The Central Government has allocated Rs 3,880 crore to Nagaland under the Pride of Hills – Special Development Assistance for the Hill States scheme for 2026-27. The initiative is part of the Special Assistance to States for Capital Investment (SASCI) and is designed to strengthen capital spending in hill states facing structural constraints such as difficult terrain, poor connectivity, sparse population, and limited revenue generation.
Scheme Objective
The scheme seeks to improve fiscal capacity and support infrastructure creation in hill states. These regions often face higher costs in delivering public services and building physical assets. The additional assistance is intended to ease these pressures and promote balanced development.
Allocation Under SASCI
The total outlay for the scheme is Rs 25,000 crore for nine hill states. The allocations are:
- Arunachal Pradesh – Rs 4,900 crore
- Himachal Pradesh – Rs 3,920 crore
- Nagaland – Rs 3,880 crore
- Uttarakhand – Rs 3,460 crore
- Tripura – Rs 3,450 crore
- Manipur – Rs 2,400 crore
- Meghalaya – Rs 2,070 crore
- Sikkim – Rs 820 crore
- Mizoram – Rs 100 crore
Expected Impact
The funding is expected to boost capital expenditure in the recipient states. It may support roads, connectivity, public utilities, and other infrastructure projects. Such investment can help improve access, reduce regional disparities, and encourage economic activity in remote areas.
Significance for Nagaland
Nagaland’s allocation of Rs 3,880 crore places it among the highest beneficiaries under the scheme. The state government has welcomed the support, noting that it can help address long-standing development challenges in hill regions. The package is also seen as an important step towards faster and more inclusive growth in the North-East.
Last Modified: April 29, 2026