GUWAHATI, Nov 25: India's prime minister has approved a 120- billion-rupee (2.6 billion dollars) development package for two insurgency-hit north-eastern states, officials said on Thursday.

Assam Chief Minister Tarun Gogoi announced Prime Minister Manmohan Singh's decision to clear development projects totalling 92 billion rupees for the state, the most populous in the restive north-east with 26 million people.

The Manipur state government announced approval for a similar package for the state worth 28 billion rupees. Manipur has a population of 2.4 million. "We're hopeful the money - if utilized properly - can change the face of the region," Gogoi said in Guwahati, Assam's main city.

Many residents and rebel groups in the remote mountainous region accuse New Delhi of plundering its resources such as oil, tea and timber while neglecting its economic development.

Announcement of the funds followed a three-day visit by Mr Singh to Assam and Manipur that he said was aimed at "winning hearts" in the region. Singh is "a modest man" and did not want to "make a big noise by announcing the development schemes during his visit to the region," the Assam chief minister told reporters who asked why the premier did not announce the package. -AFP