Union Finance Minister Nirmala Sitharaman said funding for Externally Aided Projects (EAPs) in Northeast India has increased seven-fold under the Narendra Modi government. Speaking at a conference in Shillong on June 19, she stated that central support under EAPs rose from around ₹9,000 crore during 2004-14 to nearly ₹76,000 crore between 2014 and 2026.
Sitharaman emphasized that EAPs are not just funding mechanisms but tools for improving livelihoods, boosting market access, and driving economic transformation. During her visit, she also laid the foundation stone for four Meghalaya projects worth ₹1,246 crore and highlighted the Centre’s continued focus on infrastructure and connectivity development in the Northeast.
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Key Facts
- Event: Conference on Leveraging Externally Aided Projects in Northeastern States
- Location: Shillong, Meghalaya
- Chief Guest: Union Finance Minister Nirmala Sitharaman
- EAP Funding Growth: From ₹9,000 crore (2004-14) to ₹76,000 crore (2014-2026)
- Projects Launched: ₹1,246 crore worth of projects in Meghalaya
- Road Infrastructure: Over 10,000 km roads built in Northeast since 2014
- Additional Highways: 5,000 km under construction
- Attendees: Chief Ministers of Assam, Meghalaya, Sikkim, Nagaland, Mizoram, and Tripura
Sitharaman Highlights Rise in Northeast Development Funding
Union Finance Minister Nirmala Sitharaman on Friday highlighted the significant increase in Externally Aided Project funding for Northeast India. Addressing a conference in Shillong, she said central support for such projects has grown nearly seven times over the last decade.
According to the minister, EAP funding increased from approximately ₹9,000 crore during 2004-14 to nearly ₹76,000 crore between 2014 and 2026. She stated that these investments have strengthened infrastructure, connectivity, and livelihood opportunities across the region.
EAPs More Than Just Financial Assistance
Sitharaman emphasized that Externally Aided Projects should not be viewed merely as sources of financing. Instead, she described them as development tools that combine central government support, state-level execution, and international expertise.
Furthermore, she noted that these projects bring advanced knowledge in areas such as project design, procurement systems, contract management, environmental safeguards, and community participation.
According to her, this model helps states implement large-scale development projects while ensuring transparency and efficiency.
Focus on Livelihoods and Market Access
The Finance Minister said farmers, artisans, and young entrepreneurs in the Northeast have historically faced challenges in accessing larger markets. Therefore, improving connectivity and infrastructure remains a key priority for the government.
She added that stronger road networks and logistics systems help local producers reach national and international markets, creating new economic opportunities.
Sitharaman highlighted several products from the region that have strong market potential, including Lakadong turmeric, Khasi mandarin, Arunachal Pradesh kiwis, Tezpur litchis, Karbi Anglong ginger, Manipur black rice, Mizoram chillies, Nagaland tree tomatoes, and Tripura pineapples.
Major Infrastructure Push in Northeast India
Highlighting infrastructure achievements, Sitharaman said the government has constructed more than 10,000 kilometers of roads in Northeast India since 2014 at a cost exceeding ₹1 lakh crore.
Additionally, another 5,000 kilometers of highways are currently under construction. She noted that improved connectivity is helping integrate remote areas with economic centers and strengthening regional growth.
The minister also remarked that the Northeast is now viewed as a key driver of India’s future development rather than a peripheral region.
₹1,246 Crore Projects Launched in Meghalaya
During her visit to Meghalaya, Sitharaman laid the foundation stone for externally aided projects worth ₹1,246 crore.
The projects include:
- ₹957 crore Meghalaya Logistics and Connectivity Improvement Project
- ₹52 crore Supporting Human Capital Development Project for school infrastructure
- ₹138 crore Integrated Eco-Tourism and Sustainable Agri-based Livelihood Development Project
- ₹91 crore Meghalaya Eco-Tourism Infrastructure Development Project
These initiatives aim to improve connectivity, education infrastructure, tourism facilities, and livelihood opportunities across the state.
Visit to Organic Spice Processing Plant
Earlier in the day, the Finance Minister visited an organic spice processing plant in Ri-Bhoi district. She said such facilities demonstrate how local agricultural products can be processed within the state to generate higher returns for farmers.
Moreover, she emphasized that value-added processing can connect traditional agricultural strengths with modern markets and create sustainable income opportunities.
Meghalaya CM Highlights Growth Opportunities
Meghalaya Chief Minister Conrad K Sangma welcomed the Centre’s support and highlighted the state’s development progress.
He said the organic spice processing facility would significantly enhance farmer-led value addition and improve market access. According to Sangma, targeted government interventions over the past eight years have helped create sustainable livelihoods for thousands of farming families.
The Chief Minister also revealed that Meghalaya currently has externally aided projects worth more than ₹12,000 crore under implementation across multiple sectors.
“Our state may be small, but our aspirations are limitless,” Sangma said while emphasizing Meghalaya’s commitment to growth and development.
Question & Answer Section
What did Nirmala Sitharaman announce in Shillong?
She announced that funding for Externally Aided Projects in Northeast India has increased seven-fold under the Modi government.
How much has EAP funding increased?
Funding rose from around ₹9,000 crore during 2004-14 to nearly ₹76,000 crore between 2014 and 2026.
What projects were launched in Meghalaya?
The Finance Minister launched four projects worth ₹1,246 crore focused on logistics, education, tourism, and livelihood development.
How many roads have been built in the Northeast since 2014?
More than 10,000 kilometers of roads have been constructed, while another 5,000 kilometers are under development.
Why are EAPs important?
EAPs provide funding, international expertise, improved project management, and support for sustainable economic development.
Location Context
Meghalaya and the broader Northeast region play a crucial role in India’s Act East Policy and regional connectivity strategy. Improved infrastructure, tourism, agriculture, and logistics networks can strengthen trade links, attract investment, and create new economic opportunities across Northeast India.
Conclusion
Union Finance Minister Nirmala Sitharaman’s announcement on the sharp rise in Externally Aided Project funding highlights the Centre’s continued focus on Northeast India. With nearly ₹76,000 crore in EAP support and new projects worth ₹1,246 crore launched in Meghalaya, the region is witnessing significant investments aimed at improving connectivity, livelihoods, tourism, and long-term economic growth.