Correspondent
SHILLONG, JUN 20: Union Finance Minister Nirmala Sitharaman on Saturday said the Centre would continue supporting states with capital assistance until they develop the basic infrastructure needed for growth, dismissing suggestions that such funding amounted to “pampering”.
Addressing a press conference after the valedictory session of a two-day seminar on “Leveraging Externally Aided Projects in the North East”, Sitharaman said support to states was a conscious decision of the Prime Minister to ensure balanced development across the country.
Responding to a question on how long the Centre would continue providing liberal capital support, she said schemes such as SASCI, which offers 50-year interest-free loans for capital investment, were introduced to strengthen state infrastructure and reduce regional disparities. “This was not a recommendation of the Finance Commission. The PMO was clear that unless states are supported in creating capital assets, progress would remain uneven,” she said.
Sitharaman said the initiative was particularly important in the post-COVID period to strengthen connectivity, schools, hospitals, skilling institutions, marketing facilities and other essential infrastructure.
“We will continue as long as states need support to build a basic foundation for connectivity, social investments and institutions that promote training and skill development,” she said.
Highlighting the benefits of externally aided projects (EAPs), the minister said North Eastern states enjoy significant fiscal advantages, with the Centre repaying 90 per cent of EAP loans. This enables states to undertake key infrastructure and social development projects with a relatively small financial burden.
Sitharaman added that the two-day seminar, attended by North Eastern chief ministers or their representatives, focused on strengthening institutional capacity to help states implement projects more efficiently and secure approvals for new initiatives.