exported from Assam were carried by water ways till the Indo-Pakistan war in 1965.

Water transport in Assam can still play a significant role. The Bhagawati Committee recommended for the improvement of inland water transport with special reference to Assam. To revitalize the waterways in Assam, it should be thoroughly reorganized and following steps, e.g.,., conservancy of the river system, organisation for development and maintenance of waterways, provision of modern port and dry dock facilities at different terminal points, replacements of old vessels by new and efficient ones, provision of a good marine workshop, acquisition of heavy cranes for loading of heavy cargo etc. must be taken.

During 1981-82 vessels of different types were in operation in about 5200 Kilometers of waterways of the State. Two public sector Organisation viz; the State Directorate of Inland water Transport and the Central Inland water Transport Corporation are presently rendering navigation facilities in the State on commercial basis. In 1992-93, the State Directorate of Inland Water Transport Communication operated its ferry services in 60 different routes across the river Brahmaputra and Barak. The Directorate had a fleet of 130 different crafts in 1992-93, of which34 were modern steel vessels, 10 ramp powered lighter vessels, 10 pontoons, 17 mar boats, 4 relief boats and 56 single boats.

During 1983-84, the vessels of Inland Water Transport of the State carried on average 6862 number of passengers and 168 M.T. of goods per day. In 1991-92, total number of passengers handled were 5951 thousands and the volume of goods handled were 96,447 tonnes.

Considering the rice potentiality and importance of inland water transport in a riverine like Assam, the State Government has suggested to the centre a number of policies for the development of the inland water transport (iWT) system, including declaring it as an industry, during the Ninth Plan period (1997-2002).

Right form the First Plan to the Eighth Plan, the IWT sector suffered a set back compared to roadways and railways in respect of fund allocation. Thus it has become imperative to make the fund collection of fund collection liberal during the Ninth Plan period for the development of IWT sector , Moreover, in order to attract private entrepreneurs for investing in the IWT sector, it should be declared an industry like tourism. In order to develop the backward areas and tribal belts in the hinterland, the IWT sector should also be declared a priority sector at par with similar nascent industries. The State Government also suggested removing all discrepancies faced by IWT with railways and roadways so that a level playing ground be provided to determine the cost of transportation independent of any subsidy for all modes of transport. The Government further suggested setting up Regional Inland Navigational Institute (RINI) at Guwahati for imparting specific training in the various disciplines of waterways.

Meanwhile, the State IWT Department has proposed to construct about 22 steel mar boats costing about Rs. 246 lakh for the Neemati- Kamalabari and Dibru- Souari- Burisuti ferry services during the Ninth plan under the North Eastern Council (NEC) scheme. The Neemati-Kamalabari ferry service is connected with Nagaland in the south and Arunachal Pradesh in north via Lakhimipur district. The Dibru-Sonari-Burisuti ferry service is connected with Arunachal Pradesh and is one of the most important and shortest routes between Assam and Arunachal Pradesh.

The present feet position is not sufficient to cope with the first phases of crossing. In 1997- 98,Rs. 160 lakhs has been proposed to start with the first phase of work. The IWT Department has also proposed to construct permanent terminal at Silchar for transshipment of cargo between Calcutta and Silchar at a cost of about Rs. 781.35 lakhs. It has further proposed procurement of six high speed river going vessels for the Brahmaputra at a cost of about Rs. 1,029 lakh during the Ninth Plan period.

The Inland Waterways Authority of India under the Ministry of Surface Transport, Government of India, is taking various steps to develop inland water transport in Assam . Floating terminals are planned at Tezpur, Dibrugarh and Jogighopa during 1996-97. The State Government has already been approached to transfer five floating pontoons, built under the funding of North Eastern Council, for utilization as floating pontoons at terminals.

A scheme at an estimated cost of Rs. 196 lakh for providing buoys for day and night navigational facilities between Bangladesh border and Guwahati is also under implementation. According to the annual report of the Ministry of Surface Transport for the year 1995-96, a navigational channel is being developed in the Dhubri Dibrugarh stretch of the Brahmaputra. Besides construction of the Dhubri Dibrugarh stretch of Badarpur river terminal are also under consideration. The Ministry of Surface Transport also plans to provide navigational infrastructure for inland water transportation in the Brahmaputra river from Dhubri to Sadiya during the Ninth plan.

From the very beginning, Assam was having a water transport link between Calcutta and Guwahati via then East Pakistan. But subsequently, the route was disrupted resulting a huge inconveniencies and loss to the economy of Assam.

Recently, Bangladesh Government has agreed , in principle, to revive the Road and river routes between India and Bangladesh thereby opening a new era of trade relations with north-eastern states of India. The salient features of the agreement includes, amongst others the protocol for clearance for there corridors in Bangladesh to facilitate loading and unloading ships originating from north-eastern states of India. River traffic between the rest of India and part of Assam, Tripura and Bangladesh along the Brahmaputra and other rivers will increase, resulting in precious savings of fuel costs and travel time. Tea industry circles of this region are confident that exports Bangladesh, commanding better prices in the international market.

In view of the ongoing development, the State Transport department has rightly laid stress on developing the waterways of the Brahmaputra to link Dibrugarh, Guwahati, Dhubri with Dhaka and Halide so that transportation of merchandise to and fore the State becomes easier and less costly. Cargo shipping in the Brahmaputra needs to be made functional without delay, and the inland container depot, set up at Amingarh made full use of so as to flourish the river ports in Guwahati, Dhubri and Dibrugarh etc. as nerve centers of business of the North-east.

Recently, business associations like ASSOCHAM and the Confederation of Indian Industries ( CII) have shown their interest on the development of Ganga-Bhagirathi-Hooghly and encourage the private sector to set up terminals. Thus the state should try to develop waterways in such a manner so that they have sufficient navigable depth and width, vertical clearance, smooth lends and suitable channels, minimum situation, modern navigational and communication aids and suitable loading and unloading faculties. As all these works require a huge fund thus the private sector under the leadership of the organizations like CII and ASSOCHAM can come forward to participate in these activities. The CII has already mooted the idea to develop Brahmaputra into excellent waterways for cargo shipping, as part of its �Sunrise� programme for the North-east. Thus what is required at this moment is an all out effort from all concerned to develop Brahmaputra River system as a viable link for cargo shipping.

In Assam, the road transport system has to bear the major responsibility of providing an efficient means of transport throughout the stat due to the limitations of its railways and waterways. The construction of all weather roads connecting all parts of the state is the pre-requisite of a good road transport system in Assam. The cost of road construction in Assam is comparatively higher due to peculiar physical conditions, heavy rainfall and floods, necessity of leveling the uneven surfaces, circuiting of roads in the hill areas and necessity of construction of numerous bridges and culverts. Thus, roads and bridges received the lion�s share of the outlay for the transport and communication under all the plans in the State.

Assam is provided with a fairly extensive road net work. During 1991-92, the State had a total P.W.D. road length of 31,528 Kilometer ( including 2033 Kilometers of National Highways ) as against 20225 Kilometers in 1978-79 and 17030 Kilometers 1970-71. Of the 31,528 Kilometers in P.W.D. road length in 1991-92, 7980 kilometers were (or nearly 25 per cent ) were surfaced roads and the rest 23548 Kilometers were unsurfaced roads, These surfaced roads were nearly 25 per cent of the total road length as against the national percentage of 48 per cent . In 1989-90, the length of roads under P,.W.D. per lakh population in Assam was 137.0 kilometers and the length of road per 100 sq. km. area was 38.0 kilometers. The length of roads in Assam increased from 19, 156 kilometers in 1950-51 to 31, 528 kilometers in 1991-92. Again the length of motor able road increased over the same period from 10,972 kilometers to 29062 kilometers, the road system in Assam suffers from various deficiencies like substandard surface, narrow lane etc. However the condition of most the roads in Assam is not satisfactory and requires frequent repair due to ravages caused by floods. Moreover, Many of the roads being small in width with narrow and weak bridges and culverts, needs widening and up gradation.

The Economic Census of 1977 shows an idea about the availability of road facilities in the rural areas of Assam. According to the report, the number of villages connected by metalled roads contributed 14.1 per cent of state�s total villages in 1977. Dibrugarh is the most favorable placed district in these respect with 20.3 per cent of villages connected by metalled road following by Darrang and Sibsagar district, (17.7 per cent each).

As the road net-work of Assam plays a pivotal role in the field of intra-state and inter-state traffic, high priority has been accorded for its development in the Five Year Plans of the State. The Central Government also gave top priority to road development in the brother areas of Assam.

Road transport plays a vital toll in the transport system of the state. In Assam both the public and private sectors are providing road transport services in Assam. Assam State Road Transport Corporation (ASRTC) is the only one public sector organisation which provides both good and passenger traffic in selected routes. Till the end of 1992-93 the Corporation a total route length of 8130 kilometers as against 5586 kilometers in 1980-81. The total fleet strength of the Corporation stood at 961 in 1992-93 which included 899 buses, 11 trucks and 28 cars. The road transport services under the private sector is also playing a crucial role in the movement of passengers and goods traffic in the State. The services rendered by this sector carriage agencies, under the national Permit System, deals with considerable volume of inter-state goods traffic to and from Assam.

The total number of motor vehicles on road in Assam was 2.60 lakh in 1992, which was merely 4.42 per cent higher then that0 of the previous year. In 1992, 19,350 motor vehicles were registered in the State as against 24,075 in 1991.

To meet the deficiency and shortages in the road transport system of the State, a perspective 15 year plan has been formulated for road development in Assam so as to catch up with all-India norms by the Eighth Five year Plan.

Assam in regularly served by air transport services of the Indian Airlines, These services are operated through six civil airports of the State viz, (I) Guwahati (Borjhar) (ii) Tezpur (Salonibari), (iii) Jorhat (Rowriah ), (iv) Dibrugarh (Mohanbari) (v) Lakhimpur (Lilabari) (vi) Silchar ( Kumbhirgram). The India Airlines operates regular air service between Assam and Calcutta. With the introduction of a direct air service between Assam and Guwahati and Delhi with effect from January , 1981 a long felt demand of the people of Assam has been fulfilled. Besides, Guwahati has also been brought under air-bus schedule of Indian Airlines with effect from June, 1982 and thus became the eleventh city in the country to be served by Airbus. Further, a third level air transport service, known as " Vayudoot" also continued to operate connecting several places of the North- East Region (including Assam) with India Airlines for containing its mounting losses. Thus, the State is now connected by air services with both Calcutta and Delhi.

The, the air transport is plating a very important role by providing the quickest mode of transport in the State. But the air ports in Assam are not in a very good shape and thus they require some increased attention for their expansion and improvement of the existing condition. Mean while, steps have been taken to upgrade the Borjhar Airport to an international one.

In respect of postal and telecommunication facilities in Assam, the stat has been recording a steady growth. During 1975-76 the State had a total of 2461post offices which increased to 3115 in 1980-81 and then to 3602 in 1989-90. Out of the total number of pos offices operating in the entire north eastern region ,Assam alone accounts for nearly 59 per cent of the total . Moreover, out of the region�s 21 head post offices, 14 are located in Assam. In 1989-90 the total number of letter boxes and post boxes in the State stood at 11,157 and 507 respectively.

In spite of some important registered in the postal cervices in Assam in the last few years, the position of the State in this regard is found not much satisfactory in compared with the position of the country as a whole .For example, in 1981-82 a post office on an average had to serve about 6.4 thousand persons in Assam compared with 4.2 thousand persons at all India level in 1978-79.

Regarding the availability of telecommunication facilities in the State is concerned a show and gradual increasing trend has been noticed during the past few years. In Assam, the total number of telephone exchanges rose from 133 in 1976 to 156 in 1981-82 and then to 214 in 1989-90. There was, however, on addition to the number of telex exchanges in 1982-83 and remained at 4 as in the previous year. But the number of automatic exchange has increased to 195 in 1989-90.

Under the successive Five Year Plan in Assam, the plan outlay on transport and communication varied significantly. The table given below shows the relevant figures.

It is revealed that the transport and Communication did not receive much priority under the successive plans in Assam. Although 17 per cent of total plan outlay was allowed on transport and communication during First Plan but then this share of allocation progressively declined to 4.8 per cent during Ad-hoc plans. The share of outlay on transport and communication again increased to 13.1 per cent and during the Fourth Plan and then gradually declined to 7.2 per cent and 6.3 per cent during the Seventh and Eighth Plan respectively. Taking all the Plans together an amount of Rs. 666.42 crores in being spent for the development of transport and communication system of the state which was about 7.3 per cent of the total plan outlay during first eighth plans.

Although there was a progressive increase in the absolute amount of plan outlay on transport and communication but the plan wise percentage of increase in actual outlay on this sector lagged behind that the total plan outlay in the case of all plans except the Fourth Plan of the State.

Further, the annual average Plan outlay on transport and communication in Assam was only Rs. 69.9 Lakhs during the first Plan and then the same increased to Rs. 131 lakhs in the Second the Plan, Rs.157 lakhs in the Third Plan, Rs . 138 lakhs in the Ad-hoc plans, Rs520 lakhs in the Fourth Plan, Rs. 1,112 lakhs in the Fifth plan and Rs. 2115 lakhs in the Sixth Plan and finally Rs. 3244 lakhs and Rs 5897 lakhs during the Seventh and Eighth Plan.

Achievements in respect of Transport and Communication under the successive plans

Let us now look into the achievements of the Five Year plans in Assam in developing transport and communication facilities in the State.

First Plan : At the end of First period. Assam had only 10,944 Kilometers of roads as against the target of Nagpur plans to have 21,243 Kilometers of road within a period of twenty year (1943-63)

Further, length of new surfaced roads including National highways increased to 1,685 Kilometers in 1955-56 as against 1529 Kilometers in 1950-51 which shows an increase of 10.20 percent.

Besides, for the improvement of State road transport system in Assam, 432 Kilometers of routes were nationalized as against 550 Kilometers during the period of the First Plan 74 new vehicles were purchased to ply on nationalized routes for the operation of passenger bus services in Assam.

Second Plan : During the Second Plan period, a total road length of 13,015 Kms. were constructed 2,425 kms. on earth roads, If we add 1,1,84 kms. off National High ways constructed during this period to the road length constructed by the state we get the total road length of 11, 774 kms. constructed during this Plan period.

Besides, nearly 966 kms. of existing sub-standard roads were improved and a length of about 296 kms. of roads was black-topped roads Nine major bridges were constructed during this plan period.

Although the Second Plan of Assam fixed the target of extending 2,317 kms, of nationalized roads but at the end of the Plan, total length of nationalized roads was extended only up to 1688 kms. which created a shortfall of 629 kms? of roads.

On inland Water Transport Schemes, total expenditure during this Plan period was to the extent of only Rs. 1.3 lakhs which was spent to tally on development works leading to the setting up of a Directorate of Inland Water Transport for investigating and designing of various navigational projects relating to waterways in the State.

Third plan : During the Third plan in Assam, the transport and communication sector achieved a notable progress. The major road works completed during this plan period under the central plan, Central bodies and on the basis of sharing cost between State and Central Government were as follows : National Highways number 31,37 and 38 falling in the State were completed at the cost of Rs. 31 crores. the completion of the Road - cum Railway bridge over Brahmaputra upon N. H. 31 at the cost of Rs. 16 crores was one most significant achievement of the Third Plan. Besides, R.C.C bridges on North Trunk Road were constructed over rivers Dikrong, Subansiri, Jia- Bhorali at the cost of 2.44 crores.

Besides, the other achievements in the construction of roads and bridge the Third Plan were consisting of formation of road to the extent of 1542 kms. metalling and black topping-285 kms. improvement in the low standard road- 566 kms. construction of rule roads to the extent of 1000 kms. and construction of 9 major bridges.

Due to the execution of all these programmes, the total length of P.W.D. roads including National High ways in Assam increased from 14,858 Second Plan in Assam Plan to 19.024 kms. at the end of the Third Plan.

In respect of Road Transport the length of routes increased from 1949 kms. at the end of Second Plan to 2,934 kms. at the end of the Third Plans in Assam . The number of vehicles was also raised from 584 to 727 during the above mentioned period.

Regarding Inland Water Transport in Assam Rs. 5.64 lakhs was spent during the Third Plan on four schemes relating to hydrological survey, bottom paneling preparation of inland port and on preliminary training in the various system of navigation.

Ad-hoc Plans : During the Ad hoc Plans on new important project was undertaken in the transport and communication sector in Assam, rather the various system of navigation.

In the case of State Road Transport, a sum of Rs. 44,6 lakhs was spent during these Ad-hoc plans.

Further, the Central Inland Water Transport Corporation was set in 1967 to recognize river services in Assam.

Further Plan : During the period of Fourth plan various schemes which were implemented for the improvement of roads and bridges included (a) improvement of 402 kms. length under P.W.D. road by means of gravelling, metalling and black topping (b) construction of 12 more bridges (c) Construction of 950 km. length of new roads and construction of 60 km. length of municipal roads. Total road length under P.W.D. stood at 19,280 km. in 1974 (after the emergence of Meghalaya in 1972).

In the field of State road transport, 317 km. length of new routes were nationalized during the Fourth Plan period and nearly 100 vehicles were purchased for the improvement and expansion of transport faculties in Assam.

For the development of the inland water transport in Assam the Fourth Plan took some schemes like (a) Expansion of crew training Centre (b) Hydrographic Survey, (c) Bottom and surface paneling and (d) construction of ferry vessels.

Fifth Plan : In Assam, During the period of Fifth Plan, nearly 1592 km. of total road length road length was constructed against the target of 1871 km. of which 47 km. was surfaced and the rest 1545 km. was unsurfaced. Thus in 1977-78 total length of roads under P.W.D. stood at 20,225 kms. of which 4,497 kms. was surfaced and the remaining 15,728 kms. was unsurfaced. Besides, more then 1000 kms. of village roads were also constructed under the minimum needs programmes (M.N.P.)

Regarding the State road transport services, the Plan laid importance upon the extension of road transport facilities to the rural and backward areas of the State .During the Fifth Plan period, 651 km. length of new routes was nationalized and nearly 100 buses were put into services of Assam State Road Transport Corporation. Besides, several night deluxe bus service were introduced in many long distance routes of the State during this plan period.

During this Plan period, Inland water Transport system was also developed in many respect resulting in increase in the number of vessels, quantum of cargo carried by the vessels and the number of passengers carried.

Sixth Plan : During the Sixth Plan period in Assam, total amount of expenditure incurred for the development of transport and communication facilities in the state was Rs. 105.77 crores as against the provision of Rs. 101 crores. Thus, the amount of expenditure exceeded the allocation under this head. During the Sixth Plan, with the extension of B.G. railway line from New Bongaigaon to road transport, total length of B.G. line has increased to 269.22 Kms. In respect of Guwahati in 1984, in length of road constructed under PWD increased to 26,353 kms. and out of which 5. 773 kms. was surfaced. Moreover, the Forest Department constructed about 3,988 kms. of road in 1983-84.

The Assam State Transport Corporation nationalized 7414 kms. of road till 1984-85 and operated 705 vehicles on these routes.

Seventh Plan: The Seventh Plan allocated Rs. 16,220 lakh for the development of transport and communication system in Assam. Out of this Rs.13,500 lakh was allocated for the construction of roads and bridges. Rs 1720 lakh was allocated for road transport and system. Rs 1000 lakh for the development of internal water transport and Rs. 400 lakh for the development of tourism project.

Total length of roads under PWD of Assam has increased from 26,353 kms. in 1985 to30,086 kms. in 1989-90 . The Assam State Transport Corporation introduced bus service to 165 new routes. Total number of buses of this corporation increased from 492 in 1985 to 890 in 1990. Total route length of the bus service run by this corporation in the hill districts of the Stare has also increased from 748 kms,. in 1985 to 1130 kms. in 1990.

During this plan period, additional ferry services at 38 new points of Brahmaputra and Barak rivers were introduced. Moreover, since 24th June, 1986 one commercial services of water transport between Guwahati and Dibrugarh was introduced. In order to develop water transport system, two water transport sub-division were set up at Goalpara and Hailakandi and the works for building 20 small ships and boats were started. Thus, it is observed that at the end of Seventh Plan, the road transport and the water transport system achieved considerable progress.

Eight Plan : The Eight Plan of Assam has allocated Rs. 294.84 crores for the development of transportation and communication system of the state. During the Eighth Plan, sufficient stress was laid on the development of road transport and water transport. Again during the second year of the Eighth Plan, the extension of Broad gauge line from Guwahati to Dimapur was completed under the Uni gauge project. Moreover , the extension of this B.G. line to Dibrugarh would be completed within the Eighth Plan. With the completion of this entire 545 kms. uni-gauge project in the State, total length of B.G. railway line would increase to 811.4. kms.

In respect of transportation system, Assam in one of the most backward state of India. Poor transportation system is also one of the responsible factors behind the economic backwardness of the state . Although Assam has developed four different types of transportation system , viz, Railways, Road transport, Water transport and Air transport but the transportation system of the state as a whole is facing the following problems.

(a) Geographical Position : Geographical in Assam as surrounded by full of hills and rivers are standing in the way for the development of sound transportation system in the country from the very beginning. Construction of railways and roads by crossing number of rivers and hilly regions is very costly in a state like Assam. Thus Assam is facing natural obstacles while constructing its transportation system.

(b) Natural calamities : Assam is one of those states which is facing the problems of flood, soil erosion, earth- quake Landsides et. for which the whole transportation system is totally dislocated every tear. Moreover, due to flood, every year some parts of roads and railways are badly damaged leading to a annual repair of these transportation system which is a very costly affair.

(c) Border state : Assam is a border state . Huge international of border with Bangladesh, Bhutan etc. has created the need for the construction of border roads on defense grounds. This created an additional problem of transportation in the state.

(d) Inadequate rail transport : Rail transport system in Assam is totally inadequate considering its requirements. Moreover partition of country in 1947 has disrupted the rail link between Assam and other states of the country. In 1950 alternative link line was constructed . Total railway route length in Assam (2466 kms. in 1992 ) constructed nearly 4 per cent of the total railway route length of the country . The position of the State in respect of broads gauge route length is very much disappointing since it accounted for even less than I per cent of the country�s total . In Assam the broad gauge line as in percentage of total railway route length is nearly 11 per cent in comparison to that of 50 per cent in the whole country.

(e) Lack of all- Weather roads : Although Assam is having a fairly extensive road net work but only 22 per cent of these roads are surfaced and the remaining 78 per cent are unsurfaced roads. Thus due to lack of weather roads, various interior areas has to face total dislocation transport system particularly during summer season. Thus the road transport system in Assam suffers from various deficiencies like substandard surface, narrow lane, frequent damage etc. However, the conditions of most of the roads in Assam is not satisfactory and requires frequent repair due to ravages caused by floods. Moreover many of the roads being small in width with narrow and weak bridges and culverts needs widening and up gradation Further in 1983, the Length of road per lakh of population in Assam was only 199.03 kms. as against 6837 kms. for all India.

(f) Lack of navigable waterways : Water transport system in Assam was well development during the British day . But after the partition of the country and particularly after the Indo-Pakistan war in 1965, there was total disruption in the inter- state transportation system. Moreover, the length of the weather navigable waterways is declining with constant dilation of soil through erosion of soil in the hilly areas. At present nearly 46 per cent of the total navigable waterways in Assam are navigable throughout the year.

(g) Higher unit cost of transport : Unit cost of transport in Assam is very high in comparison to that of other states in the country. High unit cost of transport raises the cost structure for all industrial and developmental projects in the state which acts as a disincentive to external private investment and works as a dampener towards the establishment of new industries in the state.

Transportation problem is Assam in quite genuine and of serious nature, Industrialization process of this state is being halted due to lack of proper transportation system and more so being a geographically isolated state. Thus in order to achieve all round development of this the state, the transportation system of Assam must be improved at any cost. The following are some of the important measures to be following in this direction:

1. Steps must be taken to expand the railway network in Assam and other north- eastern state and implement the gauge conversion and other approved railway project speedily.

2. Immediate steps must be taken to construct all weather roads, connecting the different corners of the State as well as of the region and also to expand the existing road net work of the State.

3. Adequate steps must be taken to revive the inland water transport system for both passenger and cargo traffic and re- establish the water transport link between Haldia -Dhubri and Dibrugarh via Bangladesh for realizing the benefit of cheapest mode of transport .

$ The Union Government must expand the air transport network throughout the region by inviting private airliners into the field and for that new airports should be constructed in those untapped viable areas.

5. Steps must be taken to construct R.C.C. road bridges replacing the wooden bridges to avoid disruption during flood, Under the Assam Rural Infrastructure and Agricultural Services Project (ARIASP) , 23timber bridges are being converted R.C.C. bridges. During 1997-98 it is proposed to take up conversion of 100 timber bridges to R.C.C. bridges and improvement of 450 km.

6. Steps must be taken to allow and invite the private sector participation in the development of different costly transportation projects under Build-Operate and Transfer (BOT) scheme.

7. Union and the State Government should also consider the proposal for construction of Super- Highways or Expressways to establish a secure road link between the north -eastern region and other neighboring states of the country.

8. Finally , the law and order condition of the state / region be improved for the smooth passage of overall existing transportation system and a suitable and secure investment environment should be created for the early implementation of future transportation projects both under general and BOT scheme.

Unemployment is a chronic economic problem almost common to each and every economies of the world. The problem of growing unemployment continued to a matter of great concern for Assam. In spite of having huge natural resources, the State�s economy still largely remains backward and underdeveloped, as these natural resources have not yet been thoroughly exploited. Against the back-drop of increasing poverty, slow pace of economic development and very high rate of population growth, the unemployment problem has assumed chronic and complex character in Assam. The problem has further been accentuated with the increase in the number of unemployed technical personnel in the State. Notwithstanding efforts made through successive State plans for generation greater employment potential, the gap between gainful employment opportunities and fast growing labour force has continued to widen. Unemployment is, no doubt, a national problem in India but the problem has assumed greater significant in Assam due to the economic backwardness of the State. Further, the incidence if unemployment is more pronounced in the rural areas since it characterized by under-employment or seasonal unemployment.

Unemployment is the cumulative result of many causes. High rate of population growth, unutilized natural resources, primitive agriculture and virtual absence of industrial enterprises are the main responsible factors which created the problem of unemployment in Assam in a massive scale. The broad causes of unemployment are as follows:

Population explosion. The most fundamental cause of large-scale unemployment in Assam is the population explosion since the early fifties and consequent increase in the labour force. The percentage decadal variation of population in Assam is all India. The higher rates of growth of population along with growing migration of population from the neighbouring countries are responsible for this widespread unemployment in Assam.

1 Primitive agriculture. Heavy pressure of population on land and primitive methods of agricultural operation are responsible for colossal rural unemployment and under-employment in Assam. More than 70 per cent of the population of the State depends on agriculture for their living. Cultivators in Assam remain unemployed for more than five to six months every year. Unemployment in Assam is also aggravated by endless sub-division and fragmentation of land holdings. Application of modern methods of agriculture on such uneconomic holding is impossible and thus there is little scope of expanding employment opportunities in Agriculture in the State.

2 Insufficient rate of growth. Rate of growth of the economy of the State is very poor. Thus the increased employment opportunities created under successive plans have not kept pace with the additions to the labour force in the State every year. Thus each of the plans left a larger backlog of unemployment in Assam.

3. Poor industrial growth. Poor industrial growth is largely responsible for huge unemployment in Assam. Without a sound industrial growth, the problem of unemployment is Assam could hardly be tackled effectively.

4. Prevailing education system. The prevailing education system in Assam is full of defects as it falls to make any provision for imparting technically and commercial education. Huge number of matriculates, undergraduates and graduates are coming out every year leading to the increasing gap between employment opportunities and employment seekers in educated middle class. Professional guidance and training facilities are almost inadequate. Thus the scope of employment in Assam has restricted by the defective system of education in the State.

5. Immobility of labour force. Immobility in the labour force is also a responsible factor for growing unemployment in the State. The system of joint family is also retarding the growth of employment opportunities in Assam.

6. Attitude of the labour force. In Assam, the educated people have apathy in accepting trade and commerce as profession. Due to this, the educated people of Assam are sometimes not availing some employment opportunities available in the State leading to the growth of widespread educated unemployment in Assam.

The nature of unemployment in a developing region like Assam is chronic rather than temporary. This is mainly due to slow growth of the economy as compared with the increase in labour force. In the rural areas of the State, seasonal unemployment and disguised unemployment are widespread. There is also widespread unemployment among educated people, particularly in the urban areas. Following are the main types of unemployment prevalent in Assam:

(a) Agricultural unemployment or under-employment . In the rural areas of Assam it is hardly possible to employ more than one fourth of the working hours of the population of the State. Thus there is perennial under-employment in the agricultural sector. A good proportion of agricultural workers are in fact not needed and they become unemployed after working certain hours, as there is no alternative occupation for them. This type of unemployment is also known as �disguised unemployment�.

(b) Seasonal unemployment : Seasonal unemployment in Assam is prevalent both in the agricultural sector and also in some agro-based industries like Tea Industry, Jute Mill, Sugar Mill, Oil (mustard) Pressing Mill, Paddy husking Mill etc. Available estimate suggested that for at least five to seven months in the year, a sizable population of Assam remain idle for want of any subsidiary occupation.

(c) Educated Unemployment : With the spread of education the problem of educated unemployment is gradually increasing in Assam day by day. Moreover, growing preference of white-color jobs among the educated people of Assam is also responsible for increase in the number of educated unemployment in Assam. At present a good number of educated youth are out of employment in the State.

(d) Industrial Unemployment : The growth of industrial sector in the State is not only very slow but some of the large and medium industries of Assam viz. Ashok Paper Mill at Jogighopa, Jute Mill, Cycle Company at Guwahati etc. have already become sick and thus closed since a long period leading to the huge number of industrial unemployment in the State. Moreover, the seasonal unemployment faced by the agro-based industries in Assam are also accentuating the problem of industrial unemployment in the State.

The growing unemployment problem in Assam is continued to be a matter of great concern. Although the magnitude of unemployment in Assam is not precisely known, we can have an idea about the trend and dimension of the problem from the number of job seekers registered with the employment exchanges.

The additional employment generated during the first three plan periods could not keep pace with the number of unemployed. An ever-increasing number of unemployed person is, therefore, always left to be provided for at the end of each successive plan period. The increase was 145 per cent in the live register of employment exchanges in Assam as against only 58.2 per cent in India as a whole during the Third Plan period. The First and Second Plan could generate only 1.96 lakhs of employment. The Third Plan had to start with an estimated backlog of 1.17 lakhs of unemployed persons but ended with a total backlog of 3.23 lakhs of job seekers. The Fourth Plan could not do much in reducing the severity of the problem of unemployment in Assam. The data of the live register of employment exchanges also point out to the aggravating unemployment situation in Assam. During the Fourth Plan period thus the annual average number of persons seeking jobs through the employment exchanges in Assam during the period 1970-74 was 91,430 as against this, annual average number of placements effected was only 6415, i.e., only 7 per cent of the total job seekers. The following table shows the trend in the growth of applicants on the live register as well as number of placement through the employment exchanges over the past few years.

It is revealed that number of job seekers registered with employment exchanges which was only 1.9 lakhs in 1975 increased sharply to 3.7 lakhs in 1981 and then to 5.06 lakhs in 1985.The increase in the number of job seekers in 1985 was thus 59.7 per cent over 1981 and 215 per cent over 1975. The total number of vacancies notified to the employment exchanges of the State during 1985 was 12908 against which 6,279 were placed in employment during the year. The number of placements effected as in percentage of total number of job seekers (registered) gradually declined from 3.9 per cent in 1975 to 2.0 percent in 1978 to 1.8 per cent in 1980, and then to 1.0 per cent in 1985. Thus in 1985 5.9 lakhs of job seekers remained unemployed who jointly constituted 99.0 per cent of the total job seekers of the State.

Thereafter, the State experienced a continuous increase in the number of job seekers as revealed by the employment exchange data, indicating thereby the seriousness of State� growing unemployment problem. The number of job seekers on the live register of employment exchanges of the State has considerably increased to 9.77 lakhs in 1989 and then to 13.56 lakhs in 1991 and finally to 12.96 lakhs in 1996. Between 1989 and 1991, the number of job seekers had increased significantly by 38.8 per cent while between 1994 and 1996; the number had increased by only 0.75 per cent. In 1993, total number of vacancies notified to the employment exchanges of the State was 4766 against which the number of placement was 2799 during the year. Again in 1994, the number of vacancies notified was 4538 against which only 2274 persons were placed in employment during the year. Again the number of placements effected as in percentage of total number of job seekers (registered) gradually declined further to 0.7 per cent in 1989 to 0.3 percent in 1991 and then to only 0.2 per cent in 1994. Thus in 1994, 12.84 lakhs of job seekers remained unemployed who jointly constituted 99.8 percent of the total job seekers of the State. This is an indication of the growing unemployment problem of Assam in recent years. The unemployment statistics reflect only the trend and not the totality of employment and unemployment as all unemployed do not and cannot register themselves with the employment exchanges, which are mostly located in the urban areas.

Besides, there is a huge extent of under-employment or disguised unemployment existing in the rural areas of the State, which is putting a heavy pressure on the rural economy of the State. The enormity of the problem can be appreciated from the fact that nearly 52.65 per cent of the rural population and 37.67 per cent of the urban population and 51.10 per cent of total population of the State in the year 1977-78 lived below the poverty line. In spite of introducing various poverty alleviation programmes by the Government, the extent of the problem of poverty in Assam remained still grave. As per the Planning Commission�s Expert Group�s estimates of poverty, the percentage of population living below the poverty line in Assam was 39.3 per cent in 1987-88 and as per official estimate the same percentage stood at 22.8 per cent during the same period.

In Assam the problem of unemployment has further been accentuated with the joining of increasing number of educated job seekers, including technical and professional personnel in the rank of unemployment from year to year. The following table (no. 12.2) shows that as per the live register of the employment exchanges, the total number of educated job seekers stood at 3.19 lakhs at the end of 1985 as against 1.44 lakhs at the end of 1980 and 0.85 lakhs at the end of 1975. Thus the educated job seekers constitute nearly 54 per cent of the total job seekers on live register in 1985 compared with about 42 per cent in 1980 and about 45 per cent in 1975. Nearly 64 per cent of the educated job seekers in 1985 were Matriculates while Higher Secondary /P.U. Passed job seekers and graduate job seekers accounted for about 20 per cent and 12 per cent respectively.

In 1994, total number of education job seekers has increased to 7.82 lakhs which constituted nearly 6.8 per cent of the total job seekers registered in the employment exchanges of the State. In 1994, out of the total educated job seekers 62.7 per cent was graduates. Moreover, persons having occupational and technical education but seeking job has increased considerably in 1994.

Unemployment problem is one of the most serious problems of the society. In Assam, the problem has already gathered momentum. Thus the problem should be tackled with sincerity. Effective steps have to be taken in right earnest to arrest the growth of Unemployment� problem. The following are the important long-term and short-term measures that may be adopted for solving problem of Unemployment in Assam.

Long-term measures: The following are the elements for solving the problem of unemployment in the State:

(i). The present high rate of population growth must be arrested. This can be done by intensifying family planning programme, particularly in the rural areas and also by stopping infiltration of people from the neighouring countries.

(ii). Adequate steps must be taken for rapid economic development of the State, especially through quick and diversified industrialization. This will create new employment opportunities, especially for the educated persons and skilled workers. This will also divert surplus population from agriculture to industries and thus reduce the pressure of rural Unemployment. It should be remembered that labour intensive rather than capital-intensive industries should receive greater priority which have huge employment potential. Thus the problem of Unemployment can only be solved on a permanent basis by rapid industrialization.

(iii). Modernized methods of cultivation should be introduced in the State in order to increase the employment potential of agriculture. Spread of new farm technology will help the State�s economy by raising agricultural productivity.

(iv). The system of education prevalent at present has to be changed thoroughly. The present too much literary educational system be replaced by technical and vocation system to make it production oriented.

(v). Steps must be taken for introducing network of employment exchanges both in the rural and urban areas of the State. This will increase mobility of labour and reduce Unemployment due to social time-lag.

(vi). For enlarging the scope of self-employment, liberal institutional finance should be made available. This easy and adequate financial facility will create a great scope for the expansion of employment opportunities. Nationalised banks have started playing an important role in this regard.

(vii). The State Government should introduce the policy of compensatory public work as private enterprise and investment are very poor.

Short-term measures : The following short-term measures may introduce for getting immediate relief :

(i). For establishing small industries and business special assistance should be provided to individuals and small groups of people of the State.

(ii). Arrangement should be made for the establishment of work and training camp at places where there is a provision of work opportunities under the plans for example in irrigation, power projects and road construction programmes.

(iii). Training facilities should be arranged in those areas where there is shortage of man-power at present.

(iv). The products of cottage and small-scale industries should be given active encouragement by public authorities through sympathetic stores and purchase policy.

(v). In the rural and urban areas of the State, a network of industrial States should be spread.

(vi). National extension programmes should be extended further in the States, which will create huge employment potential.

(vii). Government may take suitable efforts to develop small and cottage industries in the State. Assam has rich potentialities for the growth and development of small and cottage industries which will offer ample employment opportunities to huge number of population of the State as these industries are labour intensive in nature.

With the objective of expanding employment avenues in Assam, various schemes such as TRYSEM, NREP, RLEGP, JRY etc. continued to be under implementation in the State. While the TRYSEM programme was introduced in Assam during 1979-80, the NREP started its operations in 1980-81 and that of RLEGP was launched during the latter part of 1983. A new scheme, viz., Jawahar Rojgar Yojana came into existence as a replacement of earlier two schemes of NREP and RLEGP. Besides, keeping in conformity with the central schemes, some other new employment-generating scheme, viz., Prime Minister�s Rojgar Yojana (PMRY), employment Assistance Scheme (EAS) etc. was introduced in the State in recent years.

It would be better to study the employment generating schemes under the following leads.

TRYSEM : The National Scheme of Training of Rural Youth for Self-Employment (TRYSEM) is a programme for generating self-employment opportunities by imparting training to the rural youths in various trades and skills. In Assam the State were trained under this scheme in different vocations during 1981-82, as against 1695 youths trained in 1980-81. During 1981-82, 418 scheduled caste and 1075 scheduled tribe youths were trained, under this scheme. However, in comparison to the number of youth trained, the number of trained youths self-employed was not much encouraging. Out of 4253 trained youths in 1981-82, only 1049 were self-employed during the year. The number of youths self-employed during 1991-92 (up to December 1992) stood at 2830 as against the target of 10000 for the year.

In recent years, under TRYSEM altogether 5055 youth were trained in 1988-89 in various traders, and vocations as against 8681 trained during 1988-89. In 1991-92, the number of youths trained under TRYSEM was 9,152 as against the target of 10,000 youths.

In 1994-95, under this programme of TRYSEM, 9249 number of youths were trained as against the target of 8050 youths and thereby 114.8 per cent of the target was realized. In this year 2066 youths were self-employed.

NREP : The National Rural Employment Programme (NREP) also aimed at providing employment avenues to the same time. In Assam, this scheme came into operation during the letter part of 1980-80 and laid a target of generating seasonal employment to the tune of about 80 lakh man days in 1982-83 against which 41 lakh man days were generated during the year. During the previous year, the target and achievement were of the order of 63 lakh and 53 lakh man days respectively.

Again in 1987-88 and 1988-89 the state government set a target of generating employment to the extent of 40.6 lakh man days and 55.9 lakh man days against which 33.8 lakh man days and 45.77 lakh man days were generated respectively.

In order to provide self-employment facilities to the educated unemployed of Assam this Assam Employment Assistance Scheme was introduced. Till 1987, various facilities of self-employment was rendered to 8,695 graduates of the State under this scheme.

On 28^th April, 1989, the Jawahar Rojgar Yojana (JRY) was introduced in Assam along with other states of the country. Under this scheme, all the previous employment generating schemes like NREP and RLEGP were amalgamated.

In 1989-90, the number of employment generated under this scheme (JRY) was 105 lakh man days as against the target of 122.6 lakh man days. In 1991-92 and 1994-95, total numbers of employments generated under JRY were 124.16 lakh man days and 260.89 lakh man days respectively as against the targets of 114.99 lakh man days and 211.97 lakh man days respectively. Thus in 191-92 and 1994-95, the percentage of target realized were 108.0 percent and 123.04 per cent respectively. Moreover, during the period 1989-90 to 1994-95, total length of rural road constructed under JRY is about 10,493 kms.

On 2^nd October, 1993, one new employment oriented scheme, popularly known as Prime Minister�s Rojgar Yojana (PMRY) was launched in Assam along with the entire country under the on-going Eighth Plan. The scheme will provide self-employment to one million educated unemployed youths in the country in micro enterprises, manufacturing services and business ventures. The scheme would provide a loan up to a ceiling of Rs. 1 lakh, out of which the subsidy element would be 15 per cent with the ceiling of Rs. 7,500. All those who have undergone Government sponsored technical courses for a minimum duration of six months besides matriculates and ITI diploma holders will be eligible for the scheme.

Altogether 805 educated unemployment youths in Assam have been selected for training under Prime Minister�s Rojgar Yojana (PMRY) during 1993-94. Since, 1994-95, the Self-employment Scheme for Educated Unemployment Youths (SEEPUY) was included in PMRY. Educated youths of both rural and urban areas are getting benefit from this scheme. Women entrepreneurs are also getting preference under this scheme.

Poverty is a peculiar problem with which the various countries of the world, particularly the Third World, have been suffering. There is no common definition of poverty, which can be broadly, accepted everywhere. Leaving aside all these differences, it can be broadly said that poverty is a situation where a section of the society, having no fault of their own, is denied of even basic necessities of life. In a country or a region, where a big chunk of the population is deprived of even minimum amenities of life for a very long period, the country or the region will then suffer from a vicious circle of poverty. In India, the broadly accepted definition of poverty emphasizes more on minimum level of living rather on reasonable level of living. Thus it is broadly agreed that poverty can be termed as a situation where a section of the population fails to reach a certain minimum consumption standard.

The estimate of that minimum level of living on which the �poverty line� is to be drawn is again based on the idea of necessity of an average intake of 2250 calories per capita per day. After a thorough examination, the study group set up by the Planning Commission in July 1962 recommended a standard of private consumption expenditure of Rs. 20 (at 1960-61 prices) per capita per month as the bare minimum amount common to both rural and urban areas. Various researchers like B.S. Minhas and A. Vaidyunathan also made this study on the basis of this definition. But other researchers like Dandekar and Rath, P.K. Bardhan, Ahluwalia made their study on the basis of their on definition of poverty.

Later on, the �Task Force on Projections of Minimum Needs and Effective Consumption Demand� offered an alternative definition of poverty, which has been adopted by the Planning Commission in recent years. The Task Force defined the poverty line as the mid-point of the capital expenditure class which have a daily calorie intake of 2400 per person in the rural areas and 2100 in the urban areas of the country. Accordingly, the minimum desirable standard was worked out at Rs. 76 for the rural areas at 1979-80 prices.

The State�s economy is characterized by long standing poverty. With the increase in the size of population, growth inequality of income and increased price level, the degree of poverty in Assam started to increase as the number of occupations could not grow satisfactorily.

In order to determine the strategy for development, it is quite essential to make an appropriate estimate of incidence of poverty in the state. On the basis of NSS data on consumption expenditure, various estimates of the extent of poverty has been made by Dandekar and Rath., Minhas and other researchers. But due to differences in the concept of poverty, their results vary widely. Let us now discuss the findings of some of these estimates.

Estimates of Dandekar and Rath : Dandekar and Rath in their study �poverty in India� has estimated from the MSS Consumer expenditure data 1960-61 that about 48 per cent of Assam�s population was lying below the poverty line on the basis of minimum nutritional needs. Further the extent of poverty in Assam was aggravated during 1970-71. It has been estimated that the consumer price level in Assam is about 20 per cent higher than the All India level. The poverty line of Rs. 40.00 (as per Planning Commission�s approach document) may be taken correspondingly as Rs 48.00 at Assam prices. Taking Rs. 48.00 as poverty line, it was estimated that the number of persons below the poverty line (BPL), in Assam would be 5.53 lakh (40.14 per cent) and 107.12 lakh (77.38 per cent ) in urban and rural respectively making a total of 112.65 lakh (73.67 per cent ) for the state as a whole.

Estimates of Seventh Finance Commission : The seventh Finance Commission in its estimate of poverty in 1978, for the period 1970-71, made an different attempt where it added the per capita private monthly expenditure of the State Government on health, education, sanitation, social welfare etc. to find the per capital monthly expenditure level. The modified per capita expenditures were referred to as �Augmented Poverty Line�. Naturally, the number of persons below the poverty line as per this augmented poverty line in Assam was much smaller due to higher per capita public expenditure of the State on infrastructure. As a result, the proportion of people below the augmented poverty line in Assam was estimated at one 33.0 per cent. This is considered as a gross under-estimate of the problem of poverty in Assam.

National Sample Survey�s Estimate : The National Sample Survey in its thirty-eight round of the period January-December, 1983 has refixed the private consumption expenditure per head per month from Rs. 20 at 1960-61 prices to Rs. 100 for locating the poverty line in Assam in the year 1983. As per this revised norm of the poverty level, it was found that 45 per cent of the rural people of Assam and 33 per cent of its urban people were living below the poverty line in the year 1983 as compared to an all India average of 55 per cent and 30 per cent of rural and urban population respectively.

Planning Commission�s Expert Group Estimates, July 1993 : Planning Commission constituted an Expert Group on September 1989 to estimate the incidence of poverty. The Expert Group, while retaining the concept of poverty line as recommended by the Task Force, suggested certain changes in the price defoliator to update the poverty line for its application in later years. As per this Planning Commission�s Expert Group Report, submitted in July 1993, it is revealed that the number of persons lying below the poverty line in Assam was 89.6 lakh, which was 39.3 per cent of the total population of the State in 1987-88, which was almost similar to all-India percentage.

Again as per the revised estimates of poverty by the Expert Group headed by Prof. Lakdawala the percentage of people lying below the poverty line in Assam was estimated at 40.86 per cent.

Although the problem of poverty has been persisting in India since inception of planning but the serious programs for the alleviation of poverty is introduced only in recent years. Poverty alleviation was accepted as one of the major objectives planning since the Fifth Plan. It was only during the seventies the programmes like Small farmer�s Development Agency (SFDA), Marginal Farmers and Agricultural Labourers� Development Agency (MFAL), Drought Prone Areas Programme (DPAP), Food for Work Programme (FWP) were introduced for benefiting the rural poor. Later on, the Integrated Rural Development Programme (IRDP) was introduced in 1978-79. In order to provide wage employment to rural poor, the national Rural Employment Programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP) were introduced in Assam along with other states during the Sixth Plan. Later on, in April 1, 1989, NREP and RLEGP were merged into a single wage employment programme under Jawahar Rozgar Yojana (JRY). IRDP is also being implemented by the State Government since 1980 as a major instrument of its strategy to alleviate rural poverty. The objective of this programme is to assist poor families in developing skills and inputs to overcome their poverty. Other programmes like TRYSEM was introduced in August 1979. In 1993-94, two new programmes, namely, the Employment Assurance Schemes (EAS) and the Prime Minister�s Rozgar Yojana (PRMY) were introduced in Assam along with other states. In 1995-96, the Prime Minister�s Integrated Urban Poverty Eradication Programme (PMIUPEP) with an objective of effective achievement of social sector goal, community empowerment, shelter and skill up gradation as a multipronged strategy was started. Again, on 15th August 1995, the National Social Assistance Programme was announced.

In 1994-95, under TRYSEM, 9249 numbers of youths of Assam were trained. Total numbers of employment generated under JRY was 211.97 lakh man days is 1994-95 and 189 lakh man days in 1996.97. All development blocks in Assam are fully covered by the EAS. In 1996-97, the targets under IRDP, TRYSEM and DWCRA have been fully achieved.

Under the new PDS, which is being implemented from 1997-98, a family below the poverty line will get 10 kgs of rice per month at half the usual PDS price. It is expected to benefit about 9.06 lakh poor families of the State.

But all these poverty alleviation programme are did not yield the desired result due to various shortcomings related to their implementation. Considering the problem the Government is now reviewing its rural anti-poverty scheme in the light of lapses noticed.

The size and growth of population is a very vital factor to determine the feasibility of economic development of a country. While a growing population is advantageous to the under populated developing country but the same growing population acts as a serious drag on economic development of an over populated developing country. Rate of growth population in the over-populated country still remains high despite their poor rate of economic growth. Gunner Myrdal, in his study of the population problems of the South Asian countries, has come to the conclusion that "the rate of population growth in these countries is now largely independent of their rate of economic development."

Assam being a state of Indian Union is also subjected to high rate of population growth as that of the country as a whole. Assam�s land area constitutes 2.4% of the total land area of the country, whereas it gives shelters to the extent of 2.64 per cent (estimated during 1991) of country's population. Further, Assam�s population constitutes 74.7% of the population of the North-Eastern region of India. In respect of population and area, Assam ranks thirteenth and twelfth respectively among the states of India.

Assam is facing a formidable problem of alarming growth of its population. Since 1901, Assam had the distinction of recording one of the highest growth rate of population among all the states.

It is revealed that the size of population in Assam has been increasing at the rapid rate, i.e., for 33 lakhs in 1901 to 46 lakhs in 1921 and then to 80 lakhs in 1951. Further, the size increase to 146 lakhs in 1971 and then to 224 lakhs in 1991. On the other hand, total population of India has also been increasing at a high rate, i.e. from 2,383 lakhs in 1901 to 2,512 lakhs in 1921 and then to 3,610 lakhs in 1951 and again the size increased to 5,471 lakhs in 1971 and then to 8463 in 1971 and then to 1991. The table also shows that the rate of growth of population in Assam is all along higher than that of India. The percentage of decadal variation in Assam shows an increase of 17 percent during 1901-11 and that of India was only 5.8 per cent. Again the percentage of increase in Assam were 20.5 per cent, 19.9 per cent, 20.4 per cent and 19.9 per cent during the decades 1911-21, 1921-31, 1931-41 and 1941-51 respectively and that of India shows a decline of 0.3 per cent of then increase of 11.0 per cent, 14.2 per cent, 13.3 per cent during the above mentioned decades respectively. Further, the decadal variation in Assam shows an increase at the constant rate of 35.0 percent both during 1951-61, 1961-71 and of 53.2 during 1971-91 whereas decadal variation in India shows an increase of 21.6 per cent, 24.8 per cent and 54.2 during the respective decades. Thus the census data shows that Assam has one of the highest demographic grown rate. The compound annual growth rate of population in Assam is around 3 per cent.

Further, it is revealed that the size of population in Assam as percent of All India population have been increasing from 1.4 per cent in 1901 to 1.0 per cent in 1921 and then to 2.1 per cent, 2.2 per cent, 2.5 per cent, 2.7 per cent, 2.9 per cent and 2.64 per cent during 1941, 1951, 1961, 1971, 1981 and 1991 respectively.

Lastly, the table shows that the estimated decadal migration as percentage to Assam�s population were 9 percent, 6 percent, 11 percent and 7 percent during 1911-21, 1941-51, 1951-61 and 1961-71 respectively and that the total number estimated number of migrants were 0.4 million, 0.5 million, 1.2 million and 1.0 million during the respective decades. Thus a significant portion of the increase in Assam�s population is due to the influx of people from the neighbouring countries.

Fall in the Decadal Growth Rate of Population in Assam in the post--1971 period

The decadal growth rate of population in Assam in the post-1971 period has dropped suddenly in spite of the fact that there has been large scale in-migration in the post-1971 period. The decadal growth rate of population in Assam in the pre-1971 period, particularly since 1951, suddenly jumped up from 19.9 per cent in 1951 to 35.0 per cent in 1971. This sudden jump in the decadal growth rate was mostly resulted from huge influx of population from the neighbouring countries like Bangladesh and Nepal coupled with high birth rate. In 1981, there was no census operation in Assam due to Assam agitation and therefore, the population in Assam was recorded as per projected figures. But after the completion of 1991 census, it is found that the decadal growth rate of population during the last two decades, i.e. during 1971-91, was recorded at 53.2 per cent. Thus the average decadal growth rate of population during the last two decades is estimated at 26.6 per cent which shows a substantial fall as compared to that of pre-1971 period.

The factors which are mostly responsible for this sudden drop in the decadal growth rate of population in Assam are discussed below.

1. Fall in the Birth Rate : The first important factor responsible for this sudden drop in the decadal growth rate of population in Assam is the fall in the birth rate of its population from 38.5 per thousand in 1971 to 30.9 per thousand in 1991. Again, in spite of the substantial fall in the death rate of its population from 17.8 thousand in 1971 to 11.5 per thousand in 1991, the natural growth rate of population in the state has also declined marginally from 20.7 per thousand in 1971 to 19.4 per thousand in 1991. This is no doubt a good trend in the growth rate of population in Assam.

2. Check in the flow of Immigration : Large scale immigration of population from the neighbouring countries like Bangladesh, erstwhile East Pakistan, Nepal etc. was highly responsible for the high decadal growth rate of population in the pre 1971 period. But after historic Assam Accord, the Government of Assam along with the Central Government has been trying to contain the flow of illegal immigration of population from the neighbouring countries by adopting various measures like-building of barbed wire fencing at the border with Bangladesh, construction of border road, increase in the number of check post, increasing vigil on the border by deploying increasing number of BSF personnel, detection and deportation of illegal migrants etc. As a result of these measures, it is supposed that the large scale illegal immigration of population from Bangladesh and Nepal into Assam has been contained. Thus the check in the flow of immigration of population from the neighbouring countries may be considered as another important factor for the sudden drop in the decadal growth rate of population in Assam in the post-1971 period.

3. Fall in the Migration of Population from the neighbouring States : The third important factor for the sudden drop in the decadal growth rate of population in Assam in post-1971 period is the fall in the flow of migration of population from other states of the country, particularly since 1981. Since 1981, Assam has been experiencing a series of political turmoil, chaos, law and order problem, agitation, extremism, flight of capital, exodus of business communities etc. All these have resulted in a halt in the influx of population from Assam to other states.

Thus the above mentioned factors may justify the peculiar trend in the fall in decadal growth rate of population in Assam in the post-1971 period.

In Assam, there is a huge shift of population from migration of population. Migration is one of the main causes for rapid growth of population. Assam is experiencing three different types of migration, i.e. intra-state migration, inter-state migration and inter-country migration. It would be better to explain these three types migration in detail.

(a) Inter-state migration : In Assam, there is a huge extent of intra-state migration of population from rural to urban areas of the state in search of better employment opportunities and better social services related to education, health etc. Such type of migration become acute in Assam since eighties of the last century. Such type of intra-state migration does not increase the size of population rather it simply changes the rural-urban composition of the population structure of the state.

(b) Inter-state migration : The second important type of migration experienced by the state is the inter-state migration where people from different states of the country are migrating to Assam on various socio-economic grounds. With the growing industrialization and expansion of trade and commerce in the urban and semi-urban areas of Assam, a huge number of populations have migrated to the urban areas of the state from other states of India. Such migration is essential in the initial stages of development of region as it provides capital, efficient manpower etc. Although it is quite difficult to estimate the magnitude of such inter-state migration but one can roughly imagine the extent of such migration of population into Assam, particularly in the initial stage of the development of the state.

(c) Inter-country migration or Immigration : The third and most important type of migration facing the state is the inter-country migration or immigration of population from the neighbouring countries. Large scale immigration of population from the neighbouring countries like Bangladesh, erstwhile East Pakistan, Nepal etc. causes a high rate of growth of population in Assam. Such immigration was very high in Assam during 1961-71 and even in recent times such immigration is still continuing in a low off.

Normally, migration of population from foreign countries is more harmful than migration taking place within a country. Migration of population from our country to another may have resulted from unfavorable economic conditions of the people residing in the country. The movement of people from one country to another may also resulted from short term disasters such as floods, droughts, earthquakes etc. Under such a situation, people are compelled to change their settlements due to adverse economic conditions resulting from natural calamities. Political disturbances and communal conflicts prevailing within a country are also playing a pivotal role in migration. Under such a situation, people are forced to leave their native country because of danger to their lives and properties. But whatever may be the reasons of such migration, the large scale entry of aliens results in a high rate of growth of population of the country on the receiving end.

Assam, being a state of north-eastern region of the country, is surrounded by foreign countries. The economic condition of these neighbouring countries are not at all favorable rather they are indigent than that of Assam. Consequently, the people from Bangladesh and Nepal are migrating to Assam mainly due to adverse economic conditions prevailing in their countries. A good number of people from Bangladesh, suffering from devastating floods and cyclones, are migrating to Assam for better living, creating a huge problem for the state.

Thus large scale migration of population into Assam from the neighbouring countries causes high rate of increase in its size of population. The estimated figure of net migrants in Assam were 0.4 million, 0.5 million, 1.2 million and 1.0 million during 1911-21, 1941-51, 1951-61 and 1961-71 respectively. Thus the estimated decadal migration as percentage to Assam�s population were 9 per cent, 6 per cent, 11 per cent and 7 per cent during the above mentioned respective decades. Thus a significant portion of the increase in Assam�s population is due to the influx of people from the neighbouring countries.

After the historic Assam Accord, the Government of Assam along with the Central Government has been trying to contain the flow of illegal immigration of population from the neighbouring countries by adopting various measures like building of barbed wire fencing at the border with Bangladesh, construction of border roads, increase in the number of check-post in the border areas, increasing vigil on the border with Bangladesh by deploying increasing number of B.S.F. personnel, detection and deportation of illegal migrants through 16 tribunals etc. As a result of the implementation of these measures, it is supposed that the larger scale illegal immigration of population from Bangladesh and Nepal into Assam has been contained. Thus considering the seriousness of the issue, immediate and adequate steps must be taken to check the flow of illegal immigration at any cost.

In Assam, the pressure of population is too high. Growing population in Assam has been creating serious problems in its economy. Since 1951 to 1991, the size of population in Assam has increased from 80 lakhs to 224 lakh. This increase in the population in Assam at a quicker pace has created serious impact on economy. The following are some of the important impacts of high rate of growth of population on the economy of Assam :

Firstly, high rate of growth of population in Assam has been obstructing in the expected growth of per capita income of the state. The per capita income in Assam is very low. The per capita income in Assam could not achieve its expected growth due to slow pace of its state income and high rate of growth of population.

Secondly, high rate of growth of population in Assam has created the problem of poverty. Thus whatever development has been achieved in the state, it is being swallowed up by the increased population. In Assam, the growth of assets could not keep pace with its growth of population leading to increase in the problem of poverty day by day.

Thirdly, high rate of growth of population has created food problem in Assam. Increasing size of population has raised the demand for food but the area under cultivation and the production of food did not increase simultaneously. With the increase in the size of population along with the increase in their income, the demand for food products are increasing and, therefore, prices of food articles along with goods has increased in Assam and it has created food problem in the state.

Fourthly, high rate of growth of population has resulted unemployment problem of Assam. In Assam, increase in the number of employment generated could not keep pace with the high rate of growth of population., This has resulted in unemployment problem in the State. During the Five Year Plans, although steps were taken to create employment opportunities but this problem could not be solved accordingly. At the dawn of the Third plan total number of unemployed persons in Assam was 1.17 lakh. Even after providing employment to 3.84 lakh persons during the Third plan, total backlog of unemployment at the end of the Third plan increased to 3.22 lakh. In this way at the end of each plan total number of unemployed is increasing day by day. In 1991, total number of people registered in the live register of employment exchange in Assam was 8.34 lakh. Moreover, a good number of people in the rural areas also remained underemployed.

Fifthly, high rate of growth of population has created various types of social problems. These social problems include the problems of education health, housing, land, water supply etc. With the rapid growth of population in Assam, these problems are increasing day by day.

Sixthly, high rate of growth of population has retarded the capital formation in Assam. Capital is formed out of savings. But the high rate of growth of population has retarded the pace of growth in Assam. In Assam, the rate of growth of state income should be at par with that of growth of population. For this, the savings should grow at the rate 24 per cent per annum and then only the rate of capital formation in Assam would be satisfactory.

Seventhly, high rate of growth of population in Assam has widened the inequality in the distribution of income and wealth. The gap between the rich and the poor has been increasing day by day.

Thus, due to all these reasons, the increasing pressure of population in Assam has been increasing the economic problems day by day, leading to irreparable loss to the economy.

According to 1971 census, the age composition of Assam�s population shows that in the groups 0--14 (school going age) and 15--59 (working age) the per cent of population are 46.9 and 48.4 respectively as against 42.2 and 52.0 per cent in India. This shows that the dependency burden of population in Assam is 51.6 per cent and that of India is 48 per cent.

In 1981, there was no census operation in Assam. But the 1991 census shows a total change in the composition and dependency burden of the population in Assam. As per 1991 census, population in Assam was 19.73 per cent as against 17.94 per cent for all India. Moreover, the percentage distribution of estimated population of Assam by age group (as per Sample Registration System- R.G.I.) in 1992 shows that in the age groups 0-14 years (school going age), 15-59 (working age) and 60 and above (retired age), the per cent of population are 36.1 per cent, 59.4 per cent and 4.5 per cent respectively. This shows that the dependency burden of population in Assam is 40.6 per cent.

Moreover, total workers as percentage of total population, i.e., work participation rate in Assam was 36.9 per cent as compared with 37.46 per cent in all India. Thus the percentage of non-workers to the total population in Assam was 63.9 per cent as compared with 62.5 per cent for all India.

Birth and Death Rate : The census report for 1961 revealed that while birth rate in Assam remained around 49 per thousand but the death rate has declined from 31.8 in 1951 to 26.9 per thousand in 1961. In 1970, the birth rate in Assam has declined to 38.8 per thousand and the death rate also came down to 16.2 per thousand. The national figure of birth and death rates in 1970 stood at 36.8 and 11.2 (per thousand) respectively. In 1976, the birth and death rates in Assam came down to 32.8 and 14.9 (per thousand) respectively as against the corresponding national figures of 34.4 and 18.0 respectively. The birth rate and death rate in Assam in 1991 stood at 30.9 and 11.5 per thousand as compared with 28.9 and 10.0 per thousand for all India. Again as per the sample Registration System Estimates, 1994, the birth rate and death rate in Assam in 1994, stood at 30.8 and 9.2 per thousand respectively as compare to that of 28.7 and 9.2 per thousand respectively for all India. Thus both the death and birth rates have been failing steadily over the past few years due to eradication of tropical diseases, improvement in medical and public health facilities, spread of Education and growing impact of family planning programmes.

In 1991, the density of population per square kilometer in Assam was 286 persons as against 186 persons in 1971, while corresponding national averages were 244 and 167 persons respectively. Among all the districts of Assam, Nagaon ranks first regarding density of population which was 302 persons per square km. in 1971 census. Other district that can be placed serially according to its ranks regarding density are Kamrup (289), Cachar (246), Goalpara (215), Sibsagar (204), Dibrugarh (201) Darrang (198) Lakhimpur (126) and Karbi-Anglong (16). In 1991, the density of population per square Kilometre in Dhubri District was highest, i.e., 470 persons and the lowest density was recorded in North Cachar district, i.e., 31 persons per sq. km.

It is revealed in the census report of 1991 that out of the total population of 224 lakh in Assam 116.5 lakh were male and 107.5 lakh were female. Thus the sex ratio in terms of females per 1000 males for Assam was 925 as against 896 in 1971. The corresponding ratio for the country as a whole was 927 in 1991. Among all the district of Assam, the ratio was highest in Dhubri (1950) and it was lowest in the district of North Cachar Hills (841).

Assam has a predominantly rural population with 88.8 per cent of the total population living in the rural areas. Thus the state is underurbanised to a great extent.

As per 1991 census report, out of the total population of 224 lakh in Assam, 199 lakh (88.8 per cent) persons are living in rural areas and the remaining 25 lakh are living in urban areas, i.e., 11.2 per cent of the total population living in the rural areas for all India was 74.3 per cent compared with 88.8 per cent for Assam. Thus the State is still under-urbanised to a great extent.

The total number of towns in the State has been increasing from 53 in 1961 to 72 in 1971 and at present, Assam has 93 towns. Guwahati is the only city having population over 5.8 lakh. The other cities having population over lakh include Dibrugarh, Jorhat and Silchar. Dibrugarh and Kamrup are relatively the more urbanised district among all the districts of Assam.

According to 1991 census, Scheduled Castes and Scheduled Tribes population as in percentage of total population of Assam were 7.4 per cent and 12.8 per cent respectively as against the corresponding figures of 16.9 per cent and 7.9 per cent of the total population of India as a whole. The total number of Scheduled Castes and Scheduled Tribes population in Assam, as per 1991 census, were 1659 thousand and 2874 thousand respectively. Among all the district of Assam, the population is the highest in Cachar followed by Nagaon. The two hill districts are predominantly inhabited by the Scheduled Tribes and among the plain districts of Assam, the population of Scheduled Tribe to total population is the highest in Kokrajhar District.

The Literacy rate in Assam was not significant especially when compared to the rise in all India literacy rate. The literacy rate in Assam was increased slightly from 27.0 per cent in 1961 to 28.1 per cent in 1971, compared to the rise in all India literacy rate from 24.0 per cent in 1961 to 29.5 per cent in 1971. In 1991, the literacy rate in Assam increased to 52.9 per cent and in this same year the rate of literacy for all India was 52.2 per cent. The significant feature of the literacy rate is the marked improvement in female literacy in Assam which shows an increase from 15.1 per cent in 1961 to 43.03 per cent in 1991, while corresponding figures for male literacy shows an increase from 37.3 per cent to 61.8 per cent. Jorhat recorded the highest percentage of literates (65.5 per cent) among all the districts of Assam and Dhubri district ranked at the lowest having its literacy rate 38.3 per cent only. Assam ranks, sixteenth in the case of literacy among all the States.

According to 1991 census, total number of main working force in Assam was 82.6 lakhs which constituted 36.9 per cent of the total population of the State. Distribution of main working force (in percentage terms) into various economic activities were as follows : 50.9 per cent as cultivators ; 12.09 per cent as agricultural labourers, 10.5 per cent in live-stock, forestry hunting and plantation and allied activities; 0.49 per cent in mining and quarrying;: 4.0 per cent in manufacturing process, servicing and repairing; 1.57 percent in construction ; 6.8 per cent in trade and commerce ;: 2.5 per cent in transport communication and 11.1 per cent in other services.

Urbanization and Economic Development and Trend of Urban Population in Assam

Urbanization. Urbanization is one of the common characteristics of economic development. With the gradual growth of the economy, the process of urbanization depends on the shift of surplus population from rural to urban areas along with the growth of some industrialized urban centers. Due to social and economic pressure people from backward villages started to move towards urbanized centers in search of job, where newly established industries and ancillary activities continuously offer job opportunities to those people migrating to cities. The pace of urbanization gradually declines only when the proportion of urban population to total population of the country becomes too high.

Urbanization and Economic Development. Urbanization and economic development are closely associated. Economic development of a country indicates the increase in the level of per capita income and standard of living along with the enlargement of employment opportunities for its growing population. With the attainment of economic development and growing industrialization, the process of urbanization starts at a rapid scale. Some areas emerge as a large urbanised centre with large scale industrial and trading activities. These areas started to offer increasing number of employment opportunities leading to a shift of population from rural areas to these urbanized centers. Thus economic development of a country assist in its process of urbanization. Growing industrialization raises the rate of economic development along with the pace of urbanization in the country. Increase in the rate of economic development raises the level of per capita income and standard of living of the people which in turn enlarges the demand for various good and services. This increase in aggregate demand expands the production system leading to large scale production of various goods and services. All these lead to increase in the pace of urbanization in the country. Thus there is a good degree of correlation between the level of per capita income and the pace of urbanization. Moreover, economic development paves way for growth in cities and towns.

But higher degree of urbanization cannot reduce the degree of unemployment in India and more particularly in a state like Assam significantly though the absorption of increasing number of surplus labour force from rural areas as the scope for raising urban employment is also limited. The factors which are responsible for the typical situation are --- (a) neglect of urban slums in our planning coverage ; (b) growing exploitation of unorganized sectors by capitalists, contractors, landlords etc. and (c) increasing application of capital intensive techniques in urban areas.

Thus, in comparison to the degree of urbanization achieved in India as well as in Assam, the absorptive capacity of the urban centers is very low. This shows the region why the urbanized in Assam could not make much headway in reducing the degree of unemployment.

Thus, in conclusion, it can be observed that the attainment of high rate of economic development paves the way for growing urbanization along with the increase in the level of per capita income and the development of various urbanized infrastructural facilities like transportation and communication, housing, education, health, trade, banking etc. But the growing urbanization has also lead to the huge concentration of population in urban areas, resulting in various evils side by side such as growth of slums, increasing congestion and pollution, problems of transportation, housing, water supply, health services, unemployment and poverty.

Trend of Urban Population in Assam. Assam has predominantly rural population with majority of the total population living in the rural areas. Regarding the distribution of population between rural and urban population, the state has been continuously showing its traditional rural character. Thus the State is under-urbanized to a great extent. Due to slow pace of urbanization as well as industrialization, migration of indigenous people from rural to urban areas of Assam was very less in the initial stage. As for example, in 1941, only 3.3 per cent of the total population of Assam was residing in urban areas as compared to that of 14.6 per cent of the total population in all India. Again during 1941-51, the size of urban population in Assam has increased from 208 thousand to 344 thousand leading to increase in the proportion of urban population from 3.11 per cent to 4.29 per cent This increasing trend in urban population in Assam has resulted mainly due to establishment of new government offices, influx of Hindu refugees from East Bengal and gradual increasing attraction of rural people towards urban life.

Although the size of urban population in Assam was very minimum but it started to show a gradual increasing trend since 1951. Different economists are of the opinion that urbanization is closely related to development. According to these economists, "the growth of urban area through migration from the country-side is proceeding too fast and has created serious problems". Thus the government of less developed countries are trying to prevent migration from rural to urban areas. But it has been found difficult to check such tendency.

The total urban population of Assam has gradually increased from 77 thousand in 1901 to 3.44 lakh in 1951. During this period, the percentage of urban population to total population has gradually increased from 2.34 per cent in 1901 to 4.29 per cent in 1951. But during this same period, the percentage of urban population to total population of India also increased from 10.84 per cent in 1901 to 17.29 in 1951. Thus during the first half of the last century, the impact of urbanization in Assam was less as compared to that of all India. But during the same period, the decadal growth rate of urban population in Assam has increased from 20.55 percent in 1911 to 36.80 percent in 1931, 28.30 percent in 1941 and rose significantly to 65.73 per cent in 1951. But during this same period, the decadal growth of urban population in India gradually increased from 0.35 percent in 1911 to 31.97 percent and 41.42 percent in 1941 and 1951 respectively.

Again, during the second half of the last century, total urban population of Assam started to increase at a rapid rate. Accordingly, total urban population of Assam rapidly increased from 3.44 lakh in 1951 to 7.81 lakh in 1961, 12.89 lakh in 1971 and then to 24.87 lakh in 1991. During this period, the percentage of urban population to total population in Assam rapidly increased from 4.29 per cent in 1951 to 7.21 per cent in 1961, 8.82 per cent in 1971 and then to 11.10 per cent in 1991. During this same period, the percentage of urban population to total population of India increased from 17.97 per cent in 1961 to 19.91 per cent in 1971 and then to 26.73 per cent in 1991. Thus it is found that during the last half of the last century although the proportion of urban population to total population of Assam remained less but it increased considerably in recent years.

Moreover, the decadal growth rate of urban population in Assam increased rapidly from 65.63 per cent in 1951 to 126.57 per cent in 1961, and then to 65 per cent in 1971 and finally to 92.97 per cent during last two decades of 1971-91. On the other hand, the decadal growth rates of urban population of all India comparatively stood at 26.41 per cent in 1961, 38.23 in 1971, 46.14 per cent in 1981 and 36.47 per cent in 1991.

Therefore, from the foregoing analysis it is revealed that the growth rate of urban population in Assam was much higher as compared to that of all India from the very beginning and the growth rate increased further in recent times as compared to that of India. Moreover, the rate of growth of urban population in Assam is much higher as compared to that of total population of the State. Therefore it can be observed that the impact of urbanization in Assam has increased and this impact and pace of urbanization is increasing year by year.

It is revealed that the total population of Guwahati has increased from 43.6 thousands in 1951 to 146.0 thousands in 1971 and then to 5.77 lakh in 1991. The other cities which have more than 1 lakh population in 1991 include Dibrugarh (1.18 lakh), Silchar (1.15 lakh) and Jorhat (1.11 lakh). During 1951-91, the population of some important towns such as Guwahati, Tinsukia and Jorhat have increased significantly by 235 percent, 350 per cent and 335 percent respectively. Moreover, during this period the sizes of population of Dibrugarh, Dhubri, Nagaon and Tezpur became double. Again during 1971-91, the population of some important towns like Guwahati, Silchar, Bongaigaon, Diphu, Nagaon and Jorhat has increased by 295 percent, 119 percent, 156 percent, 287 percent, 65 percent and 59 per cent respectively. Thus from the above analysis it is revealed that the size of urban population of some important town in Assam have been increasing at a rapid pace with the growing trend of urbanization in the State.

Increase in the size of urban population is a common feature, common to almost all the countries of the world. With the growing economic development, the size of urban population is increasing simultaneously but at a very faster rate. Economic development is well connected with urbanization. Colin Clarke and G.B. Fisher argued that economic development is very much symptomized by the shift of population from the rural to the urban areas. Similar is also case for Assam where the size of urban population has been estimated that since 1951 to 1971 nearly 25 to 30 lakhs people have migrated to Assam from outside the state. Again in the post 1971 period, another 10 to 15 lakh of people is estimated to have entered areas where they can earn higher amount of income and can provide better educational facilities to their children and can also enjoy better social services like medical care, housing facilities etc.

Causes of urbanization are many and varied. There are many factors which are responsible for high rate of growth of urban population in Assam. One such very important factor is the natural growth of urban population which includes migration of population from rural to urban areas. Factors like change in administrative status of certain unit and consequent enlargement of government expenditure and employment potentialities along with the expansion of educational facilities etc. are highly responsible for such migration of population from rural to urban areas. Moreover, a change in the definition of urban areas adopted by census operations and inclusion of some fringe areas within such towns are also responsible for such a high rate of increase in urban population.

There are certain special factors which are responsible for such a high rate of growth of urban population in Assam. The following are some of those special factors :

(1) Growth of urban area : With the passage of time, the sizes of urban areas have been growing steadily. The total number of towns in Assam has increased from 23 in 1951 to 53 in 1961, 73 in 1971, 78 in 1981 and 94 in 1991. This shows that as the sizes of urban areas are expanding with the increase in the number of towns, the increase in the size of urban population is obvious.

(2) Migration of population from rural areas of the State : In Assam, there is huge shift of population resulting from migration of population from rural to urban areas in search of better employment opportunities and better social services related to education, health etc. Such type of migration became acute in Assam since eighties of the last century.

(3) Migration from other States : With the growing industrialisation and expansion of trade and commerce in the urban areas of Assam, a huge number of population has migrated to the urban areas of the State from other states of India. Such migration is essential in the initial stage of development of a region as it provides capital, efficient manpower etc.

(4) Immigration : Large scale immigration of population from the neighbouring countries like Bangladesh, erstwhile East Pakistan, Nepal etc. causes a high rate of growth of urban population in Assam. Such immigration was very high during 1961-71 and even in recent times such immigration is continuing.

(5) Natural factors : Natural factors leading to a high rate of growth of population is also common in respect of growth of urban population. With the growth of medical facilities in the urban areas, death rate declines significantly but the birth rate in the urban areas did not fall commensurately. This has led to high natural growth rate of urban population in Assam.

(6) Neglect of the village economy: In Assam, the village economies are largely neglected in spite of its huge potential and necessities. Although Assam is an agricultural state but the development of the agricultural sector in the state has been totally neglected. Agricultural operation in the state has not yet been modernized. Basic facilities required for the modernization of agriculture, viz., irrigation supply of basic inputs like HYV seeds, fertilizers, pesticides etc. have not yet been provided adequately in the rural areas of the state. Due to lack of agricultural research and absence of intensive cultivation, the agricultural sectors has largely remained under-developed. Moreover, in the absence of the availability of alternative employment opportunities due to lack of industrialisation and more particularly due to lack of adequate development of small, cottage and village industries in the rural areas of the state, growing number of rural people did not find sufficient avenues for gainful employment in the rural areas itself. Thus there is continuous outflow of rural population to the urban areas of the state in search of gainful employment.

Thus under such a situation, this high rate of growth of urban population in Assam has been resulting in various evils such as growth of slums, increasing congestion and pollution, problems of transportation, housing, water supply, health services, sanitation and finally to unemployment and poverty.

Assam has been experiencing a tremendous rate of growth of population since 1901 and more particularly since 1951. The size of population in Assam has increased considerably from 33 lakhs in 1901 to 224 lakhs in 1991 showing a growth of over 79 percent during the last 90 year period. During this same period, India as a whole experienced a growth of population by 255 per cent.

The table no. 2.1 shows the decadal growth rate of population in Assam and all India. The column no. 6 and 7 of the same table shows that the decadal growth rate of population in Assam was all along high since 1921 (i.e., around 20 per cent) and became very high since 1961 i.e., around 35 percent as compared to that of around 24 per cent for all India.

Such a high decadal growth rate cannot be resulted from high natural growth rate of population resulting out of excess of birth rates over death rates as there is no adequate reason to accept a higher natural growth of population in Assam.

A significant portion of the increase in Assam�s population is also due to the influx of people from the neighbouring countries. The table no. 2.1 shows that the estimated decadal migration as percentage of total population in Assam were 9 per cent, 6 per cent, 11 per cent and 7 per cent during 1911-21, 1941-51, 1951-61, and 1961-71 respectively and that of total estimated number of migrants were 0.4 million, 0.5 million, 1.2 million and 1.0 million during the respective decades.

Thus, it is observed that after the partition of the country, there was a huge influx of Hindu refugees from East Bengal (now Bangladesh) to adjoining states like Assam, Tripura, West Bengal etc. These refugees gradually settled down in different areas of the state which were close to urban centers as well as in rural areas where they have some relations or linguistic affinity. After partition, the influx of Muslim farm settlers from East Bengal became slow for a short period but the same flow again began to rise in the post 1951 period and they started to settle in Government waste land, forest land, grazing land and low lying char areas (river island). Moreover, a good number of Nepali people started to flow into the state from Nepal and they also started to settle in the hilly slope areas for dairy farming which were not in the knowledge local people or revenue administration.

Thus, this huge inflow of foreign national of different linguistic groups has resulted in peculiar socio-political and economic problems for indigenous population of Assam. Besides creating problems like illegal encroachment of agricultural land and unemployment, this huge inflow of foreign national has also disturbed the status of the language of the indigenous people and also affects the composition of the state Government through collective voting pattern followed in the election.

Moreover, after independence, a good number of people from other states of India has also started to settle in Assam and other North Eastern States and engaged themselves in various trade, business, industry,. profession etc. It is difficult to estimate the exact number of such migrated people from other states of the country. Considering the natural rate of growth of population in Assam and all India, it has been estimated that since 1951 to 1971 nearly 25 to 30 lakhs people migrated to Assam from outside the state. Again in the post 1971 period, another 10 to 15 lakh of people is estimated to have entered into Assam from outside the state. But it is difficult to identify how many of these migrants were foreign national and how many of them were Indian Citizen. But it can be guessed that about 75 per cent of these migrants came from the neighbouring countries like Bangladesh and Nepal.

Considering this huge influx of foreign national in Assam as well as its adverse impact on social, political and economic conditions of the people of Assam, the All Assam Students Union (AASU) initiated a state-wide agitation in 1979 against the foreign national in a non-violent manner with active participation and co-operation of local people as well as the cross sections of people living in the state. After a prolonged six years of agitation, the Assam Accord was signed on 15th August, 1958 by the leader of AASU and the representatives of both Central and State Government. Among the various understandings reached, the Accord makes provision for the following important arrangements :

(a) Disfranchisements of foreign national who settled down in Assam during 1961 to 1971 for a limited period of 10 years;

(b) deportation of those foreigners who came to Assam after 1971 to other places ;

(d) holding of fresh election in Assam on the basis of revised voters list and immediate imposition of president�s rule in the state.

The implementation of the various clauses of Assam Accord was vested with both the State and Central Governments. Now the identification of foreigners and their deportation, and the revision of the voters list are no doubt very difficult tasks before the Government. Even after the completion of about 10 years of signing the Assam Accord, the Government could not finalize the voter list of Assam at the satisfaction of the Election Commission and could identify and deport only a limited number of foreigners from the state.

During the period 1985 to 1995, only 8,955 people have been found to be foreigners under Illegal Migrants (Determination by Tribunals) IMDT Act, 1983. Of them, 1,287 were deported since 1985. The names of 11,513 persons have so far been deleted from among 18,347 persons identified by Foreigners� Tribunal as belonging to 1966 -71 stream of foreigners. During the period from July 1, 1991 to January 31, 1995, 553 foreigners were deported out of 1,281 detected by the IMDT tribunals. Apart from this, 70,641 migrants from Nepal and 19,162 new entrants and "re-entrants" from Bangladesh were detected and sent back to their country of origin.

At present 16 tribunals under the IMDT Act are functioning in the State to deal with foreigners who entered Assam on or after March 25, 1971, when the Bangladesh became a sovereign nation.

As per the reply of the Chief Minister of Assam in the Assembly on March 31, 1997, it is found that 12 illegal immigrants have been deported from the state so far since the AGP and its allies formed the Government while 9,376 such other migrants have been identified under IMDT Act as illegal immigrants from January 1985 to January 1997 and other 19,183 immigrants have been identified under the Foreigners� Act as illegal immigrants during the period from January 1986 to January 1997. It is also stated that up to January, 1997, a total of 12,113 cases of complaints are pending with the IMDT tribunals.

But regarding the other clauses of the Accord, viz., making provision for rapid economic development of the state, establishment of one I.I.T. and a Central University, reviving the sick Ashok Paper Mill at Jogighopa and providing safeguards to the interest of the indigenous people, these can be implemented if the Government is sincere. In the mean time, both the Central as well as the State Governments have taken some important steps for the fulfillment of these other clauses.

The size of population in Assam is growing at an alarming pace. The population growth, instead of being an asset, has become one of the most important constraints on the economic development of the state. Assam (along with other states of India) is facing a situation described as the population explosion. The decadal variation of the size of the population in Assam in percentage terms shows an increasing trend i.e., from an increase of 17.0 per cent during 1901-11 to 20.4 per cent during 1931-41 and then increased at a constant rate of 35.0 percent during 1951-61, 1961-71 and 1971-81 (estimated). Again, the rate of growth of population during the last two decades 1971-91 was 53.2 per cent. The decadal variation of population in Assam is all along higher than that of India.

The high rate of growth of population in Assam depends on the factors related to birth, death rates and followed by migration of population from the neighbouring countries. Factors related to high rate of growth of population in Assam are as follows :

1. Natural growth rate : The wide gap between the birth rate and the death rate of population in Assam, along with other states of India, is a very important factor to push the natural growth rate of population at a high level. With the growth of medical science death rate started falling rapidly but there was no marked fall in the birth rate. In 1991, the natural growth rate of population in Assam stood at 19.4 per thousand and for all India the rate was 20.5 per thousand. Thus the present rate is too high in comparison to natural growth rate of population (all India) of 6.6 per thousand in 1901-11.

2. Poverty : Poverty along with some associated factors as poor diet, illiteracy and ill-health etc. used to raise the birth rate in the under-developed country at a high level. Children without getting educational facilities start to help their parents in work and raises the family earnings and, therefore, prove to be assets to the family. Further, there is also close positive relation between high fertility and poverty of the people. Chronic hunger makes sex important enough to compensate emotionally for the shrunken nutritional appetite. In Assam 75 per cent of total population are living below the poverty line. Naturally, the birth rate is high in Assam.

3. Universality of marriage : Marriage is universal in Assam along with other States of India. Unmarried men and women do not enjoy, in general, a respectable social status. Thus almost all men and women of marriageable age enter into wedlock.

4. Practice of early marriage : People pf Assam used to marry at an early age. This early marriage is a common characteristic of Indian people which gives them a longer span of reproductively activity. It is likely that between 15 and 20 years of age every 8 out of 10 girls are married. Thus the early marriage is a very important factor for the high rate of growth of population in Assam.

5. Tropical climate : Puberty of women starts at an early age of 15 due to tropical climate in Assam. Thus women in Assam starts fertilization very soon after they enter reproduction stages. This creates large number of births.

6. Religion and social attitudes : Religion and social attitudes in Assam along with other States of India, still prefer large families. Social attitudes towards unmarried men and women, and married people without children are not very encouraging. Further, the existence of Joint family system induces thoughtlessness regarding the number of children.

7. Migration : Large scale migration of population into Assam from the neighbouring countries causes high rate of increase in its size of population. The estimated figure of net migrants in Assam were 0.4 million, 0.5 million, 1.2 million and 1.0 million during 1911-21, 1941-51, 1951-61 and 1961-71 respectively. Thus a significant portion of the increase in Assam�s population is due to influx of people from outside.

8. Illiteracy, ignorance and lack of conscious family planning : A significant portion of population in Assam and women in particular is illiterate. The literacy rate in Assam was 52.9 percent. Female literacy rate in Assam was only 43.03 per cent in 1991. Further, people are ignorant about the biology of reproduction , need of birth control and devices of birth control. In the implementation of Family planning programmes during the period 1974-75 to 1976-77, other than sterilization, performance of the state was below all India percentages. In Assam 17.46 persons per thousand population were covered under Family programmes as against 22.04 persons per thousand population in India. In 1991-92, total number of people sterilized in Assam was 66 thousand and the same figure declined to 27 thousand in 1992-93.

Taking all these factors into consideration it can be stated that the population in Assam is growing at an alarming rate. If these present state of conditions are allowed to continue its operation then the population in Assam will continue to grow at a rapid rate causing a serious problem to the economy of the state.

The problem of high rate of population growth should be tackled carefully. We shall have to approach the whole problem both from the production and population sides. Thus the policy to control population should be framed in terms of a development programme. While population should reduce the pace of its growth, production should also increase at a rapid rate. The following measures are suitable for checking the rate of growth of population in Assam.

1. Modernization by agriculture : In Assam, the primitive method of agriculture is still being followed which must be replaced by better methods. Further, provision must be made for irrigation facilities and for applications of fertilizers and pesticides for better cropping, along with fundamental reorganization of agriculture through land reforms.

2. Industrial development : Assam is lagging behind other states in regard to industrial development. As Assam is having sufficient industrial potential, so necessary industries should be developed so that increased pressure of population be balanced with increased production, creating additional employment potential in the state.

3. Reduction in the birth rate : To reduce the birth rate of the present population is an effective measure to check the rapid growth of population in the state. Postponement of the age of marriage and limiting the size of the family are most effective points towards limiting the birth rate of population in Assam.

4. Postponement of the Marriage : The raising of the age of marriage can check population growth by reducing the effective child-bearing period and particularly knocking off the most fertile period from the point of child bearing.

5. Limitation of the size of family : The most important measure to check population growth is to limit the size of families through family planning. The Health Department of the state must put much emphasis on setting up family planning clinic throughout the state to spread knowledge about the use of contraceptives and other methods of birth control.

6. Spread of education : Education and general enlightenment of the people creates desire for smaller families. Thus necessary steps be taken for general spread of education in Assam.

7. Increasing employment of Women and improvement of their social status can reduce the birth rate of population in the state.

8. A rise in the standard of living through increased production of wealth and urbanization of the population can work as active agents to check the rate of population growth.

9. To stop influx of population : A significant portion of the increase in Assam�s population is due to influx of people from neighbouring countries. Thus this influx in the form of infiltration must be stopped completely and proper steps should be taken to check this large scale infiltration. This include sealing of the border, creation of no-man�s land, increased patrolling, imposition of night curfew on border areas and finally to tone up the border administration.

Thus, the population problem of Assam should be tackled both through the policy of increasing production and population control.

Family welfare programme includes conscious family limitation, where babies will born by choice not by chance and maintenance of family welfare at an optimum level by providing sound health and sanitation facilities. Family Welfare Programme, is also geared up in Assam along with other states of India. Let us know look into how the family planning programme was implemented in the state. In the implementation of family planning programmes particularly in case of sterilization, Assam�s performance was better than that of all India during 1974-77. The number of persons sterilized per thousand populations was 2.69 for Assam as against 2.46 for India during 1974-75. The same figure than increased to 15.46 for Assam and 15.06 for all India during 1976-77. During 1977-78 the number of persons sterilized declined sharply to 0.94 and 1.68 per thousand for Assam and all India respectively.

The performance of Assam in implementing family planning programmes other than sterilization during the period from 1974-75 to 1976-77 was below all India percentages.

About total performance of family planning programmes, the number of persons covered per thousand of population was 4.50 and 7.85 for Assam and all India respectively during 1974-75 which again increased to 17.46 and 22.04 for both Assam and all India respectively during 1976-77. But then the figure declined to 2.28 and 8.04 for Assam and all India respectively during 1977-78. Thus, in respect of total performance, Assam�s performance was all along poor in comparison with all India performance.

The recent statistics about the achievements of Family welfare programme in the various districts of Assam show that in 1978-79, the number of persons sterilized was highest in Nagaon district (14,114 Nos.) ; the number of I.U.D. (loop) insertions was the highest in Nagaon district (1,578 nos.). But the number of Condom users was highest in the district of Goalpara (4.18 lakhs) and then followed by Nagaon district (3.8 lakh).

In 1981-82 total number of persons sterilized in Assam was 234,116 and the achievement of Dibrugarh District (9,565 persons) was highest among all the districts followed by Sibsagar district (7716 persons). Total number of I.U.D. insertions in Assam during 1981-82 stood at 15,588 and the achievement of Nagaon district was highest (2,03). Total number of condom users has also been increasing from 13.11 lakh in 1980-81 to 16.10 lakh on 1981 -82. In this respect also, the achievement of Nagaon district was highest (3.38 lakh in 1981-82) among all the districts of Assam followed by Kamrup district (2.91 lakh).

In 1981-82, total number of persons sterilized in Assam was 234,116 and the achievement of Dibrugarh District (9,565 persons was highest among the entire district followed by Sibsagar district (7716 persons). Total number of I.U.D. Insertions in Assam during 1981-82 stood at 15,588 and the achievement of Nagaon district was highest (2.03). Total number of condom users has also been Increasing from 13.11 lakh in 1980-81 to 16.10 lakh in 1981-82. In this respect also, the achievement of Nagaon district was highest (3.38 lakh in 1981-82) among all the districts of Assam followed by Kamrup district (2.91 lakh).

By studying the performance of family welfare programme in Assam in recent years, it is found that the total number of persons sterilized has increased from 60,173 in 1989-90 to 66,323 in 1991-92 and then it declined to 23,000 in 1994-95. Among the various districts of Assam, the performance of Dibrugarh and Tinsukia district in respect of sterilization was highest (i.e. 17,955 persons in 1991-92 and 5925 persons in 1992-93) In 1994-95, total number of Copper �T� and Condom users in Assam were 34,608 and 46,677 respectively. In this respect, the position of Nagaon and Morigaon districts was the best.

North -East India is located between the latitudes 22^o N and 29.5^o N The tropic of cancer passes along its southern part through Tripura and Mizoram. Therefore, it has essentially tropical climate. At the same time, being within the monsoon belt of South and South-East Asia, the region is under the tropical monsoon climate. But its location and topography, encircled on three sides by high mountain ranges and the presence of a precipitous plateau (Meghalaya) athwart the course of the incoming south west monsoon wines, have rendered its climate somewhat different from that of the other parts of India. The factors influencing the region�s climate may be listed as follows:

1. The situation and alignment of the hills, Plateaus and mountains in the region.

2. The seasonal change in the pressure condition over the Bay of Bengal on the one hand and over the north-western landmass of India on the other.

3. The tropical oceanic (south-west monsoon) air masses that blow over this region.

6. Presence of numerous vast water bodies and extensive forests and development of local cyclones.

The Himalayas in the north, the Patkai and other hills and mountains in the east and the Meghalaya Plateau in the middle have affected the general tropical warm climate of the region. (1) Many of these hills and mountains are high enough (sometimes between 1 km to 5 km a.s.l) rendering the climate cool and bracing. Besides, (2) the Himalayan mountain chain the Patkai and the high hills ranges along Manipur and Mizoram borders with Myanmar prevent the rain bearing monsoon winds from escaping from this region Further, these ranges do not allow the dry and cold winds of central Asia to enter the North East region. (3) The Meghalaya plateau, standing athwart the course of the southwest monsoon winds, make them rise geographically, causing the heaviest rainfall in the world in its southern margin. (4) The Himalayan and eastern hill ranges also cause rise of the monsoon winds with consequent heavy rainfall in North East India. (5) Another very important effect of the encircling hills and mountains on the climate of the region is that in summer while the plains become hot, the air over the hills and mountain remain relatively cool. Thus local low pressure systems are built up over the valleys. These low pressure systems over the Brahmaputra and Barak valleys obviously modify the climate in this region.

The climate of the region can be understood clearly with the help of the following description:

In winter an extensive high pressure system prevails over central Asia and the northern part of India. There then exists a low pressure over the seas and the ocean south of India. As winter passes, the landmass becomes warm quickly and by about late March and April, a low pressure is built up over northern India, The air mass over the ocean being heated up more slowly, there prevails a relative high pressure over the seas and the ocean. With the northward migration of the sun, the land mass of India becomes very hot in April and May and the pressure gradient between north India and the southern seas becomes very steep. A low pressure system thus envelops the lower altitudes of north East Indian region. The winds then begin to blow from the south and south-west of the region bringing about a significant change in the weather condition of this region. Such a condition results in the occurrence of thunder showers squalls and occasional rains. This is one of the reasons why temperature is never very high in the north eastern region.

The Mediterranean lows, which reach the upper Indus valley and the upper Gangetic plain in winter, sometimes travel as far east of Brahmaputra valley, causing overcast sky, drizzle and rain.

The important local phenomena that affect the climate of the region are (1) the mountain and valley winds, (2) the dust storms, (3) the haze, mist and fog and (4) the cyclones. The valley winds begin to blow from the plains lower down to hills and mountains from about 10 o�clock in the forenoon to about 10 o� clock in the evening. Conversely, the mountain wind blows down the slope to the plains from about midnight to about 9 o� clock in the morning. The cool valley winds check the rise of temperature over the hills in summer during day time, but in winter they further lowers the temperature over the hills. On the other hand, the cool mountain winds drop the night temperature of the plains both in summer and winter. The effects of the mountain winds are, however, limited to the foothill plains alone.

The occurrence of dust storms is another important feature of the spring weather of the western half of the Brahmaputra valley. The local winds, caused due to the heating of the ground in February and March, resulting in the ascent of the ground -level air, sweep the ground at a moderate to high speed, spread sand dust all over the lower level of the atmosphere. Under such a situation the humidity decreases and visibility is reduced.

The presence of haze, mist and fog is still another characteristic of the region. As the region experiences heavy rainfall in the monsoon period, its atmosphere remains impregnated with water vapour while its rivers, streams, lakes, swamps and other low lying areas remain full of water. In October, when temperature falls in general. the saturated atmosphere gives out haze and mist, especially at late night and early morning. With the passage of time, as the temperature falls, dense fogs appear in December and January, which hang over ground till late forenoon.

It should be noted that the occurrence of storms is also common in North East India, especially in the two plains of Assam. Most of these storms have their origin in the tropical cyclones of the Bay of Bengal Being not very far from the tip of the Bay; the plains experience cyclonic storms that reach them after blowing over the Bangladesh plain. Some of the storms, especially the ones experienced in spring are due to local thermodynamic conditions.

Seasons : Considering the temperature, pressure and humidity conditions in their temporal distribution, the weather conditions of North East India in a year can be divided into the following four seasons :

Winter Season: With the southward migration of the sun after September 23, temperature to fall over North-East India and winter sets in towards the later part of November. It continues up to the end of February. The weather during this period is influenced by the high pressure system of central Asia, the sub tropical jet stream and the high pressure centre over upper Myanmar. The temperature falls down over the high hills and mountains often to 0 Celsius. In fact the high Himalayan areas of Arunachal experiences a temperature below 0^o C. especially at night. The hills of Nagaland, Manipur and Mizoram experience a minimum temperature of 4^o C. Meghalaya, similarly has a very low temperature, Shillong experiences a minimum of 1^o C. Tripura , because of the low altitude of its hills and its southerly location , experiences a minimum of 12^o C. The Brahmaputra and Barak Plains show an average temperature of 13^o C. Within the Brahmaputra valley itself, the eastern upper valley experiences a lower minimum of 7^o -8^o C while in the western part it is about 10^o- 12^o C.

December is the driest month of the year. During this period a local low pressure sets in the Brahmaputra valley. This along with the Mediterranean lows can bring about cloudy and drizzly weather. Besides, the cold north east trade winds occasionally blow over eastern Arunachal, Nagaland, Manipur, Meghalaya and Mizoram hills, bringing down the temperature of these areas. An important feature of the weather of this period is the presence of thick fog is all over the region. The hills have thick fog in the evenings, while the plains have it early in the mornings. In the Brahmaputra Valley fogs are more common in the south bank than on the north bank. This is became the mountain winds cumin down the Himalayan slope drive the fog to the south bank. In the Barak Valley also fogs are more common in the southern part than in the northern part. The total number of foggy days in the two valleys varies between 60 and 100.

The rainfall is normally scanty during this period. While the north- eastern part of the region, i.e. the Arunachal foothills and the upper Brahmaputra plain receive an average rainfall of 10 cm, the rest of North East India receives 5 cm. during this period. The normally clear and sunny sky, cool and gentle breeze and morning fog together make the winter weather pleasant.

With the end of February, temperature begins to rise in the region. March, April and May become sufficiently hot and the rains are yet to come in their full form. Thus the pre-monsoon is a transitional season between the dry, cool winter and warm, rainy monsoon seasons. The important characteristics of this season are the rapidly increasing temperature, disappearance of fog and not infrequent occurrence of thunder -showers and hail storms.

With the northward migration of the sun, the temperature increases rapidly in the region especially, over the Plains. Thus the pressure decreases rapidly and the gradient of pressure between the hills and plains becomes steep. This, not only facilitates incoming of the Mediterranean lows from the west and tropical cyclones from the south, but also gives rise to local cyclonic conditions. All these do bring storms and rains. The average temperature in this season rises to 25⁰C over the plains and 20⁰ C over the hills. The amount of rainfall varies from 15.6 cm in western Assam to 23.13 cm in eastern Assam. Over the hills the rainfall is less, but in the Barak Valley it becomes as high as 32. 5 cm.

It has been found that Guwahati and its surrounding area experience on the average 8 stormy days and 13, 6 cm of rainfall in the month of April. Of late the amount of rainfall in April has been found to be increasing. For example, the Borjhar meteorological centre recorded a total of 16.3 cm in April, 1988, 18.5 cm in April, 1989 and 34.8 cm in April, 1990.

The diurnal range of temperature during this period is very high While the late night is pretty cool, the afternoons are very hot. However with the passage of time, the temperature range decreases, both days and nights becoming hot and the frequency of rainy days increases. The rains normally occur in the afternoons. Sometimes hail storms come along with such rains. Since these storms appear to come from the west in the eastern part of India, they are called "Nor� western". Locally they are known as �Bardoichila; in Assam and �Kal Baishakhi" in West Bengal. These storms are said to be the result of the joint action of the Mediterranean lows progressing from the west and tropical cyclones from the south. The eastward progressing Mediterranean lows in eastern India attract the moisture laden cyclonic current from the Bay of Bengal. When these two currents meet, full -blown cyclones occur carrying hail storms and thunder showers. Sometimes these storms move at a velocity of 50-65 km. It is these cyclonic storms that cause immense destruction in coastal Bangladesh, West Bengal and Orissa. In north -east India they occur with a slightly lesser intensity. However, quite a few cyclonic storms pass over the plains of north-east India during this period.

It has been noticed that with the advance of the season the number of rainy also increases. For example, the average number of rainy days increases from six in March to 12 in April and further to 14 in May. At the beginning of this season i. e. in March, there occur dust-storms in the western part of the Brahmaputra Valley. After dry winter when the low-level sweeping winds blow over hot ground, dust is blown every afternoon bringing down visibility and making the atmosphere uncomfortable

The season of monsoon prevails over north East India during the months of June, July, August and September. With the northward migration of the sun the landmass gets heated and a low pressure system is established firmly over India.

The temperature over north east India is quite high and reaches a maximum of 35⁰ C over the plains and 25⁰ C over the hills.

The low pressure system that builds up in the north India plain prevail over North East India also. If the polar or sub-tropical jet streams withdraw from over India to central Asia the moisture laden south west monsoon winds from the southern seas rush in. This is because the low pressure over north India attracts the winds from the relatively high pressure belt over the southern seas. The south -west monsoon winds from both the Arabian Sea and the Bay of Bengal strike Meghalaya first and then movers further north to strike against the Himalayan foothills. As these winds are within less than 5 km from the surface they strike against the southern hills slopes and rise up. In this process the rising air masses lose heat at wet adiabatic rate. The moisture contained is condensed and rainfall occurs in the windward side of the hills, especially in the Meghalaya Plateau, Himalayan foothills and the foothills of the eastern ranges.

The south -west monsoon winds, laden with moisture, reach north east India towards the middle of June or the beginning of the Indian month of Ashara. However, the whole of the region is prevailed upon by the monsoon winds by about June 20 and rains begin.

One from the south from Bay of Bengal and the other from the south-west from the Arabian Sea. The Bay of Bengal current being obstructed by Arakan Yoma moves northward and causes rainfall in Tripura, Mizoram and Barak plain. And then it strikes against the southern face of the Meghalaya Plateau and then rises causing rainfall at the southern part of the Plateau. That is why this part (Cherrapunji Mowsynram region) receives one of the highest average annual rainfalls in the world. The actual reasons for which this region receives such a high rainfall are as follows : A part of the moisture bearing air current from the Bay of Bengal and a part of another similar current from the Arabian sea meet over Sylhet Plain south of Meghalaya and are faced with the with the steep slope of the Meghalaya Plateau. There are many deep steep gorges on this slope. The moisture laden air masses enter into these narrow gorges and get compressed. But as soon as they rise up the valley slopes they expand and get cooled and condensed leading to the formation of clouds and occurrence of rainfall. Mowsynram (25⁰ 19�N and 91⁰36 E receives an average annual rainfall of 1240 cm and Cherrapunji (25⁰ 17�N and 91⁰44�E) 1080 cm. After having ascended over the Meghalaya, the air masses move further north and east The east flowing air masses cause rainfall in Barak Valley, Manipur and Nagaland. The north flowing masses descend along the northern slope of Meghalaya, spread over the Brahmaputra Valley and strike against the foothills of Arunachal. The descendance on the northern slopes creates a rain shadow zone in the leeward side of Meghalaya over the Lanks -Lumding region, where average annual rainfall is only 106 cm. This is the driest part in north east India. In this connection it may be noted that even Shillong which lies 45 km north of Mawsynram receives only 215 cm of average annual rainfall.

The second current of air mass from the Arabian Sea enters North East India over the relatively low Garo Hills and North Bengal Plain and moves up the Brahmaputra Valley. It also strikes against the Arunachal foothills and causes heavy rainfall. A local low pressure system developed over the upper Brahmaputra Valley also attracts it resulting in the occurrence of a higher amount of rainfall there and in its surrounding foothills. This part, therefore, has an average annual rainfall of above 300 cm.

The season of south east monsoon is thus, characterized by heavy rainfall, high relative humidity and light surface wind. Although the temperature varies between 20 ⁰C in the plains and between 18⁰ C and 30⁰ C over the hills the weather becomes uncomfortable because of high humidity. As the relative humidity goes on increasing with the increasing rainfall, the month of August becomes most sultry and uncomfortable. The number of rainy days is about 18 in each of June, July and August and about 14 in September. About 80% of the total average annual rainfall in the region comes during this season. The amount of rainfall received in this season is about 180 cm in Assam, 185 cm in the lower parts of Arunachal, 180 cm in Meghalaya, 170cm in each of Nagaland and Manipur and 130 cm in each of Mizoram and Tripura. The occurrence of short rainless, sunny and hot periods in between the spells of rainfall is also a common feature of the season.

Towards the later part of September the sun crosses the equator. The temperature begins to decrease, the low pressure system developed over northern India loosens its grip and the south west monsoon winds ceases to be attracted. The sky clears out with only the isolated patches of cirrus and cumulus cloud wandering aimlessly high up. As the relative humidity remains very high, even a slight fall of temperature is enough to make haze and mist appear in the distant horizons, especially in the mornings and evenings. The temperature comes down to 20⁰C -25⁰C in the plains and to 15⁰C-20^0C over the hills. The diurnal range of it varies between 2.4⁰C and 5.6⁰C, the more being over the hills. The rainfall decreases and stands at about 12cm - 15 cm in the region, except in the southern margin of Meghalaya, where it is more. A few of the tropical cyclones that develop in the Andaman Sea, Gulf of Thailand and South China Sea sometimes affect Bangladesh and North -East India during this season. However, the number of rainy days decreases to 6- 7 in October and 2-3 in November. The wind direction is from the north and north-east. This is a short season covering only the months of October and November. However, it is bracing.

The description above shows that the climate of North East India is to some extent different from that of other part of India. If the detailed climatic conditions of the different parts of North East India are observed carefully, one find some variations, and based on these, the region can be divided into the following climatic sub- regions:

1. Region of Cold, Humid High Altitude Climate: This type of climate prevails over the northern part of Arunachal and the eastern hills in the areas above about 2000 m. The temperature is generally low over here the lowest, touching below 0⁰C, in winter and highest not exceeding 20 ⁰ C even in the hottest month. Precipitation is high, coming sometimes in the form of snowfall. Average annual precipitation is above 150 cm. Since this includes mountainous areas, agricultural facilities are grown on the hill slope either by shifting method and / or by terrace method. Citrus like apple, pear, lemon, etc. are also grown here

2. Region of Humid Sub-Tropical Monsoon Climate : This type of climate prevails over Arunachal foothills bordering the Brahmaputra Valley, Nagaland, eastern part of North Cachar Hills, Manipur (including the Valley) and Mizoram. The temperature in this region is higher than in the previous region, but lower than in the plains, average annual being 10⁰ C -20⁰C the summer is sufficiently hot (18⁰C- 25⁰ C ) and humid , while the winter is longer and drier than in the plains. Hill rice, wet rice (over the limited valley bottoms and irrigated terraces), maize, millets, vegetables, pine apples, etc. are grown in this region. Shifting cultivation, terrace cultivation and common sedentary cultivation (over the valley bottoms) are the traditional methods of agriculture found here. The region is covered with dense vegetation and support many wild animals, including elephants.

3. Region of Hot, Humid Monsoon Climate: This type of climate prevails over all the plain areas and the northern foothills of Meghalaya. The temperature over here is generally high summer maximum reaching 36⁰C and winter minimum hardly going down to 10⁰ C. Rainfall is high, the average annual amount being above 150 cm and reaching 300 cm in many places. The relative humidity is high (above 60%) for about 9 months of the year. Storms and thunder showers are common in the pre-monsoon period. However, This region is agriculturally very important because it consists of plains. Rice, wheat, jute tea, pulses. mustard and vegetables, apart from common tropical fruits, are grown here.

4. Region of Rainy, Cool Monsoon Climate: This type of climate prevails over the higher southern half of Meghalaya to the south of a line joining Darugiri, Nongkhlaw, Umsning and Hamren of Karbi Anglong. This area is characterized by low temperature (lower than 20⁰ C even in summer and 0⁰C in winter) throughout the year and with rainfall occurring for about 8 months. The amount of average annual rainfall is over 250 cm. It is this area that supports the rainiest places like Mawsynram. Common crops grown are hill rice, rice (on valley bottoms), orange, pear, apricot, pine apple, etc. The area has natural pine forests.

North East India experiences a number of natural hazards almost every year. Of the common natural calamities, occurrence of floods, river bank erosion, droughts hail storms and not infrequent earthquakes are the main. Geographical factors like situation, location, underlying geological structures, relief, etc. are primarily responsible for the occurrence of these calamities. Of late, human activities like destruction of the forests. unplanned construction of embankments and roads, cutting of hill slopes, etc. have accentuated by the region have been described below:

Flooding of the plains and valleys during the rainy season is a common hazard in North East India. It causes immense destruction of crops, property and even of life in the region. The floods are a common feature occurring in this region since time immemorial. These used to leave silt on the agricultural fields making them fertile every year. But their intensity and destruction have increased since the great earthquake of August 15, 1950. This earthquake disturbed the courses and beds of many rivers like the Brahmaputra, Subansiri, Burhi Dihing Jia Bharali, etc. causing them either to change their courses or by raising the beds resulting in occurrence of floods even after a few showers at their catchments area. Besides, the earthquake raised the beds of many ox-bow lakes and swamps, which had earlier acted the reservoirs of excess water.

Flood hazards occur regularly in about 14 districts of the Brahmaputra Valley, two districts of Barak Valley, four districts of Manipur plain and two districts of Arunachal Pradesh.

During the rainy season, the rivers not only become filled up with water, but the excess amount of water also spill over their banks flooding their neighbouring regions. At the same time bank erosion occurs in almost all the large rivers destroying human habitats, crop fields, roads and railway tracks.

It is noticed that about 2,900,000 ha of land in Assam alone is flood prone. Similarly large areas of Manipur plain and western Tripura are also flood prone, During the last few decades there were heavy floods in Assam in almost every alternate year, especially in 1954, 1957, 1966,1968,1987,1988,1990,1991,and 1998. It is estimated that average annual loss due to destruction of crops alone by floods in North East India stands at about Rs.15 crores. Besides, there are destruction of roads, railways, bridges and human settlements and loss of human and animal life. In certain years floods may occur more than once in one summer.

The rivers that generally cause flood havoc in their surrounding areas are as follows: The Lohit, Balijan and Na Dihing rivers in the plains of Dibang Valley and Lohit districts of Arunachal Pradesh. The Kundil, The Kundil, Lohit, Na Dihing and Dhola in Tinsukia district. The Burhi Dihing and Brahmaputra in Sibsagar district. The Brahmaputra, Bhogdoi and Gelabeel in the Majuli Island and the riverine tract of Jorhat district. The Brahmaputra, Gelabeel and Dancer in the northern part of Golaghat district including the Airing National Park. The Brahmaputra and Kopili in Nagaon district.

The Brahmaputra, Kopili and Kolong in Morigaon district. The Burhi Suti, Gai and Jia Dhol in Dhemaji district. The Subansiri and Dikrang in Lakhimpur district. The Puthimari, Baralia, Pagladia and Brahmaputra in Kamrup district. The Beki, Manas, Chaulkhown (Nakhanda) and Brahmaputra in Barpeta district. The Brahmaputra in Goalpara district and the Brahmaputra, Gadadhar, Gangadhar and Jinjiram in Dhubri district. The Barak in Cachar district and the Kushiyara and Singla in Karimganj district. In the Manipur Plain flooding is often caused by the Imphal and Iril rivers in the two Imphal districts and by the Thoubal river in Thoubal district. In Tripura occasional floods are caused by the Khowai and Gumti rivers in the West Tripura districts.

Side by side with floods, bank erosion of some major rivers also causes immense long-term destruction every year. The river Brahmaputra has been shifting slowly southward. Many of its tributaries have also been shifting-some eastward, some westward and some like Burhi Dihing, Dhola, etc. towards south. Such shifts slowly come about through bank erosion in every rainy season is caused by Na Dihing and Dhola in Tinsukia district, by the Brahmaputra in Dibrugarh district, by the Burhi Dihing and Brahmaputra in Dibrugarh district , by the Brahmaputra in Majuli and Neamati areas of Jorhat district, by the Gelabeel (a branch of the Brahmaputra ) in Golaghat district. In fact the Brahmaputra causes bank erosion also in the Bhuragaon of Marigaon district, Palasbari area of Kamrup district and South Salmara area of Dhubri district. In the north bank immense destruction of built up land is caused by the bank erosion of the Gai, Jia Dhol, Subansiri, Dikrong, Pagaldia, Beki and Gangadhar rivers. Arunachal Pradesh also experiences river bank erosion by the rivers by the Luhit, Dibang, Na Dihing, etc. especially in the districts of Luhit, Dibang Valley and East Siang.

The extent of damage caused by floods and river -bank erosion in Assam along can be seen from the following estimate:

Apart from floods and bank-erosion, landslide, especially in the hill states of North East India is also a common phenomenon occurring in the rainy season. Frequent landslides block the roads linking the towns and villages with one another thus causing great inconvenience to transport and communication and trade and commerce of the region.

As stated above, there are a number of geographical factors which are responsible for occurrence of floods. These factors are often accentuated by certain human activities. However, the factors are discussed below:

1. Heavy Rainfall and snowmelt water in Summer: Throughout North East India, average annual rainfall is very high, varying between 100 cm to 1300cm. Besides, about 80% of the annual rainfall comes mainly in the five summer months from May to September. This is also the period when the snow over the Himalayas melt and water there from rolls down the rivers to the Brahmaputra Valley. The supply of water thus becomes excessive in the rivers and flooding occurs

2. Location of the Plains: Each of the Brahmaputra, Barak and Manipur Plains are surrounded on there side by high hills and mountains. Whenever there is rainfall in the hills and mountains water rushes down to limited Plains from extensive catchments areas, flooding the Plains.

3. Low Gradient of the Plains: The Brahmaputra, Barak and Manipur river valleys grade very gently toward their down stream. It is found that the gradient the gradient of the Brahmaputra between Sadiya and Dhubri is 13 cm per km on the average. In case of Barak and Manipur Valley also the gradient is similarly low. Therefore, excessive rain and snow-melt water flows down very slowly causing floods in these plains.

4. Choking of the River Channels: (a) The hills and mountains of the Himalayas, eastern Arunachal, Nagaland, North Cachar Hills, Manipur, Mizoram and Tripura are made of relatively soft Tertiary rocks. The heavy monsoon rains that fall on them further soften the materials causing sheet erosion down the steep slopes. The streams and rivers carry these sediments easily down the steep hill slopes, but as soon as they (the rivers) reach the plains their carrying capacity is reduced and the sediments are deposited on their beds, thus choking the channels. They, therefore, overflow the channels causing flood. (b) Further, the great earthquake of the 15^th August 1950 raised the bed of the Brahmaputra, Dibang, Subansiri and many other rivers. It is estimated that the earthquake raised the bed of the Brahmaputra by about 22 cm on the average. The rising of the bed naturally reduced the volume of the channels making the rivers shallow. The water carried by them, therefore overflows in summer causing floods. (c) Serious sheet -erosion is caused also by human interference of nature. With rapid increase of population and technological development, man has been indiscriminately cutting the forest cover of the catchments areas of the rivers. Thus the top soil retaining capacity of the catchments areas has decreased and the loosened materials of the soil is washed down by the streams and rivers. These are deposited on the channel beds in the plains making the channels shallow. Moreover, man also constructs dams and embankments for flood control. All these have adverse effect by way of occurrence of flood and water -logging in some other areas.

5. Shifting of the River Courses: The river of North East India, especially the ones that come down from the Himalayas and the Tertiary hills change their course frequently. This is mainly because the rivers carry enormous quantities of sediments from the hills and on reaching the Plain the sediments are deposited on their own beds. The channels are thus filled up and the water in the following summers digs out different courses abandoning the earlier ones. Besides, the seismic instability of the region also contributes to such shift. The result is that the rivers in the process of their shift cause devastation through floods and bank erosion.

The floods that occur almost every summer in the plains of the North East India cause both harm and benefit to the areas concerned. The most important benefit they provide is the deposition of fertile silt on the crop fields. They also spread the fish seeds and wash the countryside. But the immense harm that the floods cause often outweighs the benefits. Floods cause devastation by destroying crops and houses and by washing away domestic and wild animals and sometimes even causing death to people. Floods are often followed by epidemics and endemics due mainly to contamination of water. In the low lying areas where drainage facilities area absent, pools of stagnant water remained standing for long, preventing any economic use of such lands and providing breeding grounds for mosquitoes and such other harmful insects and worms.

Uncertainty of places and times of occurrence of flood is another important aspect which adds to the misery of the people. Partly because of siltation of the river beds partly because of unplanned construction of embankments, flooding occurs in a summer. These uncertainties have adverse effect on the enthusiasm of the farmers to do hard work, for, they hardly know if their labour shall be at all rewarded with bountiful harvest.

No effects were made till about 1940 to check flood havocs in North East India. During the period between 1942 and 1951, only about 262 km of embankments, was constructed to check flooding. Apart from construction of embankments, digging of canal, and making provision of sluice gates to evacuate floods water can be a fruitful measure to reduce the impact of floods. But these have to be done after a thorough study of the causes and consequences in the field.

During the First Five Year Plan as much as 1000 km. of embankments along the banks of the Brahmaputra and some of its tributaries and 500 km of embankments that of the Barak and its tributaries were constructed. Besides, measures to save the Dibrugarh town area from severe bank erosion were also taken up. During Second Five Year Plan measures were taken to check Brahmaputra bank erosion of Dibrugarh again and at Palasbari, Soalkuchi, Tarabari, Goalpara, Dhubri and six other places. A River Research Station was also started in this period in Assam (at Byrnihat, later shifted to Vashishtha area). During the Third and Fourth Five Year Plan periods several schemes were taken up to control flood, besides making some embankments permanent, constructing some sluice gates, building sand and boulder spurs in the spots of bank erosion and making provision for collecting data about the flow of water, sediments etc. of the important rivers.

The Flood Control Department of Assam has so far constructed 984 km of embankments on the banks of the Brahmaputra, 2567 km of embankments on those of its tributaries, besides constructing 600 km of drainage canal, 56 sluice gates and 421 bank protections spurs. Similarly, in the Barak Valley 738 km of embankment, besides construction 600 km of drainage canal, 56 sluice gates and 421 bank protection spurs. Similarly, in the Barak Valley 738 km of embankment, 247 km of drainage canals and 29 sluice gates were completed. In the North Cachar and Karbi Anglong 28 km of embankment and 54 bank protection spurs have been completed. It is said that these measures have been able to protect 16.08 lakh hectares out of the total of 31.50 lakh hectares of flood prone area of Assam. The fruits of these measures have, however, been found to be not permanent. In the year 1988 as much as 38,268 lakh hectares of agricultural land was affected by floods in Assam alone. However, the efforts to control flood. have still been going on. In 1981 the Brahmaputra Board was reconstituted with the aim of checking bank erosion, producing hydroelectricity and irrigating agricultural land besides controlling flood. The Board also has plan to construct dams across the Subansiri and Burhi Dihing rivers to control flood and produce as much as 8,500 mw of electricity. Further, the Board undertakes to control floods caused by the Barak river by constructing a dam across the river at Tipaimukh (Tuivaimukh) at the trijunction of Assam, Manipur and Mizoram.

The important measures necessary to be taken immediately, for controlling flood and mitigating the miseries caused by it, are listed below:

4) Stopping deforestation and taking up afforestation in the catchments areas. This will stop soil erosion at the headstream regions and siltation of the river beds at the plains.

6) Construction of drainage channels, culverts and sluice gates wherever necessary.

7) Construction of raised platforms near the settlements of the flood prone area for taking shelter (for both man and animal) in the period of high flood.

It is by many scholars that in case of flood, protective measures with lest interference causing to the rivers are more durable than the positive measures interfering the rivers.

Next to flood, earthquakes are common natural calamities experienced in North East India. The region falls in the immediate neighbourhood of the newly formed Himalayan Mountain zone. Therefore, it is tectonically weak and seismically unstable. It is said that Himalayas are still rising. This condition affects North East India causing frequent earthquakes. Some of the important reasons, as to why earthquakes are so frequent in the north-eastern India, are noted below:

1. The Himalayas are the youngest folded mountains. These began to be built up the middle Tertiary Period. They are still rising. Besides they are still to be compensated. Hence these move, causing earthquakes in the region.

2. There are several large faults in this region. Of them, The Main Boundary Fault running east-west along the foot of the Himalayas and the Haflong-Disang Fault running north east-southwest from the southern Meghalaya border to beyond Margherita are the main. These faults may cause instability to the region.

3. North East India has many river and streams and widespread heavy rainfall. Millions of tonnes of materials of the crust are removed from the hills and mountains and deposited in the plains. This process may also cause isostatic instability, resulting in frequent tremors.

4. It is now said that the mechanism of Plate Tectonics working in this region is the main cause of the frequent earthquakes of North-East India. The region is located at the north-easternmost margin of the Indian Plate. This plate is migrating slowly to the northeast pushing itself onward below the South-East Asian and Central Asian Plates. The forces and frictions produced in this process cause tremor in North-East India which is lying over this margin.

A study of the location of the epicentres of the earthquakes reveals that most of them lie along the Himalayan and Patkai-Arakan mountain chains. Besides, the Meghalaya Plateau and its immediate surrounding areas also contain some epicentres. The following account of the famous earthquakes of the region clearly shows that most of the epicentres of these earthquakes lay in the above mentioned two areas of North East India.

North East India has been experiencing earthquakes since time immemorial. The Tungkhungia Buranjee, a book on history of the Ahom rule, written in 1696, recorded some important earthquakes of North East India in the mediaeval period. Following are the main earthquakes of the region that occurred since 1869:

1. In 1869 there occurred an earthquake on January 10 that probably had its epicentre at North Cachar Hills. It affected an area of 647 km ² 3. with deep cracks and eruption of mud and water through them.

2. The great earthquake of 1897 occurred on Jun 12, It affected more than four lakh square km of area covering North East India , the then undivided Bengal and eastern Bihar. It intensity was 8.7 in the Richter Scale. Its epicentre was in Meghalaya Plateau. This devastating earthquake badly affected the Plateau and its surrounding region, especially western Assam and Sylhet of Bangladesh. Many houses, building, Bridges and roads were destroyed. There are cases of upliftment of some areas and sinking of some others. Many river-beds were found to have been raised and many rivers changed their courses. Even a forested foothill area about 40 km to the south-west of Guwahati sank down to give rise to the present Chand Dubi Lake, which still bears the submerged stumps of the large trees.

In 1918 there occurred an earthquake tremor of severe intensity on July 8 in this region. Its influence was felt over an area of 225, 234 km². The probable epicentre of this earthquake was at Sri Mangal. The sympathetic shocks of this tremor were felt even in the Arakan and Coromondal Coasts on both sides of the Bay of Bengal.

4. A very serious earthquake was also felt on the ninth September of 1923 in North East India. Its epicentre was at a place to the north of Cherrapunji in the southern part of Meghalaya ( 25⁰5`N 91⁰5` E). Its tremor was felt all over eastern India including Chotangpur Plateau, undivided Bengal and North East India. Destruction due to this earthquake was extensive in the western part of Assam and Bangladesh.

5. Another devastating earthquake occurred in the region on July 3, 1930. It affected an area of 906,115 km² with its epicentre lying at 25⁰ 8` N and 90 ⁰2` E near Dhubri.

6. On August 14, 1932 there occurred an earthquake with its epicentre at north western Myanmar. It affected North East India , undivided Bengal and northern Bihar.

7. Another serious earthquake was felt in this region on January 21, 1941. Its epicentre was in the upper Brahmaputra Valley.

8. On October 23, 1943 there occurred another devastating earthquake with its epicentre at a place some kilometers to the north of Dibrugarh (27⁰ 5`N 93⁰5`E). It also affected whole of eastern India.

9. A major earthquake was also felt in the region on July 29, 1947. Its epicentre was in West Siang District (28⁰5` N 94⁰ E ). Apart from North East India, it affected the Himalayan foothill region up to Bihar.

10. The most devastating earthquake of the region of recent memory is that of August 15, 1950. It occurred in the evening (7-40 P.M. ) of the Independence Day with its epicentre at 28⁰2`N and 97⁰ E in the easternmost part of Arunachal Pradesh. Its tremor read 8.6 in the Richter Scale. Starting from the early evening the tremor continued throughout the night. Many houses and buildings of the eastern part of Assam were razed to the ground. There developed innumerable wide and deep cracks on the ground and mud, sand and water burst out damaging the roads, settlement sites and crop fields. There were many incidences of landslide in the Himalayan region. In fact such a landslide at the head stream portion of the river Subansiri kept the water of it blocked for a few days. Subsequently this caused devastating floods on both of its banks in the plains when the dam burst. Many Mising villages were washed away causing loss to men, material and animals, both domestic and wild. In many areas large patches of land sank down while in many areas there were upheavals. This naturally caused change of many river courses and rise of river beds. It is found that the bed of the Brahmaputra itself rose up in many areas, causing bank inundation even for a slight rise in its water level. It is also noticed that a large number of lakes, marshes and swamps in Assam became shallow as a result of this earthquake.

After this devastating earthquake, the region has not experienced any severe earthquake so far. However, two tremors of medium intensity were felt during this period, one on July 29, 1970 and other in August. 1988. Further, it is noticed that the frequency of mild earthquake tremors has increased since last 15 years. Considering this situation one can say that North East India is seismically an unstable region.

The major portion of the total population in Assam (88.8%) is living in rural areas. Thus top priority must be given to the development of rural areas which requires development of agriculture, implementation of land reform measures and the development of Co-operatives.

The economy of Assam is mainly depending on agriculture. More than 70 per cent of the total population in Assam is getting their means of livelihood from agriculture sector. As per 1991 census, 64 per cent of the total workers in Assam are agricultural workers. In recent years (1990-91) agriculture alone contributed 36 per cent to the total state domestic product.

Out of the total geographical area of 7852 thousand hectares, net area sown in Assam up to 1981-82 was to the extent of 2706 thousand hectares and area sown more than once was 754 thousand hectares making the total cropped area in Assam to 3, 460 thousand hectares. There are 104 thousand hectares of cultivable waste land and 88 thousand hectares of fallow land. In 1981-82 total cropped area of the state stood at 34.60 lakh hectares which constitute roughly 44 percent of the total geographical area of the state as against the all India coverage of 50 per cent.

Assam is producing both food and cash crops. Main food crops in Assam include rice, wheat, pulses, potato, maize etc. The principal cash crops are tea, jute, oil seeds, tobacco, sugar cane, Mestas etc. The area under food crops in Assam increased marginally from 27 lakh hectares in 1975-76 to 27.04 lakh hectares in 1994-95. Total area under rice increased from 23.0 lakh hectares in 1976-77 to 24.9 lakh hectares in 1994-95 which accounts for nearly 72 per cent of the total cultivable area of the state. Area under non-food crops, excluding jute, registered an increasing trend.

As per agricultural census 1985-86, there were 19.90 lakh operational holdings in Assam of which 19.4 lakh in the plain districts and 50 thousand in the hill districts. These holdings covered an area of about 25.89 lakh hectares of land. The average size of operational holding in Assam declined from 1.47 hectares in 1970-71 to 1.30 hectares in 1985-86, in spite of increase in operated area. This indicates the impact of the growing problem of fragmentation and sub-division in land holdings.

Tea is one of the most important cash crops in Assam. Assam is well known for her tea. Total area under tea plantation in Assam was 233 thousand hectares in 1991. Total production of tea in Assam was 396 million kg, in 1991. Average number of workers engaged daily in the tae gardens was 554 thousand in 1991. Thus a huge number of people are earning their livelihood from these tea gardens. A good number of people are also engaged in tea trade in Assam.

Jute is another important commercial crop in Assam. Area under jute as gradually declined from 115 thousand hectares in 1979-80 to 112.3 thousand hectares and 91.0 thousand hectares in 1980-81 and 1994-95 respectively. The total production of jute was 925 thousand bales in 1994-95.

Thus agriculture is the mainstay of the economy of Assam. But agriculture in Assam is solely depending on vagaries of monsoons, which sometimes creates unexpected havoc on the agricultural production of the state. Thus irrigation facilities should be created at a massive scale to reduce the dependence of this large sector on the nature. There is wide scope for the establishment of the agro-based industries. Sugar industry can easily grow in the State. Jute industry can be developed to utilize the raw jute produced in the state. Thus by developing agro-based industries in the state, unemployment problem can easily be solved as these industries are mostly labour-intensive. There is scope for orange and other fruit plantations which can be used both for direct trade and for running some fruit canning centers. Thus the importance of agriculture in Assam must be realized as it provides food, raw materials for industries and employment to the major portion of the population.

The cropping pattern is an important indicator to show the proportion of area under different crops at a definite point of time. Cropping pattern in a region or a state may change with the changes in proportion of area under different crops.

At the beginning of the present century about 90 per cent of the total cultivable land of Assam was put under food crops and the remaining 10 per cent was put under non-food crops. But in 1958-59, there was a change in the cropping pattern in Assam along with other states of the country and accordingly excluding plantation crops, area under food crops came down to 84 per cent and the area under non-food crops slightly increased to 16 per cent. Then changes in the cropping pattern mainly occurred due to increase in the prices of non food grains or cash crops.

On the basis of average areas under different crops during the period 1947-48 to 1949-50, the relative importance of the principal crops in Assam were Rice- 64.8 per cent, Tea-- 6.2 per cent, Rape and Mustard- 5 per cent, Jute-- 3.7 per cent, Sugar cane- 1 per cent, Others- 19.3 per cent. Compared with total all-- India acreage, under different crops, Assam accounted for : Rice-- 6.1 per cent, Sugarcane-- 1.6 per cent, Tobacco-- 2.2 per cent, Rape and Mustard- 14.5 per cent, Jute 26.1 per cent, Tea-- 48.9 per cent.

After independence a lot of change had been recorded in respect of cropping pattern in Assam. The following table reveals the change in cropping pattern since 1960-61.

(Note : Figure in brackets shows percentage figures to total area under different crops.)

From the table given above it is revealed that the proportion of area under cultivation between food crops and non-food crops has recorded a little change from 85 : 15 in 1960-61 to 84 : 16 in 1980-81 and then to 83.4: 16.6 in 1994-95. Thus in recent years, the area under non-food crops has slightly increased.

Moreover, it is found that due to the partition of the state into Meghalaya and Arunachal Pradesh, total area under different crops in absolute terms has declined significantly. In percentage terms, total area under the production of rice has declined from 80.2 per cent of the total cropped area in 1960-61 t0 75.9 per cent in 1980-81 and then again slightly increased to 76.5 per cent in 1990-91 and then to 76.7 per cent in 1994-95. Total area under wheat cultivation which was only 0.16 per cent of the total cropped area 1960-61, gradually increased to 3.4 per cent in 1980-81 and then it declined to 2.5 per cent in 1990-91 and 2.5 per cent in 1994-95. Again, the area under the cultivation of pulses as percentage of total cropped area of the state varied marginally from 3.4 per cent in 1960-61 to 3.8 per cent in 1980-81 and then again reversed to 3.3 per cent in 1994-95. But the area under cultivation of traditional commercial crops viz. oil seeds, potato, sugarcane recorded a modest increase. Especially, the area under the cultivation of oilseeds as percentage of total cropped area increased gradually from 5.7 per cent in 1960-61 to 7.8 per cent in 1980-81 and then to 9.7 per cent and 9.5 per cent in 1990-91 and 1994-95 respectively. Again the area under the cultivation of potato has recorded a marginal change from 1.4 per cent of the cropped area in 1960-61 to 1.7 per cent in 1980-81 and then slightly increased to 1.9 per cent in 1994-95. But the cultivation of jute is gradually becoming unpopular in Assam. Accordingly, the area under the cultivation of jute in Assam as percentage of total cropped area which was 5.5 per cent in 1960-61 gradually declined to 3.7 per cent in 1980-81 and then to 2.9 per cent and 2.8 per cent in 1990-91 and 1994-95 respectively.

Cropping pattern reflects the production behaviour of the farmers in their agricultural operations. At one time people felt that cropping pattern in India and more particularly in a state like Assam could not be altered. Accordingly, Mr. S.N. Sinha observed, "In a tradition ridden country with a very low level of knowledge, the peasant are unwilling to make experiments... In an agricultural community where the members are illiterate and tradition ridden, there is hardly any possibility of crop shift". But with the passage of time, things have changed a lot. Now the farmers started to believe that the cropping pattern can be changed and must be changed for the interest of the people so as to bring diversity in the agricultural sector. Thus although Assam has experienced a very little changed in its cropping pattern in comparison to that of the states like Punjab and Haryana but whatever changes the state has recorded these are influenced by various factors. The following are some of the important factors which are very much responsible for determining the cropping pattern of the state in general:

2. Technical factors such as nature and capacity of irrigation facilities, fertilizers etc. ;

3. Economic factors influencing cropping pattern includes remuneration and steady price of crops and income maximization aspects, i.e., relative profitability per acre, farm size, availability of farm inputs viz., seeds, fertilizer, assured irrigation water etc. ;

4. Government action undertaken in the form of administrative and legislative measures.

The National Council of Applied Economic Research (NCAER) suggested certain measures for introducing a better and scientific cropping pattern which include :

(a) Like USA, U.A.E. and other countries, the NCEAR suggest to introduce legislative compulsion for structuring a desired cropping pattern in different regions of the country.

(b) Government may appoint District Planning officers, who introduce crop planning in every season considering various seasonal changes and changes in other factors such as yields, prices, demand etc. The cultivator, also should co-operate with various government departments for implementing their programme.

(d) The Government should also provide adequate transport and marketing facilities and also make provision for consolidation of holdings.

Thus in order to change the cropping pattern in a state like Assam, the State Government should take adequate steps as suggested by NCEAR

Thus it can be finally observed that in a poor state like Assam, economic factors are playing a dominant role in determining its cropping pattern. Although the farmers in Assam are very much poverty stricken and conservative, still their cropping pattern can be changed through appropriate changes in economic motive. Whenever farmers in Assam see a better cropping pattern they try to adjust with such pattern. To adopt a better cropping pattern in a state like Assam, farmers should possess adequate know-how and requisite volume of capital in order to have a better result in their farming operation.

Agricultural production in Assam is growing at a very slow rate. The index of agricultural production of the year 1970-71(1956-57 = 100) for Assam was 126 as against all India index of 147. Again the index number of agricultural production in Assam of the year 1977-78 (taking 1969-70 = 100) increased to 123 as against the index of 132.7 for all India. The index then again declined to 122 and 114 in 1978-79 and 1979-80 respectively. But again the index scaled the highest ever peak level of 138 in 1980-81 and 172.4 in 1990-91. Again the index number of agricultural production (Base-Triennium ending 1981-82 = 100) has increased from 143.09 in 1992-93 to 1993-94 and then to 149.71 in 1994-95.

The land in Assam is quite suitable for the production of foodgrains.The major portion of the total cropped area ,i.e., 83.4 per cent in 1994-95 is being utilised for the production of food grains in Assam. Various types of food grains production in Assam include rice, wheat, maize, other cereals and pulses. Total production of food-grains in Assam, which was 16.79 lakh tonnes in 1960-61 has increased to 23.66 lakh tonnes in 1975-76 and then to 34.4 lakh tonnes in 1990-91 and then declined to 33.80 lakh tonnes 1991-92. Thus the food-grains production in Assam , after registering an advancement of 16.6 per cent in 1990-91 has declined by 2 per cent in 1991-92 over 1990-91. Production of rice, the most important cereal crop grown in the State, rose to 32.9 lakh tonnes in 1992-93 as against 16.4 lakh tonnes in 1960-61.

Again, in recent years, total production of food grains has further increased to 34.47 lakh tonnes in 1992-93 and then to 35.4 lakh tonnes in 1993-93 and then slightly declined to 34.9 lakh tonnes in 1994-95. Moreover, total production of rice has increased to 33.6 lakh tonnes in 1993-94 and then it slightly declined to 32.8 lakh tonnes in 1994-95.

The following table (no. 6.2) shows the total production of food grains in Assam since 1960-61.

The table given above reveals that total production of food grains in Assam has been increasing gradually since 1960-61 and it is more than doubled during the last 34 years, from 16.79 lakh tonnes in 1960-61 to 34.90 lakh tonnes in 1994-95.

Production of other cereal crops in Assam viz. Wheat and maize had registered some increase in recent years. Production of most of the commercial crops like sugar-cane, potato, oil seeds etc. registered marginal increase in recent years.

The following table shows the trend in the production of principal crops in Assam since 1960-61.

The above table reveals that total production of rice, being the most important crop of Assam has increased from 16.41 lakh tonnes in 1960-61 to 25.23 lakh tonnes in 1980-81 and then to 32.7 lakh tonnes in 1990-91 and finally to 32.79 lakh tonnes in 1994-95. Total production of wheat which was only 9 thousand tonnes in 1960-61, gradually increased to 121 thousand tonnes in 1991-92 and then declined to 104 thousand tonnes in 1994-95. Production of other coarse cereals has also increased to 9 thousand in tonnes in 1960-61 to 18 thousand tonnes in 1994-95. Total production of pulses in Assam which was very poor at 26 thousand tonnes in 1960-61 which gradually increased to 59 thousand tonnes in 1994-95. Accordingly, total production of food grains has increased from 16.8 lakh tonnes in 1960-61 to 34.90 lakh tonnes in 1994-95.

Assam is backward in respect of production of commercial crops excepting jute. Total production of oil seeds in Assam has increased from 48 thousand tonnes in 1960-61 to 112 thousand tonnes in 1980-81 and then to 191 thousand tonnes in 1991-92 and finally declined to 164 thousand tonnes in 1994-95. Again total production of jute has increased from 813 thousand bales in 1960-61 to 912 thousand bales in 1980-81 and then gradually declined to 867 thousand bales in 1991-92 and then increased to Rs. 925, thousand bales in 1994-95. Total production of sugarcane has also increased from 869 thousand tonnes in 1960-61 to 1505 thousand tonnes in 1994-95. Total production of potato in Assam has increased significantly from 144 thousand tonnes in 1960-61 to 224 thousand tonnes in 1980-81 and then to 428 thousand tonnes in 1990-91 and 567 thousand tonnes in 1994-95.

Thus we have seen that although the production of principal crops in Assam has been increasing but it is increasing at a slower pace in comparison to that of all India production of principal crops.

The new agricultural strategy of Green Revolution was adopted in India during the Third Plan. The green revolution was initially adopted in India with the help of Intensive Agricultural Areas Programme (IAAP) and High yielding Varieties Programme (HYVP). From the very beginning, the coverage of green revolution was very much restricted to Northern states. Accordingly, Assam could not experience any major change in respect of food production, particularly in the initial period. Moreover, as the green revolution was very much restricted to production of wheat thus Assam, primarily being a rice producing state, cannot expect to benefit from such new agricultural strategy. Moreover, in the absence of irrigation facilities, the question of experimenting with such new agricultural methods was not at all feasible.

Thus, in the initial stage of post-green revolution period the trend of food production in Assam were almost stagnant. The table 6.2. reveals that the total production of food grains in Assam which was 16.79 lakh tonnes in 1960-61, gradually rose to 20.41 lakh tonnes in 1968-69 and then stagnated at the level of 20.34 lakh tonnes in 1970-71 and then slowly rose to 23.66 lakh tonnes in 1975-76.

In recent years, the Department of Agriculture of the state has introduced Demonstration programme and Area Extension Programme for the development of agriculture. With the growing use of high yielding variety (HYV) of paddy, the area under. HYV paddy in Assam started to rise gradually from 2.87 lakh hectares in 1975-76 to 5.48 lakh hectares in 1978-79 and 9.62 lakh hectares in 1987-88 and then to 11.44 lakh hectares in 1993-94. Accordingly, total production of food grains gradually increased to 27.05 lakh tonnes in 1980-81 to 30.30 lakh tonnes in 1985-86 and then to 34.42 lakh tonnes in 1990-91 and then marginally rose to 34.90 lakh tonnes in 1994-95.

Similarly, total production of rice in Assam gradually increased from 16.41 lakh tonnes in 1960-61 to 25.23 lakh tonnes in 1980-81 and then to 32.70 lakh tonnes in 1990-91 and then finally to 32.79 lakh tonnes. But the production of other food grains, viz., wheat, coarse cereals, pulses etc. remained almost same during the last two decades.

Thus it is found that Assam has experienced a marginal impact of green revolution in the production of food grains and that too again is totally restricted to the production of rise alone.

Impact of Green Revolution or New Agricultural Strategy on Agriculture in Assam

Since the Third Plan onwards, Green Revolution or New Agricultural Strategy was adopted in India in a restricted manner. From the very beginning, the coverage of green revolution is very much restricted to Northern States like Punjab, Haryana and some parts of Uttar Pradesh. Moreover, as the green revolution was initially very much restricted to the production of wheat, thus the impact of green revolution in its initial stage was almost marginal. It is only since eighties, Assam started to experience the adoption of new agricultural strategy with the growing use of HYV seeds, chemical fertilisers, modern implements etc. to a limited extent. Thus even at their present stage, Assam still stands as a marginal player in the field of green revolution or new agricultural strategy. Under such a situation, the state cannot expect to gain much from such new agricultural strategy.

The following are some of the impacts of green revolution on the agriculture in Assam.

1. Area under HYV Paddy : Although late, but due to the adoption of new agricultural strategy, the area under HYV paddy in Assam gradually increased from 2.87 lakh hectares in 1975-76 to 11.44 lakh hectares in 1993-94, which in around 42.3 per cent of the total cropped area of the state.

2. Consumption of fertilizer: With the adoption of new agricultural strategy, the consumption of fertilizer by the agricultural sector of the state started to increase gradually. Total consumption of fertilizer in Assam has thus gradually increased from a mere 3.48 thousand tonnes in 1975-76 to 43.17 thousand tonnes in 1993-94. This is no doubt a good trend. Again the consumption of fertilizer per hectare of land in Assam has increased from 4.8 kg. in 1986-87 to 12.8 kg. in 1995-96.

3. Yield rate: With the introduction of new agricultural strategy to a limited range along with the adoption of hybrid seeds, chemical fertilisers and expansion of irrigation facilities, the average yield per hectare of some principal crops started to show some positive results. Table no. 6.4 reveals that the average yield per hectare of winter rice has increased from 1046 kgs. for all India in 1994-95. The average yield of wheat per hectare in Assam has also increased from 824 kgs. in 1960-61 to 1290 kgs. in 1994-95 as compared to that of 2550 kgs. for all India in 1994-95. The average yield per hectare of potato has increased from 4784 kgs. in 1960-61 to 7854 kgs. in 1994-95 as compared to that of 15,000 kgs. for all India in 1994-95. Thus it found that the adoption of new agricultural strategy in Assam is having such a limited extent that yield rate in the state in still very poor as compared to that of all India Figures.

4. Increase in Production: With the introduction of new agricultural strategy at a slow pace, total production of food grains in Assam gradually increased from 16.79 lakh tonnes in 1960-61 to 34.90 lakh tonnes in 1994-95.

5. Multiple Cropping System: With the adoption of new strategy, the farmers in Assam started to adopt multiple cropping systems in agricultural operations. This has resulted increase in agricultural production and has also enlarged the employment opportunities for the farm labourers. With the expansion of irrigation facilities within the state, more and more areas can be brought under the multiple cropping systems, which would go a long benefit the farmers to the state.

6. Intra-state inequality: As the green revolution has enlarged the regional disparities between the different states of India, similarly, the adoption of new agricultural strategy has been widening the disparities between the different districts of the state. The districts like Nagaon, Barpeta, Kamrup, Darrang and Morigaon have been progressing at a quicker pack in respect of modernization as compared to other districts of the state leading to growing disparities between the different districts of Assam.

Thus it is found that although the progress of green revolution in Assam is quite marginal but within the limited range it has started to reveal some impact on the economy of the state, in general and on the agricultural sector of the state, in particular.

The yield rate of various crops in Assam is not at all satisfactory in comparison with the average yield rate of all India. In Assam, cultivation is still carried on with traditional techniques and modern inputs like fertilisers, HYV seeds, irrigation and pesticides etc. are yet to be extensively used. Further, the yield rates fluctuated widely in Assam due to natural factors viz, floods, draught, erosion of soil etc.

From the very beginning the agricultural yield rate in Assam in very low. The following table shows the agricultural yield rate in Assam.

Crops

1960-61

1970-71

1980-81

1990-91

1993-94

1994-95

Autumn Rice

Winter Rice

Summer Rice

Total Rice

Wheat

Jute

Sugarcane

Potato

Rape& Mustard

713

1046

860

968

824

1229

34,403

4784

381

729

1126

1244

1022

583

1305

37,217

4524

413

829

1220

1273

1220

1158

1455

35,000

5888

485

873

1446

1556

---

1248

1632

42,510

7240

535

937

1443

1708

---

1277

1598

38370

7916

474

973

1472

1615

1350

1290

1832

42223

7854

533

The above table reveals that the yield rates of some principal crops such as Rice, Wheat, Jute, Sugarcane, Potato, Rape and Mustard have increased slightly from 1960-61 to 1992-93. The average yield rate of rice per hectare in Assam which was 968 kg. in 1960-61 gradually rose to 1220 kg. for India in 1980-81 and then to 1350 kg in 1994-95 as compared with 1880-81 and then to 1350 kg in 1994-95 as compared with 1880 kg. for India in 1993-94. Among the three varieties of rice produced in Assam, i.e., Autumn rice, Winter rice and Summer rice, the yield rate of summer rice remained always higher since 1970-71 and its yield rate per hectares has increased from 860 kg. In 1960-61 to 1244 kg in 1970-71 and then to 1708 kg in 1993-94, which then slightly declined to 1615 kg. in 1994-95. The yield rate of winter rice has increased from 1046 kg per hectare in 1960-61 to 1220 kg in 1994-95. But the yield rate of autumn rice did not record any considerable increase as it rose from 713 kg. in 1960-61 to 873 kg in 1990-91 which then declined to 785 kg in 1991-92 and again increased to the level of 973 lg. per hectare in 1994-95.

The average yield rate of rice in Assam, per hectare, was 975 kg. in 1951-54 and then it remained at 974 kg. in 1969-72 in 1951-54, increased to 1117 kg. in 1969-72. The yield rate of rice per hectare, which rose to 1038 kg. for Assam and 1235 kg. for India in 1975-76, fell to 947 kg. for Assam and 1235 kg. for India in 1975-76, fell to 947 kg. for Assam and 1088 kg for India in 1976-77 and then it increased to 1042 kg. for Assam and 1317 kg for India in 1977-78. Again, in 1978-79, the yield rate for Assam came down to 979 kg per hectare but it rose substantially to reach 1350 kg per hectare in 1994-95. This shows that yield rates are fluctuating widely in different years both in Assam and other states of India. But the yield rate of rice in Assam which was slightly higher in the beginning, remained all along lower than the average yield rate of rice in India.

In case of total cereals, the yield rate per hectare for Assam was 1067 kg. in 1991-92; whereas the all India yield rate of cereals gradually increased from 886 kg. In 1972-73 to 1776 kg. in 1990-91.

In case of pulses taken together, the yield rate per hectare for Assam gradually decreased from 489 kg. in 1972-73 to 420 kg in 1988-89, whereas the same rate for India gradually increased from 474 kg in 1972-73 to 516 kg in 1990-91.

The yield rate per hectare in case of total food grains for Assam gradually declined from 1042 kg during 1972-73 to 1032 kg. during 1988-89, whereas the same rate for India gradually increased from 813 kg. during 1972-73 to 1327 kg. during 1988-89.

The yield rate of wheat in Assam which was only 824 kg. per hectare in 1960-61 gradually rose to 1158 kg. in 1980-81 and then rose to significantly to 1290 kg. in 1994-95 as compared to India�s 2493 kg. in 1995-96. The yield rate of Jute in Assam which 1229 kg. per hectare in 1960-61 gradually rose to 1455 kg. in 1980-81 and then rose to 1632 kg. in 1990-91 and then finally rose considerably to 1832 kg. in 1994-95. The yield rate of sugarcane in Assam gradually increased from 34,403 in 1960-61 to 42,510 kg. in 1990-91 and then again declined to 42,223 kg. in 1994-95 as compared with 65,000 kg. for all India in 1992-93. The yield rates of potato in Assam have also increased from 4784 kg. in 1960-61 to 7704 kg. in 1991-92 and then to 7854 kg. in 1994-95 whereas the rate increased for all India was 15,814 kg. in 1989-90. Again the yield rate of rape and mustard in Assam has been increasing slowly from 381 kg. per hectare 1960-61 to 485 kg. in 1980-81 and then rose to 533 kg. in 1994-95 whereas the yield rate for all India was 826 kg. in 1989-90. The yield rate of tea in Assam was 1603 kg. per hectare in 1987-88 and 1700 kg. in 1990-91 as against all India yield rate of 1606 kg. in 1987-88.

Thus it is revealed that the agricultural yield of various crops in Assam is poor and even declining gradually in case of some crops.

Slow Pace of Modernization of Agriculture or Transfer of Technology in Agriculture in Assam- causes or Major obstacles or Constraints

Adoption of modern technology or method is known as modernization of agriculture or transfer of technology in agriculture. Modernization of agriculture or transfer of technology in agriculture in Assam is progressing at a slow pace. Adoption of new agricultural strategy or green revolution which was very much restricted to Northern states like Punjab, Haryana and Uttar Pradesh in its initial stage, could not make much headway in backward state like Assam even at its later stage. There are certain major obstacles or causes responsible for the slow pace of transfer of technology or modernization of agriculture in Assam. Then obstacles are mentioned below:-

1. Absence of sufficient assured and controlled water supply due to lack of adequate irrigation facilities is one of the major obstacles in the path of modernization of agriculture. In 1994-95, total irrigation potential developed in the state (4.77 lakh hectares) covers only 13.8 per cent of the total cropped area of the state.

2. Small size of agricultural holding is another obstacle in the path of modernization of agriculture. The average size of operational holding is only 1.37 hectares.

3. Lack of high yielding variety of seeds and its limited use is the next important obstacle, in the path of modernization of agriculture.

4. Scanty use of fertilizer is another important obstacle on the path of modernization of agriculture. In Assam, the consumption of fertilizer per hectare of land was only 4.8 kg. in 1986-87 as compared to that of 48.7 kg for all India.

5. Lack of adequate finance is another important obstacle in the path of modernization of agriculture in Assam. Poor financial condition of the farmers and the absence of adequate institutional finance are mostly responsible for such a peculiar situation.

6. Natural factors like floods, hailstorm, frost or attack by pest or insects and the inability to contain such natural problems are also responsible for lack of modernization of agriculture in Assam.

7. Lack of adequate agriculture research is also another important obstacle in the path of modernization of agriculture in Assam. This has led to the situation where fruits of research are not being percolated to the farmers and thus the problems faced by the farmers still remain largely unattended.

8. Lack of motivation on the part of farmers and educated youths is another important obstacle on the path of modernization of agriculture.

Suggestion for sustaining Agricultural Production in Assam in view of the Current policy of Economic Liberalization.

The current policy of economic liberalization adopted in India has broadened the scope of modernization agriculture in different states of the country. In order to sustain the agricultural production in Assam to the required level under the current policy of economic liberalization, the following measures are suggested:

1. Modernisation of Agriculture: In order to keep pace in respect of increasing agricultural production, the farmers in Assam should try modernize the agricultural sector by adopting modern implements, using high yielding variety of seeds, applying adequate quantity of fertilisers, by adopting scientific rotation of crops and careful crop planning and finally through intensifying agricultural research and percolating the fruits of research to the farmers.

Under the new GATT arrangement and particularly after the birth of World Trade Organization (WTO), farmers, interest are completely protected through the �sui generis� legislation to protect the plant varieties. Under this legislation, right of farmers to retain and exchange seeds is not affected. Thus the farmers in Assam can also avail the benefits of retaining and exchanging seeds of HYV variety produced in their farm without any difficulty. Moreover, the current level of agricultural subsidies, maintained at the rate of 5 per cent of the value of agricultural produce in India vis-�-vis Assam also can be easily continued to support the new agricultural strategy adopted in the state as present level of subsidies is far below the 10 per cent limit.

Moreover, the Central Government has already set up our Farm Machinery Training and Testing Institute in Assam to provide better quality of equipment and training to the farmers of the state.

2. Organization Steps: In order to sustain agricultural production in Assam to the required level, adequate organizational steps must be taken for the all-round development of the agricultural sector of the state. These Organizational steps include- consolidation of small and uneconomic holdings, overcoming the problems of agriculture created by natural factors like ever-recurring floods, extension of irrigation facilities, developing of marketing arrangements etc. All then steps will definitely develop the organizational structure of the agricultural sector of the state.

3. Widening the scope of Agricultural Trade: Under the present regime of economic liberalization, non-tariff barriers on agricultural trade area gradually being withdrawn. This has led to the widening of the scope of agricultural exports throughout the country, as India is enjoying a comparative and competitive advantage in this respect. Assam being an agricultural state can avail the benefit arising out of economic liberalization through diversification of its agricultural exports. If the agricultural sector is the state can be modernized to a considerable level, the farm lobby in Assam would see major growth in exports of superior rice, vegetables, fruits, fishery products, meat products etc. over and above its traditional items of exports like tea and jute.

4. Development and Expansion of Plantation industry : Assam is quite famous for plantation industry. Tea industry of Assam is one of the most important agro-based industries of the state. Considering its age- old tea gardens, tea plantation in the state needs its expansion in areas. Moreover, re-cycling of plantation activities in the age-old gardens can be great help in regeneration of tea plantation in Assam.

Moreover, the state is having enough scope for rubber plantation, coffee plantation, horticultural plantation etc., considering the natural endowments and land available in the state. Development and expansion of this plantation can lead to a boost in agro-horticultural production and its exports in the state.

Thus under the present regime of economic liberalization, the state can play role of an important player in the field agricultural production and its exports, if adequate steps are taken to take care of the genuine needs of the sector.

The agriculture, which is the main source of livelihood in Assam, is suffering from low productivity. The agricultural sector in Assam has not developed sufficiently. In respect of modernization of agriculture Assam was trailing behind other states of India. Thus the agricultural productivity in Assam still remains stagnant and poor.

The agriculture productivity in Assam is even comparatively much lower than that of all India average. The index of agricultural production of Assam and India taking 1956-57 as base, stood at 126 and 147 respectively during 1970-71.

The index of agricultural production (triennium ending 1969-70 = 100) for Assam stood at 119 in 1975-76 and then declined to 117 in the next year whereas the same figure for India, as a whole, stood at 132.7 during 1977-78. In 1989-90, the index of agricultural production for Assam and all India were 156 and 183 respectively. Again the index number of agriculture production (Base-Triennium ending 1981-82-100) for Assam has gradually increased from 143.09 in 1992-93 to 146.61 in 1993-94 and then to 149.71 in 1994-95.

1. Small size of holdings : The size of agricultural holdings in Assam is very small. As a result of the unrelenting pressure of population and lack of alternative employment opportunities outside agriculture, the size of holding has become very small. The average size of the total operational holdings is 1.37 hectares. Of the total operational holdings 60 percent are of size less than one hectare. Of the total area of operational holdings in Assam, holdings having less than 3 hectares account for nearly 57 percent of the total land operated. These small holdings along with growing fragmentation of lands stand in the way for modernization of agriculture to raise the agricultural productivity in the State.

2. Primitive methods of cultivation : The farmers in Assam are still following the orthodox method of cultivation. They are still relying on the centuries old wooden plough to turn the land, the crude sickle to harvest crops while farmers in some other states of India are shifting from primitive methods to modernized methods of cultivations, the farmers in Assam are still basing on their old methods. Their methods are far from the best for raising agricultural productivity in the State.

3. Lack of irrigation facilities: Irrigation facilities in Assam are very poor. Assured and controlled water supply for agricultural land is particularly important in the sub-tropical climate of Assam where the rainfall distribution is not even and crop transpiration rate is high in winter. But the cumulative achievement (in minor irrigation) in general areas by the end of 1977-78 was of the order of only 3.75 lakh hectares which was about 12 per cent of the net cropped area. Total irrigation potential created under major and medium irrigation up to the end of 1977-78 was only 0.61 lakh hectares and its utilization was limited to only 0.32 lakh hectares. Up to the end of 1980-81, a total of 3.58 lakh hectares of irrigation potential (about 95 thousand hectares was under major and medium irrigation and about 2.63 lakh hectares was under minor irrigation) was created in the state which was only 10.9 per cent of the total cropped area of the state.

Again, at the end of 1994-95, total irrigation potential created in Assam was 4.77 lakh hectares. Out of this irrigation potential created under minor irrigation was 2.97 lakh hectares and under major and medium irrigation was 1.79 lakh hectares. But all these irrigation potential developed in Assam are not being properly utilised due to delay involved in the development of non-farm work, like construction of field channels, land leveling or shaping and adoption of the warabandi system etc. Accordingly, the actual irrigation potential utilised in Assam during 1993-94 was only 1.30 lakh hectares which was about 27 per cent of the total potential created during that year.

Due to the absence of sufficient assured and controlled water supply, the agriculture in Assam is still depending on rainfall which is neither regular nor even.

4. Use of ancient implements: Agriculturists in Assam are still using all old and ancient implements instead of using modernized inputs. These implements are neither sharp nor suitable for raising the agricultural productivity in the state.

5. Lack of high yielding seeds: The supply of high yielding seeds is very less in Assam. Thus the farmers are mostly using the traditional variety of seeds whose average yield is just half of the yield of improved variety. However, the HYV covered only 23.6 per cent of the area under rice in 1977-78. Area under HYV paddy has been increasing from 2.9 lakh hectares in 1975-76 lakh to 11.5 lakh hectares in 1993-94. So the lack of HYV seeds in the state is a very important cause of the low agricultural productivity in the state.

6. Scanty use of fertilizer: Agriculturists in Assam are not applying sufficient quantity of fertilisers on their lands. Constant cultivation of land causes deterioration of its fertility which requires application of fertilisers. But poor cultivators cannot afford to purchase costly chemical fertilisers for their lands. A small section of wealthy cultivators in Assam are applying small amount of fertilisers on their land. Poor cultivator cannot even spare full quantity of cow dung for their land which is a good kind of organic manure. Total consumption of chemical fertilizer in Assam increased from 7.86 thousand tonnes in 1973-74 to 43.2 thousand tonnes in 1993-94. Further, the consumption of fertilizer per hectare of land in Assam was only 12.8 kg in 1995-96 in comparison to 74.6 kg. for all India. Even these fertilisers are mostly used for tea plantation in the gardens. Thus due to the absence of use of fertilizer on agricultural lands in Assam, agricultural productivity of the state remained poor.

7. Natural factors : Nature still dominates agriculture in Assam. It is said to be a gamble in the monsoons. The rains are totally uncertain in Assam. Sometime rains are insufficient and sometimes we have too much of rain resulting in heavy floods which cause widespread damage and destruction. The natural calamities like hailstorm, frost or attack by pest and insects are also of common occurrence in Assam. These natural factors always go against the farmer in stepping up agricultural productivity.

8. Lack of adequate finance : There is lack of adequate financial facilities for the farmers in Assam and thus they have to depend on the village money lenders, who charge very high rate of interest. Commercial banks advanced a very little amount of finance to agricultural sector in Assam comparison to its needs. Total outstanding credit of scheduled commercial banks in Assam to Agricultural at the end of March, 1991 was to the tune of Rs. 7721 crores only. Again major portion of this amount is advanced to plantation industries. The total disbursement of refinance by Agricultural Refinance Development Corporation to Assam as on 30th June 1978 was only Rs. 483 lakh which is only 0.5 per cent of the total disbursement of the corporation. Further, as on 30th June 1978, under the aegis of SFD/MFSL agencies, total amount of financial assistance sanctioned were Rs. 228 lakhs against 13 schemes.

Again till 1990-91, through Integrated Rural Development Programme (IRDP) about Rs. 6262 lakh worth of loan was advanced. Moreover, in 1989-90, about 40 per cent of the total agricultural credit was advanced by the commercial banks in Assam.

Thus the volume of agricultural finance available in Assam is far from adequate. "The vicious circle resulting in poverty, debt and high interest rates holds the small cultivation in a tight grip ."

9. Lack of Productive Investment: There is absence of productive investment in Assam along with other state as the investment in land is found less attractive than the investment in jewellery, trade and money lending.

10. Inadequate marketing facilities : The farmer in Assam are deprived of due prices of their product due to defective marketing system available. Middleman takes away a major portion of the profit, paying a very minimum price to the farmers. Farmers are not guaranteed fair and remunerative prices of their product thus creating little inducement to increase agricultural output.

11. Land Policy: There is delay in implementation and uncertainty about the rights of the farmers on land. There is excessive reliance on revenue administration in connection with land legislation which affects agricultural productivity in the state.

12. Lack of agriculture research : Agricultural research in Assam is very poor in comparison to its needs. Whatever research is being conducted is not even made available to the farmers fully and thus the problems faced by the farmers still remain unattended.

13. Socio-economic factors : Socio-economic factors like farmers� conservative outlook, ignorance, illiteracy etc. stand in the way of adoption of modern techniques in Assam. Further, the antiquated organization of agriculture run by illiterate, ignorant and ill-equipped person cannot raise the agricultural productivity of the state. Adoption of progressive agricultural technique is to some extent impossible under the present position.

Thus we find there is gross absence of many basic facilities in the agricultural sector in Assam which are responsible for this low rate of productivity.

The low agricultural productivity is a very serious problem for the economy of Assam particularly when the average contribution of this sector to the state economy is around 40 per cent although 77 per cent of the total population is engaged into it. For the improvement of agricultural productivity in Assam we must adopt both economic and non-economic, short term and long term measures, These as follows :

1. Consolidation of land holding: For modernization of agriculture in Assam provision for consolidation of holding is to be made by enacting legislation in this regard. Uneconomic small farms should be consolidated and fragmented ones be grouped together through consolidation and co-operatives. Incentive for the formation of co-operatives farming should be offered.

2.Overcoming natural factors : Adequate measures must be taken to overcome the problems of agriculture in Assam created by natural factors. Extensive flood control measures should be adopted to prevent huge loss and devastation created by ever-recurring floods in Assam. Sufficient irrigation facilities must be provided to the agriculturist through the extension of major and minor irrigation works by utilizing huge irrigation potential available in the state. This will save the agriculturist from unprecedented drought. Adequate quantity of insectcides and pesticides should be made available to the farmers either free of cost or at cheaper rates along with the knowledge to apply it.

3. Application of modernization: Farmers in Assam must apply modernized technique in their agricultural farming for raising agricultural productivity. Increased quantity of fertilisers and manures must be made available to all the farmers of the state. Farmers must follow scientific rotation of crops and careful crop planning. Improved variety of seeds should be taken for the reclamation of low lying land. Provision is made for the manufacture of cheap modern tools and equipment in large scale which reduces the cost of farming. Agricultural research should be intensified and fruits of research should be made available to the farmers.

4. Economic measures : To make agriculture more remunerative, active economic measures must be introduced. Steps must be taken to improve farm organization and land management. Subsidiary agro-based industries must be set up in the rural areas so that surplus labour in the agricultural sector can be utilised in these industries. Steps must be taken to break the vicious circle of poverty. Adequate credit arrangements must be provided so that farmers can get sufficient credit at cheaper rate and also on easy terms. Marketing facilities of the agricultural product must be improved and regulated markets must be set up all over the state. Government must introduce price support policy and also guarantee minimum prices of the agricultural goods to the farmers.

5. Human Development : For the improvement of agricultural productivity in the state, the quality of farmer must be improved through education , both general and technical. To save the farmers form epidemics and other diseases, adequate public health measures must be undertaken. Farmers should shed off their fatalism and adopt new ideas which will make them more rational and help them to gain self-confidence.

Thus to raise the agricultural productivity in Assam, the above mentioned measures, economic and non -economic, must be introduced.

Importance of Five Years Plans on the Development of irrigation potential in the North Eastern States.

Irrigation facilities are an integral part of the agricultural development programme. North eastern region has sufficient irrigation potential but its importance was not realized in the early years of planning. During the First and Second Plans, expenditure on irrigation in the North Eastern states were very insignificant, viz ; for Assam the amount was Rs. 251 lakhs which created anticipated benefits to the extent of 82,000 acres. During the Third, Fourth and Fifth Plans, expenditures on irrigation in Assam were Rs. 228 lakhs, Rs. 571 lakhs and Rs. 61.10 crores respectively creating benefits from major and medium irrigation to the extent of 38 thousand hectares and 70 thousand hectares (potential) of area during the Fourth Plan respectively of which 40 thousand hectares of land were benefited from the Fifth Plan Schemes.

Total irrigation potential in Assam, up to the end of the Fourth Plan, was of the order of 2.18 lakh hectares. Utilization of the above potential created was only 30-35%. This was due to inadequate attention given to Command Area Development programme which included construction of field channels, consolation of land holdings and other infra-structural development. The cumulative achievement (in minor irrigation) in general areas by the end of 1977-78 is of the order of 2.75 lakh hectares which is about 12% of the net cropped area. Total irrigation potential created in Assam by the end of the Fifth Plan as in percentage of ultimate potential was 11.1% in comparison with all India�s 48.7% which shows wide gap in the utilization of development potential between the North East region and other regions of country. The allocation on irrigation and its benefit in other North Eastern State were either nil or very negligible in amount.

Again in 1985-86, i.e., at the first year of the Seventh Plan, total irrigation potential created in North-Eastern states were 572 thousand hectares for Manipur, 50 thousand hectares for Meghalaya, 8 thousand hectares for Mizoram, 51 thousand hectares for Nagaland and 29 thousand hectares for Tripura.

Again the percentages of gross irrigated area to gross cropped (sown) area in the North- eastern states in 1987-88 were 15.5 per cent for Assam, 39.9 per cent Manipur, 23.7 per cent for Meghalaya, 12.1 per cent for Mizoram, 29.2 per cent of Nagaland and 10.5 per cent for Tripura. Thus it is found that the North-eastern states are very much backward in respect of developing irrigation facilities although the economy of these states is very much depending on the agricultural sector.

The main reason for this backwardness in the field of irrigation is inadequate attention on the part of the Government, lack of fund and lack of peoples� co-operation.

Assam has to face the problem of irregularity in the arrival of monsoon. Some times the state is facing the problem of heavy rain leading to devastation of crops due to flood or the problem of drought due to scarce- rain. Under this situation there are immense importance facilities in the state.

Assam is blessed with huge natural irrigation potential which remained mostly neglected. It is only recently that irrigation has been given its due importance by developing irrigation projects and for its utilization. In the absence of sufficient and assured irrigation facilities the agrarian economy of Assam largely depends on vagaries of weather. Record of last few years� shows that the rainfall in the state has been showing erratic behaviors. Therefore, to develop agriculture in the State utmost importance must be given to bring more and more areas under assured and controlled water supply. Only assured irrigation facility would enable raising a second and successful crop in the dry winter.

Total irrigation potential in Assam, up to the end of Fourth Plan, was of the order of 2.18 lakh hectares out of which only 30-35% of the above potential were utilised. Till the end of Fifth Plan, total irrigation potential created in Assam as in percentage of ultimate potential was 11.1% only as against 48.7% of all India.

The irrigation programme being carried on in Assam consists of (a) Major and medium irrigation programme and (b) Minor irrigation programme. Up to the end of 1980-81, a total of 0.58 lakh hectares of irrigation potential have been created in Assam, of which 95 thousand hectares are developed under major and medium irrigation scheme and the rest 2.63 lakh hectares are developed under minor irrigation schemes. Total irrigations potential created, till 1994-9 is to be around 4.77 lakh hectares. Out of the total irrigation potential created in 1994-95, 1.79 lakh hectares are developed under major and medium irrigation schemes and the rest 21.97 lakh hectares of area are developed under minor irrigation schemes. But what is more painstaking is that although the total irrigation potential created in Assam is very poor, but out of which only 1.30 lakh hectares of irrigation potential are utilised in real terms in 1993-94, which comes around 27.04 percent of the total irrigation potential developed so far. The irrigation potential created in Assam so far, covers roughly 14 percent of the total cropped area of the State which is very poor in comparison to the potential created in some other states. Further, the actual utilization of the irrigation potential created in the State remained as low as 27 percent only in 1993-94. This is mainly due to absence of field channels, assured supply of electricity, reluctance of cultivators to adopt the envisaged cropping pattern etc. To minimize these constraints, the Government of Assam is initiating following steps such as formation of sub-division level co-ordination committees, gearing up rural electrification programme, construction of field channel, special extension measures steps to improve institutional credit flow etc. - for the fullest utilization of the irrigation potential created in the State.

Among all the districts of Assam, the irrigation potential created up to March 1995 was highest in Nagaon district (85,820). The other district, in order of irrigation potential created are- Barpeta (55,405) hectares), Sonitpur (51,107 hectares), Darrang (50,277 hectares), Kamrup (32,553 hectares), Kokrajhar (20,856 hectares), Karbi Anglong (21,060 hectares) and the lowest size of potential created in the district of Karimganj (2884 hectares) and Hailakandi (3581 hectares) followed by North Cachar Hills district (4802 hectares).

Farmers in Assam are facing a chronic problem of lakh of adequate financial facilities from the very beginning and they have been depending on the village money lenders, who charge a very high rate of interest. In recent years steps have been taken by various agencies to flow agricultural credit in the State.

In Assam, the bulk of the agricultural credit is channelised through the Gaon Panchayat level Co-operative Societies (GPSS). The Assam Co-operation Apex Bank, Nationalized Banks, including the State Bank of India is the main credit advancing agencies.

Total outstanding credit of scheduled commercial banks in Assam to the agricultural sector at the end of March, 1991 was to the extent of Rs. 7721 crores only. Again the major portion of this amount is advanced to plantation industries. Total disbursement of refinance by Agricultural Refinance Development Corporation (ARDC) to Assam as on 30th June, 1978 was only Rs. 483 lakh which was only 0.5 percent of the total disbursement of the corporation. Further, as on 30th June, 1978, under the aegis of SFDA/MFAL agencies, total amount of financial assistance sanctioned were Rs.228 lakhs against 13 schemes.

In recent years, commercial banks are advancing agricultural credit through co-operative Societies. During 1989-90, the flow of credit for Rabi crops production through the co-operative was as under:

It is thus observed that only about 56 percent of the targeted credit was sanctioned by the Banks and 40 percent of the targeted credit was disbursed during 1989-90. This is mainly due to the fact that though the membership of Primary Agricultural Credit Societies (PACS) though quite high, the percentage of borrowing members is relatively low. Non-adoption of improved methods of cultivation, traditional shyness to borrow loans from financing institutions, procedural difficulties to which the farmers has to go through to procure loans are also some of the impediments responsible for low volume of credit sanctioning disbursement in the State.

NABARD: In recent years, the National Bank for Agricultural and Rural Development (NABARD) is playing an important role to flow agricultural credit in Assam through different agencies. NABARD does not help the farmers and other rural people directly rather it flows the credit to these people through co-operative banks, commercial banks and Development Banks, Regional Rural Banks (RRBs) etc. It is thus working as an apex body dealing with policy planning and other operational aspects of rural credit for the all round development of rural economy of the State. The long term and short term credit needs of these institutions are also met by NABARD.

In 1995-96, the amount of refinance disturbed by the NABARD to North-eastern states showed an increase of 27 percent over the previous year. However, the Annual Report of the NABARD,1994-95 reveals that as compared to the rest of the country, refinance to the North-east during 1994-95 was 1.68 percent with cumulative disbursement till March 1995 being the order of 1.8 percent. Out of the total refinance of Rs.67.56 crores received by the NE states from NABARD during 1995-96, Assam received the major share i.e. Rs. 44.46 crores while Mizoram got the lowest share of Rs. 1.24 Crores. On the short-term credit limits for seasonal agricultural operations, the NABARD disbursed Rs. 6.30 lakh to the entire NE region during 1995-96, of which RS. 450 lakh was earmarked under special line of credit for development of tribal population.

NABARD has also set up a Rural Infrastructure Development Fund (RIDF) with a corpus of Rs. 2,000 crores for completing ongoing infrastructure development projects. On the promotional and developmental initiatives the NABARD has taken special care for strengthening co-operative banks, Regional Rural banks (RRBs) by helping them to prepare specific development action plans (DPAs).

Another important data available from NABARD shows that the purpose-wise disbursements under schematic lending for different purpose viz, minor irrigation, land development, farm mechanization, plantation/horticulture, fisheries, dairy development, storage and market yards, N.F.S., IRDP etc. in Assam from the banks during 1993-94 was Rs. 26.85 cores and the total disbursements of schematic lending in Assam up to 31st March, 1994 was estimated at Rs. 269.17 crores. Out of these various schematic lending, the maximum amount is disbursed on plantation and horticulture (Rs. 102.84 crores), followed by IRDP (Rs. 94.93 crores) and Minor irrigation (Rs. 37.72 crores).

It is observed that while the other regions of the country have derived benefits from the refinance facility available from NABARD but the policy of providing refinance to commercial banks by the NABARD at 90 percent of their disbursements in the North-Eastern region has not met with much success as the absorption of refinance by the banks in the region continued to be sluggish.

Again, in 1996-97, disbursements of agricultural advances by public sector banks under special Agricultural Credit Plan (SACP) in Assam were Rs. 7.20 crores only as compared to that of Rs. 920.5 crores in Andhra Pradesh.

Central Debt Relief Scheme: Following the pattern of the Central Debt Relief Scheme, the Assam Agricultural and Rural Debt Relief Scheme, 1990 has been approved to facilitate writing off of loans with interest up to Rs. 10,000 issued by the Co-operative Banks which has fallen over due on 2nd October.1989. The financial involvement for this will be about Rs. 28.40 crores to be shared on 50: 50 basis by the state and centre.

Moreover, in respect of over due loans issued by the Nationalized Bank, directly or through GPSS/LAMPS under their adoption, writing-off of loan is being done under the Central Debt Relief Scheme.

These exercise will make more than 2 lakh borrowers debt free and eligible for fresh loan during next crop seasons. Keeping this in view, the Agriculture Department has already proposed a credit target of Rs. 250 lakhs for Rabi season in 1990-91. With the recent posting of Agricultural Inspectors and Assistant Agricultural Inspectors in about 300 GPSS for input management and distribution, including credit, it has already improved, the credit sanction, disbursement in the selected GPSS.

In spite of all these schemes, it can be observed that the flow of agricultural credit in Assam is very inadequate in comparison to its requirement. Thus proper steps must be taken by the Government as well as to its different agencies to augment the flow of agricultural credit in the state. Moreover, steps must be taken to motivate the farmers for proper utilization and regular repayment of agricultural loan in the state so as to attain a viable rural credit structure.

The Assam State Co-operative Marketing and Consumers Federation (STATFED) and the Food Corporation of India (FCI) were entrusted with the task of procurement of paddy till the kharif year 1981-82. However, it was during the kharif season during 1982-83, the State Government decided to procure paddy/rice through STATFED both under price support measures as well as under level scheme on millars. In those years the procurement price of paddy was fixed at Rs. 122 per quintals for common variety, Rs. 126 fine variety and Rs. 130 for superfine varieties. Up to February 1983 of the kharif year total of 3.03 lack quintals of paddy and 491 quintals of rice were procured in the State by the STATFED. The following table shows the volume of paddy procured in Assam over the last few years. The table reveals that total procurement of paddy and rice in Assam which was 15.501 M.T and 17,381 M.T respective in 1985-86 gradually decline to 1397 M.T in 1990-91 and then reached to 126 M.T and 8.575 M.T. in 1992-93.

Again the procurement of paddy and rice in Assam further declined to 73 M.T. and 4,995 M.T. respectively in 1993-94.

As Assam is depending heavily on outside source for supply of a large number of essential commodities the need for effective public distribution system is very important for this State .In August 1975, the existing public distribution system was introduced in Assam and since then the essential commodities like rice, wheat products, levy sugar, salt, controlled cloth etc. had been supplied to the consumers in rural and urban areas through a wide net work of distribution centers. In 1982,665 GPSS with 15,821 retail outlets in the rural areas of the plain districts, 17 wholesale Co-operative societies, 130 consumers� co-operative stores and 2196 Fair Price Shops in the urban areas and 21 LAMPS with 349 retail outlets in the hill areas are associated with the distribution of the above commodities in the state. Beside, the STATFED through its 145 retail outlets spread throughout the state, is also engaged in the distribution of many essential commodities.

The gross allotment of rice wheat from the central pool to the state during 1982(January to December was 3.65 lakh tonnes and 2.57 lakh tonnes and FCI in Assam was to the extent of 2.42 lakh tonnes (or 66 percent) and 2.20 lakh tonnes (or 86 percent) respectively.

In the mean time, the state Government has a number of remedial measures in order to ensure regular supply of essential commodities as well as to check malpractices by traders. These measures include strict enforcement of the existing control orders, display of stock position and prices by traders, regular review of the availability and supply position of essential commodities etc. The new control orders viz. the Assam trade Articles (I.S.C.) Order, 1982 and the Assam Public Distribution of Articles Order, 1982 were promulgated in the State for curbing down the activities of corrupt and unscrupulous traders.

In recent years, the public distribution system has been revamped in Assam along with the other states of the country. In 1995, total number of fair price shops in Assam stood at 29,833 out of which 3,456 were located in the urban areas and 29,833 were located in the rural areas. Moreover, the total amount of rice and wheat released through public distribution system in Assam was 4.32 lakh Metric tonnes and 2.16 lakh metric tonnes respectively in 1992.

Land tenure system has its importance as it locates the owner of land, influences the productivity of land and social organization prevailing in that area.

Like other states of India the tenure system in Assam was not satisfactory rather it was a bit peculiar. Owing to certain historical reasons zamindary system was prevalent in Assam which was to some extent similar to the system prevalent in Bengal and Uttar Pradesh. Under the Zamindary system one or more persons owned a village and where responsible for the payment of land revenue. There was permanent settlement in Goalpara and in the Karimganj Subdivision of Cachar district.

The system was not at all beneficial due to following reasons: (I) it robbed the state of its due share (ii) making the land lords absentee parasites, the zamindary tenure proved harmful to the cultivators and stood in the way of agricultural development, (iii) discouraged all enterprise on the part of cultivators due to frequent enhancement of rent and fear of ejectment and (iv) the agricultural sector suffered as the zamiders contributed nothing for agricultural progress.

The above mentioned evils make way for the abolition of zamindary system, bringing the huge number of tenants into direct relationship with the State and making available to the state Government several lakh farmers.

In agriculture and allied activities, land is one of the basic inputs for production. Remodeling of existing agrarian structure is extremely essential to ensure the achievement of the desired objectives in agricultural production in conformity with the accepted concepts of social justice. The main objective of land reforms was to alter the pattern of land ownership and bring a structural change in rural society for the attainment of greater production and justice.

As mentioned in the Second Five Year Plan, the objective of land reform was to create conditions for evolving the agrarian economy high degree of efficiency and productivity and to establish an egalitarian society as early as possible. The Fifth Plan draft mentioned that the objectives of land policy have been to remove such motivational and other impediments in agricultural production as arise from the agrarian structure inherited from the past and also to eliminate all elements of exploitation and social injustice within the agrarian system so as to ensure equality of tenure status and opportunity to all sections of the rural populations.

Land reform measures must be framed on the basis of certain principles. In India, the Agrarian Reforms Committee (1948) laid down certain principles for land reforms which were accepted by the Planning Commission. The principles of land reforms are :

(a) abolition of Zamindari, (b) reform of the condition of tenants through legislation, (c) an increase in the unit of cultivation, (d) consolidation of holdings, (e) adoption of mechanized cultivation where needed and provision of water, electricity and finances for the improvement of agriculture.

Land reform measures introduced in the state of Assam were also based on the same above mentioned principles .

Land is one of the basic inputs for production in agriculture and allied activities. Thus to remodel the existing agrarian structure, reform of the present land system is an important step. The economy of Assam is totally dependent on agriculture. The land tenure system in Assam was not at all satisfactory. The system of land holding stood in the way of agricultural development of the State.

Thus the Government of Assam introduced various land reform measures in the state during different years since independence the main purpose of such land reforms would be to alter the pattern of land ownership and bring about such a structural change in the rural society as to ensure that the fruits of production are equitably enjoyed by those who toil in the agricultural land. These measures are as follows :

(I) Abolition of intermediary tenures : Along with other states of India, the Zamindari system in Assam was abolished. Record of land holding in Assam shows that there was permanent settlement in Goalpara and in the Karimganj subdivision of Cachar district. Only a few minor intermediary tenures are still existing and efforts are being made to end them. With this abolition of intermediary tenures, a huge number of farmers have been brought into direct relationship with the State. Besides, considerable areas of cultivable waste land, private forest etc. have been acquired for its utilization. But till now, a sizeable area of land is still held by absence owners. Thus Planning Commission Committee for land Reforms suggested the abolition of absentee ownership of land, abolition of share-cropping and conversion of rent of kind into cash rents and acceleration of the programme of transfer of ownership to tenants.

(ii) Protection to Adhiars : The system of �Adhi� cultivation is very much common in Assam. Thus to provide adequate to Adhiars, The Assam Adhiars protection and Regulation (amendment) Act was passed in 1955. By this act the adhiars have been given facilities. These are (a) the restriction on indiscriminate eviction of the adhiars, (b) conferring of rights to adhiars to continue cultivate adhi land and (c) specification of grounds on which adhiars may be evicted.

(iii) Preparation of Tenants �and Adhiars� Records of Rights : This scheme is being implemented along with resettlement operations in the district of Nagaon, Darrang, Lakhimpur and Dibrugarh and also in two sub-divisions of the district of Cachar. A crash programme for preparation of records of right in the district of Kamrup, Goalpara, Sibsagar and in the Karimganj sub-division of Cachar district has since been undertaken. The need for updating the record of rights of tenants and adhiars (now tenants) in these districts was extremely urgent partly because of the launching of S.F.D.A and M.F.A.L schemes and partly due to the enactment of the Assam (Temporarily Settled Areas) Tenancy Act. 1971. Further, steps have been taken to strengthen the Land Records Staff for collection of agricultural statistics. So far 251 lakh persons have been recorded as tenants.

(iv) Protection to tribal people : In order to protect the interest of the simple plain tribe people of Assam, the Government of Assam passed the Assam Land and Revenue Regulation (Amendment) Act in 1947. Under the direction of this Act 30 tribal belts were constituted in the areas predominantly inhabited by the tribal in the plain district of Brahmaputra Valley.

(v) Consolidation of holdings : The scheme for consolidation of holdings was originally taken up to save labour and money in agricultural operations and also to increase agricultural production. The Assam consolidation of Holdings Act,1960 was enacted in 1961 for consolidation and prevention of fragmentation of agricultural holdings for better cultivation in the plain districts of the state. A programme for consolidation of land holdings was in progress till 1969-70 and an area about 2005 bighas of land in 41 villages was brought under the scheme. But since June,1969 this scheme had been kept in abeyance. A sample survey of the utility of consolidation in existing circumstances was carried out in 1973. The Government of Assam has also adopted the agrarian reorganization policy which aims at (a) consolidation of holding. (b) Land management practices, (c) development of Co-operative farming and (d) development of Co-operative village management.

(vi) Land Ceiling : Imposition of land ceiling is a very important measure towards land reforms in Assam. The Assam Fixation of Ceiling on Land Holdings Act was passed in 1955. The Act provides for fixation of ceiling on land holdings at 150 bighas per family. Later, it was reduced to 75 bighas by making necessary amendment. Again the Government of Assam amended the existing legislation on land ceilings during June, 1972 to limit the amount of agricultural land that can be held by a family to 50 bighas and to reduce the allowable area of orchards from 30 bighas to 15 bighas. Through the implementation of these amendments, it is estimated that surplus area of about 12 lakh bighas would be available for acquisition under the Act, composed of 9 lakhs bighas from tea garden areas and the balance from non-tea areas. The surplus land so acquired would have to be equitably distributed among several beneficiaries. It is proposed that the surplus land, as and when acquired, would have as a first charge on it the requirements of homestead land for landless agriculturists and others without homestead land. Then the remaining cultivable lands would be constituted into Agricultural Farming Corporations composed of genuine landless cultivators who will enjoy the share of profit of this corporation. Land not suitable for cultivation would be utilised for afforestation, where feasible.

The achievements in respect of acquisition and distribution of Ceiling surplus land in the State as on March, 1985 are shows below:

Thus it is observed that a series of land reform measures as enacted by the State Legislature from time to time are under implementation in the State. These measures basically aim at : (i) providing security of tenancy right, (ii) protecting tenants from possible exploitation (iii) establishment of a direct nexus between the tenants and the Government and (iv) distribution ceiling surplus land etc.Data made available that by the State Directorate of Land Requistion,Acquisition and Reforms, shown in the above chart reveals that under the Assam Fixation of ceiling on Land Holding Acts (as amended ) a total of 17.78 lakh of surplus land have been acquired in the State at the end of 1984-85 since inception. Out of these, 11.57 lakh bighas have been distributed to about 3.87 lakh allotees up to that date. Again in 1992-93, the state Government could distribute 21,983 acres of ceiling surplus land among the landless beneficiaries. The break up is scheduled caste- 1987 acres, scheduled tribe-3060 acres, others- 16592 acres and Institutions-345 acres.

Basic Problems in the Effective Implementation of Land Reforms in Assam and Modifications in view of ongoing Economic Reforms

Land reforms measures introduced in Assam are facing some basic problems in its effective implementation. Although the land reforms programme in Assam was started with good spirit and enthusiasm but the very response from such programme was lost in the mid-stream. The following are some of the basic problems in the effective implementation of land reforms in Assam.

1. Faults in Legislation: The legislations enacted for land reforms in India are having certain built-in-faults. This includes-unsatisfactory definition of personal cultivation ; unlimited retention of land for personal cultivation ; large scale transfer of land by the Zamindars to their family members leading to a large-scale evasion of land ceiling law ; inadequate definition of tenant from the point of view of tenancy reform ; forcible voluntary surrender of land by tenants to land lords due to omission of share croppers and informal tenants from the provision of the laws related to tenancy reform and inadequate ceiling laws at the initial stage, leading to realization of small areas as surplus followed by illegal transfer of land.

2. Lack of Political Will: Strong political wills, determination and courage are very much important for the implementation of land reform measures related to restructuring property relations. But unfortunately, this is very much absent in the state as well as in the whole country , which leads the land reform measure a mere slogan. The Report of the task force on Agrarian relations, in this connection observed, "Enactment of progressive measures of land reforms and their efficient implementation call for hard political decision and effective political support, direction and control.........The lack of political will is amply demonstrated by the large gaps between policy and legislation and between law and its implementation."

Thus, so long the required political will is not forthcoming, implementation of land reform measures in true spirit will be very difficult.

3. Bureaucratic Obstacles : Bureaucratic Obstacles is also another impediment in the path of implementation of land reform measures in Assam. Sometimes, enthusiastic administrators are demoralized by the political bosses. the bureaucracy always tries to play safe by following a �lukewarm� attitude. In some cases, even administrators have joined hands with the politician to grave the surplus land (declared).The rich peasant power is dominating in every layer of government and they are subverting the land reforms in such a manner that the implementation of land reform measures is becoming more and more difficult .

4. Lack of Peoples� co-operation :In the absence of peoples� active co-operation, the implementation of land reforms in Assam is gradually becoming more and more difficult. Lack of consciousness on the part of farmers of the state regarding their rights on land is also responsible for poor implementation of land reform measures in Assam.

Thus considering all these factors it can be observed that under the prevailing situation it is very difficult to implement the various land reform measured in the state.

Thus the main challenge before the land reform programme is to dislodge the vested interests on land and legal support offered by the judicial system to those vested interest group in the guise of sanctity of private property. In order to break such as impasse the following suggestions of the Force should be followed in true sprit :

(I) As the judicial systems is time consuming and dilatory, thus in respect of the implementation of various land reform measures, judiciary should not be involved.

(ii) Organizations of the poor peasantry in the form of strong militant trade unions, is no doubt, a pre condition for the successful implementation of land reforms. Formation of a land reform Committee by the Government at the Village, taluqa or district level having majority representation of marginal farmers, share croppers and landless cultivators for the implementation of land reform measures will be a good step in this direction.

In the mean time, the State Government have barred the jurisdiction of Civil Courts in respect of ceiling on land holdings and also made subsequent provision in ceiling laws for necessary appeal and revision through revenue Courts and tribunals. Moreover, necessary steps are also taken by the State Government to record the rights. Adhiars or share croppers for providing security of their tenancy.

Although attempts were made to establish a linkage between land reform measures and rural development programmes but in real practice, the State Government has failed to established such a linkage. Thus it can be finally observed that the land reforms in Assam are still far away its goal.

With the introduction of economic reforms in the country, the agricultural sector is also facing a lot of changes particularly in relation to social relation of production, organizational structure modernization of agricultural sector, etc. Under this changing situation, land reforms also need some modifications in view of ongoing economic reforms.

Accordingly, the land reforms measures introduced in Assam also need some modifications. Globalization of the economy and the economic reforms introduced in the country has also widened the scope of development of agricultural sector along with the development of industry and trade. Assam being an agricultural state can reap the maximum benefit by exporting various agricultural, horticultural and floricultural products to different countries. But this would require an organized development of agricultural sector.

The following are some of the important modifications in land reforms in Assam in view of ongoing economic reforms :

(a) Stricter measures to abolish the absence ownership of land for the effective utilization of land resources :

(b) Systematic conversion of Adhi" land into permanently settled land, for providing incentive to adhiars to boost agricultural output ;

(c) Ceiling of land may be raised for the development of organized, intension and large scale agricultural farming on a specific fruitful basis like tea cultivations in the state.

(d) Sincere and serious attempt be made for proper consolidation of holdings and to adopt land management practices through development of co-operative farming on voluntary basic and persuasion for reaping the benefit of modernization of agriculture.

Agricultural Holdings in Assam- Its Problem of Fragmentation and Sub-division

In the absence of alterative occupations particularly in the rural areas, population to large majority, i.e. to the extent of 77 percent, has to depend on the agricultural sector alone. This has resulted excessive dependence of the economy of the State on agriculture leading to a huge pressure on agricultural land holdings. According to 1991 census, about 6.41 percent of the total working population in Assam is engaged as cultivators and agricultural labourers. Thus the excessive dependence of the population on the agricultural sector has been resulting continuous subdivision and fragmentation of land holdings in Assam. All these has been resulting a continuous decline in the average size of holdings in Assam.

Agricultural Census : As revealed by the Agricultural census 1985-86, there were 19.90 lakh operational holdings in the State which covered an area of about 25.89 lakh hectares of land. Compared with the figures of the earlier census (1980-81), the number of operational holding and operated area during 1985-86 were lower by 13.4 percent and 17.1 percent respectively. The marginal holding with less than 1 hectare of land accounted for 62.0 percent of the total holdings and 19.0 percent of the total operated area of the state in 1985-86. In case of small holdings with size class between 1 to 2 hectares, the share turned out to be 21.36 percent of total holdings and 23.11 percent of the total operational area. On the other hand, the large holdings (10 hectares and above) which constituted only 0.25 percent of the total number of operational holdings, accounted for as much as 16.68 percent of the total operational area in the State. An important feature revealed by these successive agricultural census is that the average size of operational holdings in Assam recorded a declining trend. The following table shows important findings about operational holdings in Assam as obtained from Agricultural Census, 1970-71, 1976-77, 1980-81 and 1985-86.

Source : Economic Survey, 1989-90. (Assam). p.11. and statistical Hand Book, Assam,1995.pp.52-53.

The table given above reveals that the total number of holdings in Assam gradually rose from 19.66 lakh 1970-71 to 22.97 lakh in 1980-81 and then to 24.19 lakh in 1985-86. Another important feature reported is that the average size of operational holdings in Assam has declined considerably from 1.47 hectares in 1970-71 to 1.37 hectares in 1976-77 and then marginally to 1.36 hectares in 1980-81 and then finally to 1.31 hectares in 1985-86. At all India level also the average size of holdings has also declined from 2.00 hectares in 1976-77 to 1.84 hectares in 1980-81.

Measures to deal with the problems of fragmentation and sub-division of land holdings in Assam

Continuous fragmentation and sub-division of land holding is creating a huge problem for the agricultural development in Assam. With this the size of the farm becomes most uneconomic which stands in the way of modernization of agriculture in Assam.

The Government of Assam has adopted the following measures during the plan period to deal with the problems of fragmentation and sub-division of land holdings in the state :

(a) Consolidation of holdings : It means the rearrangement of scattered fields of an individual owner into bigger and compact fields, through exchange with the fragments of other cultivators in the area. The idea is to reduce the number of fragments as much as possible. The process of consolidation also provides an opportunity for the planning of common village facilities like roads and schools. The scheme for consolidation of holding was originally taken up to save labour and money in agricultural operations and also increases agricultural production. The Assam consolidation of Holdings Act, 1960 was enacted in 1961 for consolidation and prevention of fragmentation of agricultural holdings for better cultivation in the plain districts of the state. A programme for consolidation of land holdings was in progress till 1969-70 and an area about 2005 bighas of land in 41 villages was brought under the scheme. But this scheme had been kept in abeyance since June, 1969 due to desirability of first completing the work relating to recording of rights of tenants and, if possible conferring ownership rights on them.

The main difficulties which have stood in the path of progress of consolidation are-- sentimental attachment of the people of Assam to part with ancestral land, fear of losing better lands, lack of trained and honest staff, lack of up-to-date records, lack of finance and wide difference in land values in the State.

(b) Development of Co-operative farming : To overcome the evil effects of small and uneconomic holding in Assam adoption of some sort of Co-operative farming, i.e., joint cultivation, is a very appropriate method in the desired directions. This sort of farming can provide the advantages of large-scale farming without abolishing private property. During 1973-74, the Government of Assam has introduced a novel scheme for setting up Agricultural Farming corporation in each sub-division of the state. The main objective of the scheme is to ensure the management of land and its proper use by tillers of the soil through the settlement of landless agricultural farmers in Government and surplus land that may be available as a result of enforcement of land ceiling Act. According to the scheme, cultivators would be organized into corporate bodies to manage and cultivate agricultural land. Fifty or more agriculturists along with the State Government may form an Agricultural farming corporation in the State. The State Government will only give their share capital contribution to such corporations. The basic idea underlying the setting up of such corporations is to treat land as an earning asset rather than as a form of wealth. Till 1974-75, nine Agricultural Farming Corporations were registered in the State. These Corporation accommodated a total of 818 families and took up cultivation of 983 hectares of land during 1974-75. The State Government is encouraging the Co-operative farms by providing some special facilities. During 1979-80, Assam had 121 joint farming societies and 277 collective farming societies. But it was found that nearly half of these societies remained dormant during the year. Net area sown by these societies was of the order of 2102 hectares under joint farming societies and 5528 hectares under collective farming societies. In 1979-80, the value of production from these societies stood at Rs. 10.4 lakhs in respect of farming societies and Rs. 18.0 lakhs in respect of collective farming societies as against Rs. 8.7 lakhs and Rs. 16.7 lakhs respectively in 1978-79. Again in 1970, total number of agricultural co-operative societies in Assam stood at 413.

Thus it reveals that although there is marginal improvement in the operation of some established joint farming societies but the extent of development of Co-operative farming in the state remained very poor. It is due to lack of response on the part of the agriculturists of the state towards the policy of consolidation of holding and development of Co-operative farming. Thus agriculturists in Assam should come forward with active interest to adopt the policy of consolidation of their holding for their mutual benefit. Agriculturists should also try to develop Co-operative farming by forming increasing number of joint farming societies and Co-operative farming societies in the state. In this respect, the existing farming societies have got their additional role to attract the farmers to form such societies by showing a better result. As the Co-operative farming societies are having definite advantages of modernization and cost reduction, thus they can show definitely a better result if organized efficiently.

Definition : Land Cultivation in Assam is classified into two distinct pattern - (a) Settled farming on the permanent and developed land in the plains and valley areas and (b) shifting Cultivation or �Jhumming� on the hill slopes or the jhum land available in the hill area the state.

Shifting Cultivation is a primitive method of Cultivation which might have originated in the Neolithic period covering the years between 13,000 and 3,000 B.C. Perhaps the system of shifting cultivation is the first stage for the use of soil for the production of crops. This system of Cultivation was practiced over a long period of time as a regular system by the hill inhabitants of Black Africa and America. In India, shifting cultivation is still practiced in the hill areas of entire North-eastern region, Sikkim, Bihar, Orissa, Andhra Pradesh, Madhya Pradesh, Tamil Nadu, Kerala, Karnataka and Maharashtra.

Shifting Cultivation is known as slash-and-burn-agriculture, migratory primitive agriculture, nomadic agriculture, hoe and burn, forest field rotation, land rotation agriculture and in north-east India it is known as �Jhum� Cultivation or �Jhumming�. Due to diminution of fertility, �Jhummias will have to shift from one area to another area and thus it is known as shifting cultivation.

Process : The process of shifting Cultivation is like that firstly a plot is selected and the next step is to slash or cut the forest, bushes etc. up to the stump level in the month of December, January followed by drying and burning the jungle for making it clear. After that holes are dug on land with the help of simple instrument like dibble or digging sticks for sowing seeds of several crops. After several shower, when the ash settles down, then seeds of several crops are applied into holes for getting a large variety of crops from a same field. In this process of shifting cultivation, the original fertility of land along with the burnt ashes makes it possible to raise a good yield of crops for a year or two. After that all the nutrients of soil will become exhausted and thus yield falls drastically. This will force the farmers to shift into a new area leaving the previous land as fallow land for gaining fertility and follow the same process of slash and burn in new area as mentioned above.

Shifting Cultivation requires a large amount of land but it can support only a small number of population. In Assam, shifting cultivation is mostly practiced in the two hill districts, i.e., Karbi Anglong and North Cachar Hills district in Assam. The total area under shifting cultivation in Assam is estimated at 4,90,000 hectares. Out of which the average area under shifting cultivation in a year in Assam is estimated at 70,000 hectares. Thus out of the total amount of area under shifting cultivation only 14.3 percent of the total area is cultivated in a year, leaving the remaining 85.7 percent of the area as fallow land for regaining fertility. The jhumming cycle in Assam is about 7 years.

As per the report of the Task Force, Ministry of Agriculture on Shifting cultivation (1983) it is observed that the annual area under shifting cultivation in Assam is 696 sq. kms. The minimum area under shifting cultivation one time or other is also estimated at 1,392 sq. kms. The fallow period in Assam is about 2-10 years. The report further observed that the total number of families practicing shifting cultivation in Assam is around 58,000.

In Assam, Jhum Cultivation is practiced in the hilly area of Karbi Anglong and North Cachar Hills districts. Out of the 15,332 sq. Kms. of land on the hill districts, the areas under jhum cultivation is estimated to be little over 60,000 hectares with a total population of 8.04 lakh as per 1991 census report.

Shifting Cultivation in Assam has been destructing the natural endowments in the two hill districts of the state through its various evil effects. The following are some of these evil effects.

Firstly, the most important evil effect of shifting cultivation in Assam in that destruction of forest in the hill areas causes heavy soil erosion during rainfall and consequent siltation in the major rivers like Brahmaputra and Barak leading to a heavy flood in the plain low lying areas of the State. Moreover the loss of top soil to the extent of 22 percent of the total soil due to jhumming causes a serious fall in the fertility of soil in the hilly areas. Thus it creates a serious economic problem for the people of the state.

Secondly, shifting cultivation has resulted a high national waste as it has converted a green land into fallow for the major part of the jhum cycle.

Thirdly, shifting cultivation causes deforestation on a large scale and is highly destructive to productive and protection values of forests in the state. A recent report released by the DehraDun-based Forest Survey of India (FSI) based on Satellite data and extensive field surveys shows Assam to be the main victim of shifting cultivation in the recent years. In the early 1990s, the state lost about 243sq. kms. of forest to shifting cultivation. In the same period, jhumming further deforested 100 sq. kms. in Meghalaya, 28 sq. kms. in Arunachal Pradesh and Manipur and 10 sq. kms. in Tripura.

Fourthly, shifting cultivations upsets the ecological balance of nature in the state and it leads to environmental degradation and disturbs the fragile eco-system. The jhumming practice has caused extensive climatic changes in the state and destroyed rare flora and fauna of the state along with surrounding natural vegetation. Thus the environmental imbalance has resulted uneven spread of monsoon rainfall leading to the problem of drought and excessive rainfall resulting flood in the low-lying areas of the state.

In the mean time, the state government and other agencies have undertaken various measures for controlling shifting cultivation in desired directions. In the fifties, the Government of Assam took the earlier attempts for taking the problem of shifting cultivation with the introduction of the plantation of cash crops like rubber, coffee, black pepper and cashew nut for encouraging the �jhumias� to accept these crops. During the Fifth Plan periods, a major thrust was given with three different programmes on the control of shifting cultivation in all the north-eastern states. These were :

(ii) Centrally sponsored pilot projects for the control of shifting cultivation :

and (iii) regional river basis scheme for controlling shifting cultivation under NEC.

1.Irrigated Terraces : Another successful way of controlling shifting cultivation is to settle the jhum on an irrigated terraces by channeling water from mountain streams. This type of cultivation is known as terrace cultivation which is very much popular in Khasi and Jayantia hills of Meghalaya. Thus adequate steps must be taken to introduce irrigated terrace cultivation in the two hill districts of Assam.

2.Watershed Management : The concept of watershed management indicates optimum use of land and water resources within a physiographic or hydrological unit governed by natural conditions. This watershed management makes provision for scientific survey and investigation of each unit for detailed planning and its implementation conducted by a technical team on each watershed. The National Watershed Development Project for rain fed areas is now being implemented in various North-eastern states. Thus steps must be taken to introduce this watershed development project in the hill areas of Assam.

3. Settlement of Jhumias : Solution to the problem of shifting cultivation requires the settlement of tribal families on permanently settled agriculture. This would require development of land for regular cultivation which again requires a huge investment and many years. Thus short term measures as suggested by ICAR should be introduced. Considering the physiographic character of land, climatic conditions, social conditions, food habits etc. alternative system of farming like diversified farming should be introduced. This would require a system which includes agriculture, horticulture along with animal husbandry, fishery, poultry farming etc.

4. Development of Rubber, Oil-palm and coffee cultivation : In order to control shifting cultivation in the hill areas in Assam, proper steps must be taken to take up intensive and extensive rubber, coffee and oil-palm cultivation and for the development of non-forest waste land in the Karbi Anglong and North Cachar Hill districts of the state. Recently in March, 1997, the State Government has decided that a large area of the non-forest water-land would be brought under �rubber block planting� scheme where more than 65 percent of the total investment would be contributed by the Rubber Board of India and the rest would be financed by the State Government. The scheme is expected to give employment opportunities to a large number of tribal persons in Karbi Anglong district. As regards coffee cultivation, it has been decided to bring 5,000 hectares of land under the �robasta� variety of Coffee during the year 1997-98 . It is pertinent to mention that the land in Karbi Anglong district has been found to be suitable for the oil palm cultivation and more than 1000 hectares of land in the district have been earmarked for raising oil-palm cultivation.

5. Soil Conservation Measures : In order to protect the bio-diversity, it is of utmost necessity that the delicate eco-system be protected by soil conservation measures. The will benefit all sections of people not only in the hills, but also in the plains. In the mean time, the Government of Assam has taken up soil and water conservation schemes in the problematic areas to wean away jhum cultivation in the hill slopes adopted by the hill tribes in both the hill districts of Assam. These schemes includes land reclamation, bench and broad-based terracing, water harvesting and water distribution, paddy land development scheme in the agricultural land with necessary river taming works etc. and also raising of protective afforestation lands. Meanwhile, a great achievement is being noticed in improving those problem-prone areas through such schemes in both the hill districts.

But whatever steps are taken by Government in this direction, all are not being implemented sincerely. Thus, under such a situation it will not be possible to wean away the traditional age old practice of cultivation completely. But the magnitude of the practice of this type of cultivation is being considerably reduced by diverting and motivating the hill people for accepting a permanent and settled method of cultivation. Thus both the whole hearted efforts on the part of Government agencies and NGOs as well as motivational progress are equally important to transform this age-old tribal agricultural practices into a settled and developed farming practices.

North -East India is rich in type of natural vegetation. Climate physiographic and soils of the region have provided favorable conditions for luxuriant growth of natural vegetation.

The region has one of the heaviest rainfalls in the world . Although the average annual rainfall of the region is about 250 cm it varies from place to place. The windward sides (of SW Monsoon ) of the foothills generally receive 300 cm to 400 cm rainfall while the plains receive 200 cm to 300 cm annually. The leeward sides of the hills , as the Lanka-Lumding -Namber region receives only 100 cm annually. The high Himalayas, on the other hand, experience frost and snowfall.

As the physiographic varies from low-lying swamps and marshes to high mountain ridges lying above 6000 m, the soils vary from sand, silt and loam to laterite.

There variations have give rise to various types of flora in North East India. Of all the physical factors, it is climate which seems to have the most telling effect on the vegetation type. The heavy rainfall which comes from May to September, keeps the relative humidity of the area very high throughout the year . Temperature variation is low, remaining normally between 12 ⁰C and 35 ⁰ C except in the high hills. These favorable climatic conditions , augmented by fertility of the soils have provided luxuriant growth of numerous species of plants . Based on the physiognomy, foliation and flowering characters and gregariousness or otherwise, the natural vegetation of North East India can be divided into the following groups :

1. Tropical Evergreen Forest : Those parts of the region where average annual rainfall is more then 200 cm and temperature is 25⁰C there grow tall trees with evergreen foliage. The Himalayan foothills region from Panch Nai eastward up to Luhit district of Arunachal the foothills of Changlang and Tirap district of Arunachal, Nagaland and their adjoining plains district of the Brahmaputra Valley, North Cachar Hills, the northern and eastern foothills adjoining the Barak plain and higher altitude of the Meghalaya Plateau (860 m - 1600 m ) bear tropical evergreen forests. The tropical evergreen forests of this Plateau include pine vegetation and the temperate broad -leaved trees of the higher altitudes. Similarly, over the hills of Arunachal Pradesh, Patkai Range and Manipur hills at altitude between 800 m to 1200 m, one can see the tropical evergreen forests.

A common feature of the evergreen forests is the presence of a thick undergrowth at ground level and many creepers and lianas at upper level. In the pine forests, however, these are absent.

The common plants of the tropical evergreen forests of this region are Nageswar or Nahar (Messua ferrea), Halong (Dipterocarpus macrocarpus) Hallock, Makari Sal or Makai(Shorea assamica), Shishu (dulbargia sisso),Titachampa (Atrocarpus chaplasa) Champa, Garjan (Dipterocarpus turbinatus ), Bonsom (Phoebe goalparensis ) , Amari (Amoora wallichii ), Agaru (Aquilaria agallocha) Khakan, Beyleaf Banaria Am (Mangifera sylvatica), etc. At higher altitudes these forests also contain Chestnut , Maple, Magnolia, Laurel, Alder and Birch besides rhododendron, willow, juniper and various sub- species of pine . The pine forests are common in the higher altitudes of Meghalaya. Manipur and Nagaland. In the Himalayas pine forests are located between 1200 m and 2000 m height.

The tropical evergreen forests of North East India contain numerous varieties of orchids, some of which are rare and valuable. These forests also support various sorts of climbers including cane.

These forests generally support soft wood for plywood industry and packing boxes for tea industry.

2. Tropical Deciduous Forest : Deciduous forests are found in those areas of North East India where the average annual rainfall is 80 cm to 200 cm. The districts of Dhubri, Kokrajhar, Bongaigaon , Goalpara Barpeta Nalbari, Kamrup , Darrang, Marigaon Nagaon,, Sonitpur,, Karbi Anglong, North Cachar Hills and the and drier parts of the Barak Valley in Assam support tropical forests. In Meghalaya these forests are found in Garo and Jayantia hills. The drier parts of Tripura, Mizoram, Manipur and Nagaland also have deciduous forest. In Arunachal Pradesh the deciduous forests are limited to a very narrow zone of foothills.

The common species of tropical deciduous plants are Sal (Shorea Robusta), teak (Tectona grandis ), gamari (Gmelina arborea ), Simul (Bombax malabaricum), khoir (Acacia catechu), Au tenga (Belenia indica), Jack fruit (Atrocarpus integrifolia ), Kadam, Siris, Arjun, Silikha, Bhomora, etc.

Economically the most important products of the deciduous forest are sal and teak. These two species of plants supply hard wood for construction of buildings bridges and railway sleepers. The sal and teak forests are confined to two distinct belts in Assam. Firstly there is a long strip of land in the south bank of the Brahmaputra from Mankachar to Marigaon along the Meghalaya foothills, and secondly, there is another strip in the northern part of Kokrajhar and Bongaigaon districts.

3. Tropical Grassland : Grassland is not uncommon in North East India. However, most of the grasses of the region, except the alpine grasses of high altitude in the Himalayas, are not climogenic, i.e. they are not produced due to climatic reasons, such as inadequate rainfall and temperature. Firstly, some of the grasses, found on the hill slopes of North East India are there because the original forests were earlier destroyed for shifting cultivation. This also led to depletion of the soil cover,. Such areas subsequently have given rise to grasses only.. Secondly there are tall grasses in the Tarai region of the Brahmaputra Valley because here the ground always remain saturated with water and hence tall trees do not grow. Thirdly, the river banks and charlands are normally sandy. Such land cannot support tall tree but gives forth luxuriant seasonal grasses. Lastly, the swamps and marshes support swamp vegetation which include mostly grasses.

(A) The grasses found on the hill slopes come up as a secondary growth after people clear the land for shifting cultivation and settlement. The human interference since time immemorial has given rise to many grasslands over the hills on depleted soils of North East India. These grasses include various types of thatch and other members of the gramminaceae family.

(B) The foothill tarai region, especially on the north bank of the Brahmaputra Valley, also support tall grasses, such as various type of reed and thatch. As mentioned above, damp ground of this region favors the growth of tall grass only. The grassland of Manas Sanctuary is an example of this type.

(C) The river banks and riverine islands are mostly made of sandy soil. This type of soil cannot retain water for a long time. Hence tall trees, except a few varieties like simul, khoir etc. cannot grow on these areas. The plants that grow on the river banks and islands are known as riparian vegetation. The riparian vegetation in North East India is mostly tall grass. The grasslands of Dhemaji, Majuli, Kaziranga, Bhurbandha Pabitara, Orang, etc. on the banks of the Brahmaputra belong to this category. Along with grasses these areas also contain simul, khoir karoi kadam and local plum (zyzyphus) trees.

(D) In the plains of North East India, especially in the Brahmaputra and Barak Valleys and Manipur Basin, there are many marshes and swamps. These support various types of swamp grasses and other plants like lily, lotus, waterwort, water hyacinth, taro, etc.

4. Alpine Grassland : Although North East India falls within the relatively low latitudes, it has high Himalayan mountains where temperature is low. The higher mountain slopes of the Himalayas at an altitude of 4000 m to 5200 m in Arunachal Pradesh, one can see lush green grass coming up in late spring. This vegetation is known as alpine grass. Apart from various species of grass, it also contains some varieties of juniper, rhododendron, shrubs and mosses. This zone of grass lies above the coniferous forest belt which is mentioned in the evergreen group.

Heavy rainfall, high humidity throughout the year and high temperature of North East India have made the region very rich in floral resources. Some of the important features of the forests of the region are noted below :

1. In the evergreen forests of Assam one can find Makari Sal (Shorea assamica) which are one of the tallest trees in India. It grows to a height of 60 m -70 m. In fact, there are several other species of plant in this region which are ranked as some of the tallest trees of the country.

2. The forests of the region contain about 400 varieties of rare orchids which are regarded as one of the richest occurrence of these plants in the world. It also contains rare pteridophytes like tree fern.

3. Side by side with broad leaved forests there are coniferous forests also in the region.

4. There are some varieties of carnivorous plants in this region. In Garo and Khasi hills of Meghalaya, alone there are there varieties of carnivorous plants, viz. pitcher plant, bladderwort and Surujneor.

5. There are many varieties of saprophytic and parasitic plants apart from epiphytes in this region. Monotropa, Belonifora, etc. are some of the examples of these varieties.

6. The region is also very in medicinal plants. Besides, the region is also native to beverage plants like tea.

Forests are a precious resource given by nature. It is often termed as multipurpose resource. Forests supply us raw material for construction of building , bridge, ship railway wagon, rail track, boat, etc. These also supply raw materials to industries for production of paper, pulp plywood, etc. Besides, the forests supply medicinal plants ornamental plants and above all fuel wood for domestic consumption. Forests also supply food to some extent to men and to all animals. From the view point of environment, forests are important because they influence rainfall and protect soils from being eroded besides keeping the carbon dioxide and oxygen levels steady.

Although North East India was once rich in forest resources, it is no longer so now. Reckless cutting of tree and clearing of forest and a lack of concerted effort in afforestation have made it poor now in this precious resource. Following figures give the state wise forest coverage of North East India in 1990 based on satellite imagery (basic statistics 1995, NER)

These forests provide hard wood for construction. soft wood for plywood and manufacture, bamboo and grass for paper and pulp, fuel wood, lac khoir, gum, bamboo, thatch, cane, various medicinal and ornamental plants, vegetable, fruits, honey and many varieties of wild animals and birds and products from them. Many of these have demand in international market.

Some of the economically very important trees found in North East India are Agaru, sal, neem, champa, tea and bamboo. Agaru or Agar has become a rare plant now. In the olden days people used to prepare thin long sheets out of its wood for writing. It is locally known as Sanchi tree. One can still find hundreds of valuable and rare manuscripts written on Sanchi sheet during the six hundred years prior to the advent of the British into North East India. Besides providing writing sheets, Agaru or Agar contain a very valuable oily essence from which a precious perfume and some drugs are prepared . It is still found, although infrequently, in the forests of Golaghat, Jorhat , Sibsagar , Nagaland and Manipur. Sal (shorea robusta ) is another valuable species of plant found in North East India. It provides extremely hard wood for construction of buildings, bridges and railway sleepers . It also provides gum and essence. Pine tree not only provides soft wood but it also supplies turpentine and resin. Neem, plant abundantly found in the region is one of the most important medicinal plants. Champa also provides an essence used as perfume. Tea plants are used for extracting tennin and other colouring juice apart from extracting their leaves as a source of beverage.

The forests of the North East India are also rich in fauna. The mammals include various types of primates carnivores and herbivores, Hoolock gibbon, one of the 4 types of apes found on the earth today, occurs in this region. The region also has one horned rhinoceros in the forests like Kaziranga, Laokhowa, Orang, Paabitara and Manas. Some of these forests Kaziranga, Laokhowa Pabha, and Manas also have wild buffalo. There are as many as 11 varieties of monkey including the rare golden langur and capped langur in this region . Elephants abound the foothill regions of all the states of North East India. The four horned antelope, deer, barking deer, musk deer, Pigmy hog , bison and wild boar are some of the important herbivores of the region. The most important carnivores found here are Royal Bengal Tiger, Leopard, various other large wild cats, civet cats, snow leopard, Himalayan bear. etc.

Some important products of the wild mammals of North East India found mention in the ancient Indian classics and travel accounts. Of these ivory i.e. elephant tusk, horn of the one-horned rhinoceros and Kasturi or perfume glands of the naval region of musk deer are the main. The elephant tusk which provides the precious ivory was a much prized possession of the kings and emperors in India since time immemorial. The kings and chiefs of North East India used to trade with these commodity and pay tributes to other kings and emperors with whom they came in contact. One of the reasons why the rulers of Delhi in the mediaeval period used to invade North East India time and again is to lay hands on its rich forest products including tuskers and ivory. The so called horn of rhinoceros is widely used in China and south west Asia as a very rare drug. That is why it is considered to be very valuable and poaching of the animal still goes on . The musk deer, especially its male ones, bear some special glands in its intestine which secretes a precious juice. This juice is considered to be a very important drug in China.

There is also a rich reptile population in North East India. It has marsh crocodile, fresh water gharial turtle, and tortoise, varieties of monitors, chameleons, lizards and snakes. Of the important snakes, the python is ubiquitous in the hills ,while krait , viper and cobra are found in the tropical forests and grasslands of the plains.

As in the other families of fauna, north East India is rich in avifauna also . It has scores of species of birds-large and small, charming mocking and terrifying . Stork, peacock, pelican , various types of ducks, pheasant , vulture , kite , eagle , varieties of doves and parrots, wren, linnet , tit, etc. are the common birds of this region.

As North East India abounds in water bodies, swamps and marshes there are numerous varieties of fish fauna in the region. Some of the fish live in the numerous streams and rivers and some in equally numerous beels, jheels and swamps. In fact fish used to be so abundant in the region that to an inhabitant of it, fish as an item of food, is important next only to rice. It is the main source of protein supply to them. But of late many beels and swamps have become silted up. Further, the ever increasing population of the region have taken to indiscriminate catching of fish. These have led to an scarcity of fish in the region.

Agriculture is the mainstay of the economy of the people of North East India. The traditional types of agriculture carried out in primitive manners still determine the way of life of the people of the region. Barring aside the production of a few minerals, whatever little industry has grown up in this region is essentially agro-based. The importance of agriculture can be clearly understood if the following points are taken into consideration.

2. It provides employment to about 65 percent of the working population of the region. So, agriculture is the major source of livelihood of the people of the region.

3. Agriculture provides raw material for many local industries, such as tea, jute, sugar, rice milling, flour milling, oil pressing, fruit processing and canning, etc. Agriculture provides livelihood to the vast majority of the people of the region both directly and indirectly.

4. The contribution of agriculture including its allied activities like animal husbandry, piggery, poultry keeping, fishing, etc. to the income of the region is the largest among that of other economic sectors. It is found that nearly a half of the total income of the region comes from the agricultural sector.

Although agriculture is of prime importance to the region, it has remained largely undeveloped. Unlike other parts of India, where innovation in agriculture has made some headway, North East India has still been sticking to primitive methods showing little progress in this vital sector of economy. The socio-economic factors that affect the agriculture of the region are noted below:

1. Fragmentation of Holding: With the rapid increase of population and perpetuation of the law of heritage of landed property on the one hand, and lack of economic diversification on the other the agricultural plots have undergone subdivision in every generation. The result is that the agricultural land now has been turned into uneconomic small plots and fragmented. Such small and fragmented plots are neither suitable for application of modern machinery like tractor and harvester nor are they worthy of any other form of heavy capital input. This situation acts as disincentive for agricultural development.

This problem can, perhaps, be solved only by consolidation of land holdings through cooperative endeavourer.

2. Primitive Methods and Implements: The primitive methods and implements are still in vogue among the peasants of North -East India. Land is tilled in the plains by a wooden plough with the help of a pair of bullocks. Tilling is neither deep nor perfect. In the hills again plough tilling is replaced by slash -and burn and light spadework especially in the plots of shifting (jhum) cultivation. Besides, use of manure or fertilizer, insecticide and weedicide is almost absent. It is only recently that some farmers have started using high yielding varieties of seeds for raising a part of their crops. But the use of fertilizer or manure is still to get currency. It is noticed that per hectare consumption of fertilizer in the North East is only 2.5 kg as opposed to more than 5 kg in Punjab and Haryana.

The shifting method of cultivation in the hills has faced with increasing problems. With the increase of population the jhum -cycles are becoming shorter. The jhum -plots now can hardly accumulate enough natural manure. Frequent use of the hill slopes has evoked topsoil erosion, rendering the plots infertile.

The cause of the problem of the continuance of primitive method lies in the poverty of the farmers on the one hand and lack of scientific knowledge on the other. Initial help for capital investment either in the form of cash or kind may help the farmers to get away from the primitive implements. But such help must be supplemented by proper extension services to make them realize the benefit of the scientific methods. In the hills even if the shifting cultivation is allowed to continue for some time, some substitute means and methods, such as terrace farming horticulture, planting of nitrogen bearing and manure yielding crops in the used jhum plots, etc. should be progressively introduced.

3. Inadequacy of Irrigational Facilities: Although North East India receives very high average annual rainfall, about six months of the year remains completely dry. The rainfall is concentrated mainly to six months from May to October. Because of long drought in winter no substantial crop can be grown in the six dry months Besides, even during the summer months there are periods of drought which affect preparation and proper growth of jute plants and tea leaves. Merely a high average annual rainfall should be no reason for not adopting artificial irrigation. If water is supplied in a regulated manner throughout the year, more crops with greater yield have been cultivated.

In order to solve this problem, irrigational facilities must be developed adequately. In the plains of North East India power operated lift and tube -well irrigation would be more suitable than canal irrigation. In the hills terracing of slopes and tapping of the streams may be more fruit able.

4. Soil Erosion: With the progressive destruction of forests for human habitation, agriculture, construction of roads, extraction of timber and due to over grazing, the forest cover in North East has been dwindling fast. With the reduction of forest cover the soil erosion, especially in the hill slopes, has increased by leaps and bounds. As the topsoil is being depleted the crop yield has decreased.

This problem can be controlled by preventing deforestation, encouraging afforestation and stopping over grazing in the agricultural fields.

5. Scarcity of Suitable Agricultural Land: Availability of land in North East India is a myth rather than a reality. The four plains, namely, the Brahmaputra Valley, the Barak Valley, the Manipur Central plain and western Tripura are already over crowded with agricultural population. These plains hardly constitute 30% of the total area of the region, while the remaining 70% are full of hills and plateaus. Then again, the plains are often ravaged by floods and shifting river courses. These contain many marshes and swamps unsuitable for agriculture. In fact whatever little land was found suitable for agriculture has already been put to use,. Further horizontal extension of agriculture can be done only at the cost of ecologic equilibrium.

This problem can be solved only by improving the methods of agriculture so that more production can be obtained on whatever agricultural land the region has . Apart from this , reclamation of waste land shall contribute marginally to ease the problem.

6. General Poverty and Interrelated Factors : Very small sized landholding, primitive agricultural methods, natural calamities oppressive summer heat and humidity preventing hard labour, illiteracy and many such physical and socio economic factors have kept the farmers of North East India in abject poverty. They eke out a precarious living on the verge of starvation. The average farmers family budget is a deficit one. This crushing poverty is responsible for the farmer�s ill health, illiteracy and general ignorance. They cannot spend on high yielding varieties of seeds, chemical fertilizers, insecticides, modern agricultural implements, etc. in order to produce more and get rid of the poverty, Besides, they cannot spend on their children�s education nor on their medical care. The food of an average farmer is poor and deficient in vitamins minerals and proteins. The farmers of North East India therefore, are handicapped by a poor physique and ill health.

Thus, it is seen that the farmers have to live in a vicious cycle. To rid them out of it a well planned programme is necessary. To educate them in scientific agricultural methods, supply them with agricultural inputs such as high yielding varieties of seeds, irrigational facilities whenever necessary, fertilizers, insecticides, agricultural implements etc at subsidized rates or on loan are some of the measures that will go a long way in uplifting their present condition. Since there is hardly any suitable land to physically expand agriculture, it is obvious that productivity has to be increased. Productivity depends upon the quality of input and health and efficiency of the farmers. The Panchayats may perhaps seriously consider the there pronged improvement based on education, input and health for the farmers to rid them of the vicious circle.

7. Land Tenure System in the Hills : The traditional land tenure system among the tribes of the hills of North East India is based on village-community ownership. Individual family ownership is confined mostly to the homestead land and the wet plots of sedentary cultivation. Since the main method of cultivation in the hills is shifting (jhumming), the jhumland is commonly owned by a village community. Each member family of the village community decides to move away from that area to somewhere else.

In the areas of shifting cultivation, the authority of distribution of land for farming to the individual families is vested on the headmen or village councils. Among the Karbis of Karbi Anglong and a few tribes of Arunachal Pradesh, where settlements are sparse, although the jhumland is owned by the village community, an individual family is allowed to cultivate a plot of land according its own choice. But the Karbi villagers often shift their settlements and jhumland and as a result individual farmers can hardly have any interest on development of land.

Among the Garos of Meghalaya, the district are divided into revenue units called �hill mauzas;. Each mauza is divided into �akings� Each aking is under an Aking Nokma (headman) who owns land on behalf of this clansmen. The Aking Nokma has the authority to distribute land among his clansmen for jhum cultivation.

The Khasi Hills are traditionally divided into siemships under Siems. The land under a Siem is allowed to be cultivates. However, if he fails to cultivate for three consecutive years, he loses the right over it.

In Mizoram there were hereditary chiefs in the past. They used to be called as �Lal� and were vested with the authority of distributing lands among the villages. The system was changed after independence and the management of land is now vested on the village councils elected by the villagers after every three years. The jhumland is now distributed by the village councils.

The above note on the land ownership system in the hills shows that individual farmers do not own land. As such agricultural development and land management at individual initiative are by and large absent. Moreover, with the increasing pressure of population on land jhum cycle has become short on the one hand and individual families are allotted smaller plots of land on the other. Thus it is seen that the land tenure system in the hills has also hindered agricultural development . However , it be remembered that jhumming is not just a way of livelihood. it constitutes a way of life. Hence, agricultural development in the hills , including any change in land tenure system, must be done after an in depth study and with an integrated development planning so that the tribal social life is not adversely affected.

8. Low Crop Intensity : The crop intensity in North East India is one of the lowest in the country. It is found that the area sown more than once is only about 18% of the net sown area. A number of reasons such as absence of irrigational facilities, the habit of not herding cattle in the season when traditional paddy crops are not in the field , non use of manure and fertilizer, absence of the use of short -growing varieties of crops etc. contribute to a low crop intensity in the region Most of the paddy fields in the plains remain fallow for about 5 months of the year. The condition is still worse in hills with shifting cultivation. Although a number of crops are grown together like interculture in a jhum field, it remains almost fallow for one -third of the year. Besides after cultivating the plot for a year or two, it is kept fallow for a couple of years or more.

In order to raise crop intensity, irrigation must be provided, especially in winter. Besides some quick growing cash-crops should be introduced. The farmers should be motivated to grow multiple crops in the same plot of land by using manure and fertilizer. Besides, provisions should be made for grazing lands, so that cattle and goats are not allowed to graze freely.

9. Paucity of Agricultural Credit: Some amount of capital, either in cash or in kind - is always needed if agriculture is to be taken seriously. As seen earlier, the farmers of North East India are traditionally poverty, stricken. Very few of them can get agricultural credit at favorable terms in time.

This problem can be solved by providing agricultural credit on easy terms in proper time, so that the man behind the plough can cultivate his land without having to go to the money lender or middleman.

10. Problem of Marketing of Agricultural Products : The cultivators of the region do not get a fair return from their agricultural products. Due to poverty they cannot hold back the sale of their products for long. Often they are forced to take up distress sale to repay long or to meet family expenditure. Sometime again, due to absence of any good road and means of conveyance to markets, the producers sell their products at home or in the crop field itself at much lower price to the intermediaries.

These problems can be solved by providing marketing facilities to the growers. Improvement of roads and conveyance facilities and procurement by public sector agencies may go a long way in mitigating this problem. Introduction of growers, and sellers, cooperatives will also help solve these problem.

Although in general terms agriculture also includes livestock and fishery, in North East India raising of crops is by far the most important, while livestock and fishery tend to be marginal. This is quite evident from the land use pattern of the region. Out of the total geographical area of 25,509,000 hectares of the region .about 44% account for forests and 3,729,000 hectares of 14.6% is net sown area. Area devoted to grazing and fishery are insignificant.

Of the crops raised, food crops are by far most important in the region .It is found that the food crops occupy 76.21 percent of the total cropped area. Of the food crops again, rice, which forms the staple of the people of the region, is the most important and occupies about 68 % of the cropped area. Next to rice come pulses followed by maize. The following table shows the production of food crops in North East India

The table shows that Assam has highest production of food grains within the region ,distantly followed by Tripura and Arunachal Pradesh, Mizoram has the least production. A temporal analysis of the area devoted to food grains and their production and yield reveals that during the decade between 1980-81 and 1990-91, there has been some increase in each respect. While the area devoted to food crops increased by 7.7% from 3,427,000 ha to 3,713,900 ha, the total production increased by 21.64% from 3,826 thousand tonnes to 4,882.8 thousand tonnes and the average yield increased by 15.13% from 1,116 kg/ ha to 1315 kg/ ha. This shows that apart from growing food crops in some new areas, land used for more than one crop has also increased. On the other hand use of high yielding varieties of crops, fertilizer insecticide and irrigation has contributed to the increase of average yield and total production. It must, however, be admitted that the total food grain production in North East India is still far less than its requirement and hence the region has to important foodstuffs from other parts of the country.

Rice :Rice is the most important food crop of North East India. It is grown both in the hills . It is often said that the region, along with Southern China and South East Asia is the original homeland of rice. That rice is obvious from the fact that it not only forms the staple food for them but also many of their rituals and festivals are associated with sowing and harvesting of the crop. Festivals like Bihu of Assam, Wangala of Meghalaya, Thoubalchumba of Manipur, etc. are closely associated with rice cultivation and harvest.

Depending on the season of cultivation, the rice grown in North East India can be divided into three varieties: Aman or Sali, Aus or Ahu and Bao. The Aman rice is transplanted in summer from late May to early September in wet fields and harvested in the period from late November to early January. Of the three varieties, this is the most important from the view point of area cropped and out put. Aus or Ahu rice is broadcast in the months of March and April in dry fields and harvested in summer. This variety is grown either in very low-lying areas where Aman rice cannot be grown due to the presence of standing water in summer or on the comparatively high land where enough water does not accumulate even in summer for Aman rice. The Bao rice is essentially a variety of long stemmed rice that can withstand a long period of deep and stagnant water. Its seeds are broadcast in spring when the ground remains dry and is harvested in winter when the water that accumulate over the ground in summer has dried up. Besides these three varieties, another variety, known as Boro, is grown in the low-lying areas of North East India. It is transplanted in the months of December and January in the low-lying areas where water level goes down to a few centimeters by this season. It is a quick -growing variety and can be harvested in April and May before the water level rises.

Climatically and pedagogically. the river valleys of North East India are suitable for the production of rice. It being the most important staple is grown not only on the plains but on the hills In fact rice occupies more then two -thirds of the total land under cultivation in North East India. Of the four varieties of rice grown in the plains of the region, the Ahu or Aus or Autumn rice is broadcast in spring, while all the other three varieties, viz Sali or Aman, Boro and Bao are transplanted. Over the hills, however, varieties of upland rice is grown. Some of these , like Ahu in the plains, are broadcast in the jhum-fields, while others are grown on the terraced hill slopes or at the valley bottoms under wet conditions.

The yield of local varieties of rice has been found to be poor. Hence of late, new and hybrid varieties, such as IR-8, CH-63, Jaya, Ijong, Pusa and Pankaj, have been introduced into the region. The production of these varieties is high and they now occupy about 60 percent of the land devoted to rice in the region.

In Assam as much as 2.00 million hectares of land is given to rice. The state produces about 2.5 million metric tones of paddy grain with an average yield of 1,155 kg per hectare. All the districts of the Brahmaputra and Barak Valleys grow rice abundantly. It is only in North Cachar Hills and Karbi Anglong that rice is grown less because of terrain condition. It has been noticed that because of introduction of new high yielding varieties, the rice production in the state has shown an upward trend. In the year 1960-61 the state produced 1.63 million metric tones of rice. This rose to 2.5 million tones in 1980-81 and further to 3.3 million tones in 1990-91.

In Meghalaya rice is grown both on the hill slopes and occasional valley bottoms. In three western districts i.e. Garo Hills West, East and South, both spring rice and winter rice are grown. These districts have more denuded topography with fairly wide valley bottoms where wet rice (winter rice) cultivation is carried out. Over the hill slope spring rice is cultivated by broadcast in the jhum fields. The four eastern districts viz. West Khasi Hills, East Khasi hills, Ri Bhoi and Jayantia Hills Generally grow winter rice on limited valley bottoms and a small quantity of hill rice over the slopes in the jhum fields. In 1990-91 Meghalaya produced 119.8 thousand tones of rice over 103.7 thousand hectares of land.

State	Area Devoted (�000 ha)	Production (�000 tonnes)	Yield (kg/ha)
Arunachal Pradesh	121.8	142.5	1170
Assam	2,490.0	3270.2	1313
Manipur	157.4	274.2	1742
Meghalaya	103.7	119.8	1155
Mizoram	51.3	63.8	1244
Nagaland	127.4	156.3	1227
Tripura	274.0	501.3	1830
N.E.India	3,325.6	4528.1	1361
India	42,596.3	74,588.8	1751

In Arunachal Pradesh rice is grown mainly in the jhum fields. In the limited valley bottoms, however, wet rice is grown. In the Apatani Plateau around Ziro in Lower Subansiri district wet rice is grown by an ingenious method of irrigation. In recent years the farmers have been encouraged to construct terraces over hill slopes and grow wet rice in the Pradesh. This has some effect and Arunachal is growing more rice now. In 1990-91 it produced 121.8 thousand tones of rice over 142.5 thousand hectares of land.

In Nagaland rice occupies about two thirds (60,000 ha) of the total land (90,000 ha) under agriculture. Rice is mostly grown here in the jhum-fields. However, in the Angami inhabited areas of Kohima district rice is found to be grown over terraces with a traditional method of irrigation which is very much ingenious and effective. Apart from this the limited valley bottoms also produce wet rice in the state. The state government of Nagaland have of late encouraged the farmers to take to crop rotation and this has resulted in a remarkable change in the agricultural practices of the state. In 1990-91, Nagaland produced 127.4 thousand tones of rice over 156.3 thousand hectares of land.

In Manipur rice is grown mainly in the fertile Manipur Basin. Over the hill slopes, only a small quantity of rice is grown in the jhum fields . The Japanese method of rice cultivation was adopted in Manipur during the fourth five year plan period. The yield of this crop is, therefore high (1742 kg/ha) in this state compared to other regions of North East India. In 1990-91 Manipur produced 274.2 thousand of land.

In Mizoram rice is traditionally grown on the jhum fields. In recent period, however, the crop is seen to be grown over the newly created terraces on the hill slopes and the occasional valley bottoms. In 1990-91, the state produced 63.8 thousand tones of rice over 51.3 thousand hectares of land.

In Tripura rice is grown both on the and on the hill slopes. In the hills the crop is grown partly on the terraced beds and party in the jhum-fields. Aus, Aman and Boro varieties of rice are common in the plains. The state produced 50.13 thousand tones of rice over 270.6 thousand hectares of land in 1990-91.

With a rapid increase in the population the rice production has fallen short of the requirement in the region. Efforts have been made to increase the production of the crop mainly by using high-yielding varieties of paddy and by bringing more land it. The following table shows the trend of rice cultivation in the North East India since 1980-81.

The table shows that over a decade, the area devoted to rice increased by about 8% from 3.0 million hectares to 3.3 million hectares. The increase of production is, however, more i.e. by about more than 28%, from 3.5 million metric tonnes to 4.5 million metric tonnes. The yield has also marginally increased from 1150 kg/ha to 1,361 kg/ha. This reveals that the high -yielding varieties of rice have come to be used by the farmers.

The region produces some varieties of quality rice like Joha in Assam and Moirang Phou in Manipur. However, their production is limited.

Wheat: Wheat has recently been introduced to North East India. In fact, it is after the development of hardier hybrid varieties of wheat, that it came to be introduced in the last few decades. The crop is yet to be popular in Mizoram, Manipur and Nagaland. In other states of North-East India, it is carried out as a supplementary crop by some farmers over the higher grounds. Normally it is grown as a second crop on less productive land. The seeds are sown in October and November and the crop is harvested from January to March.

Following table shows the area under wheat and its production and yield state wise:

The table shows that compared to the all India production, the wheat production in the region is insignificant. It is found that only 1.78% of the total agricultural area of the region is given to wheat. Besides, there has not been any increase in the area devoted to this crop since (1980-81). The following table gives the trend of wheat cultivation in the region since the early eighties:

The table shows that although the area devoted to wheat has remained more or les the same, the use of high yielding varieties of seeds and application of irrigation and fertilizer to some extent, have improved yield.

In Assam wheat cultivation was started only in the early nineteen sixties .More of less of it is now grown in all the plains districts of Assam. As stated above, it is grown as a rabi crop between November and March. The varieties commonly grown in Assam are Sonalika, Kayan, Sona, Sofed and Lorma. The crop is grown over relatively high ground which is not generally used for traditional Aman or Sali rice .However, some amounts of water and fertilizer are supplied wherever and whenever it is possible to do so . At present Kamrup, Nalbari, Barpeta and Dhubri are the leading district in wheat production. The total production of the crop increased from 3,000 tonnes in 1960-61 to 11,700 tonnes in 1970-71 and further to 118,300 in 1980-81. The maximum production (154,800 tonnes )was recorded in 1984-85, but after that it showed a decline to 104800 tonnes in 1990-91.

One of the reasons as to why wheat cultivation has not picked up in Assam is that it has to be cultivated in the dry season. Neither rain falls during that period nor is there any provision for artificial irrigation. The yield of wheat in the state is, therefore, lamentably low. Moreover, there is not enough spare land for wheat cultivation. The land for it has to be tilled when the traditional rice crop is still standing in the field. Anyway, the wheat cultivation will prosper in Assam only on setting up of facilities for artificial irrigation.

In Arunachal Pradesh wheat is cultivated mainly in West Kameng, East Kameng and Luhit district over the gentle hill slopes. In 1990-91 the state produced 6700 tonnes of wheat over 3500 hectares.

In Meghalaya wheat is cultivated mainly in West Garo Hills, East Garo Hills and West Khasi Hills district. In 1990-91 the state produced 5900 tonnes of wheat over 4600 hectares.

In Tripura wheat is grown mainly in West Tripura District. In 1990-91 the state produced 6900 tonnes over 3700 hectares of land. Of all the North Eastern state Tripura has the highest yield of wheat.

Nagaland produces very little quantity of wheat. However, some Ao and Lotha farmers have taken to the cultivation of this crop in recent years. In 1990-91 the state produced 4950 tonnes of wheat over 4610 hectares.

Maize : Maize is an important crop of the hills of North East India . Although the area devoted to this crop is less, being 2.08% of the total agricultural land, its production is relatively high, especially in the hills. In the plains of Assam, Manipur and Tripura only small patches of land is given to this crops by the farmers in their kitchen gardens. Hence in these areas production of maize is negligible. Maize is generally grown as an Aman crop in North East India. It is sown in March to May and harvested in August and September.

It has been noticed that the area devoted, as also production of maize have been slightly increasing in the region. In the tear 1980-81, maize was grown over 92,500 hectares of land and the production in that year was 87400 metric tonnes. The corresponding figures for 1985-86 were 98200 hectares and 104300 tonnes. In 1990-91 the area devoted and production increased to 111700 hectares and 125000 tonnes respectively. It is noticed that yield also increased from 877 kg/ha in 1980-81 to 1122 kg/ha in 1990-91.

The following table shows the area devoted, production and yield of maize in 1990-91 state wise.

The above table shows that Arunachal Pradesh is the leading producer of maize in North East India. It is grown in almost all the thirteen districts of the state. Arunachal not only devotes a large area for this crop, but also its production is the highest in the region. Most of the crop in the state is grown in the jhum fields.

Nagaland is the second largest producer of this crop in the region. It is mainly grown in the northern parts of the state dominated by the Ao and Lotha farmers. New hybrid varieties of maize are being introduced to the state in recent period.

In Meghalaya maize is cultivated in the higher areas of the eastern, western and central plateau, mostly in jhum fields. West Khasi Hills District is the leading producer of maize in the state.

In Assam maize is produced mainly in the districts of Karbi Anglong and North Cachar in jhum fields. Besides, some Nepali and ex-tea garden residents of the plains also grow this crop. As the crop is not used as staple by the plain dwellers, it is not seriously grown by other farmers. Providing manure and fertilizer it can be gainfully grown as cash crop over the fallow land Assam produced 12,900 tonnes of maize over 12,100 hectares of land in 1990-91.

In Manipur the crop is grown mainly in Senapati and Ukhrul areas in the northern part if the state. In Mizoram a little quantity of maize is grown mainly in Aizawl district. Tripura�s maize production is negligible. However new high yielding varieties of the crop is being introduced to these three states also in recent period.

Millets : Some varieties of millets are grown in North East India in the hills. In fact, these from of the important crops grown by the tribal farmers in the jhum fields over the hill slopes. There are several varieties of millets including bull rush (Jowar ) and pearl millet (Bajra). The millets are used not only as staple but also brewed to prepare a variety of local intoxicating drink. Millets are grown in Meghalaya throughout the state. In Arunachal Pradesh pearl millet is grown in Tirap, Lohit, Dibang Valley, East Siang, West Siang and Lower Subansiri districts. In Nagaland it is grown in Mokokchung districts. Other states, however, do not produce millets. In 1990-91 the region produced only 35200 tonnes of millets over 43700 hectares of land. The yield of millets in North Eastern states is as low as 805 kg/ha.

Pulses : North East India grows some quantity of pulses, but the region is not self -sufficient in these. On the other hand, pulses are the second most important staple food after rice .Some amounts of pulses are grown in every state of the region, except in Arunachal Pradesh.

Pulses are grown as rabi crops. The seeds are grown in August, September and October and the crops are harvested in December and January. No irrigation seems to be practised in the fields growing pulses. The common varieties of pulses grown in the region are Tur or Arhar (pegion pea or small per or red gram), Urd (black gram) Matikalai (pulse), Magu (green gram) and gram (chick -pea or Bengal gram). Some amount of Arhar is also grown especially in the areas inhabited by tea garden labourers.

Tur is cultivated mainly in Assam , Meghalaya and Tripura. Assam is of course, the leading producer of it followed by Meghalaya and Tripura .In 1990-91 the region produced 62.000 tonnes of tur over about 77500 hectares of land. Gram or chick pea is cultivated in Assam, Manipur Meghalaya. In 1990-91, the region produced 2200 tonnes of gram over 4400 hectares of land.

Apart from the above varieties, some local varieties of pulses are also grown in the region. The region produces between 60,000 tonnes to 70,000 tonnes of the pulses taken together over about 130,000 hectares to 140,000 hectares of land. Of these, Assam alone produces 3/4 of the total production of the region.

Oilseeds : North East India grows several varieties of oilseeds , but the region is not self sufficient in edible oil. Of the oilseeds grown in the region, mustard and rape, sesamum, castor, linseed, and groundnut are the main. Of late the region has started cultivating soybean also on experimental basis . The area under oilseeds in the region is about 4.82% of the total cultivated area and total production comes to about 300,000 tonnes annually. Almost all the oilseeds except castor are grown as rabi crop over sandy land. In Assam the oilseeds, especially mustard and sesamum are grown over the silted flood plains during the dry season.

Mustard and rape are the common oilseeds grown in the region with a total production of 197400 tonnes in 1990-91 over 345700 hectare of land. The seeds are sown in September and October over fertile land and the crop is harvested in January and February . In Assam both mustard and rape are commonly grown on the flood plains of the Brahmaputra and its tributaries inhabited by immigrant farmers. In 1990-91 the state produced 157900 tonnes of mustard and rape seeds over 294933 hectares of land . In Arunachal mustard is grown in the districts of East Siang , Dibang Valley , Lohit and Tirap . The relatively plain and fertile foothills of there district provide suitable ground for the oil seed. In Meghalaya mustard is grown mainly in West East and South Garo Hills districts. In Tripura the crop is grown along the foothills. The production of oilseeds in other state of the region is negligible.

Sesamum may be called as a minor oilseed in North East India from the view point of its production, In 1990-91 the region produced 16100 tonnes of sesamum over 27,100 hectares of land , the yield being 594 kg/ha. The crop is grown in all the seven states of the region with Assam producing the largest quantity (7200 tonnes).

The production of other traditional oilseed is very much negligible in North East India . Only a small quantity of linseed is grown in Assam. especially in the Barak Valley . Small quantities of groundnut are grown in Nagaland and Tripura. Efforts have recently been made to grow his crop in the higher slopes of Manipur and Meghalaya. Castor is grown is some parts of Assam, mainly to use its leaves as a feed to Endi -silk worms. In doing so , some seeds are also obtained for oil. Many farms, government, grow castor plants.

Soybean, another source of oil, has recently been introduced on experimental basis in the north -eastern region. In 1990-91 the region produced 5,500 tonnes of soybean over 4.800 hectares of land. Assam, Arunachal Pradesh , Nagaland, Manipur and Meghalaya have started experimental production of this crop. It is said that Assam�s soil and climate are suitable for soybean. production of it has gained ground in Karbi Anglong, Marigaon and Barpeta districts of Assam. Cultivation of Sunflower has also been introduced in Assam in recent years.

The soil and climate of North East India are such that it can produce a variety of tropical cash crops. Of these Jute, sugarcane, mesta and cotton are traditionally grown in this region. Besides tea was introduced as a plantation crop in the middle of the last century by the British planters and has been under production as an industrial crop ever since In recent years some more cash crops have been introduced to the region . Of these ramie (a fibre crop ) coffee and rubber are the main. Since tea, coffee and rubber cultivations have been organised more in the industrial line than as traditional agriculture, these shall be discussed separately. The traditionally cultivated cash crops are discussed below

Jute : Jute is an important fibre crop grown in the low-lying plains under monsoon climate. The crop needs heavy rainfall and high temperature during the period of its growth. The seeds are sown on low-lying silted areas (when these are dry) in the months of March and April and the fibre is extracted, after cutting the trunks and retting then under water, in the months of September and October. The crop needs standing water in the field when the seedlings grow to a height of about half -a meter and above. That is why jute is normally grown in the flood plains of the Brahmaputra and Barak and their larger tributaries.

Although jute is a typical monsoon crop it was not earlier grown in North East India, except in the Barak Valley , When the British came to occupy the Brahmaputra Valley in 1826, they found extensive tracts of the flood plains of the Valley ideal. It should be noted that by that time the British industrialists started jute textiles mills both at Dundee in England and at Hooghly side near Calcutta. They did it on the basis of raw jute supplied by the then undivided Bengal. The British Government was interested in extending jute cultivation to low-lying wastelands supply to their mills and partly for increasing their land revenue collection. After a lot of assessments and proposals submitted by the British administrators of the Brahmaputra Valley, the then government agreed on a scheme of colonization of the Brahmaputra flood plains (charland ) by the landless peasants of the then East Bengal on June2, 1896. The peasant immigrants were allowed to settle in the charlands of undivided Goalpara, Kamrup , Nowgong, Darrang and Lakhimpur, Thousands of immigrants from East Bengal, especially from the districts of Mymansingh came in, settled in the charlands of the above district and started growing jute. After that jute cultivation spread to other suitable areas of North East India. The growth of the crop got a boast up after the partition of India in 1947. The partition took away the traditionally jute growing area of eastern Bengal to the then East Pakistan leaving the jute -mills in India with an inadequate supply of the raw material. The central and state governments made efforts to grow more jute. Subsequently with the growth of transport and communication and commercially of Assam, Tripura and Meghalaya,

North East India now produces about 1/8 of the total jute production of the country. In 1990-91 the region produced 940600 bales of jute over 103400 hectares of land. The latter constituted 3.02% of the total land under agriculture in the region. The following table give the state wise area devoted to the production and yield of jute in North East India.

Since jute is essentially a cash crop, its cultivation is sensitive to the demand and price in the market. Therefore, its production varies from year to following its demand in the national and international market. Of late the demand of raw jute has come down because of the production of synthetic fibre for making bags, carpets ropes etc. It is found that in 1980-86 the production rose to 1255400 bales over 139900 hectares. In 1990-91 the production of jute decreased to 940600 bales over 103400 hectares because of fall in demand in the market.

Assam is the most important producer of jute in North East India . About 81% of the total area devoted to jute in the region is in Assam. This crop contributes largely more attention as a jute growing state after partition. This state is now second most important jute growing in the country after West Bengal. Assam devotes between 80,000 hectares to 100,000 hectares of raw jute. Dhubri, Goalpara , Bongaigaon Barpeta , Nalbari, Kamrup, Darrang, Marigaon , and Nagaon are the districts where it is grown in large quantities. Besides these districts, each of Sonitpur , Lakhimpur and Karbi Anglong also produces some quantities of it. In case of all these districts, the crop is grown in the low-lying flood -plains near the river Brahmaputra and its large tributaries by immigrant settlers of erstwhile East Bengal. In the Barak Valley jute is grown to some extent in all the three districts on the flood plains of the Barak river.

In recent Years efforts have been made to improve the quality and augment the production of jute in Assam For this purpose , the following Development Blocks have been included under the �Special Jute Development Progress Programme�. These Blocks are :

In Meghalaya jute is produced in the foothill region of West and South Garo Hills districts. In 1990-91 the state produced 50,500 bales of jute over about 5,000 hectares of land.

In Tripura jute is cultivated in the low-lying areas of the plains. In 1990-91 the state produced 23,600 bales of jute over 2,700 hectares of land.

Nagaland produces about 8,000 bales of jute other states of North East India its production is negligible.

Mesta : Mesta is a minor fibre crop of North East India. Tripura, Assam Meghalaya and Nagaland produce this fibre in little quantities. Of these states Tripura is the lading producer followed by Assam. In 1990-91 Tripura produced 47,100 bales of mesta over 6,100 hectares of land. During the same year Assam produced 34,900 bales over 7,400 hectares In Assam all the districts except those of the Barak Valley produce some from quantity of it. The district wise highest production, however, come from Darrang and Sonitpur districts. It is noticed that mesta production has been gradually decreasing in Meghalaya. In 1990-91 the state produces 28,500 bales of the fibre. over 4,800 hectares of land. Nagaland produces very little quantity of mesta. In 1990-91 it hardly produced 1000 bales of the fibre. Thus it is found that in 1990-91 whole of North East India produced about 111,500 bales of mesta over 18,400 hectares of land. The yield of the fibre is highest in Tripura and lowest in Meghalaya.

Because of the abundance of cheap synthetic fibre and its products in the market , the importance of mesta, like other natural fibers, has been declining resulting in a decline of its production.

Ramie : Ramie is also a minor fiber crop of the region. Although it grows naturally in North East India it was not used widely in the past. It is said that ramie is the hardest of natural fibers and is known as "vegetable steel fibre� or vegetable silk fibre. This fibre is widely grown and used in South East Asia and East Asia, especially in Philippines, China and Japan. It is grown in U.S.A and Mexico also The fibre has world -wide market because it can be blended with synthetic fibers like polyester and with cotton to produce durable cloth.

In North East India this crop is beginning to be grown in Assam and Tripura. In Assam a ramie research station was first set up at sarbhog in Barpeta district under the jute Research Institute, Calcutta. The government of Assam has been encouraging the farmers to grow it in their fallow lands. Taking cue from the government some tea planters have started growing ramie over the fallow lands of their tea gardens. The Agriculture Department of the state has set up Ramie Board to advise the Department and the growers for better production of the crop. Besides, the Department has taken up the work of multiplying ramie rhizome at seven different stations of the state for supplying high yielding variety of it to the growers. At present Assam grows ramie over only about 1,000 hectares of land. The main problem faced by the ramie growers is lack of an assured market. Besides, lack of modern facility for degumming of the fibre is also there. Degumming is necessary to produce fine fibre out the bark of the plant.

Cotton: cotton is not an important fibre crop in North East India now-a-days. However, it used to be grown earlier for preparing cloth domestically. With coming of the British and opening up of all India trade and commerce, cotton yarn produced in western India became cheaply available , and cotton cultivation began to be abandoned largely, However some amount of cotton is still grown in the region for domestic use. In1990-91 the region produced 10,200 bales of production and area devoted in comparison to 1980-81 (11,100 bales and 16,600 ha ) and 1987-88 (13,100 bales and 13000 ha). With the markets being flooded by cotton and cheap synthetic textiles, the local production of the crop has gone down.

North East India ,with a very heavy average annual rainfall is not ideally suitable for good varieties of cotton. The type of cotton traditionally grown is short staple .The two hill districts o Assam. viz Karbi Anglong and North Cachar Hills and the three Garo district of Meghalaya have some favourable physical conditions for growing the crop. Some amount of it is also grown in the hills of Mizoram, Manipur and Arunachal Pradesh. The following table shows the production of and area given to cotton in 1990-91

Of all the North Eastern states Meghalaya is the most important in cotton production. Short staple cotton is grown in the Garo Hills districts of the state. These districts have light loamy soil on gentle slopes. Besides the climate here is warm, humid and frost free. These physical conditions have helped the growth of short staple cotton in Garo hills traditionally. In 1990-91 Meghalaya produced 5400 bales of cotton on 7,400 hectares of land. This is a slight improvement over 1980-81 when cotton production was 4200 bales and area devoted was 6,900 hectares.

Assam is the second important producer of cotton in North East India. The two hill districts of Karbi Anglong and North Cachar Hills produce the bulk of the state�s cotton. As in Meghalaya in Assam also the traditional variety is short staple. However, efforts have been made to grow medium staple cotton at Kherani Cotton Farm in Hamren sub-division of Karbi Anglong. It is said that since Karbi Anglong and North Cachar Hills climate is favourable for cotton. the crop may be grown more extensively. These districts now grow about 1,000 bales of cotton over 2,200 hectares of land. It is however, noticed that production of cotton in the state has not significantly increased since 1970-71.

In Tripura short staple cotton is grown in the slopes of the hillock. But in the face of availability of cheap textiles in the market , the cotton production has been decreasing in the state. In 1990-91 the state produced only 1.000 bales of cotton over 1,000 hectares of land.

A limited quantity of cotton is grown in Mizoram over the hill slopes in the jhum fields. In 1990-91 the state produced 2,400 bales of over 900 hectares of land.

In Arunachal Pradesh cotton is cultivated in the frost free hill slopes in the southern lower region. Its production is highest in Lower Subansiri district. The total production of cotton in the state has been increasing slowly. In 1990-91 it produced 300 bales over 400 hectares of land.

Manipur and Nagaland produce only small quantities of cotton. Manipur produced 300 bales of it over 400 hectares in 1990-91. In Nagaland cotton is produced mainly in the Ao and Lotha inhabited areas. The state�s production in1990-91 was 100 bales over 100 hectares of land.

Sugar cane : Sugar came is a traditional crop of North East India. It is grown in relatively high and fertile flat or rolling ground. Very heavy rainfall and flooding often limits its growth. However, the crop is grown over 44.000 hectares of land in the region. This accounts for 1.19 percent of agricultural land of North East India. The crop is grown in the region as a source of gur and molasses for domestic use.

Compared to the other states of the region, Assam has favourable physical condition for sugar cane cultivation. Assam is followed by Nagaland where some amount of sugar cane is grown in the plains around Dimapur. Tripura and Manipur also grow small quantities of sugar came While Meghalaya and Mizoram grow insignificant quantities of it, Arunachal Pradesh is yet to cultivate it. The following table shows the state wise production, area devoted and yield of sugarcane in 1990-91

In Assam sugar cane is produced in the districts of Golaghat, Jorhat, Sibsagar, Nagaon, Kamrup, Nalbari and Barpeta. The plains of the Brahmaputra Valley surrounding the Karbi Plateau produce good harvests of sugar cane. On the basis of local production there came up one co -operative sugar mill of 800 tonnes capacity at Baruabamun Gaon (near Dergaon ) in Golaghat district and another near Kampur in Nagaon district. Both the mills have, however, now turned out to be sick because of irregular supply of cane . It is further found that area under sugar cane and its production have not significantly changed in the last few decade. For example, in 1966-67, the area given to it and production were 31,000 ha and 13,47,000 tonnes, while in 1991-92 the corresponding figure were 36000 ha and 15,22,000 tonnes. The reason for this backwardness are firstly , use of archaic methods of fertilizer.

Nagaland comes next to Assam in sugar cane produced in the region , In 1990-91 the state produced 129,000 tonnes of sugar cane over 3800 hectares of land in the Dimapur lowlands in Kohima district. In fact, there came up a khandsari sugar mill along with a brewery near Dimapur on the basis of this of this production. The Khandsari mill now has stopped production due to unreliable supply of raw sugar cane.

In Tripura sugar cane is grown on the foothill plains. The state produced 91,000 tonnes of cane over 1900 hectares of land in 1990-91. The entire production of the crop is pressed for processing gur (molasses) for domestic use.

Manipur produced 60, 700 tonnes of cane over 1,900 hectares of land in 1990-91. The state entire production comes from the plains districts and is used for gur production.

In Meghalaya sugar cane is mostly produced in the three Garo hills districts where there are enough of rolling ground. In 1990-91 the state produced 2,200 tonnes of cane over 100 hectares of land. It is found that both area under the crop and its production have been declining in the state in recent years.

As Mizoram does not have enough of plain land except in Chimtuipuri district, the crop is grown in a very little quantity. In 1990-91 the state produced only 1,800 tonnes of cane over 500 hectares of land.

Arunachal Pradesh has recently introduced sugar cane production in its foothill slopes and plains.

Rubber : The climate and soils of North East India are more or less suitable for rubber (Ficus Indica ) plant. Its Long season of rainfall from April to late September and fertile hill slope provide somewhat favourable condition for rubber tree. In fact, many rubber trees used to grow earlier wild in this region. Assam used to export rubber between 1896-97 and 1900-01 at the rate of 140 to 150 tonnes annually. In the face of competition from cheap rubber imported from Malaysia and Brazil, its production went down. However, from 1957.The Department of Soil Conservation, Govt. Of Assam started planting rubber plants in small patches on experimental basis. It was realised that Assam, and for that matter whole of North East India , have many areas depleted by jhum cultivation . Having been bare of effective vegetal cover, these abandoned jhum fields suffered from soil depletion. The Soil Conservation Department Corporation started planting rubber seedlings on commercial basis in 1976. The Rubber Board of India assessed that about 100,000 hectares of land in North East India can be used profitably for growing rubber. North East India now has more than1,200 tonnes of rubber annually. Following tables shows the area under rubber trees and production in North East I

Of all the states of North East India , Tripura is at the forefront in rubber production. The plantation of rubber was introduced in this state in 1963. Tripura has ideal climate for rubber. It now produces more than 1000 tonnes of rubber annually over more than 17000 hectares of land..

Assam comes next an area 9880 hectares and annual production of 110 tonnes. In Assam the private sector has also come forward to grown rubber in small plantation. There are at present 15 important rubber plantation in Assam. Of these, (1) Burhapahar, (2) Rangagara, (3) Dolamara, (4) Bargaon, (5) Baithalangsu , (6) Henegeri and (7) Ouguri are in Karbi Anglong district (8) Belchara, (9) Madura, (10) Delai and (11) Kahara are in North Cachar Hills district, (12) Chandrapur and (13) Tapatai (Nursery)are in Kamrup district (14) Udalguri is in Darrang district and (15) Kakilabari (Nursery) is in Barpeta district. The Rubber Board of India wants to expand rubber plantation un Assam to 23,000 hectares. Looking at the growing demand of natural rubber in the India market (which is likely to be half-a million tonnes in 2000 A.D, the rubber plantation has bright future in the region.

Meghalaya has under over 3,880 hectares of land and produces 40 tonnes annually. The three Garo Hills district, E. Khasi Hills and Jayantia Hills support the rubber plantations.

Rubber plantation has been very recently introduced to Nagaland. Its plantations are located in North western foothills bordering Assam. The state has 1395 hectares of land under rubber. As the rubber saplings are still very young, latex production has not started as yet.

In Manipur rubber plantation was started in 1987 at Jiribam in the western foothills of the state bordering Cachar. The state has 1215 hectares of land under rubber and produced 10 tonnes of latex annually.

Rubber plantation was started in Mizoram in 1972. It is stated that there is 20,000 hectares of depleted land abandoned by jhum -cultivation which can be profitably used for rubber cultivation. In 1990-91 the state had 1100 hectares of land under rubber, producing 4 tonnes of rubber.

In Arunachal Pradesh rubber plantation has been introduced very recently. An experimental farm has been started at Bardumsa. The state now has 50 hectares of land under rubber and produces 10 tonnes annually.

Coffee : In some hill slopes of North East India the climate and soil have been found to be suitable for coffee. It is recorded that two French entrepreneurs started the cultivation of coffee in the foothills of Cachar as back as in early eighteen -fifties. They could not sustain their efforts because of lack of capital. Subsequently, about a hundred years later coffee was reintroduced in Assam in 1954. On a scientific research it has been found that those gentle hill slopes of North East India which do not rise beyond 2000 metres , which have an average annual rainfall of about 130 cm and which have previous sandy or brown clay soils are suitable for coffee production. On the basis of this study it is said that the region has about 44,000 hectares of such suitable land.

Experimental plantation of coffee extended from Assam to other states of the region during the fifth and sixth five year plan periods One. of the aims of extending coffee cultivation in the region is to use the depleted abandoned jhum fields. Even the individual jhum cultivators were encouraged to grow some plants in their small jhumfields. Considering the potentiality of coffee cultivation , each of Assam, Nagaland, Manipur , Tripura and Arunachal Pradesh governments formed their state Coffee Corporations for commercial growth of the crop. Besides, the state governments of Mizoram and Meghalaya entrusted their soil Conservation Departments to get coffee grown wherever possible within their respective territories. With the slow expansion of coffee cultivation in the region, a dry depot to store coffee seeds was constructed by the Indian Coffee Board at Guwahati. Besides, a coffee processing unit has also been started at lakhra, near Guwahati with the financial help of the North Eastern Council. A Coffee Research Centre has also been established at Diphu.

Nagaland is now at the forefront of coffee production with 2177 hectares of land under this crop. More than 1000 families of Nagaland pursuing jhum cultivation earlier have now been engaged in coffee cultivation. The coffee gardens of this state are located in the foothills of Mokokchung, Wokha and Kohima districts. The yield of coffee in Nagaland is one of the highest in North East India.

Assam follows Nagaland in coffee production in the region. Most of the coffee gardens of Assam are located in Karbi Anglong and North Cachar Hills districts, especially in their lower foothills. The important gardens of Karbi Anglong are (1) Harmati, (2) Upper Deopani, (3) Chutia Nala, (4) Hamren and (5) Bargaon. The main gardens of North Cachar Hills are (1) Mahur, (2) Lasong, (3) Gunjang and (4) Asalu. Gunjang is the largest coffee garden in Assam. The average yield of the coffee per hectare in Assam is about 1000 kg. The state now has 1438 hectares of land under coffee and produced 115 tones of coffee in 1990-91.

Mizoram now has 783 hectares of land under coffee. In the state there are now 80 families cultivating coffee over 108 hectares of land. Besides, the Soil Conservation Department also gets coffee grown through farmers over more than 600 hectares of land.

Tripura grows coffee in the lower hills slopes in the West and North Tripura districts. The state has 726 hectares of land under coffee and the area has been expanding slowly every year.

Meghalaya grows coffee in the lower hills slopes of Garo Hills and Jayantia Hills district. The total area under the crop is 717 hectares.

In Arunachal Pradesh most of the coffee plantations are located in the lower foothills of Tirap and Changlang districts. Namdang and Deomali areas of this region now have several coffee plantations, The total area under coffee in the state was 710 hectares in 1990-91.

Manipur has started coffee plantation in the lower foothills surrounding the Manipur Basin. The total area under the crop was 328 hectares in 1990-91.

Tea : Tea plants (camellia thea) used to grow naturally in the upper Brahmaputra Valley and its adjoining Arunachal foothills. In fact, Robert Bruce, an official of the British empire, who is credited with the discovery of tea in Assam in 1823, only saw the Singphos drinking tea and gave publicity of the existence of the plant, the leaves of which were boiled to prepare the drink. The drink was locally known as Fanap or Finap. The East India Company, after having annexed Assam, seriously looked for the plant and then Governor General formed a Tea Committee on January 24,1834 to examine the possibility of commercial cultivation could be proved beyond doubt and in 1838, the potentiality British entrepreneur a tea garden near Chabua in the present Dibrugarh district. In 1840 a group of British planters formed Assam Company at Nazira for commercial plantation of tea in a large scale. At the initial stage, the companies faced with in the labour shortage as However, that problem was overcome by bringing in labourers from Chotanagpur and its surrounding region. By 1852 tea plantation was started also in Surma Valley and a few years later it was extended to Tripura.

North East India has favorable physical conditions for tea. This plant needs a high annual temperature of more than 25⁰C and a high average annual rainfall of 150 cm-250 cm. Besides, the should be gently sloping for water to run away quickly. The soil should be acidic. Further, the winter drought should not North East India and the slightly undulating grounds of the upper Brahmaputra plain, Barak Plain and Tripura Plain. It is, therefore, found that North East India produces more than 2/3 of the total tea production of India. In fact, Assam alone produces more than 20% of the world�s tea.

Of all the states in India, Assam produces the largest quantity of tea and has the largest area under this crop. In 1990-91, the state had 856 tea gardens spread over 229,248 hectares of land and produced 380 million kg of tea with an average yield of 1655 kg/ha. In Assam tea is grown both in the Brahmaputra Plain tea gardens are located mainly in foothills regions, higher areas occupied by old alluvium and over the relatively higher undulating plains not inundated by floods. Tinsukia, Dibrugarh, Sibsagar, Jorhat, Golaghat, Nagaon and Sonitpur are the districts where tea gardens are frequently found. Besides, Darrang, Lakhimpur, Kamrup and Kokrajhar districts also have some tea gardens. In Barak valley tea gardens are located along the foothills and on the isolated hillocks (tillas) scattered in the plain. The following table shows the distribution of tea gardens, area under them and their production.

The table shows that Assam had in 1989 altogether 856 tea gardens. A few of these are 589 tea do not have tea processing factory gardens. Assam had 229,428 hectares of land under tea in 1990-91 This accounted for about 8 percent of total agricultural land in the state Compared to India as a whole, Assam with 230,000 ha of land accounted for 54.7% of the total land under tea (420,000 ha) in the county. It is found that the area under tea in Assam has been slowly increasing. The following table shows the growth of tea industry in Assam since 1961.

The table shows that the number of tea gardens, number of factories, area occupied, production and yield have been increasing since 1961. This development has been possible because more scientific growth of tea, use of fertilizer, opening up of new gardens and expansion of old ones and about all, increasing demand of the beverage in the national and international market. Today Assam has about 12,000 small tea growers. They are cultivating tea on a total area of 37,700 hectares and producing about 13 million kgs. tea annually. Apart from themselves (12000 tea growers ) they are providing, employment to nearly one lakh labourers and 3000 clerical staff.

Generally since the early black tea is produced in Assam But since 1980 green tea is also being produced. In 1982 the production of green tea was 1270 tonnes (0.4 p.c. of total tea production ).

Instant tea project has been established at the tea research centre of Toklai Experimental station in 1974. Instant tea is a golden coloured powder which dissolves in hot or cold water very easily. Tea leave is the main raw material for instant tea.

Tripura comes next to Assam in production of tea with 58 tea gardens, spreading over 6.5 thousand hectares of land. In 1989 there were 8,945 persons employed in tea plantations, which produced about 5.2.million kg of it annually. The tea produced in Tripura is of good quality. Yet the trend of growth of the industry has not been encouraging. This is because the state suffers from transport bottleneck and labour climate, topography (with low gently sloping hills ) and soil shall be able to prosper in tea plantation.

Since tea plants were first found in the foothills of Lohit district of Arunachal, the state, especially its eastern foothills are ideally suitable for the crop. Experimental tea plantation was started of Ingkiang Sub-Division of East Siang district have also started tea plantation over about 1000 hectares of land in small family gardens. A large tea garden at Oyang near Pasighat with 600 hectares of land has already come up. This garden is trying to grow Darjeeling variety of tea also. The state has taken up an ambitious plan to grow tea at the cost of Rs. 6.4 crores and it is likely that the state will soon find place in the tea map of India.

Mizoram has been growing on indigenous variety of tea for domestic use since long. In fact, it is found that as many as 2,098 families grow tea on their small orchard gardens over 1,000 hectares of land for their domestic use after an indigenous method of processing. The Soil Conservation Department of the State has of late concentrating on growing tea. A tea garden has come up at Maidun in the northern foothills of the state bordering Cachar. There are suitable location at Jabek near Lunglei for tea cultivation.

The climate and soils of Meghalaya have been found to be suitable for tea cultivation. In fact, a few small experiment plantations were started in the state about a decade ago. It is found that the tea grown in such experimental gardens at Umsning, Rariyangdo and Tobrunggiri is of excellent quality and its yield is also encouraging. Based on these two nurseries have been started, one each at Umsning in East Khasi Hills and Ronggram in West Garo Hills. A tea processing factory has also been installed at Barapani and another at Ronggram.

Nagaland Government have also been planning to start tea cultivation in the state and their negotiation with the Tea Board of India is in progress. Manipur has little organized tea plantation.

Labour : When tea plantation was first started in the eighteen thirties, the British plantation tried to engage local people refused to work. Hence the planters looked for other source. They started bringing in Santal, Orao, Munda, etc. tribal people from Chotanagpur Plateau and its surrounding region From about 1850 to about 1940 thousands of labourers came in from this region, especially from Ranchi, Hazaribagh, Chaibasa, Santal, Pargana ,purulia, Jagadalpur, Sambalpur, Raipur, Bastar, Talengana, etc. areas of Bihar, West Bengal, Orissa, Madhya Pradesh and Andhra Pradesh. In the Barak Valley tea gardens there are labourers from north Bihar and eastern Uttar Pradesh also. These labourers and their descendents have contributed heavily to the population make-up of North East India, especially, Assam.

As tea is very important industrial crop, enough attention has to be paid for the cultivation, processing and marketing. In fact, research for the development of tea industry was started as back as in 1900. In 1911 a tea research centre was started at Toklai in Jorhat for developing more scientific and fruitful methods of cultivating tea plants, applying fertilizer, testing soil, selecting sites for garden and processing tea leaves, Many welfare schemes have also been taken up for the benefit of the labourers, For a better marketing of the tea produced in North East India a tea auction centres was established in 1970 in Guwahati. This center has become one of the most important tea auction centers in the world. It now auctions more than 150 million kg of tea valued at more than Rs. 550.00 crores annually. The government of Assam has come forward to help the financially sick tea gardens with its Assam Tea Corporation.

Contribution to Economy : Tea industry has contributed substantially to the economy of the region, especially Assam. About 17 percent of the workers of Assam are engaged in tea industry. Tea has brought in valuable foreign exchange to cater the demand of the tea gardens. Many machine shop, cardboard industries, tin -plate and aluminum foil processing workshops have also come up to meet the demand of the gardens. Many roads have also been built up in the areas of tea plantations to link the gardens with commercial places and transport termini. Besides, many commercial centres like Doom Domma, Tinsukia, Nazira, Dergaon, Biswanath Chariali, Dhekiajuli, Tongla, etc. have come up as tea towns or service centres to the benefit of all.

Potato : Potato is indigenous to South America. The Spaniards and the Portuguese who had occupied that continent in the 16th and 17th centuries, found the Red Indians of South America using it as food. They subsequently introduced it in Europe. It is said that the Portuguese traders introduced potato in India, However, Captain David Scott , an Agent of the Governor General introduced potato in 1830 in North East India and got it cultivated at Nongkhlaw in Khasi Hills at an altitude of 1000 m. It grew well and its cultivation quickly spread to other parts of Meghalaya Plateau and rest of North East India. The growth of potato in Meghalaya was so good that by 1881-82 Khasi Hills along could export 4700 tones of it.

Potato grows well on fertile sandy soil . It needs only occasional rainfall during the period of its growth. It is therefore, grown in North East India between October and February. While in the hills it is grown on red sandy soil with enough of humus, in the plains silted flood plains support rich crops of potato.

North East India grew 6.6 lakh tonnes of potato over 89,800 hectares of land in 1990-91 .Following table shows the production of and area devoted to potato in North East India.

The production of potato in North East India has been increasing although the region is not at all self -sufficient. In 1980-81 the region produced 424,300 tonnes of potato over 65,800 ha of land. These slightly increased to 544,800 ha in 1990-91.

Assam produces the highest quantity of potato in North East India. In 1990-91, the state produced 427,600 tonnes of potato of potato over 59,100 ha of land. The production of this crop has been increasing in recent tears. In 1970-71 the state produced 110,700 tonnes of potato over 24,500 ha of land. In 1980-81 the corresponding figures rose to 223,400 tonnes and 38,200 ha. These increased further in 1990-91 to the above mentioned figures. Potato is grown in Assam mainly on the silted fertile flood plains with sandy soil. The districts of Dhubri, Goalpara, Bongaigaon, Barpeta, Kamrup, Darrang Marigaon and Nagaon produce the bulk of the potato of the state,. As stated earlier, potato is a rabi crop grown in winter. But in the hills of Karbi Anglong and North Cachar summer variety of potato is also grown. It should be noted that the potato grown in the state falls far short of requirement. Hence Assam has to bring in several crores rupees worth of potato every year.

Next to Assam comes Meghalaya in potato production. It is an important crop of the West Khasi Hills, East Khasi Hills, Ri bhoi and Jayantia districts of the state. The crop is grown on the gentle hill slopes. In West Khasi Hills districts along as much as 82,000 tonnes of potato in grown over 10, 203 ha of land. But it is noticed that the production of potato has slightly decreased in the state during the last decade.

In 1980 -81 Meghalaya produced 121,00 tonnes of potato over 17,300 ha. of land. The corresponding figures rose slightly to 149,400 tonnes and 19000 ha in 1985-86, but came down to 109900 tonnes and 175,00 ha in 1000 -91. It is said that various types of blight and insects have adversely affected the crop in recent years.

Tripura is the third important producer of potato in North -East India. The lower slopes of its hillocks having sandy loamy soil produces good crops of potato. Its production has been increasing from 35,500 tonnes over 2,434 ha in 1980-81. In 1990-91 the corresponding figures rose to 60,300 tonnes and 3,300 hectares

Manipur produced 21,900 tonnes of potato over 3,600 ha of land in 1990-91. Most of its potato is grown in the flat Manipur Basin, while the hill areas grow mainly sweet potato in the jhum fields.

Nagaland has many areas with red sandy loam that are suitable for potato production. Hence there has been an increasing trend in potato production in the state. In 1990-91 Nagaland produced about 12,000 tonnes of it over 1,200 ha of land.

Arunachal Pradesh produces potato on the gentle slopes of the lower hills bordering the Brahmaputra Valley. The production of the crop here also has been increasing in recent years. In 1990-91 the state produced 31,200 tonnes of it over 4.800 ha of land.

Banana : Banana is an important fruit of North East India. It is grown as a orchard crop in the compound of almost every homestead in the plains and foothills. There are many varieties of banana in the region. Assam , Meghalaya, Tripura and Manipur produce abundant banana . However, Assam is by far the most important producer of it. Although almost all the plains district of the state produce banana, Goalpara and Kamrup district are leading producers of good varieties of Banana. The area west of Chhaygaon in the south bank of Kamrup district up to Agia of Goalpara district and the adjoining Garo foothills is traditionally famous for a variety of banana called �malbhog� which is highly priced. In fact, Dhupdhara and Daranggiri are very important centres of banana collection and distribution. Everyday scores of truckloads of banana move out from these two centres to different parts of Assam, North West Bengal, eastern Bihar and Nepal. In 1990-91 Assam produced 444,000 tonnes of banana and the whole of North East India produced 552,960 tonnes (including Assam).

Areca Nut : North East India is famous for areca nut. Almost each family in the rural areas grows areca nut plants in the homestead Areca nut with betel leaf is not only universally chewed by the indigenous people of North East India, these are together used in many social and ritual occasions also by the communities of all castes and creeds. North East also has a tradition of growing areca nut plants and betel creepers together by allowing the betel vines creep on the areca nut tree. The most important producer of areca nut in North East India is Assam, followed by Meghalaya, Tripura , Manipur and Mizoram. In 1990-91, the region produced 78, 100 tonnes of areca nut.

Tobacco : Although tobacco is traditionally grown in North East India, it is done so in very small quantity by the farmers for domestic use. Smoking and chewing tobacco is a common habit of the people of this region and these two varieties , i.e. smoking tobacco and chewing tobacco, are grown both in the hills and plains. However its production has been on the decline . In 1978-79 total production of tobacco was 5,000 tonnes and area devoted was 7,900 hectares. The corresponding figures were 4,200 tonnes and 6,800 ha in 1985-86 and 3,000 tonnes and 4, 700 ha in 1990-91. The following table shows the production of and area devoted to tobacco in the region.

Assam produces the largest quantity of tobacco in North East India. In 1990-91 it produced 1400 tonnes on 2,600 hectares of land. Dhubri, Goalpara, Kokrajhar, Bongaigaon, Barpeta, Nalbari and Kamrup districts produce tobacco, especially the smoking variety, on the fertile riverine flats. In the eastern part of the Brahmaputra Valley chewing tobacco is grown by some farmers. The Phulaguri area south of Nagaon town was once famous for the flavour and taste of chewing tobacco. Similarly, Namati Mauza near Tihu was also once famous for this variety of the crop. The two hill districts of Assam also grow some quantity of the tobacco However, the production of this crop has been declining in the state In 1966-67 Assam produced 8,000 tonnes of tobacco on 10,000 ha land As shown above, the present production is one -sixth of that year.

Meghalaya was also an important producer of tobacco in the past. The Garo Hills districts were famous for the crop. But in 1990-91, the state produced only 500 tonnes of tobacco on 700 ha of land.

Mizoram (700 tonnes and 800 ha), Tripura (300 tonnes and 700 ha) and Arunachal Pradesh (100 tonnes and 100 ha ) also produce some quantities of tobacco. However, with the easy availability of cheap ready made cigarettes, the production has been declining everywhere in the region.

Plants and animals sustain human life. Ever since man appeared on the surface of the earth, he has been living mainly by exploiting the plant and animal resources both directly and indirectly. Direct dependence on plant animal resources is the mainstay of economy. Rearing animals along with cultivating small patches of land has, therefore, become an important activity of the farmer of this region.

Of animals reared in North East India cow, buffalo, goat pig and poultry are the main. Besides, sheep and horse are also reared, though to a lesser extent. In some hill areas especially in Arunachal Pradesh, bison, mule and yak are also reared in small numbers. Cow is traditionally the most important draught animal in North East India. Oxen are almost invariably used to draw plough and cart in the plains while the female ones give milk. On the other hand, cow dung is the only traditional source of manure in the region for crops, especially orchard and vegetable crops. Next in importance as draught animal comes buffalo, which is used to till the low-lying muddy land in the plains. Female ones supply a very good quality of milk in large quantities. Buffalo and oxen are also used to draw carts way to slaughter houses for local consumption. Pig is commonly reared by almost all the tribes both in the plains and hills This animal is raised party for sale and partly for sacrifice in the religious and social occasions, are ultimately used for human consumption. Horse is kept as a draft animal mainly in the urban and suburban areas both in the hills and plains. In Manipur, however, there is a local variety of sturdy horse which is used for games and as a means of transport. Sheep is not an indigenous animal of North East India. It has , of late, been introduced to the region , especially, to its hill areas in Meghalaya, Nagaland and Arunachal Pradesh. Among the poultry, while duck is reared by every rural family in low-lying areas, hen is traditionally raised everywhere by rural folk except those Hindu belonging to some castes.

These animals are kept in small numbers by the rural families with little capital investment. A family may have 6 to 10 cows (both male and female), 3-8 goats, 20-25 birds. It is only some families in low-lying areas that each keep a few buffaloes for draught. Large flocks of buffaloes used to be kept earlier for milk in the grassland areas, especially by the Nepali grazers. This practice has been abandoned as the grasslands have disappeared by and large. The number of pigs, reared by those families who raise it., is also small, ranging between 4 and 12 heads, on the average.

The following table gives a general idea about the distribution and number of seven important domestic animals of the region :

Although North East India has a large population of domestic animals, their quality, except that of buffalo, is not good. The indigenous cow is small, weak and often sickly. The female ones give but a little quantity of milk (often about half a liter). The goats are small and emaciated Pigs are also sickly. The local varieties of hen and duck are small and each female gives hardly a score of eggs. The hot and humid climate of the region provides breeding ground for many types of germs, viruses and insects which attack these domestic animals and make them sickly. Secondly, enough feed and fodder are never supplied to them by those who rear them. Thirdly, whatever grass and feed are available naturally, are not nutritive because these are deficient in mineral salt, calcium and phosphorus. Fourthly, while in the dry season there is deficiency in grass in the rainy season either the grazing lands are inundated or the animals often cannot move out for grazing due to incessant rain.

Nothing much was done for the development of animal resource in the region in the past. In 1897-98 , an effort was made for the first time to develop hybrid cow by setting up a breeding farm at Upper Shillong. In 1910 some bulls of Siri Breed were brought into Assam to develop hybrid cow. Subsequent to that Tailor Breed, Sindhi, Haryana, Holstein, Friesian etc. various types of better stronger and larger varieties of cow were introduced into the region. But the climate prevalent and the fodder naturally available were not found suitable for the exotic varieties. It turned out to be an expensive proposition to maintain such cows.

However with the increasing demand of milk products on the one hand and efforts made by the State and Central Governments and North Eastern Council on the other , there has been somewhat significant development in animal husbandry. especially in dairying Two Intensive Animal Husbandry Schemes were taken up in 1986- one at Dimow in Sibsagar District and the other at Khanapara (Guwahati)- for artificial insemination , so that hybrid cows resistant to local environmental conditions and yet with better productive capacity, could be developed. Under these two main centres there came up seven regional centres at Sibsagar, Jorhat, Bokakhat, Jagiroad, Guwahati ,Nalbari and Barpeta Road . Subsequently , more Jersey bulls began to be brought in and several other cattle farms were established in the region for artificial insemination. The North Eastern Council has set up five cattle breeding centres in the region from producing hybrid and bulls.

Various schemes have also been taken up develop piggery, sheep farm and poultry by the state governments and autonomous bodies of the region .

From the view point of sheer number of various domestic animals Assam is most important among the state of North East India. In 1988, the state had about 7.3 million cows , 0.62 million buffaloes, 2.1 million goats, 0.64 million poultry, besides 67310 sheep and 13492 horses. However , all the animals are small weak and less productive, Hence hybrid varieties of cattle has to be developed which can adapt to local conditions and become more productive. It is said that by 1985 as many as 56 lakhs of hybrid cow has been bred. The state has now taken up Extensive Cattle Development Projects . One such project is located at Chandkuchi in Nalbari districts. Such a project breeds hybrid cows through artificial insemination and also produce nutritive grass. Another scheme taken up by the state is Indo-Australian Cattle Breeding Scheme . This scheme supplies bulls of more productive variety, some machinery for artificial insemination and seeds of nutritive varieties of grass.

There are a few buffalo development centres also in Assam. Such centres were started at Brahmaputra (Nagaon), Silanijan and Gahpur The Gahpur farm was started with the help of the World Bank.

Assam has more than half -a - million pigs. This animal is reared with least care and in primitive manner. But there is a great demand for pig and its meat in North East India . As this animal is traditionally raised by the tribal communities , the number of pig is more in Kokrajhar Karbi Anglong. North Cachar and Dhemaji districts. Efforts have been made in recent years to raise pig in modern methods. With this end in view, some model pig farms have been started. One such farm is located at Khanapara and the other at Diphu. More productive and larger varieties of pigs, such as Hampshire, large White Yorkshire, Middle White Yorkshire etc. have been brought to Assam to produce hybrid pig. Hybridization centres have been started at Mangaldai and Marigaon. Besides ,a National Piggery project has been taken up at Joyhing in Lakhimpur district.

Although Assam has more than two million goats and although the animal has great demand in the local markets (which is the major source of meat),it is raised in a very primitive way. No feed or fodder is provided to it . The goat is left to itself to find out its food. But with the increasing pressure of population there is hardly any grazing left. The animal has to, therefore, remain underfed.

Efforts have been made in recent years to feed and fodder for animals in the state. A fodder production unit at Sangsari and grass production farm at Bamundi in Kamrup district have been started. These not only supply their products to the farmers, but also act as model units.

Assam has more than 11 million hens and ducks. Like other animals, poultry is also raised in a primitive manner. Although the birds are raised party for domestic supply of meat and eggs and partly for sale, no capital is invested on them. Assam has very favourable physical environment for poultry ,especially duck. The state has many large and small water bodies with many small plants and animals which form good feed for duck. Besides, the demand for egg has been increasing every year . In spite of these situations poultry has not come up in Assam to the required level. It is found that local varieties of birds have lesser number of egg which are also small in size. Efforts have therefore, been made to introduce more productive and larger varieties of white leghorn, Khaki Cambel, Cambel and Rhode Island ducks and broilers (chicken). In each of Goalpara and Kamrup districts, 3000 families have been helped with necessary materials -cash and kind -to raise poultry farms scientifically. Besides, centres have been started at Kaliabar, Khanapara, Hajo, Jorhat, Sibsagar, Tezpur, Dibrugarh and Silchar to develop better breed of ducklings and chicks for sale among the poultry farmers. Assam needs yearly about 500 million eggs. If these efforts come into fruition, a substantial part of the demand shall be domestically met.

The dairy industry in Assam is very poorly developed. It is estimated that for 25 million people of Assam, the state needs 2500 million liters of milk. But the present production is hardly one-fourth of that. Hence the people have to depend largely on canned and powdered milk. Efforts have been made in recent years in the areas around large towns to produce more milk and collect and distribute it in a more organised manner. Financial help has come forward from the government and banks to organise "milk villages," which will concentrate on milk production and supply the same to market. As many as 18 such milk villages were organised during the seventh Five Year Plain. Besides , Town Milk Supply Schemes have also come up at Guwahati, Dibrugarh, Jorhat, Tezpur and Silchar . The Guwahati (Khanapara) unit of this Scheme bottles 25000 litres of milk every day for supply to the city. In the last few years some milk producers co-operative ventures have also come up. One such unit, called Western Assam Milk Producers Co-operative Limited, is situated at Panjabari Guwahati. This unit bottles and packs milk, cream butter , ghee etc , under the trade mark Purabi. It has 520 primary milk producers� Co-operative under it . This unit has establishments for artificial insemination, grass and fodder production and cattle care . Over and above these ,some other milk producing units have also come up in the state in the last few years. At panikhaiti near Guwahati, a milk chilling plant has come up that chills 5000 litres of milk every day . It is supported by 120 primary milk producers co-operatives. A model dairy farm has been established at Belimara near Naharkatiya. Two new patterns of milk co-operatives , one pattern at Jorhat and an Anand (of Gujarat) pattern at Tezpur have recently been taken up. There are milk producers� co-operatives also at Baragaon near Barpathar in Golaghat and at Senchowa near Nagaon.

The efforts made in the state as described above, have only marginally improved the milk supply situation. The main cause of backwardness of the state in respect of dairying are the following.

1) Indigenous cattle gives very little quantity of milk 2) They suffer from various diseases . 3) There is a lack of care by the farmers towards cattle 4) Grazing land and nutritive feed are inadequate. 5) Frequent flooding inundates the grazing grounds and thus render the grasses unfit for consumption for many days. If these problems are solved , Assam can prosper in dairy industry . 1) Artificial insemination 2) proper care of the cattle, 3)intensive production of grass and fodder, if necessary with the help of irrigation and 4) development of proper marketing facilities will go a long way in improving the milk production and dairy industry of the state.

Next to Assam , Manipur comes in animal resource. The state in 1988 had 0.75 million cows, 138000 buffaloes, 369000 pigs and about 1.5 million poultry. The cows of Manipur are the best in North East India . They are of bigger size and stronger and sturdier than those of other states. The buffaloes of Manipur, especially the female ones, are considered as prized possession because they give large quantities of milk. Besides, the horses of Manipur are famous throughout India and South East India, because they are although smaller in size, swift , strong and climb hills. Therefore , the horses of Manipur are often used by military and paramilitary forces in the region.

In order to develop the animal resources of Manipur a number of schemes have been taken up in recent years. A farm for producing hybrid buffalo breed and local breed is expected to produce more milk. Another farm to produce better quality of horse has been started at Lamphel Pat in Imphal district. Besides, a farm for raising broiler has also been started at Parampat. Four more farms are projected in the state to further develop the animal resources.

Tripura has in 1986-87 about 680,000 cows 16000 buffaloes 343000 goats and 103000 pigs As its indigenous animals are not strong and productive, efforts have been made to develop hybrid varieties. Five such schemes were implemented in the state in 1985 . The North Eastern Council the set up an Exotic Cattle Breeding Farm in the state for crossing the local cows with those from Khairpur. A few urban milk supply schemes have also been taken up in Agartala , Dharmanagar and Kailasahar towns.

Meghalaya has the third largest cattle population among the states of North East India with 550,000 cows and 29,000 buffaloes in 1981 -82 . It also had 186,000 goats and 207000 pigs in that year. The Meghalaya Government has undertaken a number of schemes to develop the states domestic animal resource. It has established a few artificial insemination centers including one at Upper Shillong under the Indo-Danish Project for animal development. Meanwhile thousands of local cows have been injected for artificial insemination . Moreover exotic bulls have been distributed among 100 villages of the state for producing cross breed with the local cows. As Meghalaya has cool climate and grasslands, the state can profitably rear sheep also. Two model sheep farms , one at Jowai and another in the East Khasi hills, have also been set up recently. Shillong also has an urban milk supply scheme. There is a milk freezing plant at Nayabungalow , 20 km north of Shillong. The Dairy Extension Centre at Jowai produces butter, cream and ghee. Cream and ghee are processed also at Tura and Rongrem in Garo Hills A model poultry farm has been started at Kirdemkalai 25 km away from Shillong . A model pig breeding centre and a fodder production centre have also been started here.

The states of Arunachal, Nagaland Mizoram are not very rich in domestic animal resources Arunachal had 168000 cows, 12000 buffaloes, 20,000 goats,76,000 sheep and 213000 pigs in 1985. During the last few years these numbers have increased. The Arunachal Government has started training programmes for the farmers for scientific rearing of animals. A farm for growing winter grass for the animals has been set up at Dibang Valley. A bison breeding centre has also been started at Sagali in Lower Subansiri district .

Nagaland had in 1984 about 151000 cows, 9000 buffaloes, 61000 goats 224800 pigs, besides 11000 bisons. Efforts have been made to develop the animal resource of the state. A cow breeding centre has been started at Januki. A national bison research center has been set up at Paruwa in Phek district. The first and the only Dairy Processing Plant has been set at Seventh Mile model village in Dimapur with 10, 000 litre per day capacity. The project is being managed by Kohima District Co-operative Milk Producers Ltd. (Komul)

Mizoram had in 1982 about 50,000 cows, 4300 buffaloes, 29000 and 81000 pig. In order to raise cattle scientifically the state has opened several veterinary hospitals including one each at Kawanpui Lungchew. and Changlaw. A scientific pig breeding centre has also been started at Thingdui with the financial help of the Central Government.

Domestic animal resource that North East India has, can contribute to the economy of the region, if it is properly developed. There are large demands for milk , milk products, meat and egg, besides draught animals. If the projects taken up to develop cattle , pig, goat and poultry resources materialise the region�s economy shall improve to a larger extent.

Fish is a popular item in the major meals of the people of North East India. This , in fact is the main source of protein to them. Fish contains vitamins A and D, besides protein, calcium and phosphorus. Fish is also used in social functions and rituals by some communities of the region. This is because three states of the region, viz Assam Manipur and Tripura have many water bodies and swamps which are natural habitat of many varieties of fish. Abundance of fish on the one hand and relative absence of the animals yielding acceptable meat has made fish popular as a source of protein. But of late. the natural conditions in respect of the habitats of fish have changed. The beels and swamps have been largely silted up while the rivers have changed their courses following the earthquake of 1950 and wanton destruction of trees leading to heavy soil erosion. On the other hand, population has been increasing by leaps and bounds resulting in increasing demand of fish. This has led to indiscriminate fishing throughout the year (even in the breeding period).

North East India is now in deficit supply of local fish. It is estimated that in the year 1989-90 the region could produce per capita only 2.8 kg of fish. While the region needs about 48,00,00 tonnes of fish, it could produce hardly 100000 tonnes a year. The region also imports about 100000 tonnes of fish from outside, especially from West Bengal, Andhra Pradesh and Bihar. Following table shows the production of fish in the region in 1989-90 ;

The above table shows the fish production figure in the year 1989-90. Efforts have been under way to increase its production in all the states of the region,. Since the natural habitats of fish are in the way of depletion, many people have started rearing it in their own ponds and tanks. As the river fishery and beel fishery have shown declining production of late , culture fishery (ponds and tanks) and reservoir fishery have registered an increasing production. It is however, important to note that with the depletion of the natural habitat, a large varieties of indigenous fish are on way to extinction . While the rivers used to support many varieties of carps of including Rau, Pithia , Bahu , Mali and Nadani and many other like Ari, Barali, Chital, Gagal etc. the beels used to harbour swamp fishes, such as Sal, Sol, Magur , Kawai, Kandhuli, Singi, Magur, etc. But with the change of course of the rivers and silting of beels on the hand and indiscriminate fishing on the other , the fish population has decreased abnormally. In fact, some varieties of fish are found to have become rare now.

Among the North Eastern state Assam is by far the most important in fishing as it has numerous rivers, swamps and other water important in fishing as it has numerous rivers swamps and other water bodies However, because of deterioration of the ecological conditions in which fish prosper, the production of it from its natural habitat has decreased, although production of cultured fish has been slightly on the increase. In 1992-93 Assam altogether produced about 140,000 tonnes of fish, which is far less than the requirement, needing the state to import fish from outside.

It is estimated that there are about 700 registered fisheries in Assam covering an area of 593,000 hectares. Of these the rivers and streams cover 450,000 hectares, beels 100,000 hectares, cultured tanks 85000 hectares, natural pond and tanks 10,000 hectares, swamps 20,000 hectares and water bodies in the reserve forests 5000 hectares. The beels alone can produce a huge quantity of fish, catering the demand of the local markets and improving the economic condition of the fishermen.

Considering the above potentiality the Government of Assam in 1977 set up the Assam Fishery Development Corporation. The main aim of this Corporation is to develop the swamps and beels to enable them to be productive fisheries, whereby the fishermen will benefit. It has taken over about 30 swamps and beels for development, of which the following are important:

Dhubri district, Sateswar and Dhir , Bangaigaon district, Tamranga Daloni , Asila and Kumri , Barpeta district Kapla, Kamrup district Garhja Bulatjan Dipar and Ghorajan, Nagaon and Morigaon district, Samaguri, Mer, Marikalang-potakalang Sivasthan Saran, Haribhanga, Barmanaha , Kujibali Patti, Deora, Jugijan and Warijedeng Kenduri, Jorhat district : Kakrikata and Gango Chauladubi,, Darrang district Saktola , Dibrugarh district ; Larowa.

North Eastern Council has also come up to help reclaim some of the swamps to make them productive fisheries. It has taken up a pilot project of reclaiming the 62 hectares of Samaguri Beel and 20 hectares of Marikalong Beel of Nagaon district. The Scheduled Castes Integrated Welfare Scheme of Assam has also stressed on fishery development in the state because most of the fishermen of Assam belong to Scheduled castes that are economically weak. Two beels viz . Tamranga of Bangaigaon and Sivasthan-Potakalang of Nagaon have been developed under this scheme. The National Bank for Agricultural and Rural Development (NABARD) has also advanced capital for development of Merbeel of Nagaon into a viable fishery. An international organization, The World Food Programme Authority, a subsidiary of Food and Agriculture Organization (FAO) has also come forward to develop island fishery in Assam. It wants to develop the tributaries of the Brahmaputra and some swamps into productive fisheries .

Efforts have been made to develop fisheries in the state by many agencies. For example there are Fish Farmers Development Agencies which stress on development of rives and swamps into fisheries as also on growing local varieties of small fish in the paddy fields along with transplanted paddy . A Regional Fishery Training Centre has been set up at Amranga in Barpeta district and a Fish Seed Farm has been started at Jalukanibari in Jorhat District. This farm aims at producing 500 million fish seeds of improved quality for distribution among the fishery owners of Assam and other surrounding states.

Tripura has lesser number of large or medium river nor has its swamps. The state therefore, has to depend mainly on ponds and tanks for fishery development. These water bodies, along with a few production of the state, account for 4800 hectares. The total fish production of the state, is enough to meet local demand . In 1990 Tripura produced about 18000 tonnes of fish. Efforts have been made to increase production in the state. The North Eastern Council has initiated a Fish Pituitary Gland Bank in Tripura. The state government , apart from aiding the development of tank and river fisheries , have completed a scheme of raising turtle and tortoise at a place called Gongkira in Udaipur sub-division . The rearing ground here covers an area of 23 hectares. The North Eastern Council has also finalized to set up an air breeding fish seed farm in Tripura . This is likely to help the production of such fish grown in the state within a short period.

Manipur has many swamps and lakes in its central basin. The total area of such swamps and lakes stands at about 16500 hectares. Although the lake Loktak was traditionally famous for fish, it has become slowly depleted due to siltation and human occupation. The state�s present average annual production of fish is only around 7500 tonnes, although its total demand is about 14000 tonnes annually.

Efforts have been made to increase fish production in the state. As back as in 1977-78 , the state government took up 10 schemes in the plains and 8 schemes in the hills for fishery development. But these schemes have so far not been able to reach their target. The state government has also undertaken scheme to preserve the locally famous Pengba fish of Manipur. A carp seed farm has been started at Lam Leipat It also has a Chinese hatchery . Besides as many as 100 seed and general fish farm have been started at Waithou near Imphal for Production of big carp, common carp and silver carp.

Mizoram has been able to increase it fish production from a mere 240 tonnes in 1975 to more than 2800 tonnes in 1990. Besides it has now about 5000 small fisheries in the form of tank and ponds and the state produces more than 3 million fishlings for distribution to the fisheries of the state. The Mizoram government has also started at regional fish seed farm at Tuipui in Lunglei district.

The production of fish in other states of North East India is nominal. All these states, however, have made efforts to be self-sufficient in fish.

North -East India is one of the wettest regions of the world with an average annual rainfall of 2000 mm. The region also has a dense network of drainage channels with as many as 7 rivers -basins lying in it. The region as such is very rich in water resource. But this has never before been tapped for agricultural purposes, because the subsistence economy of the region with a limited population and abundant cultivated land did not realize the necessity of growing more crops than what was actually needed. But with a tremendous growth of population on the one hand and subsistence economy being replaced partially by modern industrial-commercial economy on the other, the need for growing more crops has arisen. As such the need of irrigation in the region is being increasingly felt.

A scientific probe into the present agricultural status of the region reveals that there is a great need of irrigation to develop agricultural production. The necessity is caused mainly by climatic factors but there are other factors too. In respect of the climatic factors, it is firstly seen that although the region has average annual rainfall of more than 2000 mm, about 80% of it comes between late June and late September. From about late September the rainfall becomes scanty and the months of November, December, January, February, and March remain practically dry except an occasional shower. Although a few thunder-showers occur in April and May, the water thus provided is partly absorbed by the thirsty soil lying under the long dry spell and partly lost in evaporation-transpiration. In this long spell of drought the small rivers, rivulets, streams, ponds, ponds tanks and other shallow water bodies run dry, Even the underground water level sinks down by 10- 15 meters. Under such circumstances no large scale Ravi crop can be carried out during the dry season from October to May without the help of irrigation.

Secondly, the vagaries of the South-west monsoon necessitate irrigation even during the Amon crop can period. This is because, although the South west monsoon rains normally come during the month of June, sometimes it may not, affecting the sowing of paddy seeds and transplantation of seedlings. This early drought also affects jute plans in their healthy growth and by facilitating gregarious weeds to grow. Sometimes again, although the monsoon rain comes, it may not be of sufficient quantity and affect agricultural operation. In some years again rainfall varies within the region, some areas of it receiving surplus and some other areas receiving deficient rainfall. Thus, it is realized that presence of irrigational facilities are necessary even in the growing period of the aman crops.

Thirdly as 72% of the area of the North -East India is hilly, the water from rainfall run down the hill slopes as sheet flood in these areas leaving little water for crops. In the hill slopes and hill tops the jhum cultivation may not need much water, but for paddy cultivation on the terraces, irrigational facilities are a must.

Fourthly, in plains of the region there are sandy tracts, especially by the side of the present and old river courses. As water percolates down in the sandy tracts, no crops can be grown unless they are constantly supplied with water. Although such sandy tract are otherwise suitable for the growth of various vegetables and cash crops, in the absence of water supply production from them becomes very low. Irrigation. therefore, is necessary in such areas.

With the ever increasing population the region has become an increasingly food - deficient area. further except tea and jute, little other cash crops are grown in the region although, oil seeds pulses, potato and many other crops can be grown as cash crops provided water is available all the year round. In fact, deficiency in food crop production in the region was felt in the late nineteen thirties and early forties with the breaking out of World were II. and the then British government launching a grow more campaign in the early forties. Subsequently after independence, the Five Year Plans started laying stress on increasing agricultural production and the need of irrigation, along with other measures of innovation to that end was felt acutely. A Flood Control and Irrigation Department was created in 1954 in the then Assam which included major part of the North India except Arunachal Manipur and Tripura. Scarcity of foodstuffs began to be acutely felt in the nineteen sixties as a result of unnatural population explosion in the region on the one hand and extensive damage to agriculture by successive floods on the other. Realizing the need of irrigation for increase in agricultural production, top priority began to be given on it and during the Fifth Five Year Plan period Irrigation Department was opened in all the states in the region which was entrusted with launching irrigation projects.

In spite of such efforts, out of the total agricultural land in the North East India, only 8.1 lakh hectares (22.50%) have been brought under irrigation. It is less than the national norm of 25.55%, Amongst the states of the region. Manipur has the highest percentage (46.4%) of its total agricultural area under irrigation followed by Nagaland (40. 5%) Meghalaya (25.9%) Arunachal Pradesh (21.4%), Assam (21.2%) Mizoram (12.3%) and Tripura (11.8%).

Following discussion gives a detailed account of irrigation in the individual states of the region:

The mainstay of the economy of Assam is agriculture. In order to improve the economic condition of the state, it is necessary to increase the agricultural output. This can be done if only water along with other inputs is supplied to the agricultural fields just in time. But let alone other inputs, even water, which is abundantly available in the numerous rivers of the region, has not been supplied to the fields at the time of dry season. This lack of irrigation facilities has been adversely affecting the agricultural of the region.

All the three methods of irrigation e.g. canal irrigation, well irrigation, and tank irrigation may be adopted in Assam. As the Brahmaputra and most of its tributaries are perennial, canal irrigation is possible by damming the rivers in their upper courses. Again, as the underground water table is not far below the surface, especially in the plains of the state, both wells and tanks can be dug and used as source of irrigation For well irrigation shallow and deep tube wells can be sunk to obtain water. Electrically operated lift irrigation is feasibility in the state.

In spite of the opportunities stated above for development of irrigation facilities, these have not been done, partly because until very late the pressure of population was low and subsistence economy prevailed in the state. The peasants consequently hardly felt the need of irrigation. Secondly, neither the government nor the poor peasant could pull up enough capital to develop irrigation irrigational facilities rapidly.

It has been found that at the end of the sixth five year plan (1985-86), only 3.72 lakh hectares of agricultural land (out of the total of 36 Lakh ha of the state) were under irrigation. Having realized the growing population pressure and increasing deficit of food-crops, efforts have been made by the State Irrigation Department to bring more area under irrigation land in 1986-87 as much as 41,304 ha of additional agricultural land was provided with irrigation facilities. The Irrigation Department in the state was strengthened by opening new circles and offices and setting up an advisory board.

During 1991-92 the Irrigation Department of the Government of Assam created an irrigation potential of 12,618 hectares (6816 ha under major and medium projects, 4,076 ha under Tribal Sub- Plan and 1726 ha under also Special Component Plan for Scheduled Casters). Besides the Department also generated potential through minor irrigation schemes covering 26,145 ha under the command Area Development Scheme.

In 1985-86 the state had 1963 irrigation schemes, out of which 2 were large and other were medium and small. A table of the large and medium irrigation schemes of the state is given below:

1. The Rupahi I.P.	Barpeta Dist.	9,320 ha
2. The Dekadong I.P.	Barpeta Dist.	28,155 ha
3. The Pahumara I.P.	Barpeta Dist.	12,950 ha
4. The Kaldiya I.P.	Barpeta Dist.	----------
5. The Sukal I.P.	Kamrup Dist.	13,000ha
6. The Jamuna I.P.	Nagaon	1,900 ha
7. The Lanka I.P.	Nagaon	-----------
8. The Bar Dikarai I.P.	Sonitpur	22,000 ha
9. The Harguti I.P.	Karbi Anglong	------------
10. The Dikhari I.P.	Karbi Anglong	------------
11. The Patradisa I.P.	North Cachar	9,000 ha
12. The Longa	Kokrajhar	----------
13. The Jajlaigaon I.P.	Dhubri	----------
14. The Mora Dhansiri I.P.	Golaghat	9000 ha
15. The Rukni I.P.	Cachar	----------

Besides the above, some large, medium and small irrigation projects are under construction. Of these the two large ones are Dhansiri Project, over the Jia Dhansiri River in Udalguri Subdivision (area to be irrigated; 70, 445 ha) and Champamati Project over the river of the same name in Kokrajhar District (area to be irrigated 24, 994 ha). The Dhansiri Irrigation Project was started in 1976. Its headwork is located at Bhairabkunda at the foot of the Bhutan -Arunachal Himalaya where the rivers Bhairabi and Jampani meet. Its headwork construction has been completed and a few canals are left to be dug. The Champamati Irrigation Project was started in 1981 over Champamati River. It has been partly completed and is irrigating 5,000 ha of land. A barrage to be constricted over the river at Nangalbari of Dhubri District shall further extend the command area of the project.

The medium on going schemes include Kalanga, Amtring, Hawaipur Projects (all in Karbi Anglong), Integrated Kolong Project (Nagaon), Baralia Project (Nalbari), Puthimari Project (Kamrup) and Kharmuja Project (Goalpara).

Many small irrigation projects are coming up. Of these Kurua scheme in Darrang, Nalana in Nalbari, Sukonori in Barpeta, Thekesu -Bechumari Deosila flow Irrigation and Sijukoma Lift Irrigation at Balijana in Goalpara, Sondoba Lift Irrigation in Morigaon and Patiajong and Kuligaon projects of Karbi Anglong are the main. In Majuli the important lift and tube well irrigation projects are located at Sensua Kumar Chapari, Khetopathar, Siran Deuri Gaon, Mijon Deuri Gaon, Kamalabari and Fulani. Several small irrigation projects are on their way of completion in the Barak Valley also. These include the ones located at Nuruleherra, Rupcherra, Daluganj, Nabincherra, Depocherra, Pechacherra, Gardhicherra, Sonabeel and Patharkandi Beel.

The Manipur Plain is of great importance from the human point of view, in that it is not only very densely populated, but also it has to produce most of the food-stuffs of the state, the other parts of it being hilly. Small scale irrigation projects of limited command areas were already there in the past. But the works on medium and large scale projects have been taken up very late. The medium irrigation projects of the state include (1) Imphal River Barrage (command area 1600 ha) (2) Chakmai Dam (2000ha), (3) Khampum Dam (1200ha), (4) Thoubal (1500 ha) (6) Disang (4000 ha) and (7) Jiri River Dam. The last named one was started in 1988-89 and when completed it will irrigate 5000 ha in Cachar district of Assam and 4000 ha in Manipur.

The only large scale irrigation project of the state is the Loktak Lift Irrigation Project. It was first commissioned in 1979. At present the project supplies water to 40, 000 ha of land.

Tripura does not have any large irrigation project. It has, however, a few medium and many small projects. Of the medium projects, the Gomti river, the Khowai river and the Manu river Irrigation projects are the main. The state has, however, a large number of small irrigation projects by lift and tube-well. These were started in the fourth five year plan and so far more than 100 such projects have been completed and irrigation potentiality by now has been increased to about 20,000 ha.

Although the lower parts of Arunachal Pradesh receive heavy rainfall, these need regular supply of water in the dry season, especially for �rabi� crops. Some Arunachalis, like the Apatanis irrigate their terraced agricultural fields by damming the hill streams and diverting their water through small gravity channels. In smaller holdings, power pump is used for irrigation. Up till now water is supplied to the agricultural fields of the river valley and foothill areas through nearly 400 small irrigation projects.

The state has started a few medium projects. Of these, the Lakhmi Irrigation projects at Roing in Debang Valley were commissioned in 1987 and have been irrigating about 5000 ha of agricultural land. The Tirap Irrigation Project when completed will supply water to both Arunachal and Assam. Six medium projects have also been under construction in Lohit, Dibang Valley and East Sing districts. Moreover, Sonaul, Kokila and in Lower Subansiri district 3 water pumps have been set up for irrigation. All these have substantially improved the irrigation potential of the state, bringing 26% of its 133430 ha of total agricultural land under it.

Meghalaya has no large irrigation project. It has only one medium and some small projects. Up to the late nineteen-eighties Meghalaya irrigated only 15,000 ha of agricultural land though small project. The state has taken up some flow and lift irrigation schemes in recent years and through them the potential has now increased to 2, 5000 ha. The only medium project, of the state is Rongai River Project of West Garo Hills district, which has a command area of 4,775 ha.

Nagaland, like other hill states, dose not have any large irrigation project. Water to the terraced fields is supplied through indigenous but very ingenious gravity flow method. However, such irrigation is limited to a small area of Kohima district Small irrigation projects have therefore, been taken up in recent times to supply water to the rice fields of the river valleys. Water from the small rivers is diverted to the rice fields by constructing dams. Efforts have also been made to utilize ground water for irrigation. Schemes have been taken up to utilize the waters of the Dikhu, Milak and Dhansiri rivers. About 60,000 ha of land have so far been brought under irrigation in the state.

The difficult hill terrain of Mizoram has prevented the state for undertaking any ambitious irrigation scheme. The farmers of the state, however, use indigenous methods to irrigate their land by collecting stream water in tanks at vantage locations. Thus they used to irrigate about 2885 ha of agricultural land. During the period between 1974 and 1978 another 520 ha was brought under irrigation by 300 power- driven pumps. So far 15 small irrigation projects have been completed and 16 new schemes are under way in the state. The Charui River Irrigation Project, which is a medium one, has recently been completed. In 1990 the state had an area of 70,000 ha under irrigation.

Transport and communication is an important element of infrastructure, based on which the progress of a region may take place. Unfortunately for North East India, the transport and communication system is poorly developed. There are some physical and socio-economic causes for the backwardness of transport and communication in the region. The important causes are as follows.

(1) The region has about two-thirds of its area (about 72%) under Hills Mountains and plateau. Only about 28% are plains. Of the 72% of hills, mountains and plateaus, more than three -fourths have steep slopes, deep gorges and ravines, where laying of roads and railways is a very expensive and difficult proposition.

(2) North East India is isolated in its location with respect to the rest of the country. As the region is a cul-de-sac, surrounded by four foreign countries, and as it is far away from the industrial areas of the country, the lines of transport and communication have not been developed to the desirable extent.

(3) As the region has very heavy rainfall for more than six months of a year, the roads and railways suffer from surface and gully erosion. The situation is further deteriorated by the loose soil-base derived largely from alluvium in the plains and such sedimentary rocks as sandstone, mudstone, shale, etc. in the hills. The roads and railway lines have, therefore, to be constantly repaired and maintained in serviceable condition, needing a huge expenditure.

(4) The region, especially its plains, annually experiences devastating floods which often breach and damage roads and railway lines. On the other hand, heavy deluges cause landslide and soil creep in the hills damaging the roads. These again necessitate repair and renovation of the roads requiring huge expenditure.

(5) The region has numerous turbulent rivers and hills-streams which flow with fury during the rainy season. Besides, many of them change their course very often. Some of them, again, are very wide. The roads and railway lines need to be frequently bridged and many culverts, retention walls, spurs, spurs, etc. have to be constructed needing labour and huge expenditure.

(6) Apart from tea and oil industries, there is practically no large industry in the region Therefore, a well-knit network of transport and communication has not been laid far.

(7) Each of the seven state governments, which administer the region, is not financially well off to afford sufficient expenditure to construct and maintain a well-knit transport system. Hence construction of new roads is rare and maintenance of existing roads is poor.

Railway transport in North East India is not very new. In fact, only about 30 years after the first railway line between Bombay and Thane had been laid in India, the construction of line in Assam started between 1981 and 1984 yet the region�s railway network is not well developed. At present the whole region consisting of 255,000 km² has a railway network of only about 2500 km accounting for a density of 9 km of railway line per 1000 km2 of area. Moreover, out of the 2500 km of the lines only about 961 km are broad-gauge, which the remaining tracks are meter- gauge.

As stated above laying down of railway lines started in the eastern part of the Brahmaputra Valley in the early eighteen-eighties. The then British Government and the British companies, extracting the resources of the region, were interested in taking away the products rather than using these for economic development of the region. Therefore, they constructed the railway lines first connecting the tea, coal, oil and timber producing areas with the river ports on the Brahmaputra. The products carried by the trains were transferred to steamers which took them down the Brahmaputra to Calcutta port and there to United Kingdom The river Barak was also used similarly. Same river routes were also used to bring merchandise and labourers for tea gardens into the region. Therefore, the first railway lines in the region were not the ones connecting the region with other parts of India, but those joining tea, coal, timber, etc. producing areas with the steamer �ghats� (river ports).

The first railway lines to be constructed were the Dibru-Sadia lines between 1882 and 1884 connecting the tea, timber, coal and oil producing areas of the present Tinsukia district with the river-port of Dibrugarh. This was followed by the construction of the Jorhat Provincial Railway in 1885 between tea producing Mariani-Titabar area with Kokilamukh (later Neamati) steamer ghat. In the same year Balipara tea producing area was connected with Tezpur on the north bank of the Brahmaputra in Sonitpur district. It was 1895 that the region was first linked with outside by constructing a line from eastern Bengal (now Bangladesh) to Badarpur of Barak Valley. The railway line from Guwahati to Lumding began to be constructed in 1897. On the other hand, Dhubri was linked with Calcutta in 1902. The hill section of the railway, linking Lumding of the Brahmaputra Valley with Badarpur of the Barak Valley, across the hill ranges of the North Cachar Hills district, was constructed in 1903 through 37 tunnels (total length 5190m.). With the completion the track between Tinsukia and Lumding, Upper Assam became linked with eastern Bengal by 1904. Between 1909 and 1910 Amingaon, near Guwahati,was linked with Golokganj in Dhubri district, thus connecting the western part of the Brahmaputra Valley with the rest of India. In 1911 a line was extended eastward from Rangia over the north bank of the Brahmaputra to Tangla in Darrang district. This was further extended to Balipara in 1932. In 1917 a line was constructed from Simaluguri via Sibsagar to Moran linking the tea producing area with the trunk railway. Similarly in 1920, the Kaliabar tea growing area was connected with the trunk railway by constructing a line between Chaparmukh and Silghat via Nagaon. In 1920-1924 Katakhal-Lalabazar line was completed. A line was also constructed from Simaluguri southward to Naginimara in Nagaland in 1929 to carry coal and tea from the adjoining region. In the year Jorhat-Badulipar-Furkating line was completed through the said rich tea-growing region. It is found that after the settlement of the Muslim immigrants in the north-western part of the undivided Nagaon district, the area bordering the Brahmaputra turned into a rich jute growing area. Hence in 1930 a railway track was laid from Senchowa at the southern outskirts of Nagaon town to Mairabari in the heart of the jute growing region. Thus it is seen that most of railway lines that are found today in North-East India were laid down during the 50 years between 1882 and 1932 and the region was linked with outside, especially eastern Bengal and Calcutta, through Brahmaputra Valley and Barak Valley. There was no extension of railway after 1932 till independence.

With the independence and partition of the country the north-eastern region became virtually isolated, because the major roads, both the railway lines and the water way linking it with the rest of the Indian Union fell into what was then East Pakistan (now Bangladesh). So, a new railway line had to be constructed hurriedly through the narrow sub-Himalayan corridor. In 1950 this line, named Assam link was completed connecting Fakiragram station of Assam with Siliguri station of West Bengal through Jalpaiguri and Darjeeling districts. The line is 229 km long and traverses a difficult terrain with numerous broad braided rivers with the establishment of a separate zone of the Indian railways, in the name of Northeast Frontier Railways, with headquarters at Maligaon, the railway administration in the region became somewhat consolidated.

Immediately after the Indo-Chinese war, the Saraighat Bridge across the Brahmaputra was built near Guwahati in 1962-63. Simultaneously, the railway line in the north bank was extended further eastward from Balipara to Murkongselek in Dhemaji district. This line was opened in 1966.

In spite of these developments it was found that all the railway lines of the region consisted of metre-gauge only. The carrying of the metre- gauge trains is low and there are difficulties of transshipment to broad-gauge lines for reaching the large cities and ports of the country. Hence in 1965 a broad-gauge line was constructed from New Jalpaiguri(near Siliguri) through Jalpaiguri and Coach Bihar districts of West Bengal to Jogighopa on the bank of the Brahmaputra opposite Goalpara, via New Bongaigaon. It is 110 km long. This line was subsequently extended (251km) from Guwahati to Dimapur (in Nagaland) and from Chaparmukh to Nagaon town. Conversion of the metre-gauge line broad-gauge from Dimapur to Dibrugarh (294 km) has also been completed in early 1997. A new broad-gauge line is under construction from Pancharatna in Goalpara to Guwahati (145 km) along southern bank bordering the northern foothills of Meghalaya. During the nineteen-eighties new lines were laid to provide rail-head to each of the seven states of the region. A place in western Manipur, adjoining the Barak plain, called Jiribam, was linked by a metre-gauge line (50.33 km long) from Silchar in 1990. Bhairabi of Mizoram was linked with Lalaghat of Hailakandi district by a rail line 49 km long in 1988. Dharmanagar of the North-eastern Tripura was linked to Kumarghat of Karimganj district in 1990. Bhalukpung, a place in East Kameng district of Arunachal was linked to Balipara of Sonitpur district of Assam with a rail line 35-46 km long in 1990. Thus it is found that each of the states of North East India, except Meghalaya now has at least a railhead. Efforts are being made to extend a rail line from Dudhnoi of Goalpara district to a place called Rupa in East Garo Hills, to provide a railhead to Meghalaya. The construction work of the 123 km. new railway line(Diphu-Karaong railway line) has also been taken up.

Roadways are more important than others in North East India because they can reach even isolated villages over the hills. However, because of economic backwardness of the region, roads were not developed adequately in the past. The Ahom and Koch kings used to construct a few earthen roads linking some important places. In fact, waterways, along the numerous rivers, used to serve the transportation needs of the people of the region. There are a few geographical reasons for backwardness of the region in respect of road transport. These are :

(1) North East India is full of hills of and mountains(except a few plains) with extremely uneven surface. The hills and mountains, gores and steep valleys prevent a cheap construction of roads.

(2) The rainfall being very heavy in summer there occurs landslides in the hills and floods in the plains, often severely damaging the roads.

(3) Because the region has many rivers and streams, the roads have to be bridged frequently involving huge expenditure.

(4) The road-building materials like stone chips are easily available, especially in the plains, requiring a heavy cost in transporting these from the hills to the work sites.

Assam : Of all the states in North-East India, Assam has the longest kilometer age of roads, obviously because of three reasons : firstly, it has a greater proportion of plain land ; secondly, it is the most populous state and thirdly because tea, oil, plywood, etc. industries grew up here earlier. In 1903- 04 there were, in Assam, 320 km of graveled road, 6400 km of �Kacha� road suitable only for bullock carts and 5680 km of narrow tracks. However, most of the rivers and streams had no bridges and the ones that had, were weak wooden bridges. In the Brahmaputra Valley, two roads-one along the south bank and the other along the north bank were slowly built up. The south bank road from Goalpara to Saikhowaghat was consolidated during the period of World War II and was known as South Trunk Road (now National Highway No.37) while the north bank road Baihata-Chariali to Murkongsalek was improved after the Chinese aggression in the sixties and it was known as North Trunk Road (now National Highway No. 52). In the Barak Valley the road system was earlier linked with Sylhet district (in Bangladesh). But the partition of India adversely affected the transport and communication system of Assam as also whole of north-east India. The road systems of both the Brahmaputra and Barak Valleys became isolated from the rest of the country because of creation of East Pakistan (now Bangladesh). Hence a new road had to be constructed along the Himalayan foothill across northern West Bengal and new roads had to be built linking the Barak Valley with the Brahmaputra valley. After independence, the national government took up a programme of building national highways and some such highways came to be built in north-east India also. Assam at present has about 35129 km of roads. There can be classified into three main categories, viz. national highway, state PWD roads and district-board and Panchayat roads. Out of this, 2020 km is national highway. A large number of P.W.D. roads are graveled and pitched while the district board and Panchayat roads are mostly Kacha and occasionally graveled.

The highways connect most of the district headquarters of the state. A few highways go beyond the state boundary to the other states of north-east India. While the state P.W.D. roads link the important places, the district-board and Panchayat roads link the larger villages and rural market centers Besides, there are in eastern Assam a set of roads maintained by tea gardens. These are small but motorable roads that link the tea gardens with larger roads. There are three bridges over the Brahmaputra, one at Saraighat (completed in 1962) and the other at Bhomraguri (1987). The third bridge at Pancharatna has been completed in 1998. The fourth bridge at Bagbil is under initial stage of construction.

Meghalaya : It has about 5624 km of roads. The hilly nature of the state has impeded the growth of roads in this state. The state, however, has an old road from Dawki, at Bangladesh border, via Shillong to Guwahati. Before partition this road used to go to Sylhet. New roads have constructed after independence linking various important places with Shillong and Tura, as also linking Assam and this state. The Guwahati-Shillong-Dawki Road has now been converted to National Highway No. 40. Another national highway now links Agartalla, Karimganj and Badarpur with Shillong via Jowai. It is called National Highway No. 44. The Western part of Meghalaya is linked with National Highway No. 37 in Goalpara district.

Arunachal : like any other hill state, it has a lower density of road. It has very high hills and mountains and very deep valleys and gorges. Besides, although the main Himalayan range here runs from the south-east to the north-east, all other hills and valleys run from the north to the south. So, no road has so far been constructed across the state from the east to the west. The various places and towns of the state have to be linked with the Brahmaputra valley by north-south roads. Of such roads (i) Tezpur-Bomdila-Tawang Road, (ii) North Lakhimpur-Kimin-Ziro-Dapariji Road, (iii) Likabali -Along Road, (iv) Pasighat Along Road, (v) Margherita-Ledo-Changlang Road and (vi) Naharkatia-Jaipur-Khonsa Road are the main.

Nagaland is also poorly developed in roadways. Its main road is National Highway No. 39 that runs from Numaligarh in Assam via Dimapur, Kohima and Mao to Manipur. Other important roads are Amguri-Mokokchung- Tuensang- Mon Road and Furkating-Wokha Road. A new road has been constructed across Nagaland linking Mokokchung with Kohima via Zunheboto. New roads have also been constructed recently linking Wokha and Phek, the district headquarters, with Kohima.

Mizoram has many parallel hill ranges and deep valleys running in the north-south direction. Therefore, it difficult to construct roads across the state in the east west direction. The national highway no. 54, the main road of the state runs from Silchar via Aizawl, Lunglei and Saiha to Tuipang in down south of the state. This road has extended from Lunglei to Theriaghat and Demagiri as Nh. 54A and from Venus-Sedel to Saiha as NH 54B.

Tripura is very much isolated from the view point of transport and communication It is surrounded on three sides by Bangladesh. The only all weather road linking the state with the rest of the north-eastern region is national highway no. 44 that runs from Shillong via Badarpur, Karimganj, Dharmagar to Agartala, the capital of the state. Within Tripura, however, roads are somewhat developed in the relatively plain western part. There are roads linking Belonia, Amarpur, Udaipur, Khowai and some other important places. The eastern hills part of the state is poorly developed in road communication.

1. national Highway No.31 : It runs from Siliguri in West Bengal eastward and enters Assam near Baxirhat and then goes via North Salmara, Bijni, Nalbari and Rangia to Saraighat bridge. It is 322.8 km long. There is a branch of it from North Salmara to Jogighopa (No. 31 B). Still another branch of it (No. 31 C) runs from Bijni to Srirampur (93 km).

2 National Highway No. 37 runs from Pancharatna via Guwahati, Nagaon, Jorhat, Sibsagar, Dibrugarh to Dangari. It is 680 km long. Its branch, 37A, runs from Kunwaritol in Nagaon district to Tezpur (23 km) over Kaliabhomora bridge.

3. National Highway No. 36 runs from Nagaon town via Dabaka across Diphu sub-division to Dimapur (170 km).

4. National Highway No. 39 runs from Numaligarh via Dimapur, Kohima and Imphal to More in Myanmar border (436 km)

5. National Highway No. 38 runs from Makum via Digboi and Margherita to Lekhapani (54 km).

6. National Highway No. 40 runs from Jorabat near Guwahati to Dawki on the Bangladesh border via Shillong.

7. National Highway No. 44 runs from Shillong via Jowai, Badarpur, Karimganj, Dharmanagar to Agartala (495 km)

8. National Highway No.53 runs from Badarpur via Silchar and Jirighat to Imphal (320 km ).

9. National Highway No.54 runs from Silchar via Aizawl and Lunglei to Tuipang ( 560 km ) . Its first branch (No. 54 A) runs from Lunglei to Theriaghat (9km) and the second branch 54 B runs from Venus-Sedel to Saiha (27 km).

10. National Highway No. 51 runs from Krishnai(in Goalpara district) to Dalu near Bangladesh border via Tura. It is 149 km long.

11. National Highway No. 52 runs from Baihata-Chariali in Kamrup district via Mangaldai, Tezpur, North Lakhimpur and Dhemaji to Jonai and beyond to Pasighat (580 km).

13. National Highway No. 99 : The construction work of this highway, which will run from Patsala to Namlong ( Bhutan), has been started.

North East India has many large and small rivers providing facilities for water transport, especially in its plain parts and in flat river valleys of the large rivers in hills. From the ancient period until the roads were constructed, the rivers of the Brahmaputra and Barak plains were commonly used as the medium of transport. When the Britishers came, they used the Brahmaputra and Barak-Surma rivers extensively for transport and trade between north-east India and the Calcutta port. With the growth of the tea industry these rivers became important carriers of trade. The East India Company started the water route along the Brahmaputra from Calcutta to Dibrugarh in 1844 and steam ships were introduced by the Joint Steamer Company in 1847. It is about the same time that Silchar came to be linked with Calcutta along Barak-Surma-Meghna navigation channel. However, with the partition of India in 1947, water transport received a serious blow as a foreign country was born between north-east India and the port of Calcutta. Efforts were made several times to revive the route, in consultation with East Pakistan and subsequently Bangladesh government, but with little success.

It is estimated that the north-eastern region has about 1800 km of river routes that can be used by steamers and large country boats. The inland water transport departments of both the state and central governments have been trying to improve the water transport system in the region. The river Brahmaputra now has several small river-ports like Dibrugarh, Disangmukh, Nemati, Biswanath, Silghat, Guwahati, Goalpara and Dhubri. Besides, there are more than 30 pairs of ferry-ghats on the Brahmaputra, transporting men and materials. The River Barak also has small ports at Karimgani Badarpur and Silchar and ferry services at several places across it.

In Arunachal Pradesh the rivers Luhit, Subansiri, Burhi Dihing, Noa Dihing and Tirap are used for navigation by small country boats in those stretches where there are no rapids. The rivers Dhaleswari, Sonai, Tuilianpui and Chimtuipui in Mizoram are also used for navigation with small country boats in convenient stretches. Similarly, in Manipur, the Manipur River, along with its three main tributaries, Iril, Imphal and Thoubal are used for transporting small quantities of merchandise by country boats.

Although North-East India has many rivers, its inland water navigation has not developed much, mainly because of the following reasons :

(i) The hills and mountains, abundantly present in the region, have rendered the river beds uneven (except in the plains), thus hindering navigation.

(ii) The rivers in the plains are often wide, shallow and braided and large boats carrying heavy loads of freight cannot ply.

(iii) After the great earthquake of 1950, the bed of the Brahmaputra has become shallow, and therefore, wide and braided, preventing large steamers from plying

(iv) The partition of India has isolated the region completely so far river routes are concerned. The large rivers viz. Brahmaputra and Barak now cannot be used up to the sea-ports, while within the region, the trucks over roads can easily compete with inland water navigation due mainly to latter�s quick service.

(v) As the region is industrially backward, the quantity, of goods to be transported is also less which can be handled by road and rail transport This has also deterred the growth of inland water navigation.

However, if the region is industrialized and the services of the inland navigation are improved there is still hope for its growth and development.

Compared to the surface transport, air transport is slightly more developed in North-East India. Because the region is isolated and marginally located, surround by as many as four foreign countries, a strong air-link is necessary.

A few aerodromes were built up in this region during World War II when the eastern war front reached the Indo-Myanmar border. The Allied Forces built up small aerodromes at Kahikuchi (near Guwahati), Mohanbari (Dibrugarh), Salanibari (Tezpur), Rawraiya (Jorhat), Lilabari (North Lakhimpur), Dimapur and Imphal. After independence, some of these air-fields were used by private companies like Bharat Airways and Indian Airways for commercial services. After the nationalization of commercial air transport in India, Indian Airlines Corporation took over the services and new air-ports were opened at Dimapur, Kumbhirgram (near Silchar) and Agartala. The air-port near Guwahati was also shifted to Borjhar. Besides, smaller airports were constructed at Ziro and Tezu in Arunachal, at Umroi (near Shillong) Tuirival (Aizawl) and at Kailasahar and Kamalpur in Tripura. However, regular air transport still remains confined only to Guwahati, Dimapur, Tezpur, Jorhat, Dibrugarh, Kumbhirgram, Imphal and Agartala. The services to these airports are to and from Calcutta and Delhi. The smaller airports are rarely used by smaller air transport companies. The Borjhar (Lokapriya Gopinath Bordoloi) airport is the only large one in this region and it is going to be upgraded to an international airport. Some of these airports (e.g. Borjhar, Salanibari and Rawraiya) are also shared by Indian air force. A large size Air Port has been inaugurated at Lengpui, 40 km away from Izol. It is the second largest Air Port in North-Eastern region next to Borjhar Air Port.

The Airport Authority of India has decided to construct an airport at Itanagar in Arunachal Pradesh.

It should be noted that although surface transport is not developed in North East India, the air-transport is not as developed as it should have to compensate for the former. This has certain geographical reasons:

(i) The north-eastern region except Assam, is full of hills and mountains restricting the growth of airports needing extensive open flat land.

(ii) The region has heavy rains with overcast sky for a long period of the year, keeping the weather inclement for air services. Even in dry winter there are thick layers of fog over the ground, making landing and take-off difficult for aircraft.

(iii) Due to economic backwardness, the region is the least industrialized and poorly urbanized. So the volume of freight and number of passengers availing the services are not adequate and hence not economic. These services are often subsidized by the Central government.

However, with the economic growth picking up, region will need a well developed air transport just because of its geographical location. The far-flung places of Arunachal, Manipur and Mizoram along the frontiers do need airports for both strategic and commercial reasons.

The pipeline provides a new means of transportation, especially of industrial raw materials like crude oil and natural gas. This means of transport has become popular in recent years because although the initial cost of its laying is a bit high, the transport cost, subsequently, turns out to be very cheap.

The first pipeline in north-east India was laid in 1964 to carry crude oil from the Naharkatiya and Moran fields to Noonmati (Guwahati)and Barauni(in Bihar) refineries. The length of this pipeline is 400 km up to Guwahati and another 752 km up to Barauni. It used to carry 2.7 million tonnes of crude annually, of which 0.75 million tonnes were conveyed to Noonmati Refinery and the remaining 2m. tonnes to Barauni Refinery. Subsequently, this capacity was increased to feed the Bongaigaon Refinery and Petrochemicals Ltd. Apart from this, there is six other major pipelines in Assam. The second pipelines connect Naharkatiya oilfields with the Digboi Refinery. It is about 40 km long. The third conveys crude from Lakwa to Moran terminal. It is 70 km long . The fourth line is laid between Digboi and Tinsukia to send petroleum products from the Digboi Refinery. Its length is 30 km. The fifth pipeline runs from Guwahati to Siliguri (420 km) carrying finished products like petrol, refined Kerosene, diesel, etc. The sixth line conveys Natural Gas from the Naharkatiya fields to Namrup (16 km ) for Assam Gas Company. Similar pipelines will also laid to transport crude to Numaligarh refinery from the fields. Besides, the projected Gas Cracker Plant near Tengakhat and thermal power plant at Amguri will have to be linked by pipelines with the fields of natural gas in Upper Assam. Similar pipelines need to be laid also in the Barak Valley and Tripura to tan the natural gas present there.

The ropeway is a cheap mode of transportation especially in the hilly terrain for industrial raw materials like limestone, bauxite, iron-ore, coal, etc. from the mines to the road or railway heads and industrial sites. North East India, being largely hilly, needs ropeways. The first ropeway in the region was set-up in the Shella region of Meghalaya to carry limestone to the Sylhet plain. After partition the line was abandoned. At present there is only one major ropeway between Dilai Hill and Bokajan cement factory (35 km long ) in Karbi Anglong for transporting limestone. A new project has been undertaken to construct a ropeway from Siju to Patharigithim in Western Garo Hills for conveying limestone. Similar projects are under consideration for Byrnihat (Meghalaya) and Tawang (Arunachal Pradesh) areas.

North -East India is rich in type of natural vegetation. Climate physiographic and soils of the region have provided favorable conditions for luxuriant growth of natural vegetation.

As the physiographic varies from low-lying swamps and marshes to high mountain ridges lying above 6000 m, the soils vary from sand, silt and loam to laterite.

Three variations have give rise to various types of flora in North East India. Of all the physical factors, it is climate which seems to have the most telling effect on the vegetation type. The heavy rainfall which comes from May to September, keeps the relative humidity of the area very high throughout the year . Temperature variation is low, remaining normally between 12 ⁰C and 35 ⁰ C except in the high hills. These favorable climatic conditions , augmented by fertility of the soils have provided luxuriant growth of numerous species of plants . Based on the physiognomy, foliation and flowering characters and gregariousness or otherwise, the natural vegetation of North East India can be divided into the following groups :

A common feature of the evergreen forests is the presence of thick undergrowth at ground level and many creepers and lianas at upper level. In the pine forests, however, these are absent.

The tropical evergreen forests of North East India contain numerous varieties of orchids, some of which are rare and valuable. These forests also support various sorts of climbers including cane.

These forests generally support soft wood for plywood industry and packing boxes for tea industry.

2. Tropical Deciduous Forest : Deciduous forests are found in those areas of North East India where the average annual rainfall is 80 cm to 200 cm. The districts of Dhubri, Kokrajhar, Bongaigaon , Goalpara Barpeta Nalbari, Kamrup , Darrang, Marigaon Nagaon,, Sonitpur,, Karbi Anglong, North Cachar Hills and the and drier parts of the Barak Valley in Assam support tropical forests. In Meghalaya these forests are found in Garo and Jaintia hills. The drier parts of Tripura, Mizoram, Manipur and Nagaland also have deciduous forest. In Arunachal Pradesh the deciduous forests are limited to a very narrow zone of foothills.

The common species of tropical deciduous plants are Sal (Shorea robusta), teak (Tectona grandis ), gamari (Gmelina arborea ), Simul (Bombax malabaricum), khoir (Acacia catechu), Au tenga (Belenia indica), Jack fruit (Atrocarpus integrifolia ), Kadam, Siris, Arjun, Silikha, Bhomora, etc.

3. Tropical Grassland : Grassland is not uncommon in North East India. However, most of the grasses of the region, except the alpine grasses of high altitude in the Himalayas, are not climogenic, i.e. they are not produced due to climatic reasons, such as inadequate rainfall and temperature. Firstly, some of the grasses, found on the hill slopes of North East India are there because the original forests were earlier destroyed for shifting cultivation. This also led to depletion of the soil cover,. Such areas subsequently have given rise to grasses only.. Secondly there are tall grasses in the Tarai region of the Brahmaputra Valley because here the ground always remains saturated with water and hence tall trees do not grow. Thirdly, the river banks and char lands are normally sandy. Such land cannot support tall tree but gives forth luxuriant seasonal grasses. Lastly, the swamps and marshes support swamp vegetation which include mostly grasses.

(B) The foothill tarai region, especially on the north bank of the Brahmaputra Valley, also support tall grasses, such as various types of reed and thatch. As mentioned above, damp ground of this region favors the growth of tall grass only. The grassland of Manas Sanctuary is an example of this type.

(C) The river banks and riverine islands are mostly made of sandy soil. This type of soil cannot retain water for a long time. Hence tall trees, except a few varieties like simul, khoir etc. cannot grow on these areas. The plants that grow on the river banks and islands are known as riperian vegetation. The riperian vegetation in North East India is mostly tall grass. The grasslands of Dhemaji, Majuli, Kaziranga, Bhurbandha Pabitara, Orang, etc. on the banks of the Brahmaputra belong to this category. Along with grass these areas also contain simul, khoir karoi kadam and local plum (zyzyphus) trees.

Heavy rainfall, high humidity throughout the year and high temperature of North East India has made the region very rich in floral resources. Some of the important features of the forests of the region are noted below :

1. In the evergreen forests of Assam one can find Makari Sal (Shorea assamica) which is one of the tallest trees in India. It grows to a height of 60 m -70 m. In fact, there are several other species of plant in this region which are ranked as some of the tallest trees of the country.

3. Side by side with broad leaved forests there are coniferous forests also in the region.

5. There are many varieties of saprophytic and parasitic plants apart from epiphytes in this region. Monotropa, Belonifora, etc. are some of the examples of these varieties.

6. The region is also very in medicinal plants. Besides, the region is also native to beverage plants like tea.

Some of the economically very important trees found in North East India are Agaru, sal, neem, champa, tea and bamboo. Agaru or Agar has become a rare plant now. In the olden days people used to prepare thin long sheets out of its wood for writing. It is locally known as Sanchi tree. One can still find hundreds of valuable and rare manuscripts written on Sanchi sheet during the six hundred years prior to the advent of the British into North East India. Besides providing writing sheets, Agaru or Agar contain a very valuable oily essence from which a precious perfume and some drugs are prepared . It is still found, although infrequently, in the forests of Golaghat, Jorhat , Sibsagar , Nagaland and Manipur. Sal (shorea robusta ) is another valuable species of plant found in North East India. It provides extremely hard wood for construction of buildings, bridges and railway sleepers . It also provides gum and essence. Pine tree not only provides soft wood but it also supplies turpentine and resin. Neem, plant abundantly found in the region is one of the most important medicinal plants. Champa also provides an essence used as perfume. Tea plants are used for extracting tannin and other colouring juice apart from extracting their leaves as a source of beverage.

The forests of the North East India are also rich in fauna. The mammals include various types of primates carnivores and herbivores, Hoolock gibbon, one of the 4 types of apes found on the earth today, occur in this region. The region also has one horned rhinoceros in the forests like Kaziranga, Laokhowa, Orang, Paabitara and Manas. Some of these forests Kaziranga, Laokhowa Pabha, aand Manas also have wild buffalo. There are as many as 11 varieties of monkey including the rare golden langur and capped langur in this region . Elephants abound the foothill regions of all the states of North East India. The four horned antelope, deer, barking deer, musk deer, Pigmy hog , bison and wild boar are some of the important herbivores of the region. The most important carnivores found here are Royal Bengal Tiger, Leopard, various other large wild cats, civet cats, snow leopard, Himalayan bear. etc.

There is also a rich reptile population in North East India. It has marsh crocodile, fresh water gharial turtle, tortoise , varieties of monitors, chameleons , lizards and snakes. Of the important snakes, the python is ubiquitous in the hills ,while krait , viper and cobra are found in the tropical forests and grasslands of the plains.

As North East India abounds in water bodies, swamps and marshes there are numerous varieties of fish fauna in the region. Some of the fish live in the numerous streams and rivers and some in equally numerous beels, jheels and swamps. In fact fish used to be so abundant in the region that to an inhabitant of it, fish as an item of food, is important next only to rice. It is the main source of protein supply to them. But of late many beels and swamps have become silted up. Further, the ever increasing population of the region has taken to indiscriminate catching of fish. These have led to a scarcity of fish in the region.

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Soils consist of mechanical mixtures and chemical compounds of the materials found on the surface of the earth. They contain both inorganic and organic materials. The process of soil formation is influenced by the physical and chemical characters of the parent rock, physiography, altitude, climatic condition and plants and animals of the surrounding region. In North East India the above factors vary from place to place. For example. the parent rocks of Meghalaya and Karbi Anglong, which are mostly metamorphic, differ from those of hills and mountains, which are sedimentary. So far physiography is concerned there are very high mountains and hills, plateaus, deep gorges and valleys and wide plains dotted with water bodies and swamps. Climate also varies according to the location and situation of the places. There are hot and humid areas, cool hilly areas and very cold glaciated areas. Similarly the plant and animal life also varies from place to place. As a result of all these different types of soils generate in different part of the region.

Soil Formation : The generally heavy rainfall, high relative humidity and high temperature cause rapid weathering of rocks of North East India. As the weathering of the surface rocks of the hills and mountains proceeds, the sheet floods caused by heavy rainfall remove the weathered materials and carry then down to the head- streams of the rivers. The rapidly flowing water of the streams then carries the sediments, big and small, down to the foothills and plains. The sediments thus are spread over large areas in the foothills and plains. Such soils are known as transported soils or azonal soils . On the other hand the summits and slopes of the mountains are left with only a thin layer of soils formed due to local weathering, These soils are known as residual soils or zonal soil. The transported soils found in the region may be divided into two groups: alluvium and diluvium and colluviums. The alluvium or alluvial soils are made of made of finer grains like fine sand, loam and silt. Alluvial soils are made of these finer materials which the running water can carry far into the plains. Diluvial and colluvial soils are found in the foothills and in beds of the narrow valleys and canyons inside a hill or mountain tract. Here the soil is a mixture of fine silt and carried by running water and cobles and pebbles deposited partly by gravitational pull and partly transported by running water. The residual soils are also divided into two groups : oxisol and altisol . Oxisols which are also known as red soils, are found at lower altitudes over the hills and mountains, while the altisols are found at medium altitude (above 1500 m- 2000m) and may be called as lateriate. Besides, there is a third category of residual soil, which may be called as Mountain Soil. This type is found at higher altitudes where the soil forming process is influenced more by frosts and snowfall rather then by rainfall.

The plains of the Brahmaputra and Barak in Assam the Manipur plain and the plains of Tripura have alluvial soil. The hills of North East India have red soil over lower altitudes, and laterite soil over medium altitude, while the higher mountains have mountain soil. In Assam, therefore, we find alluvial soil over the plains, red soil in most of Karbi Anglong and North-Cachar Hills and only patches of laterite over the highest part in their hill ridges .

In Arunachal, the limited river valleys contain alluvial and diluvial soil, while all the lower hills contain red soil. The areas above 4500 m have mountain soil mixed with glacio-fluvial deposits. Meghalaya has red soil all over the hills except the higher central part where laterite is found to be present. The rocks of Meghalaya contain a higher quantity of iron and hence its red soils are brighter then the red soils of other hills. Mizoram has mostly residual soils weathered from shale. Red soils predominate the state with only thin patches of laterite over the higher ridges. While the Manipur plain contains alluvial soil, its hills have residual red soils which are sandy. Nagaland also has red soils, but these are, by and large, fine grained. Besides they seem to contain more organic and nitrogenous materials. Tripura has alluvial soils over the piedmont plains and red soil over the hills. There are a few small patches of laterites also over the higher hills of Tripura.

There are four major groups of soil in North -East India . These are as follows :

1. Alluvial Soil : As described above, alluvial soil is found in the river valleys and plains. This is a transported soil made up largely of silt, sand and clay. By the river sides, the alluvial soil is mostly sandy while away from the rivers it tends to be clayey. This soil is slightly acidic and rich in organic material . As this soil is made up of layers of silt deposited by running water, one can find about 10/12 layers of silt within a depth of 150 cm. The soil is characterized by a concentration of ferrous oxide (FeO) and aluminum oxide (Al₂O₃) in its lower layers. On the other hand silica content decreases from the top soil downward.

The alluvial soil may be divided into a few categories on the basis of its physical make up. These are sandy, sandy loam, silty loam and silty. Then again, alluvial soil is divided into new alluvium and old alluvium on the basis of period of there genesis.

The old alluvium was deposited earlier in the late Pleistocene and Sub-Recent periods. In the course of time it is raised to a relatively higher level because of local tectonic activities. This soil is more consolidated, acidic and less fertile. Further, it contains less phosphate and potash . Old alluvium is found in patches generally along the foothills In the Brahmaputra Valley there is a long patch of old alluvium along the Himalayan foothills from Kokrajhar District up to the river Subansiri of Lakhimpur district . The patch is however, criss-crossed by numerous rivers coming down from the hills. In Sonitpur district the patch of fold alluvium occurs south along the middle of the north bank plain from Dikrai river up to about Gohpur. The other patch occurs at the southern and eastern margins of the south bank plain , along the foothills of Meghalaya in Dhubri, Goalpara, Kamrup and Morigaon districts, along the foothills of Karbi Anglong, in Nagaon and Golaghat districts, along the Nagaland foothills of Golaghat, Jorhat and Sibsagar districts and along the southern and eastern foothill margins of Tinsukia districts. There are patches of old alluvium in the Semphema-Diphoma area near Kohima,along the foothills of Cachar and Hailakandi districts and along the foothills in Tripura. Old alluvium often forms distinct terraces and supports tea gardens. Only in western Brahmaputra Valley this soil is not found suitable for tea cultivation because of very low phosphorus content of it in this part.

The new alluvial soil consists of recently deposited silt and sand and is rich in organic content. Hence, this type of soil, if not purely sandy, is fertile and suitable for agriculture. This soil is generally rich in phosphate, potash, calcium, nitrogenous material and organic substances . It is less acidic and not saline. Its chemical and physical characters, however, very to some extent from place to place. New alluvium is found all over the Brahmaputra and Barak Valleys, Manipur Plain and Tripura Plain except in those areas where the old alluvium occurs. Over the hills and Plateaus this soil is confined to the narrow valley bottoms. It tends to be sandy in the immediate river banks loamy at some distance from the river beds and clayey in the areas of greater distance from the rivers . Besides, those alluvial soils which are found in the swamps and marshes contain a high quantity of putrefied organic matter and hence tend to be dark in colour. Rice, jute wheat, pulses, mustard , sugar cane, maize, etc. grow well over clayey soils. Loamy soils support finer varieties of rice, pulses, mustard and vegetables. The sandy soils of the flood plains are famous for vegetables., including potato.

2. Red Soils: Red soils are normally found on all the hill slopes and hill tops except in very high altitudes. These soils become red because of the oxidation of the iron content present in them. Red soils contain organic matter and nitrogenous material. They are also acidic but have lesser quantities of phosphate and potash. In the presence of water the red soils become sticky, while in its absence they become hard and develop cracks. Red soils may be regarded as residual.

These soils are commonly found in Meghalaya, hills of Tripura, Mizoram, hills of Manipur, Nagaland, Arunachal Pradesh and in the North Cachar hills of Assam. They are bright red in Meghalaya because of the presence of a greater proportion of oxidized iron in their parent rocks, i. e. the acidic rocks of Pre-Cambrian origin.

Although the red soils are commonly found over the hills, there are patches of these in the areas of the old alluvium also. The higher parts of old alluvium, which have not been affected by flooding and subsequent silting, contain reddish soil and are found in Darrang, Sonitpur, Golaghat, Jorhat and Sibsagar districts and the foothills of Karbi Anglong.

Red soils are suitable for growing fruits Besides, on the hills slopes these also support good crops of rice, maize and millets. If irrigated, these soils can produce cotton, rice, maize, wheat, pulses, potato, and citrus fruits, especially lemon, orange, pine apple, pear plum and grape.

3. Laterite Soil : Laterite is found only in small patches at the medium altitude of the hills. This soil contains considerable quantities of iron and aluminum and hence is hard when dry and red in colour. When wet it becomes sticky. Laterite soil contains fewer quantities of nitrogenous material, phosphorus and lime. It is a leached soil and hence not fertile. There are two types of laterite, viz. high altitude laterite and low altitude laterite . Both the types develop on the hill tops and slopes which have heavy rainfall, generally high relative humidity and facility for good drainage.

Laterite is distributed in small patches over higher hills tops of Karbi Anglong and North Cachar hills of Assam. Relatively extensive patches of laterite are found in the Cherrapunji region of Meghalaya over sandstone deposits.

In Manipur laterite is confined to the higher hills tops of the south-eastern region . In Mizoram and Tripura it is found on the ridges of higher altitude . In Arunachal Pradesh laterite is found in patches at mid -altitude on sand stone rocks.

Laterite is useful for growing crops only when water is supplied. Over the high altitude laterite millets and pulses can be grown well, while on low altitude laterite cotton, millets, rice, banana and citrus fruits grow well with irrigation.

4. Mountain Soil : In North-East India mountain soil is found over very high altitude (above 4500 m ). Such soil is therefore, confined to the higher altitudes in Arunachal Pradesh and over the summit region of the Patkai Range. This soil remains frosted in winter , In Arunachal this soil is mixed with fluvio -glacial deposit. Because of prevalence of low temperature, chemical decomposition is of lesser measure in the case of this soil. Hence it contains pebbles, cobbles and boulders along with sand and silt. Mountain soil is not fertile. It however. supports millets, barley and good grass for animal fodder.

North East India is fairly rich in mineral resources. Apart from petroleum, coal, limestone and sillimanite, which have been regularly extracted since long, the region also has a number of other valuable minerals. The Geological Survey of India and the Department of Geology and Mining of each of the states of the region has been exploring and assessing the reserves of various economic minerals present here. Besides, the Oil India Limited and the Oil and Natural Gas Commission are specifically engaged in exploring and assessing the reserves of oil and natural gas in North East India. The efforts so far made have revealed that the region has the following minerals stored in it :

The above table shows the estimated reserves of the mineral so far estimated. There are some other economic minerals whose traces have been found here and there in the region. But their reserves have not been estimated because of inaccessibility of many parts of Arunachal Pradesh, Nagaland, North Cachar Hills, Manipur, Mizoram and even Meghalaya. The minerals, whose presence has been detected in the region include copper, chromite, nickel, cobalt, fire clay, kaolin, corundum, asbestos ,gypsum, beryl, graphite, gold, mica, alum, shale and mineral salt.

Iron Ore : The iron one deposits so far explored in the region are found to contain a low proportion (41% and below) of iron. Besides, a very large quantity of ore has also not been found to be located at one place. In spite of such drawback iron used to be mined in the North East India in the past , especially during the medieval period. It is found that during the Ahom reign iron used to be mined from the north western foothills of Tirap and Nagaland in the areas stretching from Jaipur in the east to Tiru Pahar and Telpung in the west. The mines were located at Jaipur, Tipam, Bosadaiyang, Tiru Pahar and Telpung, The present day explorations have revealed that these areas have ironstone nodules and shale of the Tipam and Barail Series of sedimentary rocks containing from 22.1% to 40.1% of iron.

The second area where iron ores are found lies in Dhubri district in an around the hills of Bilasipara, especially at Chandardinga hills (estd. reserve 17 million tonnes) and at Melajgarh (26⁰15� 20�N and 90 ⁰28�00�E) near Abhayapuri. The ores here contain 30% -40% iron. The third reserve is found in the Meghalaya foothills of Kamrup and Goalpara district at Nalanga Beel, Kumri hill, Langupara hill, Khardong and at Arandanga-Raochapra area near Hahim, In the Garo Hills district iron ore has been discovered at Athiabari and Nichangram. In the East Khasi Hills it has been found at a place 28 km north of Cherrapunji, where magnetite is present in the granite deposits. In Nagaland Laterite cappings, rich in iron are found in the north western foothills of Wokha district. In Manipur bog iron is present in an wide area near Lauchipat. In Arunachal Pradesh iron ore has been detected in East Kameng and West Siang districts.

It has, however, been found that iron content in the ores of the North East India is generally low, being less than 50% Hence no entrepreneur comes forward to set up a steel plant, although other raw materials, except manganese, are not absent in the region. But if manganese is imported, a medium steel plant or a sponge iron plant may be set up with coking coal from the reserve of the area between Namchik and Namphuk rivers of Changlang.

Copper : Economically exploitable copper deposit has so far not been found in North East India. Small deposits have so far been found in Assam, Meghalaya, Nagaland and Manipur. In Assam , it has been found in small proportions at Mahamaya hills of Bagribari area of Dhubri district, Barduar area of Kamrup district and in the upper reach of the Barjuri river in Karbi Anglong. Copper is found in these hills in the from of pyrrhonist, chalcopyrite and pyrite in small proportions of 0.04% to 0.39%. In Meghalaya it is found at Umpirtha and Ranighat (25⁰50� N,91⁰10�30� E). In Nagaland copper is present in the basic and chalcocite. In Manipur it has been reported from Nungon, Kongal, Thana and Ningthi (Maklong Khing) area by the Geological Survey of India.

Chromite and Some other related minerals : Chromite is rarely found in our country and more so in this region. Small deposits of chromite have been found in Nagaland in the ultra basic rocks situated near the Patkai Range. In Manipur it has been found at Siroi hill of Ukrul and Moreh of Chandel district. In Meghalaya chromite has been found in the Sizu basin and in Arunachal it is discovered at Tiding Valley.

Besides the above minerals, traces of the deposits of nickel, cobalt, gold, silver, lead, molybdenum, platinum, iridium and germanium have also been found in North East India.

Traces of nickel deposits have been found at Moreh, Vungon, Kongal, Thana and Ningthi areas of Manipur in association with the ultra basic rocks and serpentine bodies. This mineral has also been traced in Subansiri district of Arunachal Pradesh. Traces of cobalt deposits have been found in the Lower Subansiri district of Arunachal and at Pulphur village in Kiphire sub-division of Tuensang district (Nagaland). Alluvial or placer gold used to be extracted from several rivers of Assam in the ancient and mediaeval periods. There are references of gold of Assam in the Mahabharata, the Alamgirnama (written by Mohammad Kazim who accompanied Mir Zumla) and the writings of Jeau Baptist Traverneer and Mr. Wade. Alluvial gold was extracted from the beds of the Nadihing, Dibang, Subansiri, Dikrong and Bargang rivers. It is said that placers were derived from the auriferous quartz veins. Presence of gold has also been found near Haflong (25⁰15�N and 92⁰ 8� W) of North Cachar Hills at Tyrsad (8 km S. W of the Mawphlong) in the East Khasi Hills district and in Manipur in the quartz veins associated with oxides and sulphides. Although the occurrence of silver has not yet been traced, it is said that the metal may occur at Bar Khamti area of Luhit district and at Nongpoh in the Ri Bhoi district of Meghalaya. Lead is said to occur in Sadiya sub-division and Molybdenum in the granite rocks of Cherrapunji. Both Platinum and iridium are found to be present in the gravels of Noadihing river. The presence of germanium has been detected in the coal deposits of East and West Garo Hills to the extent of 0.095% to 0.122%.

Coal : North East India has large reserves of coal, especially in Assam and Meghalaya. The quality of coal so far found is however, not very good in that its organic sulphur content is high (upto3%) and carbon content is relatively low. Assam is said to contain about 1000 million tonnes of coal reserve, while Meghalaya also has about 1200 million tonnes. The first coal mining in the region was started in 1865 at the Makum coal-fields under the initiative of H.B. Medlicott.

The coal reserves found in North East India belong to Gondwana, and Tertiary ages. But the Gondwana coal present is in disjointed than lenses along the Himalayan foothills from Bhutan Duars to Sadiya. This has not been so far exploited because of the thinness of the seams and transport difficulties. It is the Tertiary coal that is found in thick workable seams and, therefore, mining has developed for its extraction in several places. But their impurities, as stated above, have hindered their optimum exploitation. The workable Tertiary coal deposits are found in the following two groups of geological beds :

(1) Lower Tertiary deposits are found in South Garo, Khasi and Jaintia Hills and in Karbi Anglong. These deposits were laid down in the Eocene Period (Jaintia Group).

2) Middle and Upper Tertiary deposits of coal are found in Ledo-Jaipur-Naginimara area of Assam. These deposits were laid down in the Tikak Parbat Formation of Barail Group during the Oligocene Period.

Distribution of Coal Deposits : The geographical distribution of the coal reserves is as follows :

1. Upper Assam Region : In the Upper Assam region coal occurs from Miao Bum in Changlang district in the east to Nichuguard at the Nagaland foothills, south of Dimapur. The important coalfields of the region are as follows : (i) Makum Field in the Margherita area, (ii) Jaipur-Dili Fields and (iii) Naginimara Fields.

(i) The Makum Coalfields are located in the Burhi Dihing Valley to the east and south of Margherita. The important mines here are located at Borgolai, Ledo (27⁰18� : 95⁰47�), Tipang and Namdang over an area of 30 km by 5 km. The coal of the region is mostly of bituminous variety. The seams are generally thick with an average of 17 m thickness. These fields are estimated to hold 191 million tonnes of coal. Because of transportation facilities, these fields have been worked upon since long.

(ii) Jaipur -Dili Field is located at the Tirap foothills of Dibrugarh district between the rivers Burhi-Dihing (near Jaipur ) and Dili (headstream of Disang). The total reserve of this coal field is estimated to be about 28 million tonnes. The coal occurs here at a depth of about 100 metres. Lakadong is the main mining area here .

(iii) Naginimara Field is located at Nagaland foothills just south of Nazira. The total reserve of this field is estimated at 10 million tonnes. The important mining centre here is Naginimara.

2. Karbi Anglong Coal Deposits : The coal deposits of Karbi Anglong are found in the following places.

(i) Longloi Deposit : This deposit is found at Longloi about 40 km west of Barpathar. The coal seam here is about 4 metres thick. However the quality of coal as such, is not very good with a high proportion of impurities present in it .

(ii) Koilajan Deposit : This deposit is located at Kailajan about 28 km west-north-west of Dimapur. The quality of coal is fairly good and it is commercially exploited for local use.

(iii) Silbheta Deposit : This deposit lies towards the western side of Karbi Anglong , to the north of Dimapur -Nagaon Road and covers an area of 1.4 km².The coal is of fairly good quality and the total reserve is estimated at 15.7 million tonnes.

Besides the above deposits coal is also found at Dissoma and Kaliani river valleys of Bokakhat Sub-division.

(iv) Kharbhaman Deposit : This deposit occurs on the western side of Kharbhaman Hills (26⁰02�N : 93⁰24� E ) in the south-western part of Diphu Sub-division. There is a single seam of coal extending over 0.5 km. The estimated reserve is 0.5 million- 06 million tonnes.

There are rich coal deposits along the southern part of Meghalaya in the Garo, Khasi and Jaintia hills. A broad outline of the coal deposits of the state is given below:

(i) The Garo Hills Deposits :The Garo hills has a rich reserve of fairly good quality coal The fields of this area were first explored by Bedford in 1842 and subsequently by H.B. Medlicott of the Geological Survey of India. The G.S.I. has been still continuing their exploration, besides the Meghalaya Department of Geology and Mining for locating and assessing the extent of the mineral reserve. The important fields so far found are located at (i) Darranggiri, (ii) Rongrengiri, (iii) Harigaon, (iv) Siju Simsang Valley and (vi) Nangalbibra (25�28 : 90⁰42�).

Much attention has now been given to the development of the Darranggiri Coalfield. This field lies to the north of the Tura Range, a few km south of the Rongrenggiri field. The Simsang river, flowing through this area, exposes coal seams on both of its banks. It is said that this reserve contains about 125 million tonnes of coal. The Darranggiri field is also very rich in reserve. It is said to continue from Darranggiri to as far east as Nongstoin of the West Khasi Hills district.

(ii) The Khasi Hills Deposits : In Khasi hills workable deposits of coal seams are found in several places, of which Langrin (Um Blay) located in the extreme south west corner of the West Khasi Hills district, Um Rileng, 8 km south west of Shillong , Mowbeh -Larkar, 32 km south of Shillong, Mowsynram, 19 km north west of Shella, Mowlong, Rangsanobo and Laitryngew near Cherrapunji, and Thangjinath and Lyngkerdem near Pynursla. Of all these deposits, coal is extensively mined at (i) Um Rileng mines, (ii) Mowbeh -Larkar mines and (iii) Mowlong, Rangsanobo and Laitnyngrew mines.

(iii) The Jaintia Hills Deposits : The workable coal seams of the Jaintia Hills are located at Jarain, 16 km south of Jowai, Bapung, 11 km east of Jowai, Sutunga, and 24 km east -south -east of Jowai, and Lakadong, 16 km north -east of Jaintiapur. Coal is also reported to occur in the headstream region of the Kopili River.

(C) In Nagaland Tertiary coal is present in the basal argillaceous beds of the Tikak Parbat formation (Barail Group) of the Oligocene Period. Because of a high content of organic sulphur and indifferent coking character, this coal has not been extensively used in the iron and steel industry of the country. Within the state, coal deposits are found to occur in the Dikhu (Dikhou) Valley of Mon district and Changkekong -Jopukong region of Mokokchung district. In the latter region, Changki-Chonglymsen, Waromung -Mongchem and Lakuni-Mirinpoh are the areas where large quantities of coal occurs.

(D) Coal Deposits of Arunachal Pradesh In Arunachal Pradesh both Gondwana and Tertiary coal deposits occur. While the Gandwana coal deposits are found along the Himalayan foothills in the west and east Kameng districts. The Tertiary coal is present in the Namphuk and Namchik valleys of changlang district almost in continuation to the Ledo-Borgolai fields.

(E) In Manipur high grade coal has not been struck so far. However Lignite deposits occur near Kongra-Waiphei Village (24⁰26�35�N: 93⁰ 42�32� E), about 32 km south-west of Imphal. Lignite is also found in the Tureloo Valley in the Churachandpur district of the state.

(F) In Tripura, coal has so far been found to occur in Kailashhar area near the Tripura-Bangladesh border in the North Tripura district This coal is of Tertiary period and contains impurities like organic sulphur. However, it is commercially exploited for local use. Tripura also has lignite deposits at Ujan -Tangong near Hirachara tea estate, Dertuichara and Nattinchara. The deposits are generally small and lie under considerable rock cover. These have, therefore, not been exploited so far

(G) Although coal has so far not been exploited in Mizoram, it is said that the state has some reserves, especially in Lunglei district. A sample of coal found in the Phairung river valley of the district, on analysis, is found to contain 40.40% of fixed carbon 29.14% of volatile matter, 15.97% of ash 14.49% of moisture. The presence of this sample indicates that there are coal reserves in the state.

At present the coal of this region is used by railways, tea gardens and brick -fields, besides being used for domestic purposes. Some amount of this coal is also sent to the iron and steel industries of the country for blending with the high grade coking coal . Besides , some of the region�s coal is used in the local cement industries and the thermal power generating stations. It is said that the coal available in North East India , if treated properly, can be used in the fertilizer and chemical industries also.

Petroleum : North East India is rich in petroleum deposits. In fact until the middle of the nineteen sixties Assam was the only state in India producing some amount of oil .The presence of oil in the forests and fields of Upper Assam was detected as back as in 1822. Subsequently, on the advice of Mr. H.B. Medlicott an oil well was Mechanically drilled in 1867 near Namdang river between Margherita and Jaipur by Mr. Goodenough. Oil could be struck there at a depth of only 37 metres. On further probe it was found that the quantity of oil there was not much and hence its exploitation or further drilling were not taken up. Meanwhile Assam Railway and Trading Company started lying railway track between Margherita and Makum mainly to transport coal from the Ledo-Margherita region and it was in the course of their cleaning and digging works that the Company engineers detected many oil seepages in the Digboi area in 1889.The Company engineers then drilled a well at Barbeel in 1890 which produced about 900 litres (200 gallons )of oil every day. During the period 1890-1899 the A. R. T. Company drilled 14 oil wells and having found them productive, a new company under the name of Assam Oil Company was constituted in 1899. A refinery was set up at Namdang, near Margherita and the crude produced in the surrounding wells began to be refined. The A.O.C was a small Company and had limited resource. It could drill only 80 wells in 20 years. The Burma Oil Company then took over the A.O.C. in 1920 as a subsidiary and the former set up a new large refinery at Digboi in 1921. Up till 1920 the average annual production of petroleum was less than 20,000 tonnes annually. But after the take over of the A.O.C. by the B.O.C. production started increasing. The B.O.C. explored oil in the Barak valley also during the first two decades of last century and found oil and natural gas in Masimpur-Badarpur area. In the Badarpur and Patharia fields as many as 80 oil wells were dug and from these wells as much as 250,000 tonnes of oil was extracted. After that the wells ran dry in the early nineteen thirties. The Digboi oilfields, however, continued to produce and between 1934 and 1953, these produced on the average 600 million litres annually. The yield began to decrease after that and the A.O.C. had to explore the neighbouring areas for more source and between 1952 and 1956 oil was struck at Naharkatia, Moran and Hoogrijan. The Oil India Limited constituted in 1958, subsequently developed and operated these fields. The oil bearing deposits of these fields belong to the Barail and Tipan sandstone beds and lie at a depth of 3000 metres. The crude yields paraffin wax, lubricating oil, bitumen and various other by-products. Apart from the Oil India Limited, the Oil and Natural Gas Commission reconstituted in 1959, also started exploring for oil and natural gas after and after 1950 many deposits of oil and natural gas were found. The areas where these two valuable resources were discovered during the there decades following 1950, are Tengakhat , Jurajan , Rudrasagar, Geleki. Lokwa, Longsai (Dikhoumuk ), Amguri and Barhola. In almost all these areas oil and natural gas have been found in the Barail and Tipam beds. In Barhola, however, these are found trapped in the gaps between the blocks of granite gneiss at a depth beyond 3500 m . Among all the oil fields of Assam the Galeki field is found to be the largest.

Being encouraged by the success in exploration in Upper Assam, the O.N.G.C. and the Oil India Limited searched for oil in other parts of Assam and North-East India. The geological investigations have revealed that in the area along the 1300 km long belt, which runs from Upper Assam through Barak Valley, Tripura and Chittang Hills to farther south, there occurs the Assam-Arakan Basin bearing immense hydro carbon potential. The Oil and Natural Gas Corporation in 1988 struck oil at Masimpur (at a depth of 1318 metres), Panchagram and Badarpur of Barak Valley. Although commercial exploitation has not been started here, it is hoped that these will turn out to be commercially viable fields.

Arunachal was brought into the oil map of India by the Oil India Limited by discovering oil at Kharsang in 1976, where oil occurs in the Girujan beds of the Oligocene Period. Further exploration has been going on in the state at Pasighat (East Siang), Ningru (Lohit), Kumchai (Lohit) and Bardumsa area and Namchik Valley including Jairampur (Changlang). Till the 31st March of 1988, the Corporation drilled 37 wells in Arunachal Pradesh and produced 2,39,623 tonnes of crude oil.

Petroleum has also been struck at Champang in Mokekchung district of Nagaland. It is said that gas and oil deposits may be also available in the Satukba-Chumukedima area of Kohima district.

Oil and gas seepage is reported from the north-central part of Mizoram also. Drilling has been carried on near Dibuia, Lakhumi and Longsamtang villages of the region.

In 1985-86, North-East India produced 5.03 million tonnes of crude oil, of which Assam�s production was 4.97 million tonnes, the rest having been produced by Arunachal. In that year, Assam�s production accounted for 16% of the national production of 30.16 million tonnes. The trend of crude production in North-East India is as follows:

The crude oil of the region is at present used in the refineries of Digboi, Noonmati(Guwahati), Bongaigaon Petro-chemical Complex Ltd. and Barauni to produce Kerosene, diesel, petroleum, wax, paraffin, grease, naphtha, D.M.T, xylene, synthetic fibre, synthetic rubber, plastic and various other by products.

The crude petroleum from the oil fields is sent by a 24 cm diameter pipe lines to the distant refineries. Thus there is a pipeline (1152 km long) linking Lakwa-Rudrasagar fields with Barauni, Moran-Naharkatiya fields with Noonmati (440 km) and Bongaigaon (600 km). Similarly a 12 cm pipe takes the crude from the Naharkatiya-Hoogrijan fields to Digboi.

Natural Gas : Like petroleum, natural gas is a valuable source of power and various other chemical by products. It is a gaseous mineral of organic origin lying locked underground. The gas contains a very high proportion of methane (85%-90%) and some proportions of ethane (8%-9%), propane (2%-3.5%) and butane (0.7%-1.7%).

Natural gas is normally found to remain in association with petroleum. But in certain places it may be found independently. The gas found with petroleum is known as �associated natural gas , associated natural gas, and that found independently is called � free natural gas.

As the North East India is rich in petroleum, so also it is rich in natural gas. It is found in the Barail groups of rocks (of Oligo-Miocene Periods) occurring at very high pressure and temperature.

In North East India natural gas is mostly found in Assam and Tripura. In Assam, almost all the petroleum producing areas of the upper Brahmaputra Valley, especially Naharkatiya, Moran, Lakwa and Rudrasagara, contain �associated natural gas� Barak Valley, on the other hand, contains �free natural gas� in the Adamtila structure at a place 60 km away from Silchar. Tripura is the other state in the region where free natural gas has been found. Wells have been dug at a place 15 km west of Agartalla, from where gas flows out at the rate of 1.12 lakh cubic metres per day. It is estimated that in an area of 77 km around Agartalla, there is a reserve of 8 billion m³ of natural gas besides, Rakhiba and Baramura in the state, where also a rich gas deposit has been detected. Free natural gas is said to be available in Turial area of Mizoram and Chumukedima area of Nagaland. The North East Indian region is said to contain now a total reserve of 240 billion m³ of gas.

Although the region is rich in natural gas, it has not been able to utilize the resource, because of lack of market, capital and technical know-how. In fact, for many years the gas coming from the oil wells has been under the process of flaring up. It is said that nearly 1 billion cu m of gas has already been flared up. But by using the gas so wasted, the region could have generated power and supplied raw material for production of fertilizer, petro-chemicals and other by-products.

Production: In 1991-92 Assam produced 2082 million m³ of natural gas, which rose to 2056 m cu m in 1985-86. This accounts for 25% of the total production of 8134 million m³of gas in the country as a whole. The Tripura fields now produce 1.12 lakh cu m of gas per day.

The important industries so far built up on the basis of the natural gas of Assam are Namrup Fertilizer Factory (F.C.I.), Namrup Thermal Power Project, production of carbon black and Assam Gas Company, which provides liquefied petroleum gas for domestic use. Besides many tea gardens in Upper Assam use it for their factories as a source of power.

The Oil India Limited uses 0.80 lakh m³of gas daily for its own works. It is also used by the Bongaigaon Petrochemical Ltd. as raw material to produce various chemicals. The recently established synthetic fibre plants in Assam are going to benefit largely from the supply of natural gas. There is an ambitious project of establishing a gas cracker plant in Assam on the basis of the natural gas. Once this is established a large number of industries can be set up based on it.

Limestone : Limestone is an important mineral which is used in the manufacture of cement, as flux in iron and for white-washing buildings and walls. North East India has a vast reserve of limestone totaling about 6.684 million metric tonnes. The limestone found in the region is mostly organic, originated from nummulite shells in those areas which were under intermediated sea condition during the Mesozoic period.

Of the seven states, the largest reserve of limestone line in Meghalaya (4665.36 million tonnes) followed by Arunachal Pradesh (1504 million tonnes), Nagaland (450 million tonnes), Assam (135 million tonnes) and Manipur(4.6 million tonnes). It is also found in small quantities in Mizoram and Tripura.

In Meghalaya limestone is found along the Southern part of the state almost all throughout its length from the Southern Garo Hills district to the border of Meghalaya and Assam and beyond. This belt is said to be 400 km long. The limestone occurring in this belt is not only of good quality, but it is also found in thick workable layer of 7m to 230 m. In the Garo hills limestone is found exposed along the Simsang river gorge near Sizu (25⁰3 N 90⁰43 E). In fact the Sizu area has coal, clay, Sandstone and limestone occurring in close proximity, making the area a potential site for localisation of cement industry. In the Khasi hills area there is a 64 km long belt of limestone from the north of Lamgaon through Therriaghat (25⁰11 N: 91⁰450E) to Shella river. The outcrop here has a general length of 3.2 km and the total reserve is estimated at 1000 million tonnes. In Jaintia, there is a large bed of limestone about 22 km long, near Jowai which can well support a mini cement plant.

In Assam limestone occurs in a number of places in the Karbi Plateau. In the border region between Meghalaya, North Cachar Hills and Hamren sub-division there are limestone deposits in the Kopili and Kharkhor river valleys. The Garampani-Umrangshu area of North Cachar Hills and has a reserve of about 154 million tonnes of good quality limestone. The Diphu and Bokajan sub-divisions of Karbi Anglong also have rich reserves of limestone. The Kailajan and Dilai area of Bokajan sub-division have high quality limestone, which is used in the Bokajan cement factory. In the Diphu sub-division limestone is found in the Sibheta area (26⁰00� N.93⁰18�) which contains about 52 million tonnes of limestone.

In Arunachal Pradesh Limestone has been discovered at Tela-Tidding area of Lohit district, where an estimated reserve of 9.1 million tonnes of the mineral occurs. The Tezu area of this district is also said to contain a reserve of high-silica and high magnesia marble containing about 74 million tonnes. Dali, Mega and Kabbu in Siang districts also have rich deposit of limestone.

Limestone is available in Manipur in Chandel and Ukhrul districts. The total reserve in these two districts, up to workable depth, is estimated at 4.5 million tonnes. Out of this, 2.2 m. tonnes occur in Ukhrul in lenses, while the remainder is found in isolated pockets at Hungdung, Mova and Khangoi of Chandel district. The deposits of Manipur generally carry 34% to 53% of lime.

In Nagaland high grade limestone deposits have been discovered in various places of Phek and Tuensaang district. Out of them, the deposits of Wazeho in Phek district and Nimi(375 million tones) in Tuensang district are really large. There is calcareous tufa type of limestone is Chakhabam of Kohima and Dibuia of Mokokchung. The total reserve of limestone so far discovered in this state is estimated at 450 million tonnes.

Mizoram also has limestone deposits in several in several places. Of these ones found at Muthi, Tuirial, Vakku and Kawrthan areas are more important.

In Tripura silicious limestone deposits have been located at Shankan Range, but no production has so far been achieved.

Production : The limestone produced in the North East India has so far been used by local cement industries. Plans are on to use it in the paper and other chemical industries of the region. The total production of limestone in the North -East India is shown below:

Reserve : A thorough investigation of the limestone deposits of the region is yet to be made. However, the estimates made so far reveals the following reserves so far :

Based on the limestone production of southern Meghalaya, there came up the Mawmluh-Cherra Cement Factory as a Meghalaya state public sector undertaking. Its present production is about 250,000 tonnes per annum. The limestone deposits of Dillai hill made the basis for Bokajan Cement Factory in Assam which produces about 400,000 tonnes of cement annually. In Arunachal Pradesh a mini cement plant has been established near Tezu, which produces about 30 tonnes of cement a day . This plant is supplied with the limestone of Tidding area . A mini cement plant has also been set up at Hungdung in Chandel district of Manipur, which can produce 50 tonnes of cement daily. In Nagaland a mini cement plant of 50 tonnes per day capacity has been established at Wazeho of Phek district. The quality of limestone of this area is so good that it can produce even white cement if so intended.

Although North East India is rich in limestone, it has only two major and three mini cement plants which produce only about 0.6 million tonnes of cement annually. But the region needs about 2 million tonnes of cement every year and hence there is a large gap between the requirement and production, which is met by import from other states of the country. It is therefore, desired that more cement factories be developed in the region as early as possible.

Sillimanite : North -East India is famous for sillimanite reserves after that of petroleum. Sillimante is a valuable mineral that is used in the manufacture of refractory materials, sparking plugs for automobiles and in glass industry. About 90% of the total production of sillimanite in India comes from this region.

Meghalaya, and Karbi Hills of Assam are the two areas where this mineral has been found. It was in 1922 that the occurrence of it in the Khasi Hills was first traced and subsequently, after independence, the Karbi Anglong deposits could be discovered.

In Meghalaya sillimanite deposits occur as outcrops associated with older gneisses over a belt of 320 km² in the Sonapahar -lalmati area in the northwestern corner of West Khasi Hills, just south of Boko- Hahim region of Assam . The variety of sillimanite found here is of very good quality containing 61 % of alumina and 36% of silica. It is therefore, of great value as a refractory material. In fact, because of its massive character and absence of impurities in it, the cut and sawn blocks of it can be readily used for lining glass tanks and other furnaces without precalcinating. It is estimated that this region contains a reserve about 255,600 million metric tonnes of sillimanite accounting for 83% of the total known reserve of the country.

In Karbi Anglong the mineral has been discovered at Chippilangso Ingtigaon, Samenlangso, Chailangso, Amterang, Bamuni and Chelabo areas. It is estimated that the reserves of Chippilangso are of the order of 10 million tonnes.

The mining of sillimanite in the early days, i.e. since 1950 was done by the Assam Sillimanite Ltd. In 1973 the lease of the mines was taken over by the Hindustan Steel Ltd. and this company has been mining the mineral ever since. The mining of sillimanite in Karbi Anglong is yet to begin. The following table shows the production of sillimanite from the Sonapahar-Lalmati quarries

Dolomite : The dolomite deposits of the North East India are so far found in Arunachal Pradesh and Meghalaya. In Arunachal Pradesh its deposits have been discovered at Rupa and Dedza over an area of 1.80 km² in West Kameng district. The reserves are estimated at 38 million tonnes in the former and 20 million tonnes has been identified at Cherrapunji. Although no large-scale commercial exploitation of this mineral has so far been taken up, it holds out great prospect for future.

Marble : Although no good quality marble has so far been discovered in this region, there are deposits of green marble along with serpentine and gemstone in the Moreh region of Manipur. Marble along with limestone and graphite has also been discovered in the Lower Subansiri district of Arunachal Pradesh. The Govt. of India has sanctioned Rs.2 crores toward building the infrastructure for exploiting this minerals.

Corundum : Corundum, which is ranked second only to diamond in hardness and is used in refractory crucibles, occurs in North East India in association with sillimanite as a locally segregated bodies in the sillimanite bearing rocks of the Sonapahar-Lalmati area of Meghalaya. It is also found in Patarkhang area and Raindu River Valley of West Khasi Hills of the state. In the Sonapahar-Lalmati area corundum often makes up 20% to 50% of the sillimanite ore. Sometime corundum is found to be formed as blue transparent crystals like sapphire and then it is regarded as a precious stone.

Gypsum : Gypsum, which is used in the chemical industries and to manufacture of the region. In Assam it is found in the Dimasa Reserve forest of Karbi Hills, near Badarpur of Cachar district and near Haflong and Mahur of North Cachar district. In Meghalaya gypsum deposits are confined to the Garo Hills area, especially near Mahendraganji, Garobadha, Mariangpara, Mongopara and Tarapara. In Nagaland it is discovered in Tuensang district.

Asbestos : Asbestos is a fibrous mineral that is used to manufacture roofing sheets, fireproof garment, curtains, brake-linings insulating mats filter-pads for acids besides various chemicals.

No economically exploitable deposits of asbestos has so far been found in North -East India. Silky Chrysolite (a variety of asbestos ) has, however, been found in the Tizu Valley between Punchini and Kurani (25⁰ 40� N, 94⁰40� E) and near the Gedu river close to Myanmar border in the Phek district of Nagaland. The deposits of this mineral has also been reported from Moreh, Nepalibasti and Kwatha areas of the Chandel district of Manipur. Besides these two states, there are some asbestos deposits near Payani in the Mishimi Hills Arunachal Pradesh.

Mica : In North East India mica is found mainly in the rocks of the Meghalaya-Karbi Plateaus. As white mica (muscovite) it is available in the Dholamara Hills of Goalpara district adjoining the Meghalaya Plateau and as lepidolite or lithium mica it is present at is present at the northern tip of the Dhir Beel (26⁰25�N, 93⁰ 44E) and Mukjan areas of the Kaliani river valley.

Sulphur : Sulphur deposits have not been found independently in North -East India. However, the Tertiary coals in the Dili-Jaipur and Makum areas contain sulphur to the extent of 6% along with other impurities. Thus ammonium sulphate can be extracted from the coal and sulphur can be isolated from the compound.

Beryl: Beryl is an important mineral. It is used to extract beryllium, which, in its turn is used in the preparation of a special alloy with copper. This mineral has become very important of late, as beryllium is used in the nuclear reactors as a moderator. A small quantity of it is also used in chemical industry for manufacturing beryllium salt and ceramic glaze. Besides, a verity of beryl turns into a precious stone, called emerald.

Occurrence of beryl suitable for working on a commercial scale has not so far been found in North -Eastern region. Small quantities of it have been discovered in Garo Hills, Karbi Anglong and at Darka, Kharmajua and Rangsali of southern Goalpara embedded in the pegmatite veins of the gneissic rocks.

Mercury: Very recently a deposit of mercury has been found at a small zone in Bangswar river in Tripura by the Geological Survey of India and Science & Technology Department of Tripura.

Graphite : Although no graphite has commercially been mined in North East India, the region is rich in this mineral Almost all the deposits of graphite of the region are confined to Arunachal Pradesh. There are rich deposits of it at La Lamdak (23,777 tonnes of flaky variety and 3.3 million tonnes of amorphous variety) Lalpani (71 million tonnes of amorphous variety) and Lanchidhouri (10,35 million tonnes of amorphous type) of Subansiri, Siang and Lohit districts of the state.

Quartz and Feldspar : Quartz and feldspar commonly used in large quantities in the region. However, a good quantity of these minerals is found to occur at Hahim (25⁰50�52� N, 91⁰ 0940��E) in Kamrup and Rangsali hill of Goalpara district. The total reserve of quartz at Pancharatna hill of Goalpara district. The total reserve of quartz at Hahim, Rangsali and Silbheta is estimated at 8500 tonnes and that of feldspar at 6200 tonnes.

Glass Sand : In North-East India, glass sand has so far been found in Assam, Meghalaya and Tripura. The Jiajuri and Thanajuri hills of Karbi Anglong contain about 11.78 million tonnes of glass sand. In Meghalaya Laitryagew, Umstow and Alugumadam areas of Khasi Hills and Siju and Tura areas of Garo Hills contain 2.3 million tonnes of it. Tripura�s reserve is small(187127tonnes) and distributed over Bijoynandi Cherra, Jogendranagar, Kalinagar and Purba Champamura.

Alum Shale : Alum is used in dyeing and tanning industries. It is also used as an antiseptic, Alum is extracted from pyrite. In North -East India pyrite is found associated mostly with shale in the coal bearing horizons of Upper Assam and Khasi and Jaintia Hills. This shale can be used for extracting aluminum sulphate and alum. Apart from the coal bearing horizons, pyrite is also found in the southern foothill region of Goalpara in quartz-feldspathic gneiss. In Karbi Hills it is found as nodules in the coal and shale beds in Silbheta and Kailajan area and as carbonaceous shale in the area between Lunggit and Takhi villages. In Nagaland also coarse grained pyrite is found in the Zunki Valley of Tuensang district.

Clay : North-East India, especially Assam, is very rich in various types of clay used in industries. Following are the important types of clay found in the region.

(A) Fuller�s Earth : It is a dull white to light grey-white mineral used in oil industries and in removing stain, fats and grease. A low grade Fuller�s earth is found at Bhutankhuti and Subankhata in the northern part of Nalbari district of Assam. This clay covers an area of 9.2 km². The deposit of Bhutankhuti amounts to 5.67 million tonnes and that of Subankhata 13 million tonnes. The clay is mixed with sand and its presence in the mixture varies between 53% and 72%.

(B) Fire Clay : Fire clay is used to manufacture firebricks for lining furnaces. It is also used in glass and cement industry. In North-East India it is found in association with the coal seams of Upper Assam, Karbi Anglong and Jaintia hills. In Karbi Anglong it exists in huge quantities in the Lakadang coal seams of Kailajan (1,678,680 metric tonnes and Silbheta (7,624,500 metric tonnes). The Kailajan clay a white to buff coloured, sticky and argillceous, which can be used in refractories and ceramic industries. The Silbheta deposit is white to dull white in colour and argillaceous. It is suitable to manufacture aluminum sulphate, apart from using in ceramic industries and refractories.

(C) Kaolin or China Clay : Kaolin is used to manufacture crockery, sanitary wares and in electrical goods (insulator) industries. In North East India it is found in Karbi Anglong, Golaghat and Lakhimpur districts of Assam and at Mawphlong of Meghalaya. In Karbi Anglong good quality Kaolin deposits have been discovered at Silbheta, Silonijan and Deopani areas. The white to dull white china clay found in this area can be used in ceramic industry, which is so far altogether absent in the region.

Mineral Salt : Salt was produced in North East India by collecting saline water from the salt-spring found in certain fault-zones of the region. The salt water so collected used to be dried over fire in bamboo cylinders. But as the salt so produced was inadequate, it used to be imported from other parts of India. Salt-springs are found in Sadiya, Jaipur, Mohong and Barhat of the Brahmaputra Valley along the foothills. In Cachar they occur at the Hailakandi Valley in the north-western corner of the district. In Nagaland the salt-springs are located in Kohima, Tuensang and Phek districts and in Manipur they are present along the foothills in the eastern part of the Manipur basin and in Ukhrul district. In fact, salt is still prepared for domestic use in some of the hill areas of North East India.

Mineral Water : There are many hot springs in North -East India. A good number of them are located in the northern and north-eastern part of the Karbi Plateau and eastern part of Jaintia hills. Of all these, the two more famous ones are located in Golaghat district and North Cachar Hills. The one in Golaghat district is located in the Nambar Reserve Forest about 19 km southwest of Golaghat town. The water of this spring contains hydrogen sulphide and its temperature is 53⁰C to 58⁰C. The other hot-spring, located at the headstream of Kopili is at a distance of 33 km east of Jowai. Its water is 35⁰C warm. Both the springs have clear water and are known as Garampani.

Building Materials : Granite, granite-gneiss, sandstone, quartzite, slate etc. are often used in constructing buildings, roads, dams and factories. In the North -East India, these materials are found in almost all the states.

Granite and granite gneisses are found all over the Meghalaya Plateau and in the Karbi Plateau of Assam. Besides, the outlying hillock of the Karbi -Meghalaya Plateau scattered over the lower Brahmaputra Plain have also these rocks. Khasi greenstone, used as road-metal are found abundantly in the central and southern part of the Meghalaya Plateau. Blocks of Sylhet trap are found along the southern margin of the Meghalaya Plateau and in the Kailajan, Jamuna, Hariahjan and Deopani river beds of Karbi Anglong. In Arunachal Pradesh this rock is found in West Siang district. Quartzite is found in and around Shillong, Naga-Patkai ranges and Arunachal Pradesh .Slate used for roofing purposes are found in the north-eastern part of Shillong and in the Tizu and Tepe river Valley of Nagaland . Massive coloured sandstone used as bricks, slabs and posts can be found in Khasi and Garo hills, in Wokha, Mokokchung and Kohima districts of Nagaland and in the headstream areas of Ledo, Lekhapani, Namdang, Tipam and Tirap rivers of Arunachal.

Power is one of the most important infrastructural element for economic development of a region. The traditional sources of power are coal, petroleum, natural gas and running water and the form in which the modern civilization receives power is electricity. North-East India has almost all the sources, but development of power in the region is one of the lowest. The coal that is present in the region contains a high proportion of sulphur, phosphorus and other volatile and non-volatile impurities and without their removal local coal is not directly suitable for electricity production. Diesel, an end product of petroleum is used to produce thermal electricity but it cannot be used extensively, as its demand in other spheres is too high. There is abundant natural gas in the region and it is slowly being used to produce thermal electricity in the area. The dearth of huge capital and technical know-how needed have so far hindered power generation from natural gas. So far hydro-electricity is concerned, the region is rich in water resources but the huge initial capital needed to construct dams and barrages and install the required machinery are some of the stumbling blocks in generating hydroelectricity.

The region is, however, extremely rich in hydro-electric power potential. The total potential (more than 40,000 mw) of the region accounts for about 30% of that of the whole country. The river Brahmaputra, Barak, Manipur and Kaladan and their numerous tributaries receive enormous quantity of water from rainfall and melting snow. It is said that Brahmaputra alone can produce more than 30 m. kw of electricity. Besides, there are such large tributaries as the Ranganadi, Dikrong, Burai, Jia Bharali, Jia, Dhansiri, Pagladia, Manas, Saralbhanga and Gadadhar in the north bank and Na Dihing, Burhi Dihing, Disang, Dikhou, Dhansiri, Kopili, Digaru, Kulsi, Krishnai, etc. in the south bank which contain large volumes of water throughout the year and which pass through hilly terrain in their upper courses, providing conditions suitable for damming them and generating electricity. The Barak, Manipur River and Koladan and their tributaries also have similar physical setting. But the factors stated above have largely hindered the development of hydroelectric power generation in the region.

Small thermal power stations were first set up at the large towns in this part of the country during the first few decades in order to supply electricity to the limited urban area. The first ever hydroelectric power production in North-East India started in 1922 with the help of water turbine set up at Bidon Falls. It had an installed capacity of 300 kw. Before 1950, the region had 7 small stations generation electricity with an installed capacity of 3,362 kw, besides a few stations run by the then railway companies. All these stations largely catered to the domestic demand of a few towns. In 1956 the installed capacity of electricity in the whole region was 5.3 MW. In 1957, the Umtru Hydel project was commissioned. Subsequent to that new thermal and hydroelectric A brief projects were taken up . A few of them have been completed while a large number is either yet to be completed or yet to be started. Of these six (5 hydel and 1 thermal) are in Meghalaya, fifteen (all hydel including 1 NEC and 2 micro ) are in Manipur, three (all hydel including two gas based thermal )are in Nagaland, eleven (all hydel two micro and one in two separate stages) are in Mizoram, four (two hydel and two gas based thermal) are in Tripura, fourteen (all hydel including three micro ) are in Arunachal and sixteen (eight hydel including three micro and eight thermal including five gas based) are in Assam.

As mentioned earlier, apart from the 41 major power projects shown above there are 38 other medium and micro scale project. While work in some of them is yet to be started, some are under construction. It is however, important to not that any of the power stations in North-East India has been able to produced its full installed capacity of electricity for various reasons. The total power production in the whole region comprising seven states now stands at 2144.80 M.U. and thermal 1046. 26 M.U. (1993-94) which is definitely very low. This also deters industrial and general economic growth of the region.

(ii) Percapita consumption -- Central Electricity Authority of India The Assam Tribune Dec. 30 1997.

Attempts have been made by the concerned state governments and North -Eastern Electric Power Corporation, sometimes with the help of the National Hydroelectric Power Corporation and the World Bank, to build power stations. But nothing much has so far materialized as construction of such stations need enormous resource. The natural gas provides an easy source for power. Hence as many as 5 major projects have already been taken up to produce electricity. Tripura has already completed two more to produce 580 MW of additional electricity of thermal power plant in Tripura.

The necessity of setting up of power generating units based on non-conventional sources of energy has, of late, been felt throughout the country in view of limited reserve of conventional energy sources of coal and oil and very high cost of establishment of hydroelectric stations. The states of North East are trying to utilize gobar-gas and wind and solar energy to generate electricity, especially in the less accessible hilly areas. The state government of Meghalaya, for example, has taken up the project of a wind mill at Cherrapunji by installing a cluster of SMW aero generators. The Department of energy under the New and Renewable Energy Programme has also identified the Smit-Nongrem Belt near Shillong for installation of four aero generators each of 1 KV potential to harness wind energy.

Under the Solar Energy Programme the Meghalaya Government proposes to install solar energy heating units at Tura and Byrnihat Primary Health Centres. Such units have already been installed at a Government run hotel in Shillong and at Civil Hospital of Willamnagar. Three more solar heating units in the West Garo Hills, West Khasi hills and Jaintia Hills districts have already been completed and eight more solar P.V. pumping systems are under construction in Meghalaya.

The Government of Mizoram has installed two wind mills, one at Khawbung and the other at Sankawrdal near Aizawl with a capacity of 5 KW and 3 KW respectively under the Renewable Resource Energy project. Two other wind power generators, one each at Chaltlang and Seleih are also going to be installed within a short period.

In Tripura one solar -cum wind power generating unit was commissioned on July 6,1989, at an interior village called Fuldung Seih (North Tripura District ). This project is supplying power to nearly 50 families.

In Assam, the generation of power from the non-conventional sources has been slow. Efforts are however, being made to harness wind energy to produce power. The Government of Assam, as also the Meteorological Department of the Govt. of India are investigating wind velocity in various parts of the state for finding out suitable locations of installing aero generators. Efforts are also on. the way to convert solar energy to heat energy and to generate power from solar energy, especially from those places like the remote villages of the North Cachar Hills district and Majuli.

In Arunachal the first photo voltaic power plant was installed at Akkar Yangam, a hill-top village 60 km away from Along in the West Siang district. Some similar projects have also been undertaken to electrify remote inaccessible villages of the state.

The above discussion shows that North East India was rich in forest resources. But indiscriminate felling of trees and killing of wild animals have been rapidly depleting these resources in recent years. Efforts have been made by government to conserve these resources by declaring some forest areas as �reserve forest�, some as wild animal sanctuaries and some as national parks. As back as in 1879 an act named as Elephant Conservation Act was passed to restrict indiscriminate catching of elephants of Assam. Similarly Wild Bird Conservation Act was adopted in1887 and Forest Conservation Act was adopted in 1891. In order to protect the forests of Assam, in 1901 the Kulsi and Goalpara Reserve Forest Act, in 1905 the Kaziranga Reserve Forest Act. and in 1928 the Manas Reserve Forest Act were adopted. Besides , Kaziranga and Manas reserve forests were raised to the status of Game Sanctuaries in 1912 and in 1928 respectively. The Rhinoceros Protection laws was enacted in 1950 and in 1974 the Kaziranga Game Sanctuary was raised to a National Park. Further the wild life preservation laws were tightened in 1976. All these acts were meant for preservation of the precious plant and animal life of North East India. There are at present many reserve forests, sanctuaries and a few national parks in this region . Of them the following are the main :

1. Kaziranga National Park : This park is located in Bokahat subdivision of Golaghat District skirting the Brahmaputra to the north and Karbi Anglong in the south. Its area is 430km². The whole park is situated on the Brahmaputra flood-plain and supports tall grasses, swamps and beels. There are a few patches of deciduous forests also. The most important attraction of the Park is its one -horned Asian rhinoceros. Besides, it has wild buffalo , elephant , wild boar , gaur, Royal Bengal tiger, Leopard , swamp deer, hog deer, samber and many other animals including hoolock gibbon and a few varieties of monkey. The park is also famous for pelican, horn bill, white throated brown horn bill, florican and several other species of swamp birds. In 1991 , the Park had as many as 1100 rhinoceroses, 800 elephants. 10,000 deer, more than one thousand wild buffaloes, 12 bisons and about 3000 wild boars . The Park being located on a low lying area beside the Brahmaputra suffers from frequent flooding in the rainy season leading to death of its animals. Poaching is another common problem of the Park.

2. Manas Wild Life Sanctuary and Project Tiger : This sanctuary is located in the north western corner of Barpeta District below the Bhutan foothills on the eastern bank of the Manas river. It is recently that Manas has been recognised as an important sanctuary of the country Its area is 390 km2 . It is located over bhabar and tarai region . The bhabar region has deciduous forest, while the tarai region supports tall grass. The important animals of this sanctuary are Royal Bengal tiger, golden langur , hispid hare , pigmy hog, swamp deer, hog deer porcupine and Indian bison. It has also a small rhinoceros population. Among the birds found in Mans, the great pied horn bill, florican pea-cock and white throated brown horn bill are the main. A Project Tiger of the Central Government was started here in 1973 taking Manas as the core. It is found that the tiger population of the region has increased reasonably after the execution of the Project, The sanctuary is also important for angling in the headwaters of the Manas river near Mathanguri.

3. Sonai-Rupai Wild life Sanctuary : This sanctuary is located on the northern part of Sonitpur District to the west of the river Gabharu north of Dhekiajuli at the Bhutan foothills over the bhabar and tarai tracts. The total area of it is 175 km² . Important animals of this Sanctuary are Royal Bengal tiger, elephant, wild buffalo, bison, dhole, wild boar, black bear, leopard, stag and golden langur. Besides, it is important for such birds as imperial pigeon, pheasant and parrot.

4. Orang Wild Life Sanctuary : This sanctuary is located in the south- eastern corner of Darrang District on the western side of the Jia Dhansiri river to the north of the Brahmaputra . Its area is 72 km². Orang has both grassland and deciduous forests . It has rhinoceros wild buffalo, hog deer and florican. The sanctuary has also a few migratory pelican colonies.

5. Pabitara Wild life Sanctuary : Pabitara was declared a wild life sanctuary in July 1987. It is located in between the Brahmaputra and Kalang in Marigaon District. Its area is only 16 km² .The sanctuary is covered mostly by tall grass. Pabitara has some rhinoceroses, leopards and some wild cats. The sanctuary is rich in avifauna. It has crane, stork, florican, pheasant and several other varieties of swamp birds.

6. Laokhowa Wild Life Sanctuary : It is located in the northern part of Nagaon District, on the southern bank of the Brahmaputra to the west of Silghat. The area of the sanctuary is 70 km². It has both grasslands and deciduous forests, It has a few rhinoceros, apart from swamp deer, wild buffalo, elephant, tiger and such swamp birds as wild duck and cormorants. A large part of the forest has now been encroached upon by man illegally.

7. Garampani Wild Life Sanctuary : It is a small sanctuary of 6 km² area in Golaghat District to the west of Dhansiri River skirting KarbiAnglong hills. The National Highway No. 39 from Numaligarh to Dimapur and onward passes by its eastern side. It is covered mostly by deciduous forest. The sanctuary is famous for elephant, leopard and hoolock gibbon.

8. Pabha Wild Life Sanctuary : It is located in the northern part of Lakhimpur District at the junction of Ranga Nadi and Luhit. Its area is 49 km² . The sanctuary is famous for wild buffalo and is referred to as Milroy Buffalo Sanctuary. It has some beels within it which it which support rich fish fauna.

9. Baranadi Wild Life Sanctuary : It is located in the north western corner of Darrang district. Its western boundary is Barnadi and northern boundary is Bhutan hills. The area of the sanctuary is 26.21 km². It has deciduous and semi evergreen forest. It is famous for pigmy hog, porcupine and hispid hare.

10. Dibru-Saikhowa Wild Life Sanctuary : It is located in Tinsukia District in the south bank of Lohit River. It has a large area of 650 km² The sanctuary supports tall grass and evergreen forest. It is famous for the rare white winged duck (Deohanh). many other varieties of swamp birds and wild horse . It is said that some horses left behind by the American and British forces after World War II found their resort here and their progenies are now found in wild state in the sanctuary.

11. Nameri Wild Life Sanctuary : This sanctuary is located in the northern foothills of Sonitpur District on the northern bank of Jia Bharali river skirting Arunachal Pradesh. In fact, it is part of the Charduar Reserve Forest. Its area is 130 km² . It has deciduous and evergreen forests. Elephant, Royal Bengal tiger, capped langur and various types of pheasants are the main wild life of the sanctuary. Besides, the river Jia Bharali provides many ideal sites fore angling.

12. Proposed Baruali and North Cachar Wild Life Sanctuary : This sanctuary is located at the border of Cachar District and North Cachar hills District . It will include areas from both the districts. The area is rich in leopard, clouded leopard, bear and hoolock gibbon.

13. Proposed Dhaleswari Reserve Forest : This forest is a part of the Innerline Reserve Forest within Cachar District along its frontier with Mizoram. This is a vast forest containing many varieties of deciduous and evergreen trees including bamboo and garjan. The forest contains slow loris, pig- tailed monkey, deer , gaur , Royal Bengal tiger leopard, golden cat, stork, crane, trogen, pheasant , python, cobra , etc.

14. Deepar Beel Bird Sanctuary : This lake and the swamps around it provide ideal location for food and nesting of the swamp birds. It is located at about 9 km to the west of Guwahati city on the south banks of the Brahmaputra skirting some hills. The lake and its surrounding swamps comprise an area of 4.14 km ² . It is declared as a bird sanctuary on January 1, 1989. There are about 112 species of birds, of which 61 are local, 27 are migratory inside North East India and 24 are migratory from outside North East India .

15. Sampara- Bardalani and Bardoibam -Bilmukh Bird Sanctuary : These two sanctuaries are located in Dhakuakhana subdivision of Lakhimpur District. They are the home of many large and small local birds. Florican., pheasant, dove , wild duck , wild hen, stork, crane , king fisher , pelican, hornbill and many varieties of local birds are found here .

16. Namdapha Tiger Project : This project area of 1985 km² is located in Changlang District of Arunachal Pradesh. It is composed of hills and valleys and supports tropical evergreen forest. It has Royal Bengal tiger, leopard , clouded leopard, panda, bison, deer, and hog deer barking deer elephant, black bear, python, monitor, chameleon, flying squirrel and many species of birds.

17. Mauling National Park : This park is located in West Siang District of Arunachal Pradesh. It has an area of 483 km² . The area is famous for three varieties of goat -antelopes, locally known as takin, coral and serow Besides it has many birds including pheasants.

18. Pakhul Wild Life Sanctuary : It is located in East Kameng District of Arunachal . It has a large area of 861.95 km² . It was declared a sanctuary in 1979 . The sanctuary is referred to as a Heaven for Nature Lovers. It has Royal Bengal tiger , leopard bison and many varieties of birds including pheasants.

19. Balpakram Wild Life Sanctuary : It is situated in the Garo hills about a hundred kilometers west of Shillong. Its area is 85 km² . It has elephant , antelope., spotted deer , wild boar and many species of birds.

20. Keibul Lamjao National Park : This Park is located in the south of Loktak Lake in Manipur. It has an area of 50 km² and was declared a sanctuary in 1966. Subsequently in 1977, it was raised to a National Park. The Park is sought to be made a sanctuary of the rare wild goat ,locally known as thamin. This is also known as Sangai or brow antlered deer. About a dozen of this animal were brought from Delhi Zoo and are being raised here, as a part of the �Brow Antlered Deer Project�. It also has antelope, barking deer, swamp deer and many varieties of swamp birds.

21. Proposed Keilam Hill Sanctuary : This proposed sanctuary is located in Churanchandpur District of Manipur. It is famous for a variety of wild goat locally known as �sabeng� . Besides, it has many other wild animals.

22. Proposed Juko Valley National Park : This proposed national park is located in Senapati District of Manipur bordering Nagaland . It also has a variety of wild goat along with other animals.

23. Proposed Juko Valley National Park : This proposed park is located in Ukhrul District of Manipur around Soroi Park (2568 m ). Siroi is one of highest peaks in North East India outside Arunachal Pradesh. The area has evergreen pine trees and some world famous orchids and lilies (Siroi Lily ) Besides, It has many mid -altitude animals and birds not normally found in other parts of India.

24. Yangon Pokpi Lokchaw Sanctuary : This sanctuary is located in Chandel (Tengnoupal ) District of Manipur bordering Myanmar. It has an area of 184 km² . There are about 40 species of wild animals and 70 species of birds not commonly found in other parts of the country

25. Intaki Wild Life Sanctuary : It is located in Nagaland. It has an area of 202 km² . It has elephant, bison, wild boar, barking deer, leopard , clouded leopard, tiger and pangolin and other species of bird.

26. Dampa Wild Life Sanctuary : This sanctuary is located in Aizawl District of Mizoram. It has an area of 180 km² . It contains elephant tiger , leopard, and antelope, barking deer, bear, wild boar, wild dog, hornbill pheasant python cobra and many other species of animals.

27. Trishna Wild life Sanctuary : It is located in Tripura and has an area of 197.7 km² . It has Indian Gaur many rare varieties of plants.

28. Sipahijala Sanctuary : Located in Tripura , this sanctuary has an area of 18.53 km². It is famous for various species of animals and birds .

North East India has 28 parks and sanctuaries as stated above, but some of these have been found to be partly destroyed by man either for jhum cultivation or for extracting fuel wood and timber. Many forests in the region have been destroyed for constructing lines of transport also. On the other hand , poaching of rare and valuable animals like rhinoceros , elephant , bison, wild goat deer, tiger leopard etc. has reduced the number and species of wild animals found abundantly earlier in the region of late. All the above factors have been contributing to a rapid breaking down of the ecological balance in the region. It is therefore, found that many species of plants and animals are on the way of their extinction .

It is however, heartening to note that some people have relished the dire consequences of extinction of many varieties of plans and animals and occurrences of ecological imbalance Hence, some organisation like the World Heritage Group, World Wild Life Fund, Natures Bacon, Prabhati Pakhi, etc. have come up in the region to plead for conservation of plants and animals and maintenance of ecological balance at any cost.

North-East India is Located between 20^o N lat, and 29^o 30 N lat. and 89^o 46 E long. and 97^o30�E long. Its northern and eastern boundaries are natural barriers represented by the high Himalayan Mountains and Patkai Hill ranges respectively. However, its southern and western boundaries are more political than natural.

To the north of the region lie Bhutan and Tibetan part of China. The eastern boundary is covered by Myanmar. The Arakan Yoma of Myanmar and Chittagang and Tippera hill and Surma Plain of Bangladesh lie to the south of the region. To the west of the North- East India there lie West Bengal and Bangladesh.

North-East India is commonly called the land of the �Seven Sisters�. Of the present seven states, viz Arunachal Pradesh, Assam, Nagaland, Meghalaya, Mizoram, Manipur and Tripura, the first five were parts of undivided Assam, from the view point of administration, during the pre- Independence period, while they were subsequently constituted into individual states to fulfill the socio political aspiration of the people inhabiting them. Manipur and Tripura, on the other hand, were princely states which become Group C states after independence and later become full- fledged states.

North- East India is surrounded by hill and mountains on there sides. It is only towards the west that the region is bordered by plains. But at the time of attainment of independence in 1947, the country was so partitioned that the eastern part of the then Bengal was constituted into East Pakistan (now Bangladesh ) and this almost isolated the north eastern part of India from the rest of the country , except for a narrow corridor of about 40 km width along the Bhutan foothills. While this corridor lies between two foreign country (Bhutan and Bangladesh), the main part of North-East India is surrounded by four foreign countries, viz China, Myanmar, Bangladesh and Bhutan. The region, therefore, assumes a great strategic importance.

The total area of the region is 255036 km² , representing about 7% of the country. It supports 31,386911 souls (1991), accounting for 3.90% of India�s total population.

The Frontiers and Boundaries : Since the shape of North - East India is like that of a reverse triangle with its apex at the southernmost tip of Mizoram, there is no distinct southern boundary of the region .

To the north of the region lie the Himalayan kingdom of Bhutan and snow -clad Great Himalayan Mountain ranges, separating Tibet of China from India . The international boundary between Bhutan and India runs along the junction between the plains and hills and hill promontories jutting into the plains. Therefore, the Indo-Bhutanese boundary , although largely physical , has certain parts (like the Eastern Duars and Subankhata areas ) determined through political negotiations. There are several routes linking the two countries, which are traditionally known as �Duars� (doors).

The eastern part of the northern boundary runs from the north -eastern corner of Bhutan to the tri-junction of China Myanmar and India for a distance of 1140km. This boundary is known as the Mc. Mahon Line and was determined as per Smile Agreement of 1914 between India and Tibet (then an Independent country). It runs along the highest Himalayan Range, much above the snow line. The passes like Bumla, Thaga La , Yangiya La, Chaka, Lamdu , Tulung La, Lucha, Dom La, Andra La, Yanga La, Yangiya La, Chang Kang Kaya La, Diphu, etc. connect Arunachal of India with Tibet of China across the Himalayan Range.

The south -eastern boundary follows the general alignment of the hill ranges and runs partly over the Patkai Range and partly over the ranges lying in the same alignment as the Patkai in Manipur and Mizoram . The ranges enter into Myanmar in the name of the Arakan Yoma. although the south-eastern boundary separating Myanmar from India runs mostly along high ranges , it is cut across by many rivers that flow into the Chindwin and a number of passes. The important passes across this boundary are Kumjawang pass through which the Allied Forces built the famous Stilwell Road from Lekhapani in India to China in World War II and it is Tuzu Pass through which the Indian National Army, marched into India during the same period.

The south-western and western boundary is man-made and hence runs mostly along an arbitrary line over villages and crop-fields. It separates Mizoram, Tripura and Karimganj districts of Assam, Meghalaya and part of Dhubri district of Assam from Bangladesh. In the northernmost part of this boundary, the line separates West Bengal from Assam It is through this part that North-East India is connected with the rest of the country by roads and railways.

Present North -East India consists of ancient Assam, Manipur and Tripura and the surrounding hill tracts. The ancient Assam used to be known as Pragiyotisha in the earlier epic period and as Kamrupa in the later part of the first millennium A.D. i.e. in the age of some Puranas and �Tantric� books. The capital of the ancient Pragiyotisha and Kamrupa was most of the time located at Prajyotishpura, which is identified as present Guwahati. Like ancient Kamrupa, ancient Manipur and ancient Tripura also have their own history. In the absence of any written records the history of other hill states of North -East India is not clearly known. But all the peoples living in these states have their rich legends and traditions that run through since time immemorial.

The boundary of the ancient Kamarupa used to fluctuate in different periods of history. At one stage it is said to have extended up to Karatowa (a river, consisting in the past , of now abandoned channels of Koshi, Mahananda and Tista ) in the west and included a large part of the northern parts of West Bengal and Bangladesh. Both Yoginitantra and Kalika Purana mention the spread and sway of Kamrupa from Dikshu River , (which perhaps existed in the present day Sadiya region) in the east to the Karatowa in the west, and from Kanchan Giri (Kanchenjunga in the north -west to the confluence of Lakshmi and Brahmaputra (now in Bangladesh in the south).

Between the fourth and twelfth centuries A. D. the plain part of North East India, then called Kamrupa, was ruled by the Barman , Salastambha and Pala dynasties. Kumar Bhaskar Barman,(594 AD-650 AD), a contemporary of Harsha Vardhana, was a famous king and it was during his reign that the Chinese traveler Huen-Sang visited Kamarupa and wrote in praise of beauty and prosperity of the country . At the beginning of the twelfth century Muslim invasions started (1206AD) from the west, and the Ahoms entered from the east under the Leadership of Sukapha (1228 AD). With the entry of these two forces into the political arena of North-East India, there occurred a series of political changes. The capital of the western part of Kamata kingdom was shifted to Kamatapur (a place located 32 km south of Cooch Behar ), the Bhuyan feudal lords come to hold their sway in the middle of the Brahmaputra Valley, the Kacharis and Chutiyas carved out their Kingdoms in the southern and north -eastern parts of the Valley respectively, while the Ahoms established their kingdom over the area between the Burhi-Dihing and Dikhow rivers. With the passage of time the smaller chiefs and kings were wiped out and towards the sixteenth century there remained only two powers in the Brahmaputra Valley-- the Ahoms in the east and the Koches in the west. In course of time the Koch kingdom also broke into two portions and subsequently its western part went under the rule of the Mughals, while the eastern part came under the control of the Ahoms.

The origin of the name Axom (corrupted to Assam ) is not clear. The scholars, however, believe that it perhaps came from �Ahom� the people who ruled a major part of the Brahmaputra Valley for long six hundred years from 1228 AD to 1826 AD. Assam was a powerful kingdom in North East India during the late seventeenth and early eighteenth centuries. It was from the first Moamaria rebellion i.e.1769, that the Ahom kingdom began to decline. The third Moamaria rebellion took place in 1786 and at the same time, the prince of the vassal Daramgi state also started a rebellion against the Ahom king Gaurinath Singha. The desperate Ahom king sought the help of the of the East India Company and the British Governor General, Lord Cornwallis, stationed at Calcutta, sent six companies of soldiers under Captain Wales to help Gaurinath Singha quell the rebellion. Although it was effectively done, there appeared feuds and quarrels among the ruling Ahom princes and generals and their kingdom was ultimately invaded by the soldiers of the northern Burmese kingdom in 1816, 1817 and 1821 and ravaged the whole Brahmaputra Valley. The Ahom forces were defeated in each of the attempt to prevent the onslaught of the Burmese forces. The Burmese then trespassed into the onslaught of the British territory and the British declared offensive on March 5, 1824 and pushed back the Burmese invading army to their territory. On February 24, 1826, a treaty was signed at Yandaboo and the Brahmaputra Valley was annexed by the East India Company. Although the Valley was annexed in 1826, its north -easternmost part comprising present Sadiya sub- division and Dibrugarh district were under the Khamti and Matak chiefs respectively. Similarly , the present eastern Assam districts of Golaghat, Jorhat, Sibsagar and Lakhimpur were allowed to be ruled by the Ahom vassal prince. By 1839, all these areas were brought under direct British rule. The westernmost part of the Brahmaputra Valley and Garo Hills has been earlier annexed by the British from the Nawab of Bengal.

The Barak Valley or the undivided Cachar was taken over by the East India Co. from its local Kachaei king in 1832. The Jayantia and Khasi hills districts were ceded to the Company�s territory in 1835 and the Barak / Surma Valley was linked with the Brahmaputra Valley in by a cart-route. Between 1839 and 1854, the present North Cachar Hills District, and in 1866 the major part of Nagaland, in the name of Naga Hills District, were taken over. The Bhutan Foothill region of the percent Kokrajhar District was known as the �Eastern Duars�. For a year or two it was kept as a separate administrative district and later on merged with the then Goalpara district. Till 1874, all these newly annexed parts of North - East India were under the Bengal Presidency. In that year the Province of Assam was constituted under a Chief Commissioner with Goalpara, Kamrup , Darrang , Nowgong, Sibsagar, Lakhimpur, Naga Hills, United Khasi and Jayantia Hills, Garo Hills, Cachar (including the present North Cachar Hills) and Sylhet. The Present Mizoram, then know as Lusai Hills, was annexed by the British between 1891 and 1895 and in 1898 it was constituted into a district of Assam.

Like Kamarupa or Assam, Manipur was also an important area in the part. The epic Mahabharata mentions that Babruvahana, the son of the third Pandava, Arjuna, was born of a Manipuri princess. The Meiteis (the indigenous Hindu people of the Manipur plain ) claim their descent from Babruvahana, In the mediaeval period the Valley was deeply influenced by the Vaishnav religion cult of Bengal The old temples of Bishenpur (Bishnupur), Imphal and other places do substantiate this fact, However, in 1714 AD, Pamhabia a courageous Naga leader occupied Manipur and established his dynastic rule. On ascending the throne, he embraced Hinduism and took the name of Garibnawaz. After him the kingdom continued as an independent unit till 1891. During this period there were several invasions from the kingdom of Upper Burma, on the one hand and a lot of feuds and assassinations within the members of the royal family, on the other. The Britishers who established themselves firmly in Assam, took over Manipur in 1891 on the plea of murder of some top British officials who had gone there to quell a rebellion. Manipur was then made a princely state under the British rule. In 1949 it was made a Part-C state under independent India and subsequently in 1972 it became a full-fledged state.

Tripura also has a long political history of its own. The archeological evidences and old inscriptions reveal that a large part of Tripura, especially its south -western portion Samata, Vanga and Harikela , the old kingdoms that existed in ancient days. Subsequently, in the early part of the last millennium, Tripura came to be ruled by the Devas of Srihatta. When Srihatta finally fell into the hands of the Muslims in 1257 A.D., the chief of Tripura tribe rose to power in the hilly region of the state and established a dynastic rule . This dynasty of kings could extend their reign over the plains adjoining the hills. Further they accepted Hinduism, assumed the title of Manikya and claimed their descendance from Chandra. They ruled Tripura efficiently for several centuries. In 1761, British Government appointed a Political Agent in Tripura to protect their interest and to advise the Rajas. Thus Tripura became a princely state under the British. On October 15,1949, it was merged with the Indian Union as a Part-C state and on January 21,1972 it became a full- fledged state.

The foothill areas of the present Arunachal Pradesh inhabited by many culturally rich tribal groups since very old days, consisted of independent tribal territories. They used to maintain cordial relations with the people living in the plains. After the Britishers annexed Assam, they came in direct contact with the tribal of Arunachal Pradesh and foothill areas adjoining the Brahmaputra Valley came more or less under the control of the former from about 1875-76 with the introduction of the Inner Line Regulations. With the passage of time, the British administration penetrated deeper into what is today Arunachal Pradesh and the areas bordering Assam were brought under its control as Frontier Tracts and in 1914, the boundary between British India and Tibet was agreed upon along the snow-capped high Himalayan range from north-eastern Bhutan to the tri -junction of India, Tibet and Myanmar covering a distance of 1140 km. This international boundary is known as McMahon Line and was adopted at Simla Convention in 1914.

At the time of independence, Sylhet district, except the police station areas of Badarpur, Patharkandi, Karimganj and Ratabari, went to the then East Pakistan. Thus Assam lost an area of 18,969 km. retaining for it 133165km. Further, on September 1, 1951, an area of 85 km. of Dewangiri (north of Nalbari district ) was seceded to Bhutan, thus further reducing the area of Assam to 133080 km. However, there were three distinct administrative units in North -East India at the time of transfer of power. They are Assam Manipur and Tripura . From 1921 Assam had remained a province administered by a Governor and after independence it was made a Group A state, The Frontiers Tracts to the north-east of Assam came to be administered as North East Frontier Agency (since 1951) by the Governor of Assam as the Agent of the President of India. Manipur and Tripura, which had been princely states were made Part-C states under Chief Commissioners. Later on these two were made Union Territories. Meanwhile, the regional social groups began to give vent to their aspirations for separate administrative units or states of their own and agitations to that end began. Naga hills was separated from Assam and made a separate state on December 1, 1963. Garo Hills and United Khasi and Jainta Hills were constituted into an autonomous state in the name of Meghalaya in 1970 and a full-fledged state in 1972. Similarly, Lusai Hills was made a Union Territory in the name of 1972 and in the same year North East Frontier Agency was also made so in the name of Arunachal Pradesh. These two Territories were raised to status of states in 1987.

Thus in the later part of the 1980 as many as seven full-fledged states emerged within the Union of India. Following are the primary details of the states of North East India.

State	Area (km.)	No. of districts	Population	Density	Growth Rate(1981-91)
1. Arunachal Pradesh	83.725	13	858,392	10	35.86
2. Assam	78,523	23	22,294,562	284	23,58
3. Manipur	22,327	9	1,826,714	82	28.56
4. Meghalaya	22,429	7	1,760,626	78	31.80
5. Mizoram	21,087	4	686,217	33	38.98
6. Nagaland	16,579	8	1,215,573	73	56.86
7. Tripura	10,491	4	2,744,827	262	33,69

District	Headquarters
1. Dhubri	Dhubri
2. Kokrajhar	Kokrajhar
3. Bongaigaon	Bongaigaon
4. Goalpara	Goalpara
5. Barpeta	Barpeta
6. Nalbari	Nalbari
7. Kamrup	Guwahati
8. Morigaon	Morigaon
9. Nagaon	Nagaon
10. Darrang	Mangaldoi
11. Sonitpur	Tezpur
12. Golaghat	Golaghat
13. Jorhat	Jorhat
14 Sibsagar	Sibsagar
15 Dibrugarh	Dibrugarh
16. Tinsukia	Tinsukia
17. Dhemaji	Dhemaji
18. Lakhimpur	North Lakhimpur
19. Karbi Anglong	Diphu
20 North Cachar	Hailakandi
21.Cachar	Silchar
22. Hailakandi	Hailakandi
23. Karimganj	Karimganj

North East India consists of there structural units. The core of the region is the Karbi-Meghalaya Plateaus, representing a part of the Gondwanaland or the Deccan Plateau. This oldest Pre-Cambrian part came into existence as a results of the igneous activities occurring at the time into cooling of the earth�s surface from is molten stage. The southern part of the Meghalaya Plateau, bordering the Cretaceous and Tertiary periods This is way the southern face of the Meghalaya Plateau is precipitous.

The Himalayan Mountains in the north and the hills found in the east and the south are the product of age-long sedimentation, folding and upliftment . All these hills and mountains were built up during the Tertiary period from the sediments deposited in the Tethys Sea that existed in the geological past around the Meghalaya-Karbi Plateau mentioned above.

The Brahmaputra Plain, as also the other smaller Plains have been built up a result of deposition of alluvial materials on the early Tertiary and Mesozoic bed rocks of the depressions that had come into existence in this region due to tectonic disturbances. Although the origin of the Brahmaputra trough is not clearly known, it is said to be the result of the down -buckling of the frontal part of the India Plate that has been pushing northward down the Central Asiatic Plate as per the Plate Tectonic Theory. The Barak Plain is another depositional Plain that perhaps originated due to the pressure exerted again by the Indian Plate. Like the Brahmaputra plain it is now filled up with alluvial deposits laid on the Tertiary bed rock. The Tripura Plain is a piedmont one, originated as result areas of erosional and depositional activities commonly active in the foothill areas of the humid tropical regions. The Manipur Plain, said to be a lacustrine plain, came into existence as a result of draining out of the water of the lake that existed at what is today Manipur Plain. The head ward erosion of the Manipur River attacking the Southern rim of the lake from the Myanmar side perhaps succeeded in capturing the lake near Sugnu and drained it dry leaving aside only the deeper parts.

North East India is geologically a very complex region since it represents the dynamic frontal part of the India Plate on the one hand and the relatively stable central (Chinese ) Plate on the other. In between these two plates there lay the orogenically active bed if the Tethyan Geosyncline with its foredeep skirting the dynamic Indian Plate.

The Geological history of the region directly or indirectly involves almost all the major geological ages from the Pre-Cambrian to the Recent. The Shillong Plateau and the Karbi Hills being part of the Gondwanaland are Archaean (?) or Pre-Cambrian in age. In its northward movement a part if the Gondwana Massif (also termed as the Indian Plate), exerted pressure on the Tethyan belt, which, being pressed by the plate in the south and west and by the Chinese Plate (central and South -East Asiatic Plate )in the north and north-east, took a syntaxial bend along what is today Dibang-Lohit Hills. The Whole geosynclinals belt representing the Arunachal Himalaya and the eastern hills, from Dibang-Lohit to Mizoram and beyond , came into existence in the course of Himalayan orogeny in the late Tertiary and Quaternary periods. Thus, geological beds ranging from pre-Cambrian to Recent periods can be found scattered in the region.

The northern part of the Shillong Plateau and the western part of the Karbi Hills have been in existence ever since the Gondwanaland was formed containing highly metamorphosed gneissic complex. In some places these rocks, however, are overlain by a series of sedimentary rock deposited during the Pre-Cambrian age and are identified as Shillong Group of rocks. These rocks are not highly metamorphosed except around the granite plutons (where thermal metamorphism did take place). The rocks have lost their original elastic character. Further, in the southern of the Shillong Plateau there occurred eruptions in the Jurassic Period depositing a layer of basalt known as the Sylhet Trap. The southern part of the Shillong plateau and the eastern part of the Karbi Hills also underwent submarine condition in the Cretaceous and early Tertiary periods providing conditions congenial for the deposition of coal, limestone, shale and conglomerate.

Barring aside the Meghalaya Karbi Plateau, the rest of North East India is generally made up of rocks that were deposited in the Tethys Sea or Tethyan Geosyncline and the foredeep that skirted it (which is supposed to have given rise to the Brahmaputra Plain subsequently). Geologically the oldest rocks that are found in North East India in patches, outside the plateau, belong to the Cretaceous Period in the form of limestone in the eastern part of Manipur. Following this, in the Eocene period there occurred extensive depositions identified in the region as the Disang/Jaintia Group of rocks. These are mostly shale, sandstone and conglomerate. But these also contain, in places, Limestone and coal as found in Bokajan area of Karbi Anglong, Garampani -Umrangshu area of North Cachar Hills and in the southern parts of Garo and Khasi hills . The next rock beds were deposited in the Oligo-Miocene periods which are known as the Barail Group . This group of rocks is important in that it is in this group that rich deposits of both coal and oil are laid. In general ,the beds laid down during this period are of sandstone, shale, siltstone, marl, conglomerate, etc. But in places like southern part of Tinsukia district, south-eastern parts of Dibrugarh and Jorhat districts, there are rich deposits of oil, as found in Digboi, Naharkatiya, Duliajan , Moran, Lakwa, Geleki, Rudrasagar and Borhola, and coal in Ledo-Lekhapani Jaipur, Naginimara, Tekok Parbat, etc. Overlying the Barail group of beds there are Surma and Tipam beds of the Miocene period. These again, generally contain siltstone, sandstone, conglomerate, shale and clay with occasional oil reserves locked in the sandstone beds, especially in Dibrugarh district. The deposits of this period are known as �Lower Siwalik� in Arunachal Pradesh. The deposits of the Mio-Pliocene are known as Namsang/ Dupi Tila Group and they again contain sandstone, clayey sandstone, clay and conglomerate. No coal or Limestone has so far been found in these Tertiary beds. By the Pliocene period perhaps the Tethys Sea, in this region became shallow and normally allowed the deposition of pebbles and sandy clay known as Dihing Group of sediments. These sediments are contemporaneous to the Upper Siwaliks of the Arunachal Himalaya. By the end of the Pliocene period most of the North East India rose up from the womb of the Tethyan Geosyncline in the long continued orogenic process, except; a few vestiges left in the form of isolated fresh water lakes in the Arunachal Himalayan region . It is in these lakes that the uppermost Siwalik beds are deposited in the Plio-Pleistocene times. In other low lying parts, which were above the sea level, alluvial deposits, known as the Upper Dihings, were laid down, giving rise to the high level older alluvium found in the foothills and local higher grounds , as in the eastern part of Sonitpur district( between Mijika and Brahmajan) and Golaghat district. The older alluvium contains clay, sand , shingle and pebble. In the Sub-Recent and Recent times newer low level alluviums, in the form of clay, sand and silt, were laid down. The deposition of these materials, in fact, is still continuing.

An important fact of the geology of North East India is the presence of a large number of thrusts and faults and upliftment of relatively older beds as a result of acute reverse faulting.

In the Arunachal Himalayan region one encounters successively older rocks as one moves northwards. The outermost hills here, skirting the Brahmaputra Plain, are made of Tertiary rocks. But as one moves to the middle part, one can find patches of Gondwana and Lower Paleozoic deposits. Further north in the higher Himalayan region there are both early Paleozoic and Pre-Cambrian deposits. This is because the thrusts and reverse faults acting from the relatively passive Central Asiatic (Chinese) Plate were more pronounced towards the north and these raised even the lower rocks up. While the younger upper rocks have meanwhile been removed by the processes of sub-aerial erosion the Lower, older rocks have come to be exposed. Although most of the faults in the Himalayan region are not evidently visible, the Main Boundary Fault, along with southern border is still traceable. It runs from WSW to ENE up to the Siang river. To the east of that i.e. in the Dibang Valley- Lohit- Changlang -Tirap region, the rock structures and the hill ranges take firstly a south-eastward and then south-westward syntaxial bend . It is in this zone that there lies the Mismi Thrust that runs from WNW to ESE.

In the eastern and southern parts of North East India, there lie parallel ranges trending NNE-SSW from Tirap District in Arunachal to Chimtuipui District of Mizoram. As one traverse eastward from the Indian side one can find the ranges gaining height, culminating at the Patkai- Arakan Yoma ranges , with an average height of 2000 m. The northern part of these ranges fall along the Indo -Myanmar boundary. What is interesting here again is the fact that the areas towards the higher eastern ranges are made of successively older rocks. For example, the western most hills of Nagaland and Manipur are made of Surma-Tipam (Miocene ) rocks, while the middle part has Barail; (Eo-Oligocene) rocks and the easternmost and highest ranges are made of Disang (Cretaceous-Eocene) deposits. This is again due to the presence of reverse faults, like Nimi Thrust, Phukpor Thrust, Zephehu Thrust, etc. acting from the Myanmar side and raising the lower beds up.

Apart from these thrusts and faults mentioned above, there is a series of parallel faults along the Assam -Nagaland border and along the southern margin of Meghalaya . The former group of faults cut through North Cachar Hills district. These faults of the Assam-Nagaland border are bound in the north by the SW-NE trending Naga Thrust and in the south by Disang Thrusts thus giving rise to a belt of schuppen in between. This belt of schuppen with their faults criss -crossing the oil bearing beds down below must have caused a great physical damage, for it is rarely that oil is found south of the Naga Thrust which runs south of Barhola , Geleki, Lakwa and Digboi. The Naga and Disang Thrusts running South-Westward meet near Haflong. The fault in the Southern part of Meghalaya, mentioned above, is known as the Dawki Fault. It runs westward from Haflong and separates the Shillong Plateau from the Sylhet Plain down south.

It is clear from the above accounts that three different sets of tectonic units with their differing geological history have formed the bases of physiographic features of North East India. The prevailing hot and humid tropical climate provides congenial conditions not only for vigorous chemical weathering but also has give rise to numerous turbulent streams and rivers. The emergent topographic features under such processes and agents is that (1) the Gondwana Massif has give rise to the Meghalaya Karbi Plateaus, (2) the folded sedimentary rocks have made up the hills, mountains, numerous valleys and gorges, and (3) the structural depressions have turned into Plains.

Physiographically the North-East can be divided into the following three divisions

The hard crystalline massif forming the core of the region is, in fact, an extension of the Deccan Plateau. The Latter extends underground from the Rajmahal Hills of Chotanagpur Plateau below Malda district of West Bengal and Rajshahi, Dinajpur and Rangpur districts of Bangladesh and appears in the North-East above the surface as Meghalaya Plateau and Karbi Hills . It is believed that a downward created the Malda-Rangpur gap which was subsequently filled up by the alluvial deposits of the Brahmaputra and the Ganges. However, the apparently detached Meghalaya and Karbi Plateaus are now about 402.2 km long from the Singimari river in the west to the Dhansiri river in the east. The unit�s average width is about 80 km. and covers an area of 32,829 km². The plateaus are high in the middle (attaining a height of 1961 m) and low towards the west and the east. Further, the plateaus can be divided into two units, viz the Meghalaya Plateau, comprising the Garo, Khasi and Jainta Hills and Karbi Plateau, comprising the Karbi and Rengma hills. The Karbi Plateau is almost isolated from the Meghalaya Plateau by age long erosion of the headstreams of the Kopili and Dhansiri rivers.

Although a part of the Deccan Plateau, the Meghalaya Karbi group of Plateaus is topographically different from the former in that they present more a hilly character with hills, ranges, deep valleys and gorges, while the Deccan Plateau has generally only an undulating ground and isolated monad nocks. The reasons for this difference are not far to seek. Firstly, the hot and humid tropical climate of the region as stated above, favors vigorous chemical weathering and has given rise to rivers and streams. Secondly, the Plateau is skirted by very deep Brahmaputra Plain to the north and Barak-Surma Plain to the south. Thus the local base level of erosion being very low the rivers and streams of the plateau run turbulently, with vigorous down cutting and forming deep valleys and gorges along their courses and leaving the harder parts standing as high hills with steep slopes. Thirdly, being located on a tectonically sensitive zone (at the front of the Indian Plate) and near the seismically unstable Eastern Himalayan zone, the Karbi-Meghalaya Plateau party or in toto experiences uplift and subsidence. These factors have contributed to the present hilly physiography of the Plateaus.

The Meghalaya Plateau is traditionally divided into Garo, Khasi and Jayantia Hills. Garo Hills in the west is a relatively low and more dissected part. The area of this part is about 7769.9 km². Although its average height is 900 m, the Garo Plateau rises to a distinct east-west range known as the Tura Range or Kylas Range just south of Tura. This range is higher than 1100 m and reaches its highest point at Mount Nokrek (1529 m ) Another relatively low range, running north south between Maheshkhola and Adabari separates the western, more dissected part of the plateau from the central higher part. Rainfall being high , the whole plateau is criss-crossed by numerous streams. Of these Simsang, Krishnai, Dudhnoi are the main.

To the east of the Garo Hills lie the higher Khasi Hills. This is the highest part of the Meghalaya Plateau with an average height of about 1066 m. However, its central upland covering an area of 1250 km². is still higher and reaches a general height of 1400m. There runs in this highland an east west range known as the Shillong Range with its highest Shillong Peak reaching 1961m. The Khasi Hills descends through three discernible steps to the Brahmaputra Plain in the north. As one moves from Shillong to Guwahati one encounters the first plunge of about 400 m near Umiam river(Barapani). The second platform, which starts at Umiam, is located at a height of about 1000m and is about 30 km wide. The second plunge starts at about 7 km north of Nangpo and descend for another 400 m to Umpling. This (third ) Platform is again about 30 km. wide and has a few minor steps between Umpling and Byrnihat. This platform stands at about 205 m. a. s. l. and finally descends to the Brahmaputra Plain between Jorabat and Khanapara.

Towards the south the Central upland descends by about 150m-200 m. to the Cherrapunji Platform. Several structural platforms made of sandstone and limestone of the late Mesozoic period with steps in between can be found in this area. The presence of structural platforms and steps has given rise to numerous waterfalls large (like Mausmai) and small and cascades with dancing and foaming water.

The easternmost part of the Meghalaya Plateau is the Jayantia Hills It consists of Jayantia Hills district of Meghalaya and Hamren Sub -Division of Karbi Anglong district and is bounded in the east by the Kopili river flowing to the north and the Lubha river flowing to the South. This part of the Plateau slopes down from Khasi Hills from 1200m to about 500 m in the east, the average height being 900 m. Its area is about 3790 km². In the western side the Jayantia Hills is continuous with the second Platform of the Khasi hills and merges with the young folded hill of North Cachar district in the east. Toward north the Plateau is highly dissected by the headstreams of the Kopili and several plain embayments are found to enter into it. As in Khasi Hills . the southern part of Jaintia Hills also has several structural and erosional platforms that descend steeply to the Sylhet Plain.

The Karbi Plateau which is the easternmost part of the north -eastward projection of the Gondwanaland, lies almost detached from Patkai -Meghalaya Plateau due to head ward erosion of the Kopili and Dhansiri rivers and their tributaries. It is pear -shaped and has an area of about 7000 km². To its south lie young folded ranges of North Cachar Hills and to the north Brahmaputra river. Being eroded by rivers which descend to the surrounding lowlands on all sides, the plateau has developed a radial drainage pattern. However, its central part still remains high with the Rengma range reigning the east-central landscape. The highest peak Dambukso (1363 m ) lies in this region. The important rivers that come out of the region are Jamuna, Dikharu, Missa, Diphalu, Kaliyani, Nambar, etc. The eastern part of the plateau is made of Upper Mesozoic sedimentary rocks like limestone, sandstone, shale etc. which provide raw material for the cement industry at Bokajan. Karbi Plateau has its underground extension north -eastward up to Negheriting with occasional hillocks rising amidst flat alluvial grounds.

The second major physiographic unit of NE India, consists of as stated above, hills and mountains . This unit stretches from the Bhutan Himalaya covering the northern part of the region and then turning southward covers its eastern and southern parts. Starting from the Dibang Valley and Lohit region of Arunachal, the eastern hills cover south-eastern Arunachal, Nagaland, North Cachar Hills of Assam, a major part of Manipur , Mizoram and the eastern part of Tripura. The whole unit may be divided into two sub- units viz (A) the northern mountainous part of Arunachal Himalaya and (B) the eastern and southern Parkai- Purvachal Hills. Because of their topography, alignment and location. these two sub-units may be considered separately.

This portion is an integral part of the Eastern Himalaya It stretches from the Bhutan -Arunachal border , demarcated by the Jia Dhansiri river and the Arkhala Range in the west to the Siang River in the east . Structurally it continues north -eastward to Namcha Barwa Peak (7755 m. ) in Tibet and eastward beyond Siang -Dihong River to Mismi Hills and then takes a southward turn through a syntaxial bend to from the purvachal ranges.

The Arunachal Himalaya rises steeply from the Brahmaputra plain and its successive ranges attain gradually higher altitude northwards, ultimately culminating in the snow -clad Great Himalaya Range lying along the India China border. The descent to the Tibetan Plateau of China in the north is , however , gradual . The ranges normally run in the south west north-east direction . Namcha Barwa, lying near the southward bend of the Tsangpo in Tibet , is the highest peak in the Eastern Himalaya . Within Arunachal Himalaya , however, highest peak is Kangto (7590m. ). It is on the Indo-China border lying north of west Kameng district. Other important peaks are Kula Kaangeri (7544m), Sum Lari (7314.2m), etc. There are a few glaciers and glacial lakes in this area . The region immediately south of the Great Himalaya not only supports such glaciers and glacial lakes but also has a fairly dry periglacial landscape with moraines, eskers and drumlins. Glacial and fluvioglacial deposits are so spread out in the area that it assumes Plateau topography.

The portion to the south of this region is covered by the ranges of the Lesser Himalaya. Unlike in the western Himalaya, the Lesser Himalayan ranges of Arunachal do not have any definite alignment. Further, unlike the western Himalaya this region does not have an Outer Himalayan range made of Siwalik rocks. The Siwalik rocks do exist along the juncture of the Brahmaputra Plain and the hilly terrain, but they do not give rise to a definite range. Barring aside the Great Himalayan range and its glaciated piedmont zone, the rest of the region consists of Lesser Himalayan ranges. These hills, especially those of the northern part, are made of rocks deposited in the mid-Miocene and lower -Pliocene periods. But their inner parts contain hard and crystalline metamorphic rocks . Of course, some of the hills towards the south are entirely made of Sedimentary rocks. The outer most part of the Arunachal Himalaya is made of Cretaceous sandstone with Gondwana deposits occasionally occurring here and there.

The hills rise steeply from the Brahmaputra Plain to an altitude of 800m first and then 1200m. Further north the Lesser Himalayas attain a height from 3000 m to 4000m. A large number of streams come down from the Great Himalaya with torrential force. A few , like the Subansiri (Tsari Chu), originate even beyond the Great Himalayas in Tibet. Most of their important head streams flow from the north -west to south -east and turn southward near the region bordering the Brahmaputra Plain. These streams have created numerous deep gorges and narrow V - shaped valleys . It is only in the middle part that limited flat portions like Apatani Plateau, (or Zino Plateau : 585 km². ) and Tenga Valley can be seen. The torrential streams carry down enormous quantities of sediments of silt, sand pebbles and boulders which are deposited at the points of debouchments onto the Plain, creating alluvial fans and cones which in turn give rise to a piedmont apron or the Bhabar zone. The rivers on encountering the plain begin to braid.

The important rivers of this region from the west are the headstreams of the Manas (nyamjang and Tawang ), which drain the Tawang area, Kameng (Bichom) and its tributary Tenga, headstreams of Dikrong and Ranga Nadi, Khru (Kurung), Kamla and Subansiri. Khru is a tributary to Kamla in its turn is a tributary to Subansiri. In the east, there is Siyom which is a tributary to Siang. The latter is the traditional eastern most boundary of the Arunachal Himalaya.

Arunachal Himalaya is covered by dense vegetation to a height of about 4000 m. The southern part bordering the Brahmaputra Plain receives heavy rainfall providing conditions congenial for evergreen, semi-evergreen and deciduous forests of multi -storied physiognomy.

It should be noted that the division of the hills and mountains of North -East India into the Arunachal Himalaya and Patkai -Purvachal Hills is rather traditional and arbitrary. Geologically and structurally the Himalayas continue beyond the Siang gorge and take a syntaxial bend at the Dibang (Sikang ) Valley- Luhit hills and then run southward.

The portion of the Arunachal Pradesh, east of the Siang river is like a mountain knot, extensive and high, giving out ranges to the west, south and north-east The Great Himalaya here continues north eastward at a height of about 4000m to 5000m through Yonggyap (3962m). and Kangri Karpo La (6100m) and runs upto Trakge La (5800m) in China. The extensive hills of the Sikang -Lohit knot corresponding the Lesser Himalayas are generally steep and high. Noi Aisong (4130m), Diphu (4500 m), Dapha Bum (4578m) Kumjawng ( 2930m) , Hpungan (3072 m), Chankam (2800 m) are some of the important ranges and passes here . The region in the north also holds a relatively wide intermundane basin called Tarwan Valley, several glaciers and a glacial lake named Yegrong Tso, The important rivers are Dibang or Sikang and Luhit which drain the whole area. The Dibang presents an ideal centripetal drainage with its tributaries like Ahui ,Emra, Adzon, Aropo, Amili etc. meeting at Anelin region. The Luhit comes from China where it is known as Rongto Chhu. In Luhit district it is called Tellu in the upper part and Luhit downstream of Brahmakunda or Parasuramkunda.

From the Sikang-Luhit knot the ranges move parallel towards S.S.W through Changlang and Tirap district of Arunachal Pradesh and enter Nagaland. These parallel ranges are higher eastward attaining maximum height at the Patkai Bum bordering Myanmar. In Nagaland the ranges fan out to the west while continuing southward to Manipur , Mizoram and Tripura. While fanning out at Nagaland , the hills extend upto North Cachar Hills of Assam and the relatively high Barail Range of them runs NE-SW to reach as far south-west as Jaintia Hills, acting as the divide of the Brahmaputra and Barak catchments areas.

All these ranges, raised during the late Himalayan orogeny, are made of Tertiary sandstone, mudstone, shale and occasional Limestone. Although the region is generally above 950 m of mean sea level, some of its ranges attain a height of more then 3000 m. The ranges generally slope down steeply to the western side and gently to the eastern side. The highest range, i.e. Patkai Bum has a height of 2000 m -3000 m. It is a synclinal range, and made of hard sandstone. Its highest peak is Saramati (3826 m. ) lying at India (Nagaland) -Myanmar border. The Barail Range which is generally above 1600 m. high, has many peaks above 2,000m. It reaches its maximum height at Japvo (3016 m).

Towards south in Manipur, the ranges, especially the branches of patkai Bum and Barail. lie fairly high turning north Manipur into an area of headstreams for a vast region. Mount Tenipu (2994 m), Siroi (2568 m), Khayangbung (2833 m) Leikot (2832 m), etc. all located in northern Manipur, are some of the highest peaks of Manipur. In between the parallel ranges of Manipur there lies the pearl-shaped Manipur Valley which was perhaps a huge lake in the geological past. While this basin is located at 700 m a.s.l, the surrounding hills are much higher.

The hills range of Manipur run further south to enter Myanmar as Chin Hills and Mizoram. In Mizoram the ranges in the east along the Myanmar border are on the average 2000m high with the highest peak, Blue Mountain or Phawngpui reaching 2154 m. In between the parallel ranges there are deep gorges, rendering east-west movement particularly difficult in Mizoram. The ranges often assume hog-back shape with asymmetrical slopes. As one moves westward the ranges successively lose height.. The average height of the ranges of western Mizoram is about 1000 m, the highest peaks in this region not exceeding 1600 m. The hills are made of sandstone, shale, mudstone and slate. Mizoram has a large number of north south flowing rivers. Among the north flowing ones Tuivai, Sonai, Dhaleswari and Longai and among the south-flowing ones Kaladon are the main. The south-flowing rivers through their erosional and depositional activities have succeeded in creating relatively Plain areas in the south western part of Mizoram bordering Bangladesh and Myanmar.

The ranges continue to occur retaining their north-south alignment in Tripura also. However, they are generally low and the intervening valleys wide. In fact, there are seven parallel ranges like Jampai Tlang Sakhan Tlang, Lanstara Range, Atharamura Range, etc, starting from the Mizoram border with each of the intervening valleys being 16-18 km. wide. The western part of Tripura is plain but it is dotted with isolated hillocks (Tilas )as in the Barak Plain.

On crossing international boundary the Patkai -Purvachal ranges take the name of the Chin Hills first and then Arakan Yoma, which progress southward and plunge into the Bay of Bengal as Andaman and Nicobar Islands.

Although the Patkai -Purvachal ranges running north -south give rise to deep, narrow gorges, there are occasional east-west valleys and pass, dissecting the ranges. Some such transverse gaps like Hukawng Pass, Pangsu pass, Tamu-More Pass provide traditional passages between upper Myanmar and India.

The hills and mountains of North -East India is seismically unstable and said to be still rising, Earthquakes occur frequently. There are many faults and thrusts in the region as mentioned earlier. Of them Naga Thrust, Haflong-Disang Thrust and Dawki Thrust are the main.

1. Apart from plateaus, hills and mountains, North -East India has four Plains . Of these the Brahmaputra Plain (area 54315 km.²) is Large and the other three , namely, Barak Plain (6962 km^.2) Manipur Plain (1843 km² ) and Tripura Plain (3500 km^.2) are small. But each of then is of immense human importance . As each of these plains is physically separate, they may be discussed individually a follows :

This plain is surrounded by the Arunachal Himalaya in the north, Patkai Bum and Arunachal hills in the east and Naga hills, Karbi plateau and Meghalaya plateau hills in the south . It is open to and Joined with the Ganga plain in the west. It is , therefore, often referred to as the easternmost part of the Indus-Ganga-Brahmaputra Plain . From the north east to the west it is about 720 km. long and from the north to the south it is on the average 90 km. wide.

The origin of the trough on which the plain has been built up is not clearly known. Geologists, however, believe that the trough was created at the time of building of the Himalayas. While the Himalaya were built up due to the pressure exerted on the bed of the Tethys Sea by the north-eastward migrating Gondwana (Deccan) landmass, there developed a sag in between the southern rim of the Tethys Sea and the northern frontal part of the Deccan landmass. Sag so developed is referred to as a foredeep. The rivers that came down from the rising Himalayas in the north and the hills and plateaus of the south, in course of time, filled up the trough to give rise to the plain. The sedimentary deposits in the plain are on the average 1500 m. thick and range between Disang series (upper Cretaceous - Eocene ) at the bottom to Dihing series (Plio- Pleistocene ) at the top . These are , however , overlain by the alluvial deposits of the Recent and Sub- Recent times.

A study of the shape of the plain reveals that although it is originally of depositional origin, it has attained its present shape and size due degradation activities also. The original foredeep was filled up by the deposits carried by the Brahmaputra and its numerous tributaries . But these rivers have also substantially leveled down the hills and plateaus at the points of their debouchments onto the plain by degradation and gradational activities. Here, degradation is due to steep slope of the hills and aggradations is for the presence of the plain which reduces the velocity of the water and hence its carrying capacity. Thus plain embayment projecting into the hills is often found along the courses of larger tributaries of the Brahmaputra. In the North-East the Dihang, Dibang, Kundil, Luhit and Noa-Dihing have created the vast Pasighat-Sadia-Khamti Plain . Along the Himalayan foothills such plain embayment has been created by Subansiri, Jia Bharali, Barnadi, Pagladia, Manas and jointly by Ai , Champamati and Saralbhanga. In the Patkai-Changlang region the Burhi-Dihing and its tributaries, Tirap and Dapha have created the Margherita -Ledo -Dapha Valley. Here three river terraces lying at 83.3 m (east of Miao), 53.3 m (east of Namchik ) and 46.6 m. (east of Margherita) can still be seen . Similarly , Dhansiri and Daiyang have created the Barpathar -Dimapur Plain between Karbi Plateau and the Naga hills . The Kopili and Jamuna river again have created the Jamunamukh -Lumding Plain between Karbi Plateau and Jaintia Plateau. The Digaru, Kulsi, Dudhnoi and Krishnai have also created similar embayment of smaller dimensions. Thus the present shape and size of the Brahmaputra Plain are the result of both a gradational and degradation activities.

The Plain is relatively wide in its upper part reaching a width of about 90 km. between the Himalayas and Naga hills . The Karbi Plateau, projecting northward upto the bank of the Brahmaputra, restricts the width of the plain near Burhapahar to 45 km. But it becomes wider westward with the Nagaon Plain lying to the west of Karbi Plateau. However, the width of the main plain becomes narrow (70 km. ) again near Guwahati with the Meghalaya Plateau skirting the Brahmaputra. Thereafter, the plain widens as the Meghalaya Plateau recedes southward.

An interesting feature of the plain is the presence of isolated hillocks on either bank of the Brahmaputra . In the east, presence of such hillocks starts from Negheriting . Then there are Biswanath,(North Bank), Kamakhya (SB) ,Bhomraguri(NB), Singari (NB), Mayang (SB), Kurua (NB), Chunchali (SB), Chatrachal (SB), Nilachal (SB), etc. upto Guwahati. Similar hillocks Chander Dinga (N.B.) Hatimura (SB), Nagarbera (SB), Srisurya (SB), Pancharatna (SB), Jogighopa (NB), Kamakhya (EB) etc. occur upto Mankachar . Sometimes such hillocks may be found many kilometres north of the Brahmaputra amid the north-bank alluvial plain. Baramboi in Kamrup district and Baukumari -Rajsula in Bongaigaon district are such hillocks. It may be noted that these are all outliers of the Meghalaya-Karbi Plateau and made of hard pre-Cambrian granite and granite -gneiss. These stand evidence to the fact that the Gondwana Platform (Indian Plate) extends underground farther north and north -east and these hillocks prop up amidst alluvial cover.

The gradient of the plain is extremely low. In the North-East, the Pasighat-Sadiya Plain lies at a height of 130m.while about 700km west near Dhubri, the altitude is 28m. Thus, average gradient of the plain is only 14cm. Per km. While the Sadiya plain is located at 130m, Dibrugarh,96km downstream, has an altitude of 103.6m, Guwahati(480 km downstream) stands at 50.5m, Goalpara farther west 36.9m and Dhubri 27.8m. There is a regional variation in the gradient. It is 0.62 m/km between Kobo and Dibrugarh ,0.17m/km between Dibrugarh and Nemati, 0.13m/km between Nemati and Guwahati and 0.094m/km between Guwahati and Dhubri. These facts clearly indicate the possibility of flood hazards in the plain.

The Brahmaputra has a large number of tributaries in the Plain . Of these Subansiri, Ranga Nai, Dikrong, Buroi, Bargang, Jia Bharali, Gabharu, Jia Dhansiri, Na Noi, Pagladia , Champamati, Saralbhanga and Sonkosh in the north bank and Dibru, Burhi Dihing, Disang Dikhou, Jhanji, Teok, Bhogodoi, Kakadanga, Dhansiri, Kalang-Kopili, Kulsi, Dudhnoi, Krishnai Jinary and Jinjiram in the south bank are the main. The north -bank rivers debouch onto the Plain from the Himalayas and hence they not only braid but also change their course frequently. The south bank rivers, on the hand , come out from the lower hills and eroded plateaus and meander over the plain. Both the sets of rivers however, give rise to the ox-bow in their abandoned courses and meet the Brahmaputra sub-parallel due to the presence of incipient levee on either bank of the master river.

The extremely low gradient of the plain from the east to the west, its flatness and the hills and plateau in the north and south and the presence of higher grounds on the banks of the Brahmaputra render the plain ill drained.. Besides, the earthquakes, great and small, occurring frequently cause subsidence and upheaval locally. The tributaries, especially the ones coming from the Himalayas, depositing enormous quantities of sediments, often raise their own beds and consequently often in the rainy season their water overflows the banks. All these contribute to the presence of numerous marshes, swamps and lakes in the plain.

Although the plain is by and large flat, it has some geomorphologic variations. Along the northern margin of the plain skirting the Himalayan foothills there is an alluvial fans and diluvia apron resulting from coalescence of alluvial fans and cones stated earlier . The ground here contains unsorted silt , sand, pebbles, and boulders. The zone rises relatively steeply to the hills. This strips of land occurring all along the foothills with an average width of about 5 km. is known as Bhabar zone. This is normally densely forested . The soil consisting mostly of sand and pebble, the zone is pervious and does not contain surface water. Along the southern border of the Bhabar zone there likes a flat ground, all along the north -bank plain, from the east to the west known as Tarai Zone. The water that percolates down in the Bhabar zone reappears in this flat zone and hence this zone remains damp and sometimes swampy. In fact, many small streams originate in this zone criss -crossing the plain lying to the south. Tarai Zone is abut 10 km. wide and is normally covered with tall grasses. To the south of the Tarai belt there lies a belt of relatively high and compact ground of about 15-20 km width. It is this zone on which human settlement is extremely dense and along which pass the trunk roads and railway lines linking the not infrequent towns and commercial centres founded here. This zone therefore, may be called as the built up zone. The built -up zone merges towards the south with the Brahmaputra flood -plain which is about 8-10 km. wide from the right bank of the Brahmaputra. The flood-plain is not uniform in its width. At places, especially where the outliers of the Meghalaya Karbi Plateau are present in the hills and hillocks on the bank of the Brahmaputra, the flood -plain is found to be absent. Biswanath , Tezpur, Singari, Uttar Guwahati -Amingaon, Jogighopa, etc. are such areas. But in some places, were the tributaries join together to find their way to the Brahmaputra, the flood plains become extensive. The southern parts of the Dhemaji, Dhakuhana, Lakhimpur, Darrang Nalbari and Barpeta districts and Bilasipara and Dhubri sub-divisions are covered by extensive flood plains. This Brahmaputra is an extensively braided river and has numerous riverine islands locally known as Chars and Chaparis, small and large and temporary, semi permanent and permanent. The permanent ones are even inhabited by the immigrant settlers. During the summer rains these settlements virtually remain cut off from the rest of the plain. In the mid-eastern part there is a riverine island called Majuli (800 km.) which is claimed to be largest riverine island in the world. This however , came into existence due to southward migration of the Brahmaputra, enjoining the lower course of the Burhi Dihing. The south-bank plain is extensive only in the eastern part to the east of Karbi Plateau and in the Kalong-Kopili plain immediately to the west of the same plateau. From the western border of Morigaon district the south-bank Plain is generally narrow. However , the Brahmaputra flood -plains exist in this bank also except at Dibrugarh area, Chandrapur- Guwahati area, and Agia -Goalpara area. Thus the Brahmaputra river itself and its adjoining north -bank and south-bank flood-plains together form an extensive low lying geomorphic zone containing tall grasses as found in Kaziranga, Laokhowa, Pabitara, pabha, Orang, etc. wild life sanctuaries. Beyond the flood plain in the south-bank there is again a relatively high built up zone with dense settlement, roads, railways, towns and commercial centres as in the north bank zone . In the eastern part and in Kalong -Kapili plain this zone is wide and extends upto the foothill zone. But in the western part in Kamrup, Goalpara and southern part of Dhubri districts, it is restricted in its spread . Unlike in the north-bank the southern foothill zone bordering the hills and plateaus do not have distinct Tarai and Bhabar strips. There are occasional swamps, marshes and low hillocks in the western part from Lumding region and high grounds supporting tea -gardens and low hillocks in the eastern part east of Dhansari.

The Barak Plain is located in the southern part of Assam encircled on the north by the North Cachar hills, on the east by the Manipur hills and on the south by the Mizoram hills. To the west the plain merges with Sylhet Plains of Bangladesh. The plain is, in fact the head ward piedmont part of the Sylhet (Surma-Kushiyara) Plain. The Plain is horse -shoe shaped with 85 km of east-west extension and 70 km north-south extension near Bangladesh border. The plain also includes the Jiriban Sub-Division of Manipur which lies at its apex in the east. The total area of the Barak plain is 6962km². The plain is low lying, its height being 75m near its apex near Jiribam which slopes down slowly to 73 m near Silchar and further to 51 m near Karimganj.

The hill ranges of both North Cachar in the north and Mizoram in the south are aligned north south. Hence some detached hillock in the same alignment as the above can be seen lying scattered in the plain. These are locally known as �tilas� . They are mostly made of rocks of the Tipam (miocene) series. The middle part of the plain, along which the Barak finds its sluggish way westward, is so low-lying that the plain assumes a bowl shape . A large number of tributaries from the North Cachar hills and Mizoram hills join it rendering the middle part susceptible to frequent floods. Of these rivers. Jiri, Labak, Madhura, Dalu, Jatinga and Larang in the north bank and Sonai , Katakhal, Dhaleswari, Singla and Langai in the south bank are the main. There are numerous ox-bow lakes and swamps on either side of the extremely meandering course of the Barak.

The three foothill margins of the plain have steep slopes and hillocks. These were earlier covered by thick forests like North Cachar Reserve Forest, and Barail R,F, in the north and upper Jiri R.F. and Lower Jiri R.F., Katakhal R.F, Singla R.F. and Badshahtila R.F. in the south bordering Mizoram. A large number of tea -gardens of Cachar is located on the higher grounds bordering the foothills.

Amidst the extensive hills and ranges of Manipur, there lies a wheat shaped plain of immense human importance. Thus intermundane plain is about 70 km long from kanglatongbi in the north to Sugnu in the south. It maximum width at the middle is about 40 km. but as it narrows down to the north and south, the average width works out to be 30 km The plain has an area of about 1843 km² .It is said to be of lacustrine origin. The geologists believe that there was an intermundane depression filled by water at what is today the Manipur plain. A headstream of Myittha (a tributary of the Chindwin ) through its head ward erosion evacuated the water near Sugnu, leaving the deeper parts of the lake floor as smaller lakes and exposing the higher parts bare. The rivers like Nambul, Thoubal, Iril, Imphal , etc. that subsequently flowed over the floor started spreading alluvium , giving rise to the present plain. The plain slopes gradually down from 838m in the north to 793.5m in the south at a gradient of 75 cm/ km. The Loktak and other smaller lakes lying in the southern half of the plain are said to be the remaining vestiges of the original lake.

The kuga, Imphal, Nambul, Iril, Thoubal etc. rivers meet one another south of Imphal city in the low lying zone near Loktak and take the name of Turel Achaauba or Manipur river and gets out of the plain southward at Sugnu gap. The river is connected with the lake by a channel called Kordark. The channel discharges river water into the lake in winter and takes out lake water in summer.

Manipur plain has a large number of isolated hillocks scattered here and there. Of the hillocks Singmeirrong, Langthaabaan, Waithau, Langathel, etc. are the main. Even within the Loktak Lake there is a hillock that stands out as an island, supporting a few fishing villages sand attracting tourists for its scenic beauty. Besides , there are river terraces in the plain lying in the form of gravel patches beside the river banks , especially near the foothill margins. Such gravel patches can be seen near Sekmai, Kangla, Tonghi, Bisenpur, Thoubal, Sugnu and Chakpikarong. Their presence indicates minor upliftments of the plain in the recent geological period.

The average slope of the plain is not high (75 m/ km ), further, the southern part is very low and full of lakes and marshes. After heavy and continuous rainfall in the surrounding hills , the enormous quantity of water carried down by the otherwise shallow rivers, overflow the banks and cause flood, especially in the southern part of plain.

The Tripura Plain is a piedmont one, lying at the foot of the north-south trending hill ranges extended from Mizoram. The plain has been built up in the western part of Tripura, over an area of about 3500 km due to erosion caused by the headstreams of Manu and Khowai in the north, Titas and Gumti in the west and Muhari and Fenny in the south. This piedmont plain merges with the greater Bangladesh plain in the three sides mentioned , while the eastern part of the state is covered by seven parallel ranges with relatively narrow valley plains in between. The Tripura Plain covering west and South Tripura districts slopes down west and southward from the Atharimura Range at a fairly high gradient providing little scope for flood to occur. As any other piedmont plain, it is the product of both degradation and gradational activities. While the Tertiary hill ranges have been eroded by the hill streams. the sediments so collected have been spread over the surrounding low-lying areas. It is in this process that the plain has been built up . Below the alluvial cover the plain contains Surma, Tipam and Dupi Tila deposits of sandstone and clay . The Tipam sandstones here bear rich reserves of natural gas and is said to be potentially rich in oil deposits also.

As in the Barak plain , it has a large number of north-south trending isolated hillocks (tilas ) standing amidst alluvial deposits . As the plain is an agglomeration erosional flat, worn -down hillocks piedmont terraces and depositional ground over structural synclines, it is not dead flat.

The North East India falls within the tropical monsoon climate with an average rainfall of 200 cm. It may be noted that the region contains the rainiest locality if the world, that is the Cherrapunji -Mawsynram area. The region has as many as seven sets of river basins. The seven sets of river basins. The seven sets of rivers setting up their drainage systems are the Brahmaputra in the north, Barak- Surma- Meghna in the mid -south, Chindwin through Tizu, Yu and Manipur rivers in the east and Kaladan, Karnaphuli, Gumti and Fenny in the south and south-west. All these rivers are international in their extent and go out either to Bangladesh or to Myanmar.

Brahmaputra Basin : The Brahmaputra is one of the largest rivers in the world . It is 2880 km long from its source to is its mouth. Out of this 1700 km. falls in Tibet, 920 km in India (Arunachal and Assam) and the remaining 260 km in Bangladesh. The entire basin of the Brahmaputra inside and outside India is about 928,000 km². Within North-East India its basin covers an area of 165,000 km² covering whole of Arunachal Pradesh and major parts of Assam Nagaland and Meghalaya, accounting for 70% of the total area of the region.

Source : Because of its vastness and mighty nature, the Brahmaputra has always evoked human interest. There are mythological tales about its genesis and source both in India and in Tibet. The Padma Purana, the Kalika Purana and Tibetan tales give different mythological versions of its origin and source and these become parts of traditional folk beliefs of the Indians and Tibetans. It was believed that the Brahmaputra originated from Manasorwar Lake in Tibet lying between the Himalayas and the Kailash Range . It is also believed that it came out of Brahmaputra or Parasuramkunda, a small lake created by Luhit river at its point in debouchment of Arunachal Pradesh upstream of Tezu . It is significant to note that the Brahmaputra is often referred to as Luhit by the Assamese people . This indicates the fact that the people of the region perhaps took Luhit to be the main headstream of the Brahmaputra . Scientific investigations have revealed that neither of the traditional beliefs is correct. The Tsangpo, which is the headstream of the Brahmaputra in Tibet does not originate in Manasorwar, nor the Luhit which passes though the Brahmakunda is the actual head stream of Brahmaputra, although it (Luhit) it one of the headstreams. The three headstreams, Dihang, Dibang and Luhit meet in Sadiya Sub-Division of Tinsukia district, east of Kobo and it is from this confluence that the river takes the mighty form and the name Brahmaputra.

Recent scientific explorations have revealed that the Brahmaputra does not originate from the Manasorwar . In fact, its source is separated from the lake Manosorwar by a pass called Maryum La. The rover originates from a point near 31^o 30� N lat and 82^o0 E long. The place, locally known as Tamahok Khambala Chorten, lies to the south of Lake Konggya. There is a glacier called Chemayungdung in Tamehok Khambab Chorten, from which the main headstream of the Brahmaputra comes out. This stream is known as the Matsang or Tamchuk Khambala in its upper region. After this the river flows eastward in the name of Tsangpo for a distance of about 1700 km parallel to the Himalayas . In this region the Tsangpo flows over the Tibetan Plateau at an altitude of 3600m. "Tsangpo" is a Tibetan word meaning purifier. The river has several important tributaries in the Tibetan region. Of these Raga Tsangpo, Kyichu, Griamd Chu, etc. in the left bank and Ngang Chu in the right bank are the important ones.

After flowing for long 1700 km. the river takes a southward and south- westward turn like a hair -pin in between the Gyala Peri and Namcha Barwa and enters into Arunachal Pradesh at Kepang La above Tuting. Here its bed is at a height of about 3600 m and is full of cascades and cataracts. As the river enters into Arunachal Pradesh near Tuting , it takes the name of Siang in the northern part and Dihang in the southern part and flows across the high mountainous region for 200 km through deep gorges, water falls and cataracts. It finally reaches Pasighat at the southern foothills of the Himalayas, at an altitude of 150 m and then takes the south -eastward course and enters Assam. On entering Assam, the Dihang meets with the Dibang and the Luhit, coming from the north -east and east respectively , and takes the name of the Brahmaputra and begins to flow towards the south-west . Its south-westward course in the eastern part of Assam, westward course ( from about Dhansirimukh) in the western part, and southward course beyond Dhubri, together add to a total length of about 720 km within the state. As it enters into Bangladesh it is known as Jamuna and flows in that name upto Goalundo, where it meets with the Ganges and takes the name of Padma. In Bangladesh, Jamuna has a Branch called Purana (Old ) Brahmaputra that runs though Mymensingh district and meets the Kalni (Lower courses of the Barak-Surma -Kusiyara) near Bhairab Bazar. From the confluence of the Kalni and Purana Brahmaputra, the course downward is known as Meghna. The Meghna and the Padma meet at a place about 140 km north of the Bay of Bengal coast and give out distributaries forming huge deltas. From this confluence the vast sheet of water flowing into the Bay of Bengal is known as the Meghna again. The Brahmaputra itself is about 1280 km long from its confluence with the Dibang and Luhit upto to the deltas. The Brahmaputra is a highly braided river, especially in its middle as Chaparis and Chars. Besides, there is Majuli, 800 km², the largest riverine island in the world, which came into existence as a result of the southward migration and bifurcation of the river. While the smaller northern branch of the Brahmaputra here is known as the Kherkaatia-Lohit Suti, the larger southern branch retains its original name (sometimes also called locally as the Dihing ). With in the Indian territory the Brahmaputra has a stretch of 920 km from Tuting to the south of Dhubri.

The Brahmaputra has as many as 109 tributary systems within Assam itself. Some of these tributary system themselves are large., each with several large sub-tributaries. Of such rivers, the important north-bank ones are Jia Dhol, Subansiri, Ranga Nadi, Dikrang, Buroi , Bar Ganga Baranadi, Pagladi , Chaulkhowa, Beki, Manas, Ai, Champamati, Gauranga, Saralbhanga , Gangadhar and Sankosh. Of the south bank tributaries, Noa-Dihing meeting Luhit, Dibru, Burhi Dihing, Disgarn, Kulsi , Dudhnoi, Krishnai, Jinari and Jinjiram are important. Apart from the Kherkatia Lohit channel which branches out from the Brahmaputra in the right bank opposite Dihingmukh, the Brahmaputra gives out another channel in left bank at Arikatimukh, west of Kaziranga. The branch is known as Kalang It Passes through the Nagaon-Morigaon Plain, meets with the Kapili and Digaru and again falls into the Brahmaputra at Kazalimukh, east of Chandrapur.

The Genesis and Development of the Brahmaputra : As there were controversies about its genesis. The differences of opinion arose as to how could the Brahmaputra, originating in the relatively low Tibetan Plateau, come to the lower Indian Plain having crossed the very high Himalayan Ranges. According to Dr. GE. Pilgrim there was in the Tertiary Period, only one drainage system in North India adjoining the Himalayas, in place of the there (Brahmaputra, Ganga and Sindhu) systems as at present. The master stream of this system of the geological past was named as the Siwalik River by Pilgrim and as the Indo Brahma by E.H. Pascoe. Pascoe believed that in the early Tertiary era (Eocene Period) the Arabian sea extended to the present day Afghanistan through the state of Sindh, Pakistan and a branch of it extended eastward for a short distance. The Indo Brahma river, originating in the present -day North- East India, flowed westward and fell into the eastward branch of the extended portion of the Arabian Sea. The Indo-Brahma was fed by numerous tributaries coming down both from the rising Himalayas and the Peninsular block. According to Pascoe this river used to carry enormous quantity of deposit which was deposited in the present-day Siwalik (southern most Himalayan) region. Subsequently, the upheavals that took place during and immediately after the formation of the Siwalik range broke down the river system into there systems. There was, according to Pascoe, perhaps a SW-NE upheaval from Delhi to Shimla, as there was a N-S down warping in the northern part of the present day Bangladesh and West Bengal. The result of these tectonic disturbances was that the eastern part of Indo Brahma River started flowing to the Bay of Bengal through the down-warp and became the Brahmaputra system. The westernmost part, west of the Delhi- Shimla up warp, became separated from the north -Indian Part of the river and kept flowing to the Arabian Sea in the name of the Indus System, while the middle portion (east of the upward) started flowing east to the Bengal down-warp to became the Ganges System.

It is also that on the northern side of the Himalaya, there was a palaeo river that used to flow from the east to the west along what is today identified as Tsangpo -Sutlej- Gartang-Indus-Gilgit-Oxus furrow. This river called as the Tibetan River, used to fall at the Aral Sea along the present course of the Oxus. But more active rivers from the Indian side could cut bank to its course to capture it at several places in its upper course and drain its water to them. A headstream of the Brahmaputra thus perhaps cut across the Himalayan ranges, reached the Tsangpo part of the Tibetan River and started draining that part to the low -lying Brahmaputra. That is how Brahmaputra now has come to have its source in Tibet.

The Barak Basin : The river Barak originates from the hill complex near Mao at the border of Nagaland and Manipur, south-east of Japvo peak. It runs westward for some distance forming the boundary of Nagaland and Manipur and then suddenly turns southward and flows through Manipur until it reaches Tipaimukh at the South-western corner of that state. It then takes a sharp northward turn, forms firstly the boundary of Manipur and Mizoram and then Manipur and Cachar district of Assam. Thus, flowing northward for about 60 km, it again sharply turns westward at Jirimukh and flows through Cachar Plain sluggishly . In the western part of the Cachar plain the river gives out two branches near Bhanga. While the northern branch is known as the Surma, the southern branch is called the Kusiyara. Both the branches fall into Kalni in Bangladesh. The total length of the Barak is about 900 km. of this about 525 km. falls within North East India.

The drainage basin of Barak within North East India is about 52000 km.². It covers the western part of Manipur, southern parts of North Cachar Hills and Meghalaya and the northern parts of Mizoram and Tripura. Its important right-bank tributaries include Makru and Jiri in Manipur and Labak, Madhura , Dalu, Jatinga and Larang in the Barak Plain. The major left-bank tributaries are Irang and Tuivai(Tipai) in Manipur and Sonai, Rukni, Katakhal, Dhaleswari, Singla and Langai in Cachar Plain. Besides several small tributaries from northern Tripura fall into its Kusiyara branch through Sylhet Plain of Bangladesh. Similarly, Lubha. Kangs, Jadukata and Someswari from southern Meghalaya join its northern branch i. e. Surma in Sylhet.

The river Barak used to be an important water-way in the past. Even today it is used by country boats for trade and commerce, sometimes deep into Manipur and Mizoram.

The Chindwin Drainage Basin : Although the main river Chindwin falls within the territory of Myanmar, a large number of its headstreams drain the eastern part of North East India especially the region bordering that country. The three important tributaries. through which this drainage has been set up are the Tizu, Yu and Manipur River. Tizu drainage the South-eastern part of Nagaland and north-eastern part of Manipur and then falls into the Chindwin. The Yu also drains the eastern margin of Manipur and falls into the Chindwin. The Manipur River sub-basin is more important in that it drains the central part of Manipur including the famous Manipur Valley. The tributaries Imphal, Iril and Thoubal which originates at the central Manipur hills flow south and meet one another just south of Imphal city. The combined water courses take the name of Tuvel Achouba or Manipur River or Imphal River and flows by the east side of Loktak Lake out of North East India to Myanmar. In Myanmar it falls into Myttha, which, in turn falls into Chindwin. Near Loktak, it is joined to the lake by the nullah called Kordark. The area in North East India under the drainage basin of Chindwin is about 24000 km².

The Kaladan Drainage Basin : The river Kaladan has set up its drainage basin over the southern and south-eastern parts of Mizoram. It has a drainage basin of about 7000 km² in that state. This river is also known as Chimtuipui Its important tributary is Mangpui Lui. In the central eastern region of Mizoram, its tributary, Tuichong, drains a part of Champhai sub-division. The river Chimtupui flows to Myanmar across the southern boundary of Mizoram and falls into the Bay of Bengal in the name of Kaladan.

The Karnaphuli Basin : Although Karnaphuli is an important river of the southeastern part of Bangladesh, all of its headstreams line in the western margin of Mizoram. The important headstreams of this river are Phairang. Tuiching, Thega, Deh and Tuilianpui. They meet one another near Demagiri and flow southwest to Bangladesh in the name of Karnaphuli to fall into the Bay of Bengal near Chittagong. The drainage area of this river within North East India is about 4000 km² .

The Minor Basins of the Fenny and Gumti drain the southern part of Tripura. The two basins together comprise at area of about 4000 km² while the Gumti river drains the south-central part of the state and flows westward to fall into the Meghna, the Fenny river drains the southernmost part and falls independently into the Bay of Bengal.

Head	Amount (in lakhs of Rs)
1	2
Investment 1 State Government Securities 2. Land Dev. Bank Debentures 3. Electricity Board Bonds 4. State Financial Corporation Industrial. Dev. Corporation/ICICI/Bonds and shares	9092 43 1941 110
Loans to : 1. State Electricity Board 2. State Government for housing Schemes & Co-Housing 3 Municipal Committees for water supply schemes 4. State ,Road Transport Corporation 5. Joint Stock Companies : Debentures and share of Joint Stock Companies Total	1952 1230 193 10 9933 24510

Year	Receipts Expenditure						Surplus(+) Or Deficit(-)
	Revenue	Capital	Total	Revenue	Capital	Total
1	2	3	4	5	6	7	8
1950-51 1960-61 1970-71 1975-76 1978-79 1980-81 1985-86 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98	10.29 37.99 1,02.82 20201 30605 43616 93752 150067 177664 255364 284229 331746 331500 337574 429187 444293	9.29 16.18 1,92.05 5106 11322 14450 88214 116554 220057 96452 102956 80233 145241 331667 134420 136204	19.55 54.17 2,94.87 25307 41927 78066 244996 266621 397722 350797 387185 411979 476741 669241 566218 580497	9.65 42.49 1,22.56 17936 27149 34400 94310 177918 192040 231330 253887 290118 324188 357576 457046 482837	9.25 22.62 1,70.58 5500 14037 56070 69073 111857 204384 142232 132997 145325 148119 310049 161644 153311	18.90 65.11 2,93.14 23436 41231 90470 241069 289775 396424 373562 386884 435443 472307 667625 618692 616148	(+) 65 (-) 1092 (+) 173 (+) 1871 (+) 696 (-) 12404 (+) 3936 (-) 23154 (+) 1298 (-) 22765 (+) 301 (-) 23464 (+) 4434 (+) 1616 (-) 52474 (-) 35651

*Year*	*Land affected*	*Value of damage in Lakh Rs*
1954	31,590 km²	1,750
1962	16,290 km²	2,064
1966	18,046 km²	2,447
1972	11,024 km²	2,462
1986	15,000 km²	40,000
1987	22,230 km²	70,000
1988	20,250 km²	70,884

State	Area cropped (�000 ha)	Production (�000 tomes)	Yield (kg/ha)
Arunachal Pradesh	182.7	214.3	1173
Assam	2718.5	3441.8	1266
Manipur	162.0	285.2	1763
Meghalaya	133.0	152.6	1147
Mizoram	59.1	76.6	1296
Nagaland	170.0	197.4	1161
Tripura	288.6	514.5	1783

Year	Area Devoted (�000 ha)	Production (�000 metric tones)	Yield (kg/ha)
1980-81	3,064.3	3,5261.1	1,150
1982-83	3,127.2	3,597.3	1,150
1984-85	3,146.	3,530.1	1,122
1986-87	3,12.9	3,364.4	1,084
1988-89	3,151.6	3,598.5	1,141
1990-91	3,325.6	4,528.1	1,361

Important Indicators,	June,1970		June, 1995		Dec., 1981		June, 1989		March, 1995
	Assam	India	Assam	India	Assam	India	Assam	India	Assam	India
1	2	3	4	5	6	7	8	9	10	11
1. Number of commercial Bank Office	95	10,131	214	18,730	507	35,707	1094	57,698	1,228	62,346
2. Population per bank Office ( in thousand)	153	53	68	32	31	19	18	12	18.2	13.5
3. Total deposits of scheduled commercial banks (Rs. In crores)	38	5,275	105	12,545	445	44,059	1,769	147160	3,929	36,0008
4. Total credit of scheduled	15	4,213	50	8,955	209	30,153	1,004	89,370	1,495	1,93,386
5. Deposits of scheduled commercial banks per office (Rs. In lakhs)	42	52	50	67	87	123	161	255	320	577
6. Credits of scheduled commercial banks per office Rs. In lakhs.	16	42	24	48	41	84	92	155	121	310
7. Per capita deposit of scheduled commercial banks (Rs.)	26	98	62	210	224	644	790	1,739	1,754	4,255
8 . Per capita credits of scheduled commercial banks (Rs.)	10	78	30	150	105	441	448	1,056	667	2,285
9. Credit-deposit ratio	39.2	79.2	27.4	46.9	68.4	55.4	60.7	60.7	38.0	53.7

Regional rural Banks	Number of Districts Covered	Number of Branches	Credit-deposit Ratio
1. Pragjyotish Gaonlia Bank	7	134	63
2. Lakhimi Gaonlia Bank	3	80	85
3. Cachar Gramin Bank	2	40	100
4. Longpi-Dehangi Rural Bank	2	35	82
5. Subansiri Gaonlia Bank	2	32	60
All RRBs	16	321	71.5

Year	Number of Branches	Amount of Deposits (Rs. Crores)	Amount of Credit (Rs. Crores)	Credit-deposit ratio(%)
1	2	3	4	5
1986. (June)	321	38.40	27.50	71.5
1988 (Dec.)	352	74.46	63.73	85.5
1989 (Dec.)	382	96.12	78.56	81.7
1991 (Dec.)	405	126.31	96.61	76.5
1992 (Dec.)	405	146.58	110.69	75.5
1995 (March)	405	272.11	151.35	55.6

Head	1956-61	1961-66	1966-69	1970-74	1974-78	1980-81
India Assam	9.3 (-) 4.1	13.7 19.8	5.4 4.4	5.3 4.0	3.1 3.0	5.2 9.5
Head	1985-86	1990-91	1991-92	1992-93	1993-94
India Assam	1.7 3.3	3.0 14.1	- 2.1 6.4	2.9 6.9	2.3 6.9

State	Area (�000 ha)	Production (�000 metric tonnes)	Yield kg/ha
Assam Arunachal Pradesh Meghalaya Tripura	84.0 3.5 4.6 3.7	104.8 6.7 5.9 6.9	1248 1914 1283 1865
Total	96.4	124.3	1289
India	23977.2	54522.1	2274

State	Area Devoted (�000 ha )	Production (�000 tonnes)	Yield kg/ha
Assam Arunachal Pradesh Manipur Meghalaya Mizoram Nagaland Tripura	20.6 37.6 4.6 18.4 6.6 23.9 --	12.9 45.7 11.4 22.0 11.1 22.3 --	626 1215 2478 1196 1682 933 --
Total NE	111.7	125.4	1122
All India	5953.6	9072.7	1524

State	Land devoted (�000 ha )	Production (�000 bales)	Yield kg/ ha
Assam Meghalaya Tripura Nagaland	95.5 5.0 2.7 0.2	865.9 50.5 23.6 0.8	1682 1818 1573 720
Total N.E.	103.4	940.6	1638
All India	777.9	7793.2	1803

State (year of census)	Cow	Buffalo	Goat	Sheep	Pig	Horse	Poultry
Arunachal Pradesh (1985)	168	12	20	76	213	5.0	1,170
Assam (1988)	7,278	623	2,135	67	642	13.0	11,455
Manipur (1984)	748	138	43	14	369	1.0	5,115
Meghalaya (1981-82)	550	29	186	26	207	8.0	1,419
Mizoram (1982)	50	43	29	1.0	81	1.4	692
Nagaland (1984)	151	9.0	61	0.4	248	0.2	978
Tripura(1986-87)	680	16	343	5	103	2.0	1,079

State	Broad-gauge	Metregauge	Total
Arunachal Pradesh		1.26	1.26
Assam	951.41	1515.42	2466.83
Meghalaya	-	-	-
Mizoram	-	1.50	1.50
Nagaland	9.35	-	9.35
Manipur	-	1.35	1.35
Tripura	-	44.72	44.72
N.E.India	960.76	1564.25	2525.01

State	Black topped or Graveled	Kacha	Total	Road Length per 100 km ²
Arunachal Pradesh	5,550	9,400	14,950	17.85
Assam	5,534	29,595	35,129	44.79
Manipur	4,110	1,768	5,878	26.33
Meghalaya	3,110	2,514	5,624	25.07
Mizoram	1,760	3,090	4,850	22.99
Nagaland	1,984	6,708	8,656	52.29
Tripura	3,693	3,180	6,873	65.46
Total	25,705	56,255	81,960	32.13

Mineral	Estimated Reserve
1. Coal	893.000
2. Petroleum	876.000
3. Limestone	7133.000
4. Dolomite	380.000
5. Sillimanite	10.025
6. Iron Ore	48.380
7. Glass sand	5.267
8. Ceramic Clay (all varieties)	95.642
9.Uranium	D.N.A.
10 Natural Gas	114 billion m³

Year	Assam	Meghalaya

1955-56	463	50
1960-61	550	60
1965-66	666	52
1970-71	522	61
1975-76	507	59
1980-81	575	521
1985-86	835	550
1990-91	612	346
1992-93	1101	----

State	Year	Production (�000tonnes)
Assam	1963-64	924
	1970-71	3,359
	1984-85	4,896
	1985-86	4,970
	1990-91	5,076
	1993-94	5,090
Arunachal	1985-86	60
	1990-91	43
	1993-94	49

1 Arunachal Pradesh	1503.00
2. Assam	135.02
3. Nagaland	450.00
4. Meghalaya	4665.00
5. Manipur	4.60

Year	Production
1961	81,00 tonnes
1971	33,00 tonnes
1981	44,00 tonnes
1985	52,00 tonnes
1991	2,240 tonnes
1992	1,649 tonnes

State	Hydel	Thermal	Diesel	Total
Arunachal Pradesh	22.95	..............	14.63	37.58
Assam	2.00	534.50	20.69	557.19
Manipur	2.80	..............	9.27	12.70
Meghalaya	175.5	15.00	2.05	193.56
Mizoram	3.38	.............	19.07	22.45
Nagaland	2.50	.............	3.62	6.12
Tripura	16.00	32.50	6.14	54.64

Loktak (Hydel)	105.00			105.00
Khandong (Hydel)	50.00			50.00
Kopili (Hydel)	100.00			100.00
N.E. India	580.14	572.00	75.27	1982.41

Name of Project	Situation	Installed capacity (MW)	Status
Meghalaya(Total:6)
1.UmtruHydro project	On Umtru river in Ri Bhoi	11.50	Completed in 1957
2. Umium (Barapani ) (Hydro. Project in 1963	On Umium river in E. Khasi Hill dist	54.00	Completed in 1963
3. Kyrdemkalai Hydro pro.		60.00
4.Nangalbibra Themal	West Garo Hills dist.near Tura	5.00
Manipur (Total : 15)
1. Loktak Hydel	35 km sw. of Imphal	105.00	Completed
2. Leinmakhong Hydel Project	On Leimakhong river in Manipur Central dist	1.16	Completed
3. Nunghangkhong Hydel Project	On Nunghang- khong river in Ukrul dist	1.50	Completed
4.Tipaimukh Hydel Project	An NEC Project at Manipur-Mizoram border	200.00
Nagaland(Total:3)
1.Juja Mini Hydel Project	On Juja river in Kohima dist.	2.00	Commissioned in 1978
2.Daiyang Hydel Project	On Daiyang river in Wokha dist.	105.00	Under Construction
3.Dikhow Hydel Project	On Dikhow river in Mon-Tuensang dist.	1.00	Under Construction
Mizoram(Total:11)
1.Dhaleswari Hydel Project	On Tlawng River	75.00
Tripura(Total:4)
1.Gomti Hydel Project	On Gomti Valley	10.00	Incomplete
2.Rukhia Thermal (Gas Based)Project	At Rukhia in W.Tripura dist.	16.00	Incomplete
3.Baramura Thermal(Gas Based)Project	At Baramura,near Agartala	84.00	Completed
4.Maharani Hydel Project		1.00	Completed
Arunachal Pradesh(Total:13)
1.Kameng Hydel Project	On Kameng River nearBhalukpung	600.00	Construction to be started
2.Ranga Nadi Hydel Project	On Ranga Nadi near Yazali in Lower Subansiri dist.	505.00	Construction under way
3.Damwe Hydel Project	On Lohit river	1000.00	Under Construction
4.Pakke Hydel Project	In East Kameng dist.	90.00	Under Construction
Assam(total:16)
1.Kopili HydelProject	On Kapili River at Umrangso	150.00	Partly completed
2.Karbi-Langpi Hydel Project	At Amtreng in Hamren sub-Divn.	120.00	Under Construction
3.Bardikhari		200.00	Completed
4.Namrup thermal	At Namrup	111.50	Under cons.
Power (gas based) project
5.Namrup West Heat(th)		22.0	---
6.Chandrapur Thermal Power (Furnace Oil based)Project	At Chandrapur	60.0	Commission-ed in 1973
7.Lakwa Thermal Power (Gas Based)Project	At Lakwa	60.0	Commission-ed
8.Bangaigaon Thermal Power(CoalBased) Project	At Salekati	240.0	Commission-ed
9.Borgolai Thermal Power(Coal Based)Project	At Borgolai near Margherita	60.0	Incomplete
10.Amuguri Thermal Power (gas Based)Project	At Amuguri Sibsagar dist.	540.0	Incomplete
11.Gelaki Thermal Power(Gas Based)Project	At Gelaki in Sibsagar dist.	8.10	Incomplete
12.Kothalguri thermal power (Gas &Steam based)Project	At Balulani 15 km. away from Duliajan	270.0	Incompl

24. Tawang	Tawang
25. West Kameng	Bombi La
26. East Kameng	Seppa
27. Papum Pare	Doimukh
28. Lower Subansiri	Ziro
29. Upper Subansiri	Daporijo
30. West Siang	Along
31. East Siang	Pasighat
32. Upper Siang	Yinghat
33. Dihang Valley	Tezu
34. Luhit	Tezu
35. Changlang	Changlang
36. Tirap	Khunsa

37. Mon	Mon
38. Mokoosang	Mokoksang
39. Tuensang	Tuensang
40. Wokha	Wokha
41. Junheboto	Junhehoto
42. Kohima	Kohima
43. Phek	Phek
44. Dimapur	Chumukedima

45. Senapati (N. Manipur)	Senapati
46. East Manipur (Ukhul )	Ukhrul
47. Tamennglong	Tamenglong
48. East Imphal	Imphal
49 West Imphal	Imphal
50. Bishenpur	Bishenpur
51 Thoubal	Thuobal
52 Chandel	Chandel
53. Churachandpur	Churachandpur

54. Jayantia Hills	Jowai
55. East Khasi	Shillong
56. Ri Bhoi	Nongpoh
57. West Khasi Hills	Nongstoin
58. East Garo Hills	William Nagar
59. West Garo Hills	Tura
60. South Garo Hills	Baghmara

61. North Tripura	Dharmanagar
62. Dhalai	Ambassa
63. West Tripura	Agartalla
64. South Tripura	Udaipur

65. North Aizawl	Aizawl
66. Aizawl	Kalasib
67. Lunglei	Lunglei
68. Chimtuipui	Saiha