Guwahati, May 29: A report prepared for the Asian Development Bank (ADB) by its consultants for a project on boosting private sector investment in the Northeast has come down heavily on government policies and red tape.

The report has pointed out that even extremely generous public promotion policies have not been able to attract private investment to the Northeast.

The report also criticised excessive bureaucratic interference. ?In Assam, a composite application form has been created to cover all information needed to obtain various clearances. This form has 66 pages, a sign of excessive bureaucracy,? it said. ?This regime has proved ineffectual in encouraging widespread entrepreneurial responses.?

The draft final report was prepared recently by Global Development Solutions in partnership with the Japan Development Institute for the development bank. It is tailor-made for the project named the Northeastern States Trade and Investment Creation Initiative.

The report argued that in the global competitive environment, most countries nowadays are relying on market mechanisms to guide their economic activity and on the private sector to infuse investment. This is in contrast to the Northeast, where even extremely generous public promotion policies have failed to act as a magnet for private investors.

The initiative proposed by the ADB has been designed to boost private sector investments in the region. It will also integrate the region more closely into the country?s rapidly growing economy and enable it to become an increasingly important platform for India?s exports.The Centre has decided to consider the feasibility of implementing the ADB Initiative to overcome basic infrastructural, institutional and entrepreneurial constraints, which are the primary causes for poor private sector performance in the northeastern states. The report said the Initiative would encourage private sector investments across the entire spectrum of large, medium and small businesses.