Nagaland has been allocated Rs. 3,880 crore under the Centre’s ‘Pride of Hills’ component of the Special Assistance to States for Capital Investment (SASCI) for 2026-27, aimed at boosting infrastructure and addressing long-standing developmental challenges in hill states.
The allocation places Nagaland among the higher beneficiaries under the Rs.25,000 crore scheme, which targets nine hill states facing geographical and fiscal constraints such as difficult terrain, low population density, and limited revenue generation capacity.
Among other states, Arunachal Pradesh received the highest allocation of Rs.4,900 crore, followed by Himachal Pradesh (Rs. 3,920 crore), Uttarakhand (Rs. 3,460 crore) and Tripura (Rs. 3,450 crore).
Manipur has been allotted Rs. 2,400 crore, Meghalaya Rs. 2,070 crore, Sikkim Rs. 820 crore, and Mizoram the lowest at Rs.100 crore.
The ‘Pride of Hills’ component of the Special Assistance to States for Capital Investment has been designed to supplement existing central assistance by providing additional capital investment support for infrastructure projects in remote and underserved regions. It aims to bridge development gaps by improving connectivity, strengthening public infrastructure and enhancing economic activity.
Officials said the scheme would also help ease fiscal stress in hill states, many of which face high debt burdens and limited own-tax revenues. Increased capital expenditure is expected to stimulate long-term growth and improve service delivery.
Reacting to the allocation, chief minister Neiphiu Rio thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman, stating that the initiative would accelerate development and address region-specific challenges.
Officials added that the additional outlay would play a crucial role in accelerating development in geographically challenging regions by prioritising infrastructure creation and addressing long-standing constraints that have hindered growth.
The scheme is expected to provide a targeted boost to hill states, aligning with broader efforts to ensure balanced regional development and improve economic outcomes in remote parts of the country.
