Critical Analysis of North East Special Infrastructure Development

Critical Analysis of North East Special Infrastructure Development

North East Special Infrastructure Development Scheme (NESIDS) was created to fast-track Northeast India’s infrastructure. Yet parliamentary data shows ₹3,206 crore in outstanding liabilities and 30 high-risk stalled projects. This report explains where execution is failing—and what must change.

Aizawl (ABC Live): The North East Special Infrastructure Development Scheme (NESIDS) was launched in 2017–18 as a Central Sector Scheme to bridge persistent infrastructure gaps in India’s Northeastern states. In 2022–23, it was restructured into two components:

  • NESIDS (Roads)

  • NESIDS (Other Than Roads Infrastructure – OTRI)

On paper, NESIDS represents a high-intent development instrument. In practice, however, official parliamentary data shows a widening gap between sanctions and execution. This execution deficit becomes especially relevant when viewed alongside the Centre’s political and peace-building push in Manipur and other Northeastern states, including development initiatives highlighted in ABC Live’s internal analysis of Prime Minister Modi’s Manipur visit (https://abclive.in/2025/09/14/modis-manipur-visit/) and the Ministry of Development of North Eastern Region’s parliamentary reply (https://www.pib.gov.in/PressReleasePage.aspx?PRID=2223651&reg=3&lang=1).

What emerges is a paradox: big announcements coexist with unfinished projects.

1. NESIDS: Objectives vs Ground Reality

NESIDS was designed to:

  • Provide gap funding for roads and bridges not covered under other central schemes.
  • Finance healthcare, education, water supply, solid waste management, power, tourism, sports, digital connectivity, civil aviation, and industrial infrastructure under OTRI.
  • Allow states to select projects based on their priorities.
  • Allocate normative outlays using parameters such as area, population, HDI, road density, electrification, hospital beds, and drinking-water coverage.

Yet, as on 31 December 2025:

  • 167 projects remain ongoing.
  • ₹3,206.18 crore of admissible central share is outstanding.
  • 30 projects (3 Roads + 27 OTRI) were sanctioned more than two years ago, but have utilised less than 50% of their sanctioned cost.

Critical takeaway: NESIDS is not constrained by a lack of funds. A weak execution architecture constrains it.

2. NESIDS at a Glance

Indicator Value
Total ongoing projects 167
Total outstanding central liability ₹3,206.18 crore
Projects >2 years old with <50% utilisation 30
Share of Roads & Bridges in liabilities 43.7%
Share of Education + Health in liabilities 34.0%

Interpretation:
NESIDS exhibits a high-stock, low-flow pattern—large financial commitments but slow conversion into completed assets.

3. Where the Money Is Stuck

3.1 State-wise Outstanding Liability Profile

State Projects Outstanding Liability (₹ Cr) Share of Total (%)
Assam 35 1,012.87 31.6
Manipur 25 441.38 13.8
Nagaland 20 406.09 12.7
Arunachal Pradesh 25 395.37 12.3
Tripura 18 308.71 9.6
Mizoram 24 275.81 8.6
Meghalaya 13 258.05 8.0
Sikkim 7 107.90 3.4
Total 167 3,206.18 100

Insight:
Four states—Assam, Manipur, Nagaland, and Arunachal Pradesh—together hold over 70% of NESIDS liabilities.

3.2 State-wise Execution Burden (Average Liability per Project)

State Avg. Liability per Project (₹ Cr)
Assam 28.94
Nagaland 20.30
Meghalaya 19.85
Manipur 17.66
Tripura 17.15
Arunachal Pradesh 15.81
Sikkim 15.41
Mizoram 11.49
All States Average 19.20

Insight:
Assam’s average project exposure is around 50% higher than the regional average, signalling higher fiscal and execution risk.

4. Sector-wise Concentration of Liabilities

Sector Projects Outstanding (₹ Cr) Share (%)
Roads & Bridges 53 1,402.11 43.7
Education 35 774.55 24.1
Health 36 317.87 9.9
Power 10 211.88 6.6
Water Supply 21 173.90 5.4
Sports 4 118.98 3.7
Tourism & Culture 4 95.91 3.0
Digital Connectivity 2 49.79 1.6
Solid Waste Management 1 49.19 1.5
Civil Aviation 1 12.00 0.4
Total 167 3,206.18 100

Insight:
NESIDS has effectively become a connectivity-heavy entity, even though it was conceived as a multi-sector development scheme.

5. Sector-wise Liability Intensity (Average per Project)

Sector Avg. Liability per Project (₹ Cr)
Solid Waste Management 49.19
Sports 29.75
Roads & Bridges 26.45
Digital Connectivity 24.90
Tourism & Culture 23.98
Education 22.13
Power 21.19
Civil Aviation 12.00
Health 8.83
Water Supply 8.28

Insight:
High-ticket sectors (SWM, Sports, Roads) carry greater downside risk if delays persist.

6. Ageing Projects = Embedded Fiscal Risk

Category Projects Share of Portfolio
<2 years old 137 82%
>2 years & <50% utilised – Roads 3 1.8%
>2 years & <50% utilised – OTRI 27 16.2%
High-risk projects 30 18%

Nearly one in five NESIDS projects is already in structural distress.

7. Fiscal Exposure Stress Test (Illustrative)

Assumed Cost Escalation Extra Burden
10% ₹321 crore
15% ₹481 crore
20% ₹641 crore

Meaning:
Delays alone can wipe out the equivalent of a full year’s medium-sized Northeast infrastructure programme.

8. Manipur as a Test Case: Development + Peace Narrative

ABC Live’s analysis of Prime Minister Modi’s Manipur visit frames infrastructure not merely as economic investment, but as a peace-building instrument in a state scarred by ethnic violence since 2023.

Key signals:

  • Projects announced across the hills and valley districts.
  • Emphasis on urban infrastructure, roads, drainage, IT parks, hostels, healthcare, and civic buildings.
  • Outreach to internally displaced persons (IDPs).

This mirrors NESIDS objectives. Yet, the contradiction remains: new projects are showcased even as older NESIDS projects remain unfinished.

9. Structural Design Flaw

NESIDS combines:

  • Central funding
  • State project selection
  • State execution
  • Central monitoring

This hybrid model diffuses accountability. No single institution owns outcomes end-to-end.

10. What NESIDS Gets Right

  • Recognises Northeast’s need for bespoke, gap-funded projects
  • Multi-sector flexibility
  • Focus on both economic and social infrastructure

These strengths are undermined by weak delivery systems.

11. What Must Change

  • Milestone-linked release of funds
  • State performance-weighted allocations
  • Hard sunset clauses for stalled projects
  • Independent DPR vetting
  • Public dashboards with district-wise progress

Conclusion

NESIDS today represents a high-commitment, medium-delivery system.

The Northeast does not need more schemes.
It needs faster completion, stricter accountability, and execution-first governance.

Only then can development initiatives—such as those highlighted during the Prime Minister’s Manipur visit—translate from symbolism into sustained, ground-level transformation.

ABC Live Editorial Verification Note

This report is based on official parliamentary data released by the Ministry of Development of North Eastern Region and ABC Live’s internal reporting on Prime Minister Modi’s Manipur visit.

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