Arunachal: Chowna Mein pleads for alternative funding mechanism against externally aided projects

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Itanagar: Arunachal Pradesh Deputy Chief Minister Chowna Mein has requested the Centre for alternative funding mechanisms to the state to harness the benefits of both financial assistance and technical expertise. Attending the pre-Budget consultative meeting chaired by the Union Finance Minister Nirmala Sitharaman at Jaisalmer in Rajasthan on Friday, Mein who also holds the finance portfolio, underscored the importance of externally aided projects from organisations like World Bank, Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA). Arunachal Pradesh has been unable to access funds from these organisations due to objection by China. Mein in the meeting, highlighted the urgent need for replacing the state’s dilapidated semi-permanent structures from the NEFA era with robust RCC buildings, proposing a special financial package for the same, an official communiqué informed here on Saturday.

Expressing gratitude to the Centre for its consistent support, Mein commended initiatives like the Special Assistance to States for Capital Investment (SASCI), which has enabled Arunachal Pradesh to expedite crucial infrastructure projects.

He also requested an enhanced allocation under SASCI (Part-I) to further accelerate the development process in the state.  He said that Arunachal Pradesh being a carbon sink state looks forward to incentivization mechanisms for its role in environmental sustainability.

Mein brought attention to the financial challenges posed by the state’s challenging terrain, where the cost of development is 2.5 times higher compared to other regions. To address this disparity, he suggested factoring in a ‘Cost Disability Index’ while allocating resources to states.  “Collaborative efforts between the union and state government are crucial for Arunachal Pradesh to overcome its challenges, realize its potential, and contribute to national progress,” the deputy chief minister added.

Mein reiterated the state’s commitment to fiscal prudence under the ‘Arunachal Pradesh Fiscal Responsibility and Budget Management Act, 2006’, ensuring timely payment of salaries, pensions, and loans without default.

 Mein highlighted Arunachal Pradesh’s unique position as a critical border state, emphasizing the need for enhanced infrastructure and connectivity to bridge gaps in accessibility and economic opportunities.  The meeting, which was also attended by MoS Finance Pankaj Chaudhary, provided a platform for states to present their priorities and challenges ahead of the Union Budget 2025-26. The meeting was also attended by chief ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya and Odisha; deputy chief ministers of Bihar, Madhya Pradesh, Rajasthan and Telangana; the finance ministers of states and union territories, besides secretaries of Departments of Economic Affairs and Expenditure and senior officials of the ministry, the communiqué added.

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