No major new projects for Northeast announced
From CK Nayak
NEW DELHI, Feb 1: The Ministry of Development of North Eastern Region (MDoNER) has been allocated Rs 6,812.30 crore in this year’s budget, an increase from the previous year’s allocation of Rs 5,915 crore, of which Rs 4,479 crore was spent.
However, there was no major project announcement for the landlocked region. While the main opposition Congress party dubbed the budget “lacklustre”, industrial bodies and chambers offered a mixed reaction.
The budget prioritises infrastructure and social development through its primary central sector schemes. In a major allocation, the PM-DevINE scheme received Rs 2,300 crore, followed by the North East Special Infrastructure Development Scheme (NESIDS), which was allocated Rs 2,500 crore.
PM-DevINE, which funds infrastructure and social development projects based on regional requirements, received an allocation of Rs 2,300 crore. In 2025-26, Rs 2,296 crore was set aside for the scheme, but this was later revised to Rs 1,600 crore, indicating a shortfall in actual expenditure.
The other major outlay of DoNER went to NESIDS, which received Rs 2,500 crore for financial assistance for infrastructure projects relating to water supply, power and connectivity aimed at tourism. In 2025-26, Rs 1,600 crore was spent under the scheme against an allocation of Rs 2,481 crore.
Funding for NEC projects remains a core component for regional infrastructure monitoring and execution. However, the focus continues to be on water supply, power and connectivity for tourism in the region, which lacks major industries or large-scale agriculture.
The only new major scheme for the Northeast region is the development of Buddhist circuits across Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura to preserve heritage and boost spiritual tourism. The Varanasi-Siliguri High-Speed Rail Corridor announced in the budget is expected to significantly reduce travel time, facilitating a seamless flow of tourists and trade between the northern states and the eastern frontier.
In healthcare expansion, the National Mental Health Institute at Tezpur will be upgraded to a Regional Apex Institution to enhance specialised care in the region. Under social security, the budget provides for the extension of family pension and life insurance schemes for tea plantation workers in Assam for one more year, till 2026-27.
In her budget speech, Finance Minister Nirmala Sitharaman said that the Northeastern region is a civilisational confluence of Theravada and Mahayana/Vajrayana traditions.
“I propose to launch a scheme for the development of Buddhist circuits which will cover preservation of temples and monasteries, pilgrimage interpretation centres, connectivity and pilgrim amenities,” she said.
Besides this, the government will support the high-value Agar tree crop, primarily found in the Northeast, with the highest concentration in Assam and Tripura. The government will also upgrade the National Mental Health Institute in Tezpur as a Regional Apex Institution.
