Activities in the North-East region

12.1 The States of the North-East including Sikkim are particularly of a disadvantage due to difficult terrain and generally inadequate rail and road infrastructure. The difficulties of movement and transportation are compounded in these States further by problems arising out of militancy, limited sources of supply etc. The per tonne cost of transportation, as a result, has been much higher in these states as compared to the rest of the country. These have been the major bottleneck to reaching urea supplies to these States both in time and Space.

12.2 Considering this and with a view to ensure timely and adequate supply of urea which would help in boosting agriculture production in the region, the Government decided to reimburse The freight for carrying urea on actual basis through a Speed Freight Reimbursement Scheme.

The scheme was introduced in lieu of the Equated Scheme for these States including Sikkim but excluding Assam. The Scheme has been in operation since 1.4.1997 and has helped in ensuring timely distribution of urea to these States. In the case of decontrolled potassic and phosphatic fertilizers, additional freight subsidy is also given to the North-Eastern states including Sikkim like J&K and Himanchal Pradesh under the Conession Scheme which has been transfered to the Dept. of Fertilizers w.e.f. 1.10.2000.

12.3 Under the special scheme, following expenditure was incurred during the years 1999-2000 and 2000-01: