Centre allocates Rs 4,900 crore to Arunachal Pradesh under Pride of Hills scheme

Itanagar: Arunachal Pradesh Chief Minister Pema Khandu on Thursday expressed gratitude to Prime Minister Narendra Modi after the Centre allocated Rs 4,900 crore to the state under the newly introduced "Pride of Hills" initiative aimed at addressing critical infrastructure and developmental gaps in Himalayan and hill states.

The chief minister described the allocation as a major boost for Arunachal Pradesh, particularly in improving connectivity, infrastructure creation and long-term economic development in remote and difficult terrains.

Also Read: Arunachal budget focuses on development of 577 border villages


"Grateful to Hon'ble Prime Minister @narendramodi Ji for the Rs 4,900 crore allocation to Arunachal Pradesh under the 'Pride of Hills' initiative, which will help bridge critical infrastructure gaps across the state," Khandu said in a post on X.

The "Pride of Hills: Special Development Assistance for Hill States" initiative was introduced earlier this year under the Centre's Special Assistance to States for Capital Investment (SASCI) framework for the financial year 2026-27, with a total outlay of Rs 25,000 crore earmarked for nine hill and Himalayan states, officials said.

Arunachal Pradesh emerged as the highest beneficiary under the scheme with an allocation of Rs 4,900 crore, followed by Himachal Pradesh with Rs 3,920 crore and Nagaland with Rs 3,880 crore. Other beneficiary states include Uttarakhand, Tripura, Manipur, Meghalaya, Sikkim and Mizoram.

Earlier, while welcoming the Centre's decision after the scheme was announced in March, Khandu had termed the initiative a "timely and visionary intervention" acknowledging the unique challenges faced by hill states such as difficult terrain, sparse population, weak connectivity and limited revenue-generation capacity.

Also Read: Arunachal Pradesh emerging as major power hub: CM Pema Khandu

The CM said that the allocation will help the state improve fiscal stability and invest further in creating revenue-generating assets.

According to official details, the scheme has been designed to address structural and geographical disadvantages faced by hill states, including high infrastructure costs, low population density, difficult terrain and weaker fiscal indicators.

The initiative seeks to boost capital expenditure, improve infrastructure, strengthen connectivity and support long-term economic sustainability in these regions.

Officials said the additional allocation, over and above existing SASCI provisions, is expected to help hill states undertake major infrastructure projects, improve public utilities, support committed liabilities and accelerate overall development.