Shillong, Dec 21: Chief Minister Conrad K Sangma has proposed for a special allocation of Rs. 10,000 crore within the Special Assistance to States for Capital Investment (SASCI) scheme specifically for seven north-eastern states, excluding Assam. Explaining the rationale, he said the region faces unique challenges, including significantly higher infrastructure costs—35% to 50% more than other regions—due to geographical barriers. The proposed allocation aims to empower the region to become an equal partner in India’s growth and improve its human development indicators.

Sangma made the suggestion on Friday during the pre-budget consultations with Union Finance Minister Nirmala Sitharaman in Jaisalmer where he stressed the importance of continuing and enhancing the SASCI scheme. He proposed an allocation of over Rs. 1,50,000 crore for the upcoming fiscal year, citing the scheme’s role in enabling states, particularly in the Northeast, to undertake critical capital projects that drive economic growth and improve quality of life.

Presenting a memorandum outlining the developmental needs of Meghalaya, Sangma lauded the SASCI scheme’s merit-based approach, which rewards states for implementing reforms and effectively utilizing funds within the fiscal year. He highlighted how Meghalaya has leveraged this initiative to bridge resource gaps, enhance connectivity, and execute projects that stimulate economic progress. Sangma urged the Finance Ministry to strengthen the program further to sustain this momentum.

Addressing the digital divide in Meghalaya, Sangma proposed establishing 1,000 Citizen Digital Service Delivery Centers (CDSDCs) across the state. These centers would provide access to essential services such as welfare programs, banking, healthcare, and education, particularly in remote areas. He emphasized the need to bridge the gap in digital literacy and ensure marginalized communities benefit from government services. Each center would also facilitate training programs to empower citizens with necessary digital skills.

To support the growing number of Village Organizations (VOs) in Meghalaya, he proposed leveraging the SASCI scheme to construct 1,000 VO service delivery centers across the state. These centers would provide women-led Self-Help Groups (SHGs) with safe working spaces and resources to expand their businesses. Sangma urged the Finance Ministry to consider this proposal as an extension of the Working Women Hostels initiative, highlighting its potential to empower rural women and contribute to the state’s economic growth.

Sangma also drew attention to the lack of adequate banking services in rural Meghalaya. He urged the Ministry to address these challenges by mandating additional staffing for single-person rural bank branches, doubling the rural branch network, and incentivizing Business Correspondents (BCs) based on business volume. He also recommended financial support for expanding rural banking networks through viability gap funding or assistance from the Financial Inclusion Fund.

Highlighting disparities in urban development schemes like AMRUT and AMRUT 2.0, Sangma noted that Northeastern states receive only 2.68% of the total funds, a figure that drops to 1.52% when excluding Assam. He proposed increasing the allocation for urban development in the Northeast and introducing a dedicated budget to address the unique infrastructure challenges of hilly cities.

The chief minister also called for a 50-50 cost-sharing mechanism for operation and maintenance expenses under the Jal Jeevan Mission for two to three years. He explained that this approach would help Meghalaya overcome financial constraints while ensuring the sustainability of rural water supply systems. Central assistance, he said, would safeguard investments, promote equity, and empower communities to take ownership of their water supply infrastructure.

Sangma further advocated for boosting women-led micro-enterprises under the Lakhpati Didi initiative. He suggested increasing the loan ceiling for Self-Help Groups from Rs. 3 lakh to Rs. 5 lakh and introducing a 3% interest subvention on prompt loan repayments to encourage participation and expand economic opportunities for women.

Read: NEC Plenary 2024: Roadmap for Northeast’s Growth and Connectivity Set in Motion

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