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This is an archive article published on April 16, 2009

Arunachal ‘shocked’ at Chinese stand

Arunachal Pradesh has reacted with shock over China’s move to block India’s $60-million project for the state at the Asian Development Bank...

Arunachal Pradesh has reacted with shock over China’s move to block India’s $60-million project for the state at the Asian Development Bank (ADB),citing the state as a “disputed territory”.

“Not in our wildest dreams had we anticipated something like this,” a top Arunachal Pradesh Government official said,adding that the state Government had not yet received any official word from the ADB on the matter. The state Government,however,is expecting the Centre to officially react on the matter since the project — a watershed plan involving flood and river erosion management — had been “moved by the Centre”.

The World Bank,which has a policy on funding projects in disputed areas that only requires making a note of it before approval,has already funded the construction of a polytechnic institute in Itanagar under its Third Technician Education project. The total funding to the Rajiv Gandhi Polytechnic,the beneficiary of this project,is $500,000 out of which $100,000 has already been disbursed.

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Top state Government officials said a few more projects were being prepared to seek World Bank aid. They added that the state was also planning to secure ADB help for a rural roads project which now appeared to be in jeopardy.

Calling the Chinese move a “pressure tactic”,state’s BJP MP Kiren Rijiju said,“China is basically playing on the clout it wields in international organisations. The Indian Government should come up with an alternative funding plan for this project to demonstrate that we are not solely dependent on ADB funding.”

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