[Assam] Is the Northeast on a New Path? -Ashish Biswas (The Sentinel, 06.11.2007)

[Buljit Buragohain]

  Is the Northeast on a New Path?
Ashish Biswas
T he Centre will invest Rs 4,000 crore in Assam in a bid to modernize and upgrade oil drilling, production and other related operations, concerned over declining oil yields from the State in recent years. The Northeast-based media recently quoted Union Minister for Energy Murli Deora as saying that the Oil and Natural Gas Commission (ONGC) had appointed the Haliburton group of the US to ensure better production, reservoir maintenance and other operations for the State already. 
At the recently-concluded meeting of the Parliamentary Consultative Committee, the Minister said that the ONGC would spend Rs 2,500 crore to revamp oil installations and pipelines. An additional Rs 1,500 crore would be spent on digging fresh hi-tech wells and ensuring better artificial lift methods. The strategic importance of sustaining the Assam oil fields increased recently as the Indian government failed to ensure a steady supply of gas from Bangladesh and then the offshore Myanmar gas fields, losing out to China. This followed even after the government had made several major economic concessions to Myanmar, ignoring its dismal human rights record. In the West, hopes for supplies from Iran through a pipeline running through Pakistan, too, it seems, would not materialize soon.
Given this context, finding of oil in new wells in upper Assam, as well as fresh oil/gas finds in the Andhra\Orissa offshore regions, have been major positive developments for the national economy. However, there are now reports that the estimated reserves of some of these new finds were exaggerated. At present, the country imports over 70 per cent of its fuel requirements, and this is expected to go up during the next few years. Along with bad monsoons, inflation and the revenue deficit, oil price increases in the international market continues to plague the Indian economy. 
Numaligarh Refinery Limited (NRL) authorities recently concluded an agreement with Bangladesh Petroleum over the proposed supply of 10 million tonnes of diesel. The NRL will also work together with Oil India Limited (OIL) to transport, through a pipeline, oil products to Siliguri in North Bengal. OIL will build the pipeline. However, NRL will also build a receiving and despatch centre at Siliguri at a cost of Rs 149 crore and a despatch centre at Numaligarh at a cost of Rs 4.32 crore. 
Other future projects at Numaligarh in the short-term future include a wax project, a naphtha splitting unit and production of Euro IV/Ms/HSO in accordance with the provision of the Centre’s auto policy.
Meanwhile, Thai investors are investing in specific projects in Assam and the Northeast, as the implementation of the Centre’s new Look East Policy gets under way. After years of commercial contacts, seminars and cultural exchanges between the NE region and Thailand, Assam has received a concrete offer of investment of $10 million in its agriculture and fishery sectors by a Thai firm. 
The Thais also expressed interest in investing in projects in Meghalaya and Tripura, following recent interactions with State government circles and the private sector. According to reports, they are exploring investment possibilities in infrastructure building, tourism, agriculture, fishing, food processing and handicraft. In recent years, Union Minister Mani Shankar Aiyar has played a pro-active role in fostering regional trade between Southeast Asia, particularly Thailand, and the northeastern States. He has specially stressed the need for developing good roads and other links within the region to facilitate trade and movement. 
The Government of Assam has entered into an agreement with the Thai Contractors’ Association, which has some 120 companies as its members, to help increase trade and commerce with Thailand. State Minister for Commerce and Industries Pradyut Bordoloi was quoted in the Guwahati-based media as saying that at least 25 other ventures were under negotiations between private sector operators and entrepreneurs of Thailand and the NE region as a whole. Some joint venture projects were also under consideration. Benefits to the region would include the upgradation of workers’ skills, access to modern technology and management methods in case some JV projects were agreed upon and implemented. 
Economists are confident that closer economic ties between Thailand the NE region, Assam in particular, would certainly go a long way in ensuring economic growth and job opportunities for the local people. The normally investment-starved region would begin to receive direct FDI within the economy, a major achievement in itself. (IPA)
   
  (The Sentinel,06.11.2007)



       
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