In the land-locked tiny state of Tripura in the north-east, the prospects of peace brightened in 2007 as development plans came to the centre-stage, signalling a welcome break from insurgency and lack of welfare activities.

"If the level of tribal insurgency remains as low, the next year will be even better," says Chief Minister Manik Sarkar.

State police records show an encouraging trend. The state saw a peak in insurgency violence in 2000, when it was described as the 'abduction centre' of the north-east, accounting for nearly half of all abductions for ransoms in the region. However, in a dramatic decline from 427 abductions in 2000, the figure came down 92 in 2004, 62 in 2005, 43 in 2006 and 43 so far in 2007, according to the state police.

The police say they have been able to considerably dent the capacity of the leading tribal outfit, the National Liberation Front of Tripura, to extort money. "The NLFT and the All Tripura Tribal Force have fallen short of their target by about 60-70 percent," police sources said.

The failure to extort money is among the most significant indices of the success of the counter-insurgency strategy. The number of extremist-related incidents fell from 449 in 2000 to 187 in 2001, 196 in 2002, 305 in 2003, 184 in 2004, 115 in 2005, 102 in 2006 and 100 in 2007.

The reduced level of violence has been accompanied by a major boost to the state's infrastructure. The Oil and Natural Gas Commission noticed remarkable progress in striking gas. ONGC [Get Quote] director A K Hazarika said, "It is much above the global rate. While the success rate of striking gas in Tripura is 1:2, the global rate is 1:3."

However, road infrastructure remains in a bad shape. The condition of the Assam-Agartala National Highway, considered the lifeline of Tripura, is not in a position for transportation of heavy equipment.

Hazarika said, "We are trying to bring heavy equipment through Bangladesh in waterways. The central government will take up the issue with the neighbouring country."

However, Sarekar says as long as safe havens continue to exist across the border in Bangladesh, militancy cannot be completely wiped out and development will continue to suffer.

According to the chief minister, about 50 militant camps exist in the Chittagong Hill Tracts and Sylhet districts of Bangladesh, which should be smashed and terrorists handed over to India.

The chief minister has demanded transit and transshipment through Bangladesh, access to the Chittagong port, which is just 70-80 km from the Indian border, and declaring the Ashuganj, a river port of the country, about 40 km from Agartala, as the 'port of call'.

He says India's Look-East policy will be meaningful when trade and commerce between the neighbouring countries increases.

A 35-member Thai business delegation, led by its commerce minister K K Jerapact, visited Tripura in June to explore the possibilities of promotion of export business from the north-eastern region of the country. Thai investors have evinced keen interest to invest in the sectors of energy, gas and agro industries in Tripura, he said.

The German government in 2007 sanctioned Rs 112 crore to the Tripura government for implementation of an ambitious project Poverty Alleviation Through Natural Resources Management.

Value addition of front wealth like bamboo and medicinal plants will be the main focus of the project, which is aimed at improving the socio-economic condition of the people who depend on forests.

Of the total area of 10,000 square km in Tripura, 60 per cent of land is under resource and proposed resource forest.

The Japan [Images] Bank of International Cooperation has invested Rs 306 in Tripura's foresty sector in 2007 for conservation of greenery of global warming and the generation of more employment.

This is part of the Japanese government's Overseas Development Assistance programme, which would provide funds for developing degraded forests and help tribals living inside forests to conserve their habitant.