Shillong: Union Finance Minister Nirmala Sitharaman has confirmed that the central government will continue to shoulder 75 percent of Meghalaya's externally aided project loans. Despite the state being ranked as the third fastest-growing economy in India, Sitharaman emphasized that Meghalaya lacks the necessary institutional capacity to convert massive funding into timely development projects.
During a visit to Shillong, the Minister explained that New Delhi is currently bankrolling regional development through the Special Assistance to States for Capital Investment scheme, which provides interest-free 50-year loans. She noted that this support is essential until the region builds a more stable economic foundation. “Post-Covid, we wanted to make sure that the fundamental infrastructure of the state is supported,” Sitharaman said, confirming that federal backing will remain until the state achieves consistent development benchmarks.
Chief Minister Conrad Sangma acknowledged the state's reliance on central coffers, attributing recent growth to the focus placed on the Northeast over the last decade. He noted that these financial inflows, including those from global agencies, require the state to meet strict fiscal milestones and performance reforms. While the state strives to move toward financial independence, officials admit they are still struggling to secure basic infrastructure requirements.
Sitharaman's tour included the inauguration of the 59-crore Jowai-Nartiang-Kdiap-Khanduli Road and a visit to the Wahiajer Football Stadium. Beyond major construction, she urged the state to pursue balanced growth that directly impacts local livelihoods, such as the spice processing industry. Addressing students at Kiang Nangbah Government College, the Minister cautioned against digital distractions and encouraged the youth to focus on grounded development.
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