You are here: Home » PTI Stories » National » News
Business Standard

Neighbour blocking foreign investment to Arunachal: Khandu

Press Trust of India  |  Itanagar 

on Saturday claimed that foreign investments are eluding the sensitive border state owing to objections raised by a neighbour, a reference to China, and urged the central government to address the issue.

Khandu was speaking at a function where was also present.

"has a lot of potential but due to objection of the neighbouring country, foreign investment is not coming," Khandu said at the event at Indira Gandhi Park here.

Although Khandu did not take China's name, the reference was obvious as shares a 1,080-km long border with which has refused to recognise India's claim on the region. has consistently maintained that the state is an "integral and inalienable part" of

On Saturday too, opposed the prime minister's visit to Arunachal Pradesh but dismissed it saying its leaders visit the state like they travel to any other part of the country.

"I hope in coming days under your (Modi's) intervention, the issue will be resolved so that we can convert our potential into capital," Khandu added.

Khandu did not cite any specific instance of foreign investment getting blocked, but sources said that the was hinting at the objection raised by in June 2009 after a mega (ADB) funded irrigation project got scrapped.

The ADB board of directors and member countries had endorsed a Country Partnership Strategy (CPS) for 2009-12, which included the irrigation project.

Although the ADB member countries had backed a document which included a flood management project in Arunachal Pradesh, pressure from China "forced" the to withdraw the project in 2009.

In 2010, dropped Arunachal Pradesh and from a loan proposal to avoid running into Chinese objections over multilateral financial aid to projects in the border areas, an told on condition of anonymity.

"The initial proposal for a Rs 11,000 crore loan to strengthen and distribution in the northeastern region covered Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and After excluding the two states, the loan amount was around Rs 8,115 crore," the said.

Khandu, however, said that Arunachal Pradesh was getting more attention from the Centre ever since the government came to power in 2014.

"The region which remained neglected for years together got its due recognition after Modi became the of the country.

"The seriousness for the region has gained momentum which is evident from the fact that every month at least three ministers visit the states of the region," Khandu said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, February 09 2019. 17:15 IST
RECOMMENDED FOR YOU