Genesis

The States in the North Eastern region of India comprising Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura are endowed with rich natural resources such as oil, natural gas, limestone, coal, other minerals and nearly one-third of the country’s hydro power potential (84,000 MW). 

The Region, however, is yet to experience industrial development on a scale achieved by other regions of the country. Reasons are not far to seek. Large infrastructure deficiency, basic service backlog, high educated unemployment and fluid law and order situation has crippled economic development initiatives in the region. 

For historical reasons and also for the reasons mentioned above, the North-East region has lacked entrepreneurial success stories in the past. But in the recent years, a new breed of entrepreneurial class is emerging, who are well educated and well informed and who want to do something on their own. 

Hence, the need for a regional development financial institution having grass root knowledge of the region was felt so that financial assistance as well as professional guidance can be provided to the local entrepreneurs. It was also felt that a special financial institution would go a long way in solving some of the problems mentioned above, if not all.

The Borthakur Committee Report in 1994 conceptualized the formation of a North-Eastern Development Bank to cater to the needs of the North-Eastern Region and to mitigate some of the problems of the region as discussed above.

Birth of an institution

Quite befitting the ardent need of the region, the then Finance Minister, Dr. Manmohan Singh, in his budget speech for the year 1995-96 announced setting up of a development bank for the North East Region. 

Pursuant to this, the North Eastern Development Finance Corporation Ltd. (NEDFi) was incorporated under the Companies Act, 1956, on August 9, 1995 with its registered office at Guwahati, Assam. The Corporation was formally inaugurated by the then Prime Minister, Shri P.V. Narashima Rao on February 23, 1996.