Assam CM Himanta Biswa Sarma seeks higher EAP borrowing limits for Northeast
Synopsis
Key Takeaways
Assam Chief Minister Himanta Biswa Sarma on Friday, 19 June urged the Centre to raise the borrowing and access limits under Externally Aided Projects (EAPs) for northeastern states, arguing that such funding mechanisms have become indispensable to sustaining the region's accelerating development and enabling large-scale infrastructure investments.
What Was Said at the Shillong Seminar
Sarma made the appeal while addressing a seminar titled 'Leveraging Externally Aided Projects in the North Eastern States' in Shillong, chaired by Union Finance Minister Nirmala Sitharaman. The gathering brought together Chief Ministers and senior officials from across the northeastern states, alongside representatives from multilateral development agencies and the Government of India.
Sarma said EAPs have made measurable contributions across healthcare, education, livelihoods, infrastructure, environmental conservation and institutional capacity building, crediting a focused, outcome-oriented approach for their effectiveness.
Assam's EAP Growth: From ₹7,500 Crore to ₹53,000 Crore
Highlighting Assam's own trajectory, Sarma noted that the value of EAP-supported initiatives in the state has risen sharply — from approximately ₹7,500 crore during the 14th Finance Commission period to nearly ₹53,000 crore under the 15th Finance Commission. Projects presently under implementation span critical sectors including bridges, embankments, healthcare infrastructure, power transmission and distribution, advanced technology and robotics.
'Several projects have already been completed successfully, while many others are currently under implementation and are contributing significantly to Assam's development journey,' Sarma said.
The Case for Expanding EAP Access
Sarma argued that multilateral agency-backed projects have enabled Assam to pursue transformative initiatives that were previously considered financially unviable due to their high capital requirements. He also stressed the non-financial dividends of EAPs — including the introduction of robust project management systems, global expertise and international best practices into state governance, which he said have enhanced efficiency, transparency and service delivery.
This comes amid a broader push by the Centre to position the Northeast as a frontline zone of economic growth, with Prime Minister Narendra Modi's administration having significantly expanded infrastructure spending in the region over the past decade. The seminar signals that northeastern states are increasingly looking beyond domestic fiscal allocations to multilateral financing as a lever for development.
What Comes Next
Sarma expressed confidence that the deliberations would strengthen regional cooperation and help transform the Northeast into a significant contributor to India's overall economic expansion. The Centre has not yet responded publicly to the specific demand for enhanced borrowing limits, and any revision would likely require inter-ministerial consultation and Finance Commission inputs.