Tripura CM urges Centre to remove ceiling on externally aided projects
Shillong/Agartala, June 19 (IANS) Tripura Chief Minister Manik Saha on Friday highlighted the transformative role of Externally Aided Projects (EAPs) in the state’s development and urged the Central Government to remove the existing ceiling on EAP borrowings for the Northeastern states to accelerate infrastructure creation and economic growth.
Addressing a seminar on “Leveraging Externally Aided Projects (EAPs) in the North Eastern States” in Shillong in the presence of Union Finance Minister Nirmala Sitharaman, the Chief Minister said Tripura has emerged as one of the leading states in effectively utilising externally aided funding for socio-economic development.
Saha said that over the past two decades, Tripura has been at the forefront of leveraging EAPs supported by international development agencies such as the World Bank, the Asian Development Bank (ADB), Indo-German Development Cooperation and the Japan International Cooperation Agency (JICA). These partnerships, he noted, have significantly contributed to the state’s socio-economic progress while simultaneously strengthening administrative capabilities and institutional capacities.
The Chief Minister said Tripura’s strategic collaboration with the Asian Development Bank, particularly through the North East Economic Corridor Study, has identified substantial investment opportunities in sectors such as industrial infrastructure, urban development, road connectivity, power, tourism and healthcare.
Highlighting the state’s economic progress, Saha said Tripura’s Gross State Domestic Product (GSDP) has nearly doubled from Rs 55,984 crore in 2019-20 to Rs 1,00,795 crore in 2025-26. He further pointed out that annual capital expenditure has increased remarkably from Rs 2,079 crore in 2021-22 to a record Rs 10,478 crore in 2025-26, reflecting the enhanced capacity of the state administration to absorb and effectively utilise development funds.
He informed that Tripura is currently implementing eight major EAPs covering key sectors, including industrial infrastructure, urban development, tourism, climate resilience and the socio-economic advancement of Scheduled Tribes.
Saha also highlighted a major concern regarding the funding structure of such projects. He pointed out that although EAPs are generally structured under an 80:20 Centre-State funding pattern, the requirement for states to bear substantial costs related to land acquisition, forest land diversion, utility shifting, and other ancillary expenditures effectively increases the state’s share, making the practical funding ratio closer to 60:40.
In view of these challenges, the Chief Minister urged the Centre to remove the ceiling imposed on EAPs since 2023-24 and allow future borrowing limits to be determined based on a state’s administrative capability, project implementation capacity and fund absorption efficiency rather than fixed caps.
He emphasised that such a policy decision would be in line with the true spirit of the Government of India’s Act East Policy and would enable the northeastern states to undertake larger infrastructure projects and achieve faster economic growth.
Saha expressed gratitude to Prime Minister Narendra Modi and the Union Finance Minister for their continued support in sanctioning several externally aided projects that have contributed significantly to Tripura’s development and placed the state on a strong growth trajectory.
The Chief Minister also raised concerns regarding the discontinuation of the Revenue Gap Grant following the recommendations of the 16th Finance Commission. While appreciating the Government of India’s support through the “Pride of Hills” initiative, he requested that allocations under the scheme be enhanced to adequately meet the state’s committed expenditure requirements and development needs.
“Despite various challenges, Tripura remains committed to building robust infrastructure and generating greater employment opportunities through sustained investments in industrial development, road connectivity, skill development, renewable energy, tourism and other priority sectors, with the continued support of the Government of India,” Saha said.
The seminar focused on strategies to enhance the utilisation of externally aided funding to accelerate development across the Northeastern region and was attended by senior policymakers, financial experts, and government representatives from various states.
–IANS
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