New Delhi, June 08: In a bid to carry forward the peace process in Nagaland, Prime Minister Atal Bihari Vajpayee today announced conversion of Rs 365-crore “ways-and-means” loan to the state as a one-time grant. "I have now decided to extend a peace bonus to Nagaland. An amount of Rs 365-crore extended to Nagaland as ‘ways-and-means’ loans will now be converted into a one-time grant. This will enable the state to meet all its past liabilities and will also result in an annual interest savings of Rs 44 crore by the state," the Prime Minister said in a statement here.
Stating that sustainable development was the only key to an enduring peace process, Vajpayee said the Naga peace process had attained momentum and needed to be sustained.
Nagaland should now be able to devote its efforts to schemes and policies aimed at poverty alleviation and balanced economic development, he said. The Prime Minister said the Centre has taken several steps to encourage economic activity and generate employment in Jammu and Kashmir, Nagaland and Mizoram where substantial progress has been made in peace process.
"In the year 2000, I had announced a similar package to Mizoram. This involved conversion of Rs 100 crore loan owed to government of India into an outright grant," he said.
In Jammu and Kashmir, the Prime Minister said presentation of a zero-deficit budget by the state government this year is significant as it comes after deficit budgets borne of strife and insurgency. "This has been made possible by a Central assistance of Rs 2950 crore that I have sanctioned for the state," he said. The grant is Rs 750 crore more than last year. Bureau Report