Pak backing ultras in N-E too 8212; PM

It is also being attended among others by Union Ministers L K Advani and George Fernandes and Planning Ccommission Deputy Chairman K C Pant.

quot;One of many factors that have impeded economic development in some states of North-East is violence unleashed by insurgents and externally-aided separatists and criminals,quot; he told the conference where a strong demand was made by some Chief Ministers for special fund for modernisation of state police to deal with the situation.

Vajpayee said the Centre had been assisting insurgency-affected states with paramilitary forces and by reimbursing security-related expenditure.quot;But this cannot compensate for the terrible price extracted by insurgents and extortionists at the expense of the region8217;s development or the fear psychosis created by them among the people,quot; the Prime Minister said.

Earlier, Assam Chief Minister Prafulla Kumar Mahanta has urged Prime Minister Vajpayee to provide a minimum term loan of Rs 1000 crore to the state to help overcome its precarious financial condition.

Mahanta highlighted the acute financial imbalances arising out of Assam8217;s narrow resource base and heavy expenditure to contain terrorism and insurgency over the past few years and demanded that the Centre grant it debt-relief.

Citing the Centre8217;s decision to write off substantial part of the loans to Punjab due to terrorism, he pleaded for a similar facility for Assam for repayment of principal along with interest for Central loans from 2000-2005.quot;Assam8217;s huge accumulated debt over the years has put it in a very difficult position to meet the debt servicing obligation,quot; Mahanta said.

He suggested that the practice followed till 1988-89 to bridge the non-Plan revenue gap of special category states to protect the size of the annual plan and to ensure that the plan resources be utilised for developmental purposes.

He also demanded writing off of the accumulated Central loan assistance for flood control measures and conversion of this loan to grant.

Mahanta also urged the Prime Minister that the margin money provided to militants who surrendered during June 1992 and March 1997 be reimbursed along with the bank loans which the Assam Government had to pay as a result of default in payment by beneficiary militants, which amounted to Rs 100 crore.

He also urged that at least 50 per cent of the amount of the non-lapseable pool for the North-East be the quantum of share for Assam as its population was the largest and the infrastructure developed in the state was utilised by all other states in the region.