Union Budget 2025-26: Enhanced DoNER Funding and Initiatives for Northeast
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Synopsis
In the Union Budget 2025-26, Rs 5,915 crore has been allocated for the Ministry of Development of North Eastern Region (DoNER), marking a 47.65% increase from the previous year. Key initiatives include improved connectivity, urea production enhancements, and support for local agriculture and tourism.
Key Takeaways
- Rs 5,915 crore allocated for DoNER.
- 47.65% increase in funding from FY 24-25.
- Expansion of UDAN for regional connectivity.
- New urea plant in Assam to boost agriculture.
- Support for MSMEs through digital infrastructure.
New Delhi/Guwahati, Feb 1 (NationPress) The Union Budget 2025, unveiled in the Lok Sabha by Finance Minister Nirmala Sitharaman on Saturday, allocated Rs 5,915 crore for the Ministry of Development of North Eastern Region (DoNER) for FY 2025-26, marking a notable increase of 47.65 percent compared to the Rs 4,006 crore (Revised Estimates) for FY 24-25.
The budget details indicate that the modified UDAN (Ude Desh ka Aam Naagrik) will expand the Regional Connectivity Scheme to 120 new destinations across the nation, with a special focus on enhancing connectivity for the northeastern region (NER).
This initiative will prioritize smaller airports and helipads located in hilly and remote districts, aiming to boost regional air travel and to serve four crore passengers over the next decade.
Additionally, the budget permits an extra 0.5 percent of GSDP borrowing for states that are enhancing electricity distribution and intra-state transmission, which is anticipated to improve energy availability and reliability in the NER.
In a bid to enhance self-sufficiency in urea production, the government plans to reactivate three dormant urea plants in the eastern region. Furthermore, the Union Budget 2025 proposes establishing a urea plant with an annual capacity of 12.7 lakh metric tons in Namrup, located in Dibrugarh district of Assam. This new facility is expected to significantly increase the availability of urea/fertilizers, thereby improving agricultural productivity in the NER.
Under the Prime Minister Dhan-Dhaanya Krishi Yojana, 100 agricultural districts will be included, with a focus on the NER. The Yojana is set to enhance crop diversification, irrigation, storage, and credit access, benefitting 1.7 crore farmers, including those in the NER.
The Mission for ‘Atmanir Bharta’ in Pulses is a six-year initiative aimed at boosting the production of tur, urad, and masoor. It will ensure remunerative prices and procurement support through NAFED and NCCF, enhancing the NER’s potential in national pulse production.
As a key player in the rural economy, India Post will expand financial inclusion services to enhance last-mile connectivity in remote NER districts. The services will include micro-enterprise credit, DBT cash transfers, and institutional banking.
The Saksham Anganwadi and Poshan 2.0 programs will provide nutritional support to over eight crore children, one crore pregnant women, and lactating mothers nationwide, along with around 20 lakh adolescent girls in aspirational districts and the northeastern region.
The budget also emphasizes developing Buddhist tourism circuits within the NER.
The MUDRA loan initiative for homestays is expected to empower local tourism entrepreneurs. Additionally, the PM Research Fellowship scheme aims to create more opportunities for students and researchers from the northeast.
The Union Budget 2025 mentions that Bharat Trade Net - Digital Trade Infrastructure will assist MSMEs in the NER in integrating with global supply chains. The National Geospatial Mission is expected to benefit urban planning and rural connectivity in the NER, along with improvements in rankings and policies for northeastern states.
Furthermore, the Jan Vishwas Bill 2.0 will decriminalize regulatory provisions, thus promoting a better business environment in the northeastern region.
