Agartala, October 19, 2025 — Tripura Chief Minister Dr. Manik Saha has urged the Union government to enhance the ceiling on externally aided projects (EAPs) for the northeastern state, arguing that the current cap of ₹3,000 crore has become a constraint on development. Saha, who was addressing a gathering at Rabindra Bhavan in Agartala on Sunday, said he had personally requested Union Finance Minister Nirmala Sitharaman to raise the limit to at least ₹10,000 crore to enable faster implementation of infrastructure and welfare projects across the state.

The chief minister highlighted that while mainland states enjoy unrestricted access to externally aided funds, northeastern states, including Tripura, continue to face limitations that hinder their growth potential. “During my recent visit to Delhi, I met Union Finance Minister Nirmala Sitharaman and urged her to either withdraw the ceiling or enhance it to at least ₹10,000 crore. Such a revision will help us accelerate the pace of development activities in Tripura,” Saha said.

According to the chief minister, the Union finance minister responded positively and asked the Tripura government to send its finance secretary to New Delhi to discuss the issue with officials from the central finance ministry. “The Union minister has assured us that the matter will be examined, and the state’s finance secretary has been directed to hold a meeting with his counterpart at the Centre to explore possibilities for increasing the ceiling,” Saha added.

Externally aided projects (EAPs) are funded through financial assistance from international development agencies such as the World Bank, Asian Development Bank, and Japan International Cooperation Agency (JICA), with partial or full repayment by the recipient state. These projects have been instrumental in upgrading connectivity, urban infrastructure, health, and education facilities across several northeastern states. However, officials in Tripura have often pointed out that the relatively low ceiling has slowed down progress, especially in large-scale infrastructure initiatives that require higher capital outlays.

Saha emphasized that the state’s development vision under his government is driven by a combination of infrastructure expansion, administrative efficiency, and social welfare. He pointed out that Tripura’s annual budget for the financial year 2025–26 has been increased substantially to ₹32,000 crore from ₹27,000 crore in 2024–25. Out of this, ₹7,000 crore has been earmarked specifically for capital expenditure, reflecting the government’s focus on long-term asset creation and economic growth.

“We have initiated a comprehensive process to boost infrastructure in every sector—roads, power, education, healthcare, and digital connectivity. This is essential for achieving the overall growth of the state. Our government is committed to ensuring that development reaches every citizen, from the villages to the cities,” Saha said.

The chief minister also spoke about the state’s efforts to improve the financial well-being of its government employees by aligning their benefits more closely with those of central government employees. “In my tenure, we have released 29 percent dearness allowance (DA) in 29 months. However, there still remains a gap of around 22 percent between the DA provided to Tripura government employees and that of the central government. We are committed to reducing this disparity as much as possible, keeping the state’s financial capacity in mind,” Saha said.

Dearness Allowance is a key component of public sector employees’ compensation, designed to offset inflation’s impact on their purchasing power. Successive state governments in Tripura have struggled to match the DA rates of central government employees due to resource constraints. Saha’s statement is seen as an assurance that his government remains focused on closing this gap over time through fiscal discipline and steady revenue growth.

Turning to the issue of employment generation, the chief minister claimed that significant progress had been made since 2018 in filling vacant positions across various government departments. “Over 20,000 regular posts have been filled up in the government departments during the past seven years. Besides, 6,000 people have been employed in the government sector on a contractual basis. Recruitment processes are continuing, and we are making every effort to fill all the remaining vacancies at the earliest,” he said.

Saha asserted that the state government’s recruitment drive was aimed not only at reducing unemployment but also at improving the delivery of public services. By filling key positions in departments such as health, education, and rural development, the administration hopes to improve efficiency and governance outcomes across the board.

The chief minister also underscored his government’s efforts to build stronger administrative and fiscal frameworks to attract investments and boost economic opportunities for the people of Tripura. He noted that infrastructure development remains central to the government’s long-term strategy, especially in sectors such as transportation, logistics, tourism, and information technology. “Our government is working with a clear vision—to transform Tripura into a modern, self-reliant, and prosperous state. Every initiative we undertake is guided by this mission,” Saha said.

Economists and policy experts have often noted that Tripura’s growth potential is constrained by both geography and financing. Being a landlocked state with limited access to domestic markets, Tripura depends heavily on central funds and international development assistance for major infrastructure projects. The existing ₹3,000 crore limit for externally aided projects means that the state cannot fully utilize the opportunities provided by global development banks and funding agencies.

By seeking to raise the ceiling to ₹10,000 crore, the state government aims to undertake bigger projects in transportation, irrigation, renewable energy, and urban development. Such projects, officials say, could significantly improve connectivity within the state and with neighboring Bangladesh, boosting trade and economic activity.

Political observers see Saha’s latest request to the Centre as part of a broader push to position Tripura as an emerging growth hub in the northeastern region. Since coming to power, his government has sought to strengthen coordination with the Union government, leveraging central schemes and external aid for state development.

At Sunday’s programme, Saha reiterated that the state’s fiscal health had improved considerably under his leadership, thanks to better revenue collection and efficient fund utilization. He credited both the state bureaucracy and the people for their cooperation in implementing government schemes effectively.

“Our developmental journey is collective. The state government, the people, and the central government are all partners in this mission. With continued support from the Centre, we can overcome the financial limitations that small states like ours often face,” the chief minister said.

Saha also hinted at new policy measures that the government plans to introduce in the coming months to further streamline project implementation and accelerate growth. “We are working on innovative models of development financing and are open to public-private partnerships (PPP) in key sectors. The ultimate goal is to ensure sustainable, inclusive, and transparent development,” he noted.

The Tripura chief minister’s appeal to raise the externally aided project limit comes at a time when northeastern states are seeking more fiscal autonomy and flexibility in implementing their development agendas. Several other states in the region have also called for a review of the current EAP ceiling, arguing that it restricts their ability to fully utilize international assistance for infrastructure upgrades.

For Tripura, which continues to balance limited revenue with ambitious growth targets, the ability to access higher EAP funding could be a turning point. It would allow the state to scale up ongoing projects, attract new investment, and enhance social and economic outcomes for its citizens.

As discussions between Tripura’s finance department and the Union Ministry of Finance are expected to take place soon, the outcome will determine whether Saha’s demand translates into policy action. For now, his call for a ₹10,000 crore EAP ceiling marks a renewed push for equitable financial treatment and greater development flexibility for India’s northeastern states.

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