Tripura CM Dr. Manik Saha urged the Centre to remove the ceiling on Externally Aided Project (EAP) borrowings for NorthEast States during a seminar in Shillong attended by Union Finance Minister Nirmala Sitharaman, emphasizing accelerated infrastructure development, economic growth, and enhanced socio-economic progress across the region.
Tripura Chief Minister Dr. Manik Saha on Friday strongly advocated for the removal of the existing ceiling on Externally Aided Project (EAP) borrowings for North Eastern States, stating that greater financial flexibility would enable the region to undertake larger development initiatives and accelerate infrastructure creation and socio-economic progress.
Addressing the seminar on “Leveraging Externally Aided Projects (EAPs) in the North Eastern States” held in Shillong, Meghalaya, Dr. Saha participated alongside Chief Ministers of other North Eastern States in the gracious presence of Union Finance Minister Nirmala Sitharaman. During the seminar, he emphasized the growing importance of externally aided funding in transforming the development landscape of the Northeast and highlighted Tripura’s successful experience in utilizing such projects.
The Chief Minister informed the gathering that Tripura is currently implementing eight major Externally Aided Projects covering critical sectors including industrial infrastructure, urban development, tourism, climate resilience, and the socio-economic advancement of Scheduled Tribes. According to him, these projects have significantly contributed to the state’s developmental journey and have strengthened both institutional and administrative capacities.
Dr. Saha noted that Externally Aided Projects have played a pivotal role in supporting infrastructure development across North Eastern States. He pointed out that over the last two decades, Tripura has effectively leveraged partnerships with international development agencies such as the World Bank, the Asian Development Bank (ADB), Indo-German Development Cooperation, and the Japan International Cooperation Agency (JICA).
Highlighting the strategic significance of these collaborations, he said the ADB’s North East Economic Corridor Study has identified immense opportunities for investments in industrial infrastructure, urban development, roads, power, tourism, and healthcare across Tripura. Such investments, he said, are crucial for unlocking the state’s economic potential and improving the quality of life of its people.
However, the Chief Minister expressed concern over the financial constraints associated with the current EAP funding mechanism. While these projects are generally structured under an 80:20 Centre-State funding ratio, he explained that states often bear substantial additional costs related to land acquisition, forest land diversion, utility shifting, and other project-related expenditures. As a result, the practical funding burden on states becomes significantly higher, effectively making the ratio closer to 60:40.
Given these challenges, Dr. Saha urged the Government of India to remove the ceiling imposed on Externally Aided Projects since the 2023-24 financial year. He argued that borrowing limits should instead be determined based on each state’s administrative capability, project implementation efficiency, and fund absorption capacity rather than fixed restrictions.
According to the Chief Minister, such a policy shift would align with the true spirit of the Government of India’s Act East Policy and empower North Eastern States to undertake large-scale development initiatives that can drive economic growth, improve connectivity, and create employment opportunities.
Dr. Saha also highlighted Tripura’s impressive economic performance in recent years. Reflecting the state’s rapid growth trajectory, he stated that 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. The state’s annual capital expenditure has also witnessed a remarkable rise from Rs 2,079 crore in 2021-22 to a record Rs 10,478 crore in 2025-26.
These achievements, he said, demonstrate the enhanced capability of the state administration to effectively utilize development funds and execute major infrastructure projects. The significant increase in public expenditure has enabled Tripura to strengthen its development framework across multiple sectors.
The Chief Minister further revealed that private investment in Tripura has gained considerable momentum over the past year. Memorandums of Understanding (MoUs) worth nearly Rs 30,000 crore have been signed, while projects exceeding Rs 8,000 crore have already commenced implementation. This growing investor confidence, he noted, has created an urgent need for expanded public infrastructure in sectors such as industrial estates, transportation, power generation, tourism, and water resources.
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Expressing gratitude to Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman, Dr. Saha acknowledged the Government of India’s continued support in sanctioning several Externally Aided Projects that have helped place Tripura on a strong path of economic growth and development.
At the same time, he raised concerns regarding the discontinuation of the Revenue Gap Grant following the recommendations of the 16th Finance Commission. While appreciating the Centre’s assistance through the “Pride of Hills” initiative, he requested enhanced allocations under the scheme to help meet the state’s committed expenditure requirements.
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Reaffirming Tripura’s commitment to inclusive and sustainable development, Dr. Saha said the state would continue prioritizing investments in industrial development, road connectivity, renewable energy, tourism, skill development, and other key sectors. He expressed confidence that with continued support from the Government of India and greater flexibility in EAP financing, Tripura and the wider Northeast region would be able to achieve faster infrastructure growth, stronger economic expansion, and greater employment generation in the years ahead.
