SHILLONG : Union Finance Minister Nirmala Sitharaman on Saturday said the Centre is bearing a substantial share of Meghalaya’s development financing burden, including subsidising 75 per cent of the repayment obligations for Externally Aided Projects (EAPs), while stressing the need to strengthen institutional capacity to ensure projects are completed on time.
Addressing reporters in Shillong, Sitharaman said development funding alone is not enough if states lack the capacity to convert projects into quality assets within a fixed timeframe.”The ability to convert these projects into assets is limited in most of the Northeastern states,” she said, while highlighting the importance of strengthening institutions responsible for planning, implementation and monitoring of development works. The Finance Minister said the Centre continues to extend significant financial support to Meghalaya and other Northeastern states through various schemes and externally aided projects. She disclosed that the Union Government is currently bearing 75 per cent of the repayment burden for EAP loans taken by the state.Apart from this, she said states are also receiving long-term support through the Special Assistance to States for Capital Investment (SASCI) scheme, which provides interest-free borrowings for infrastructure projects.”Post-Covid, we wanted to make sure that the fundamental infrastructure of the state is supported,” Sitharaman said.
According to her, discussions with the state government also focused on improving institutional capacity to ensure that “quality assets are created within a timeframe” and public investments translate into tangible benefits for citizens. The Finance Minister indicated that Central support for the Northeast would continue as the region works towards strengthening its infrastructure base and social development indicators. She said the objective is to help states build the “basic fundamental foundation” required to sustain long-term economic growth and improve connectivity.Chief Minister Conrad K. Sangma said the Northeast has witnessed increased investment and policy attention over the last decade, which he credited to the Centre’s sustained focus on the region.”The special focus on the Northeast over the last 10 years has resulted in regional economic growth that outpaces the national average,” Sangma said.At the same time, the Chief Minister acknowledged that Meghalaya still faces major infrastructure challenges.”We are still chasing basic infrastructure requirements,” he said, adding that continued investments in roads, public facilities and connectivity remain essential for the state’s development journey.
Sangma also pointed out that Central assistance and externally aided projects are linked to reforms and performance benchmarks. According to him, states must demonstrate fiscal discipline and meet prescribed targets to continue receiving support under various schemes.During her visit, Sitharaman inaugurated the Jowai-Nartiang-Kdiap-Khanduli (JNKK) Road in West Jaintia Hills. The project was constructed at a cost of more than Rs 59 crore with support from the New Development Bank.She also visited the Wahiajer Football Stadium, a project worth approximately Rs 65 crore funded under the SASCI scheme.Highlighting the need for balanced development, the Finance Minister said economic growth should not be measured solely through large infrastructure projects but must also create opportunities for local communities and livelihoods. She cited initiatives such as the Organic Spice Processing Unit in Ri-Bhoi as examples of development linked directly to local economic activity.
Later, while interacting with students at Kiang Nangbah Government College, Sitharaman urged young people to remain focused amid the challenges of the digital age.She cautioned students about the growing influence of unfiltered online content, saying it often leads to “confusion and distraction,” and encouraged them to seek guidance and exercise self-restraint.The Finance Minister concluded her visit with a tour of Larnai village, where she interacted with artisans preserving the traditional black clay pottery craft. She also visited the Nartiang heritage complex and reviewed exhibitions showcasing Meghalaya’s GI-tagged products, including Lakadong turmeric and Garo textiles.