Tripura CM urges Centre to lift EAP borrowing cap for NE states

Tripura CM Manik Saha urged the Union Govt to remove the borrowing cap for Externally Aided Projects (EAPs) in NE states. He highlighted how EAPs have been crucial for Tripura's rapid economic growth, infrastructure, and socio-economic progress.

Tripura Chief Minister Manik Saha on Friday highlighted the transformative role of Externally Aided Projects (EAPs) in the state's development and urged the Union Government to remove the existing ceiling on EAP borrowings for North Eastern States. Saha was addressing the seminar on 'Leveraging Externally Aided Projects (EAPs) in the North Eastern States' in the presence of Union Finance Minister Nirmala Sitharaman in Shillong, Meghalaya.

Leveraging EAPs for Socio-Economic Progress

Saha said that Tripura has been at the forefront of leveraging externally aided projects from agencies such as the World Bank, the Asian Development Bank (ADB), Indo-German Development Cooperation, and the Japan International Cooperation Agency over the past two decades. These partnerships have significantly contributed to the state's socio-economic progress while also strengthening administrative and institutional capacities, a release said.

He said the strategic collaboration with the ADB, particularly through its North East Economic Corridor Study, has identified substantial opportunities for investment in industrial infrastructure, urban development, roads, power, tourism, and healthcare across Tripura.

Surge in Economic Growth and Private Investment

Saha further said that reflecting the State's rapid economic growth, Tripura's Gross State Domestic Product (GSDP) has nearly doubled from Rs 55,984 crore in 2019-20 to Rs 1,00,795 crore in 2025-26. Similarly, annual capital expenditure has witnessed a remarkable increase from Rs 2,079 crore in 2021-22 to a record Rs 10,478 crore in 2025-26, demonstrating the enhanced capacity of the State administration to effectively absorb and utilize development funds.

"Private investment has also gained significant momentum, with Memorandums of Understanding worth approximately Rs 30,000 crore signed over the past year and projects exceeding Rs 8,000 crore already grounded. This surge in investment underscores the need for substantial public infrastructure in sectors such as industrial estates, transportation, power, tourism, and water resources", said the Chief Minister.

Call to Re-evaluate EAP Funding Norms

He informed that currently, Tripura is implementing eight major Externally Aided Projects (EAPs) covering industrial infrastructure, urban development, tourism, climate resilience, and the socio-economic advancement of Scheduled Tribes.

Saha also pointed out that while EAPs are generally structured with an 80:20 Centre-State funding pattern, the requirement to bear substantial costs related to land acquisition, forest land diversion, and utility shifting effectively increases the state's contribution, making the practical ratio closer to 60:40.

Given these realities, Saha urged that the ceiling imposed on externally aided projects since 2023-24 be removed and that future borrowing limits be determined based on each state's administrative capability and fund absorption capacity rather than arbitrary caps. Such a policy, it was emphasised, would be in line with the true spirit of the Union Government's Act East Policy and would enable North Eastern States to accelerate infrastructure creation and economic growth.

Gratitude and Future Commitments

Saha has expressed its sincere gratitude to Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for their unwavering support in sanctioning several externally aided projects that have helped place Tripura on a strong growth trajectory.

He also highlighted concerns arising from the discontinuation of the Revenue Gap Grant following the recommendations of the 16th Finance Commission. While appreciating the Government of India's support through the 'Pride of Hills' initiative, it was requested that allocations under the scheme be enhanced to adequately meet the state's committed expenditure requirements.

"Despite various challenges, Tripura reaffirmed its commitment to building robust infrastructure and creating greater employment opportunities through investments in industrial development, road connectivity, skill development, renewable energy, tourism, and other priority sectors, with the continued support of the Union Government," said the Chief Minister. (ANI)

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