In a major push toward infrastructure development and economic self-reliance, the central government has allocated ₹4,900 crore to Arunachal Pradesh under the newly launched ‘Pride of Hills’ scheme. The funding, part of the Special Assistance to States for Capital Investment (SASCI) for the 2026-27 financial year, is designed to accelerate growth across India’s Himalayan states.
The ‘Pride of Hills’ component carries a total national outlay of ₹25,000 crore, specifically earmarked for nine Himalayan states to address the unique geographical and developmental challenges of hill terrains. Arunachal Pradesh’s substantial share reflects the strategic importance of the frontier state in the national developmental agenda. Chief Minister Pema Khandu welcomed the allocation, noting that the infusion of funds would provide a significant cushion for the state’s economy. Taking to the social media platform X (formerly Twitter), the chief minister emphasized that the capital will be utilized to create revenue-generating assets, moving the state closer to long-term fiscal stability.
“The allocation of ₹4,900 crore for Arunachal will help us improve fiscal stability and invest further in creating infrastructure that yields economic returns,” Khandu stated. He further expressed his profound gratitude to Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for recognizing the specific needs of the Northeast and other mountain regions. The SASCI framework has become a vital tool for states to undertake large-scale capital projects without the immediate burden of high-interest debt. Under the ‘Pride of Hills’ banner, Arunachal Pradesh is expected to prioritize. The chief minister reiterated that such targeted financial support from the center is essential for accelerating the pace of development in the Northeast, ensuring that the region remains a key contributor to India’s overall economic trajectory. With this allocation, the state government is poised to initiate several “Pragati” (progress) projects that had been on the drawing board, awaiting capital backing.
As the 2026-27 financial cycle begins, the Arunachal administration is expected to roll out a detailed roadmap on how these funds will be deployed across various districts to ensure equitable growth.
