Ten development projects in Nagaland have been closed over the past five years, with landowner disputes, delayed administrative processing, tendering bottlenecks, difficult terrain, natural calamities and contractor-related delays emerging as key reasons for non-completion.
The issue came to the fore in the Nagaland Legislative Assembly during Question Hour after MLA Achumbemo Kikon sought details of projects closed down during the last five years and the reasons for their closure.
The government stated that 10 projects had been closed during the period, with the detailed list provided in an annexure.
Raising supplementary questions, Kikon expressed concern over substantial amounts being refunded to the Government of India and the North Eastern Council (NEC) because projects could not be completed within the stipulated period.
He cited the conversion of the Central Workshop into a bus station, night parking and market complex at Dimapur, pointing out that the first instalment was released on June 8, 2016, but work commenced only in October 2020 because of delayed site clearance. He questioned whether such delays were attributable to bureaucratic red-tapism, shortcomings in technical preparation or contractors’ failure to execute works on time.
Kikon also referred to the multi-level parking project at Rüleinu, Kohima, where Rs 1.22 lakh in unspent funds was refunded to the NEC. He said the situation was particularly concerning given the state’s financial difficulties.
On the Kohima–Leike Road Junction to Barak road project, he pointed out that Rs 1,534.25 lakh had been refunded to the Government of India following closure. He similarly cited the Jandang–Saddle–Noklak–Pangsha–Tuensang road project, where Rs 1,570.97 lakh was refunded after progress was affected by landslides, prolonged monsoon conditions and landowners’ compensation demands.
The MLA also raised the Noklak–Thonoknyu via Sanglao road project, where land compensation demands, landslides and alignment disputes had affected progress.
Kikon questioned the use of the phrase “as is where is” in the government’s replies and sought an explanation of its meaning in the context of the project closures.
He further referred to the Pukhungri–Avangkhu–Layshi road project, stating that Rs 2,001 lakh released by the NEC had been utilised for earthwork, while the remaining Rs 339 lakh was considered insufficient for completing the balance work, resulting in foreclosure.
The infrastructure development project at Mayangnokcha Government Higher Secondary School, Mokokchung, was also cited, where work could not continue because of a landowner issue and Rs 101.67 lakh was refunded to the NEC.
Responding to the issues raised, Deputy Chief Minister, TR Zeliang said the concerns raised by Kikon reflected practical problems encountered in project implementation. He acknowledged that departments sometimes failed to process administrative approvals and tenders promptly after sanctions were received from the NEC, Ministry of Road Transport and Highways (MoRTH) and other donor ministries.
Zeliang also acknowledged delays on the part of contractors and said most of the 10 foreclosed projects were closed primarily because of landowner-related problems.
He said some projects sanctioned in 2012, 2013, 2017 and even December 2023 remained incomplete or had their sanctions cancelled due to implementation delays. He said Nagaland had repeatedly faced criticism from Central ministries for its inability to utilise sanctioned funds, with the state being told that fresh sanctions could not be justified while earlier projects remained incomplete and utilisation and completion certificates were pending.
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Zeliang said Nagaland’s backlog of sanctioned but incomplete projects had also affected the state’s access to fresh CRIF sanctions. He said the pending “bank of sanctions” had risen to over 11%, against the prescribed level of below 3–5%, forcing the state to foreclose several projects to bring down the backlog.
He said the state had consequently incurred penalties and refunded unspent funds, but the measures were necessary to reduce the backlog and create room for new sanctions. He added that Nagaland had subsequently started receiving fresh CRIF sanctions.
Zeliang urged ministers, advisers and departmental officers to ensure that sanctioned projects were processed without delay. He said administrative approval and tendering should be completed promptly so that projects could be implemented during the available working season.
He also pointed out that several projects under the state’s own budget were yet to receive administrative approval or complete the tendering process, despite the budget having been passed in March. He said work orders should ideally have been issued by July to enable implementation from September or October and maximise the working season.
Minister for Road & Bridges, Kaito G Aye said road projects had also been affected by difficult terrain, landowner issues, alignment changes and contractor-related difficulties.
He said foreclosure proposals had been examined through the State-level Empowered Committee headed by the Chief Secretary before being referred to the empowered inter-ministerial committee under DoNER and NEC.
Aye said two projects alone involved a refund of Rs 17.25 crore out of Rs 19.11 crore, despite around 90.27% of the work having been completed. He clarified that the amount already spent had to be borne by the state following the committee’s decision.
On the Pukhungri–Avangkhu road, Aye said the difficult terrain and extensive rock-cutting had posed major challenges. He said the project was eventually brought under Bharatmala and handed over to NHIDCL, meaning there was no refund in that case.
Aye further said revised CRIF guidelines had made submission of utilisation certificates more stringent, requiring, among other things, Accountant General audit clearance and drone mapping.
Advisor Kuzholuzo Nienu termed the surrendering of hundreds of crores a serious concern, particularly when some departments lacked adequate funds even for urgent requirements. He cited the fire-damaged Science Centre in Dimapur and said funds were insufficient even for its renovation.
Nienu said the responsibility for delays rested with multiple stakeholders, including the government, bureaucrats, technocrats and contractors, while landowner issues remained a major factor.
MLA Limaonen questioned apparent inconsistencies in the reasons cited for the closure of some projects. Referring to the Jandang–Saddle–Noklak–Pangsha–Tuensang road, he questioned how landslides could have affected progress when landowner issues were also cited as an impediment.
He urged departments to identify responsibility for specific obstacles so that the government was not universally blamed for stalled projects.
Concluding the discussion, Kikon said the government had to demonstrate tangible development on the ground and ensure that bureaucratic and technical delays did not undermine public projects. He also appealed to landowners to cooperate with development works, while stressing that Article 371A protected Naga rights over land and resources and should not be viewed as a barrier to development.
He pointed out that, except in areas such as National Highway projects where land acquisition and compensation are governed by law, many departmental schemes did not contain provisions for land compensation, making demands for such compensation a significant cause of project delays.
