Meghalaya CM for continuity of SASCI scheme, seeks special allocation of Rs 10,000 crore for 7 NE States

Shillong Dec 21 (Representative) Meghalaya Chief Minister, Conrad Sangma has emphasised the importance of continuing and augmenting the Special Assistance to States for Capital Investment (SASCI) scheme, requesting an allocation of over Rs 1,50,000 crore for the upcoming fiscal year. During the pre-budget consultations of the Union government at Jaisalmer, Rajasthan on Friday, Sangma also sought a special allocation of Rs 10,000 crore within this scheme specifically for the seven North Eastern States excluding Assam. In a memorandum presented to Union Finance Minister Nirmala Sitharaman, the Chief Minister outlined the critical development needs of the State. These requests are designed to enhance infrastructure, promote digital services, support rural livelihoods, and improve financial inclusion in Meghalaya.Emphasising the importance of continuing and augmenting the SASCI scheme, Sangma said the SASCI scheme has been instrumental in enabling states, particularly those in the North East, to undertake vital capital projects that stimulate economic growth and improve citizens’ quality of life. “The meritocratic approach of the scheme rewards States for implementing reforms and effectively utilising funds within the fiscal year. Meghalaya has successfully leveraged this initiative to bridge resource gaps and enhance connectivity, making it essential for the Finance Ministry to strengthen this program further,” he stressed.

Proposing a special allocation of Rs. 10,000 crore within the SASCI scheme specifically for seven Northeastern States excluding Assam, the Chief Minister pointed out the region’s geographical barriers that lead to significantly higher infrastructure costs—between 35 percent to 50 percent more than other regions— which hampers development efforts. “Despite their special status and funding ratios, these states receive minimal investments in national projects and have limited access to private capital. The proposed allocation aims to empower these states to become equal partners in India’s growth narrative and improve their human development indicators,” he explained.Sangma also called for enhancing banking services in Meghalaya, establishment of 1000 citizen digital service delivery centers to address the digital service delivery challenges in Meghalaya and these centers will provide citizens with access to essential government services such as welfare programs, banking services, healthcare, and education—particularly in remote areas where digital literacy is low. During the consultation meeting, Sangma also suggested increase in AMRUT allocation in this year’s budget and introducing a dedicated budget for NER and hilly cities to address their distinct infrastructure challenges and meet their urban development needs, apart from Central support for Jal Jeevan Mission (JJM) which the state of Meghalaya proposes a 50-50 cost-sharing mechanism for operation and maintenance expenses under the JJM for the first 2-3 years, recognizing the State’s unique socio-economic and geographical challenges.

He also suggested strengthening of women Self-Help Groups in leveraging Lakhpati Didi initiative to boost the performance of women led micro-enterprises and expand their economic opportunities with the support of the Lakhpati Didi initiative.To achieve this, the State proposes increasing the loan ceiling from Rs. 3 lakhs to Rs. 5 lakhs to support the expansion of existing businesses run by Self-Help Group members. Additionally, Meghalaya has suggested introducing an additional 3 percent interest subvention on prompt loan repayments to encourage more SHGs to avail loans, aligning with the Kisan Credit Card (KCC) framework. “By addressing these key areas—continuing SASCI funding, creating special allocations for North Eastern states, establishing digital service centers, supporting village organizations, enhancing financial inclusion, and strengthening digital literacy—the Finance Ministry can play a pivotal role in transforming Meghalaya’s socio-economic landscape. These initiatives are essential for ensuring that every citizen in Meghalaya has access to critical services and opportunities for growth as part of India’s broader development agenda,” Sangma said.