Agartala: "Ten Indianstates, including those in thenortheast, will soon get 90 percent of the money under externally aided schemesas 'grant', and have to repay only the residual 10 percent to be treated asloans," top officials here said.

"The decision was taken recently keeping in mind thesocio-economic condition of 10 special category states, including the eightnortheastern states," Tripura's Forest and Rural Development MinisterJitendra Chowdhury said. 

"All special category states would get extra benefit asthey would have to pay only 10 percent of the total money under externallyaided schemes. The remaining money would be borne by the central government,"Chowdhury told sources.

According to the minister, such states had been gettingexternal fund assistance in the past for various projects and schemes but thecentral government had been insisting on the repayment of the entire foreignloan burden. 

But for centrally sponsored schemes, the 90:10 ratio wasalready being applied where the bulk of the approved amount was treated asgrant and only 10 percent was treated as loans. 

Besides the eight northeastern states, the other two statesin the special category are Jammu and Kashmir and Himachal Pradesh. Some schemes they willbenefit from are those okayed by the Asian Development Bank (AD B) and Japanwhose officials have visited all the states concerned and held a series ofdiscussions. 

"The ADB will invest Rs.9 billion in the state capitalsof five out of the eight northeastern states to boost economic growth, reducepoverty and develop urban infrastructure," said Agartala Municipal Councilchairperson Sankar Das. 

"This would be part of a Rs.10-billion project and thecentre would contribute Rs.1 billion," he said, adding the beneficiarycapitals are Agartala, Aizawl, Kohima, Shillong and Gangtok. 

The project aims to develop roads, drainage systems, watersupply facilities, sanitation, solid waste management, transportation, landslipprotection and slum upgrading. 

"Similarly, Japanhas agreed to provide Rs.3.60 billion soft loan for a major ecologicalconservation project in Tripura," officials said. 

"The Japan Bank for International Cooperation hasagreed to provide financial assistance to complete the Tripura ForestEnvironmental Improvement and Poverty Alleviation Project," Chowdhury toldsources. 

"The project, to be completed in eight years, wouldhave a healthy impact on the overall environment," said the forestminister. 

The project is aimed at upgrading the forestland degraded byshifting cultivation to be an ecologically and commercially productive forest,Chowdhury said. It would also help in improving the quality of life in thetribal-dominated areas, he added. 

The tribal people in the hilly terrain of Tripura have forgenerations been carrying out the traditional slash-and-burn method ofcultivation, (locally called 'Jhum' cultivation) which has resulted indegradation of forestland. 

Some 55,049 tribal families are involved in this primitiveform of cultivation covering a forest area of about 40,000 hectares in thisnortheastern state.