Meghalaya CM seeks Rs 1,50,000 Cr allocation under SASCI

Syllad | The Rising MeghalayaDecember 20, 2024

Chief Minister Conrad K Sangma on Friday emphasized the importance of continuing and augmenting the Special Assistance to States for Capital Investment (SASCI) scheme, requesting an allocation of over Rs 1,50,000 crore for the upcoming fiscal year.

Presenting a memorandum – which outlining the critical development needs of the state – before the Union Finance Minister Nirmala Sitharaman during the pre-budget consultations in Jaisalmer, Rajasthan, Sangma said, the SASCI scheme has been instrumental in enabling States, particularly those in the Northeast, to undertake vital capital projects that stimulate economic growth and improve citizens’ quality of life.

The meritocratic approach of the scheme rewards States for implementing reforms and effectively utilizing funds within the fiscal year. Meghalaya has successfully leveraged this initiative to bridge resource gaps and enhance connectivity, making it essential for the Finance Ministry to strengthen this program further.

Special Allocation for Northeastern States:

Recognizing the unique challenges faced by Northeastern States, Sangma proposed a special allocation of Rs 10,000 crore within the SASCI scheme specifically for seven Northeastern States (excluding Assam).

The region’s geographical barriers lead to significantly higher infrastructure costs—between 35% to 50% more than other regions—which hampers development efforts. Despite their special status and funding ratios, these States receive minimal investments in national projects and have limited access to private capital. The proposed allocation aims to empower these States to become equal partners in India’s growth narrative and improve their human development indicators.

Establishment of Citizen Digital Service Delivery Centers:

To address the digital service delivery challenges in Meghalaya, the chief minister proposed establishing 1,000 Citizen Digital Service Delivery Centers (CDSDCs) across the State.

“These centers will provide citizens with access to essential government services such as welfare programs, banking services, healthcare, and education—particularly in remote areas where digital literacy is low. The initiative aims to bridge the digital divide by promoting digital literacy and ensuring that even the most marginalized communities can benefit from government services. Each center will facilitate training programs to empower citizens with necessary digital skills,” he said.

“Infrastructure Support for Village OrganizationsWith the growing number of Village Organizations (VOs) in Meghalaya, many women Self-Help Group (SHG) members are forging ahead to expand their businesses. To provide them with a safe working space and boost their entrepreneurial efforts, we propose leveraging the SASCI scheme to receive financial assistance for constructing 1000 VO service delivery centers across the State. We urge the Ministry of Finance to consider this proposal for inclusion under the SASCI scheme funding, as an extension of the “Working Women Hostels” initiative, to empower rural women in Meghalaya to actively contribute to the State’s economic growth,” he added.

Enhancing Banking Services in Meghalaya:

“To ensure that banking services reach the rural areas of Meghalaya, we urge the Ministry for the following: Rural branches of the banks having one-man branches may be mandated to depute an additional resource to ensure better service delivery.

A guideline may be devised to encourage the banks to double their rural branch network to bridge the bank deficit in the hilly areas and financial assistance for the same may be provide in the form of VGF or additional assistance from Financial Inclusion Fund (FIF).

Incentivization of BCs in proportion to the business volume generated in the SFDs through a scheme or inclusion of the component in FIF. 

NER’s Urban Aspirations:

Bridging the Infrastructure GapSchemes like AMRUT and AMRUT 2.0, which aimed at providing basic urban infrastructure, have had limited impact in States like Meghalaya.

Despite removing the 1 lakh population criterion, AMRUT 2.0’s allocation to the Northeastern Region (NER) remains low, at 2.68% of the total ₹66,750 crore funds, which drops to 1.52% excluding Assam.

To address these disparities, the State proposes increasing AMRUT allocation in this year’s budget and introducing a dedicated budget for NER and hilly cities to address their distinct infrastructure challenges and meet their urban development needs.

Central Support for JJM Meghalaya:

Bridging the O&M GapMeghalaya proposes a 50-50 cost-sharing mechanism for operation and maintenance expenses under the Jal Jeevan Mission for the first 2-3 years, recognizing the State’s unique socio-economic and geographical challenges.

This collaborative approach will enable the State to overcome its operation and maintenance challenges, ensuring the long-term sustainability of the mission.

The key benefits of this support include ensuring equity by alleviating the financial burden on the State, safeguarding investments made in water supply infrastructure, and promoting sustainability by empowering communities to take ownership of their water supply systems.

With central assistance, Meghalaya can make significant strides in improving the lives of its rural population, aligning with the mission’s objective of providing tap water connections to every rural household by 2024.

Strengthening Women SHG Groups:

Leveraging Lakhpati Didi InitiativeMeghalaya aims to boost the performance of women led micro-enterprises and expand their economic opportunities with the support of the Lakhpati Didi initiative.

To achieve this, the State proposes increasing the loan ceiling from ₹3 lakhs to ₹5 lakhs to support the expansion of existing businesses run by Self-Help Group (SHG) members. Additionally, Meghalaya suggests introducing an additional 3% interest subvention on prompt loan repayments to encourage more SHGs to avail loans, aligning with the Kisan Credit Card (KCC) framework

ConclusionThe requests articulated by Chief Minister Conrad K Sangma during today’s Pre-Budget consultations reflect Meghalaya’s pressing developmental needs and aspirations.

By addressing these key areas—continuing SASCI funding, creating special allocations for Northeast States, establishing digital service centers, supporting village organizations, enhancing financial inclusion, and strengthening digital literacy—the Finance Ministry can play a pivotal role in transforming Meghalaya’s socio-economic landscape.

These initiatives are essential for ensuring that every citizen in Meghalaya has access to critical services and opportunities for growth as part of India’s broader development agenda.