SHILLONG, June 19: Chief Minister Conrad K. Sangma has strongly urged the central government to either remove or substantially raise the ceiling on Externally Aided Projects (EAPs) for northeastern states under the upcoming 16th Finance Commission period. He argued that states demonstrating strong capacity to utilise and implement funds effectively should be given greater access to such financing opportunities.
Speaking with media persons on Friday, Sangma explained that the ceiling was introduced during the previous Finance Commission cycle after the Union Finance Ministry observed that some northeastern states were availing significantly more EAP funding than others. Meghalaya stood out as one of the states that had secured a larger share.
The Chief Minister revealed that the state was initially assigned a ceiling of around Rs 3,500 crore but, through sustained efforts and meticulous planning, successfully secured and implemented projects worth nearly Rs 12,000 crore. Under the current arrangement, the Government of India bears about 72 per cent of the loan component, while the state government is responsible for the remaining 28 per cent.
Sangma jokingly remarked during parleys with Union Finance Minister Nirmala Sitharaman that Meghalaya was being “penalised for its efficiency.”
However, he acknowledged the Centre’s valid concerns regarding repayment burdens, as a major portion of the loans is serviced by the Government of India.
“If the ceiling is not there, we can pitch for more projects. But that does not mean states can take unlimited loans because we still have to bear 28 per cent of the cost and need the capacity to repay that amount,” he said, while expressing optimism that the Centre would allow greater flexibility for states that have proven their ability to absorb funds and execute projects successfully.
The appeal comes amid repeated warnings from the Opposition in Meghalaya about the risks of falling into a debt trap.
