Date: 2026-03-13Category: Press ReleaseState: Union GovernmentCountry: India
Union Minister Shri Jyotiraditya M. Scindia Chairs MDoNER Consultative Committee Meeting; NEDFi’s Contribution to Investment, MSME Growth and Employment in North East reviewed
**Executive Summary**
This document details the proceedings of a Consultative Committee meeting of the Ministry of Development of North-East Region (MDoNER) chaired by Union Minister Shri Jyotiraditya M. Scindia on March 12, 2026. The meeting reviewed NEDFi's contribution to investment, MSME growth, and employment in the North East. Key actions include NEDFi expanding financing beyond micro enterprises and the Ministry reaffirming its commitment to holding four committee meetings annually.
**Key Points / Main Content**
* **NEDFi's Financial Impact and Job Creation:**
* As of March 2025, NEDFi extended Rs. 9,114 crore to 26,835 units.
* This intervention catalysed approximately Rs. 23,670 crore in private investment.
* Nearly 15 lakh jobs were supported across the North East region.
* Every Rs. 1 invested by NEDFi leveraged Rs. 2.6 from the private sector.
* Approximately 165 jobs are created for every Rs. 1 crore deployed.
* **Bridging the MSME Credit Gap:**
* NEDFi plays a critical role in bridging the MSME credit gap in the North Eastern Region.
* NEDFi is directed to diversify its portfolio and expand financing beyond micro enterprises to include small enterprises.
* NEDFi has repaid Rs. 289.11 crore of interest-free loans without default.
* Recent disbursements show Rs. 468 crore generated internally, with Rs. 580 crore provided by MDoNER, indicating increasing institutional self-sustainability.
* **Investment Grounding and Regional Development:**
* Around Rs. 35,000 crore of investments have been grounded following the North East Investors' Summit, against expressed interest for Rs. 4.48 lakh crore.
* **Tourism and State-Specific Strengths:**
* The Ministry is developing curated tourism circuits to enhance the tourist experience, with pilot initiatives in Sohra (Meghalaya) and Matabari (Tripura).
* Emphasis is placed on promoting state-specific strengths as Unique Selling Propositions (USPs), including products like Kiwi from Arunachal Pradesh, Queen Pineapple from Tripura, and Muga silk from Assam.
* **Outreach and Coordination:**
* The Minister plans to visit all eight North East states for 3-4 days each before the monsoon in June, with interactions with university and technical institution students being integral.
* Financial institutions must adhere to RBI guidelines for land collateral norms, with such matters falling under state government jurisdiction.
* Technical coordination is ongoing with the Ministry of Jal Shakti and the German agency KfW for flood management in the Barak Valley.
* The Minister reaffirmed the commitment to hold four Consultative Committee meetings annually.
**Impact Analysis**
* **NEDFi**
* **Impact:** Will need to expand its financing portfolio beyond micro enterprises to include small enterprises to strengthen MSME growth in the North East.
* **Action Required:** Diversify lending focus and increase outreach to a broader range of businesses.
* **MSMEs and Small Enterprises in the North East**
* **Impact:** Will have increased access to financing and support for growth.
* **Action Required:** No direct action required, but they will benefit from expanded financing options.
* **MDoNER and its Consultative Committee**
* **Impact:** Will continue to oversee and facilitate development initiatives in the North East.
* **Action Required:** To hold four meetings annually as reaffirmed by the Minister.
* **State Governments in the North East**
* **Impact:** Their domain for matters related to land collateral norms has been clarified.
* **Action Required:** To ensure financial institutions adhere to RBI guidelines in their respective states regarding land collateral.
* **Ministry of Jal Shakti and German agency KfW**
* **Impact:** Will continue their technical coordination efforts to address flood management issues.
* **Action Required:** To continue collaborative efforts on flood management in the Barak Valley.
Key Entities Referenced
North Eastern Development Finance Corporation Ltd (NEDFi): Key financial institution central to investment and MSME growth in the North East, whose role and contributions were reviewed.
Ministry of Development of North-East Region (MDoNER): The ministry responsible for the development of the North-East region, which organized the consultative committee meeting and provides funding to NEDFi.
Shri Jyotiraditya M. Scindia: Union Minister who chaired the consultative committee meeting and directed NEDFi's expansion and financing strategies.
MSME: Micro, Small and Medium Enterprises, a key sector for growth and employment in the North East, which is a focus of NEDFi's activities.
North East Investors' Summit: An event where significant investment commitments were made, with a portion of those investments already being grounded.
Ministry of Development of North-East Region
Union Minister Shri Jyotiraditya M. Scindia
Chairs MDoNER Consultative Committee
Meeting; NEDFi’s Contribution to Investment,
MSME Growth and Employment in North East
reviewed
NEDFi extends Rs. 9,114 crore to 26,835 units, catalysing Rs.
23,670 crore private investment and supporting nearly 15 lakh
jobs
J.Scindia directs NEDFi to expand financing beyond micro
enterprises to strengthen MSME growth in the North East
Around Rs.35,000 crore investments already grounded from
Rs. 4.48 lakh crore commitments made during North East
Investors’ Summit
Posted On: 13 MAR 2026 5:02PM by PIB Delhi
Union Minister of Communications and Development of North Eastern Region (DoNER) Shri Jyotiraditya
M. Scindia chaired a meeting of the Consultative Committee of the Ministry of Development of North
Eastern Region at Parliament House Annexe, New Delhi, on 12.03 2026. The meeting was attended by
Members of the committee, Secretary of MDoNER and senior officers of various ministries, NEC &
North Eastern Development Finance Corporation Ltd (NEDFi).During the meeting, the Minister highlighted the significant role played by NEDFi in catalysing
investment, generating employment and strengthening entrepreneurship across the North Eastern Region.
“NEDFi is increasingly emerging as a structural enabler of enterprise in the North East—boosting
entrepreneurship, bridging MSME credit gaps, catalysing private investment, and supporting livelihoods
across the region” he said.
Strong Financial Impact and Job Creation
Highlighting the financial impact of NEDFi’s interventions, Shri Scindia said that as of March 2025, the
institution has extended Rs.9114 crore to 26,835 units, which has catalysed nearly Rs.23670 crore in
private investment and supported employment for approximately 15 lakh people across the North East.The Minister noted that every Rs.1 invested by NEDFi, it has leveraged Rs.2.6 from the private sector,
reflecting strong investor confidence. He also emphasised the efficiency of capital deployment, stating that
around 165 jobs are created for every Rs.1 crore deployed.
Bridging MSME Credit Gap
Shri Scindia observed that NEDFi plays a critical role in bridging the MSME credit gap in the North
Eastern Region. He directed the institution to diversify its portfolio and expand beyond micro enterprises
to include small enterprises, thereby supporting a broader range of businesses in the region.
Commending the institution’s financial discipline, the Minister noted that NEDFi has repaid Rs.289.11
crore of interest-free loans without default. He also expressed satisfaction that in recent disbursements,
Rs.468 crore was generated internally by the institution, while Rs.580 crore was provided by MDoNER,
demonstrating increasing institutional self-sustainability.
Investment Grounding and Regional Development
The Minister also highlighted the progress following the North East Investors’ Summit, stating that around
Rs.35,000 crore investments have already been grounded across various states, against interest shown for
investment of Rs.4.48 lakh crore.Emphasising the importance of tourism as a driver of regional growth, Shri Scindia said the Ministry is
developing curated tourism circuits focused on the overall tourist experience, with pilot initiatives
underway in Sohra in Meghalaya and Matabari in Tripura.
He also reiterated the Ministry’s focus on promoting state-specific strengths as their USP, including Kiwi
from Arunachal Pradesh, Queen Pineapple from Tripura, organic produce from Sikkim, coffee from
Nagaland, Muga silk from Assam, Polo from Manipur, Mizo ginger from Mizoram and Lakadong
Turmeric from Meghalaya.
Greater Outreach and Coordination
Shri Scindia also informed about his visits to NE states, spending 3-4 days in each of the state, with the
aim of visiting all eight states before the onset of the monsoon in June.Interactions with students from
universities and technical institutions is integral part of his visits.
On issues relating to land collateral norms in Nagaland and other NE states, the Minister clarified that
financial institutions must adhere to RBI guidelines, and such matters fall within the domain of the
respective state governments.
He also informed that technical coordination is underway with the Ministry of Jal Shakti and the German
agency KfW to address flood management issues in the Barak Valley.
The Minister reaffirmed his commitment to hold four meetings of the committee in a year.
Chaired the Parliamentary Consultative Committee meeting of @MDoNER_India
along with fellow Parliamentarians today.
Discussed the growing role of NEDFi as a structural enabler of enterprise in the
North East, boosting entrepreneurship, bridging MSME credit gaps, catalysing…
pic.twitter.com/2jVw0TCicl
— Jyotiraditya M. Scindia (@JM_Scindia) March 12, 2026
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