Assam has emerged as a frontrunner among Indian states in utilising central funds for the creation of capital assets, Union Finance Minister Nirmala Sitharaman said on Friday while inaugurating the Brahmaputra riverfront project in Guwahati. Speaking at the event, she highlighted Assam’s exemplary performance under the Special Assistance to States for Capital Investment scheme, noting that the state has maximised the use of central assistance to build vital infrastructure, including hospitals, roads, and other public assets. The Finance Minister emphasised that such investment not only improves the physical landscape of the state but also promotes socio-economic growth and development.

The Special Assistance to States for Capital Investment scheme provides funds to states as long-term, 50-year interest-free loans to encourage capital expenditure. According to Sitharaman, Assam has leveraged this scheme more effectively than any other state in the country. “The Centre gives funds to every state under the Special Assistance to States for Capital Investment scheme to build capital assets like hospitals, roads, and other infrastructure. Assam also gets it,” she said. She noted that while all states are utilising central resources to construct public assets, Assam’s planning and execution have set a benchmark. “The way Assam is planning to create assets, it is utilising the central fund to the maximum level. Assam tops the list,” she remarked. Her comments underscore the state’s commitment to ensuring that infrastructure development aligns with the needs of its people, balancing progress with the preservation of local livelihoods.

During the inauguration ceremony, Sitharaman formally opened the ‘Gateway of Guwahati’ project, a terminal and jetty on the banks of the Brahmaputra River, developed at a cost of ₹305 crore. She also dedicated the Brahmaputra Riverfront project, located at Sati Radhika Udyan, which was built at an expenditure of ₹327 crore. These projects are part of the state’s broader vision of enhancing urban infrastructure and riverfront development, aimed at promoting tourism, improving connectivity, and providing recreational spaces for residents. In her speech, the Finance Minister highlighted that Assam’s approach to development has been mindful of the livelihoods of local communities. She cited the example of a fish market that continues to operate beneath the new riverfront project, allowing fishermen to continue their traditional occupations. “I heard that there was a fish market beneath this riverfront project. CM Himanta Biswa Sarma told me that it still exists, and they can still go to the river to catch fish. So, this is a good blend between livelihood and development,” Sitharaman said. Her comments underscored the importance of integrating economic growth with social sustainability.

The Finance Minister further elaborated on the principles of good governance, emphasizing that urban development should not displace local communities or disrupt their traditional means of livelihood. She said that balancing progress with social responsibility is critical for building inclusive cities. “Urban development is necessary, but not by displacing the people from the localities. We need to work to improve people’s lives. Bringing in changes by not disturbing the livelihood of people is an example of good governance. The fine balance between the two is important,” she added.

Sitharaman’s visit to Guwahati was part of a two-day tour during which she was scheduled to inaugurate multiple projects across Assam. Later on Friday, she visited the upcoming facility of Tata Electronics’ Outsourced Semiconductor Assembly and Test (OSAT) plant at Jagiroad in the Morigaon district of central Assam. The facility, being set up at a significant investment of ₹27,000 crore, is expected to position Assam as a strategic hub for semiconductor manufacturing in India. The Finance Minister highlighted that this development would not only boost the state’s industrial capabilities but also strengthen India’s position in high-technology sectors. “The Tata Group’s upcoming semiconductor plant will put Assam in the driver’s seat of the engine for a developed India,” she said, underlining the potential economic impact of such industrial projects on the region.

On the second day of her visit, Saturday, Sitharaman was scheduled to lay the foundation stone for the Swahid Kanaklata Barua State University in Gohpur, Biswanath district. The Assam Cabinet had approved the development of the university earlier this year at a cost of ₹400 crore. The new university is envisioned as a centre for higher education, fostering research, innovation, and skill development in the state. The establishment of such an institution is in line with Assam’s broader agenda of enhancing educational infrastructure and creating opportunities for youth in rural and semi-urban areas. By investing in education alongside industrial and infrastructural projects, the state aims to cultivate human capital and support long-term economic growth.

Sitharaman’s statements during her visit reinforced the government’s focus on holistic development, combining urban planning, industrial expansion, and educational advancement. Assam’s utilisation of central funds for capital investment has not only created visible infrastructure but also set an example for other states in terms of efficiency and strategic planning. She praised the state government for ensuring that development initiatives were inclusive and sensitive to the local population’s needs. According to her, infrastructure projects should enhance the quality of life without compromising the cultural and social fabric of the communities they serve.

The Gateway of Guwahati and Brahmaputra Riverfront projects are expected to have significant long-term benefits. Beyond improving urban aesthetics, these projects are intended to stimulate tourism, provide recreational spaces, and enhance local transport and trade connectivity. The government has also ensured that such projects incorporate sustainable development principles, taking care of environmental considerations and local traditions. Sitharaman’s emphasis on maintaining a balance between development and livelihood reflects a growing recognition of the importance of sustainable urban planning in India.

In addition to urban infrastructure, the development of the Tata Electronics facility and the upcoming university underscores Assam’s strategic economic direction. By attracting high-value industries and fostering educational institutions, the state is positioning itself as a centre for knowledge-driven growth. Sitharaman’s remarks highlighted the potential multiplier effect of these investments, which are expected to generate employment, foster skill development, and stimulate ancillary industries. The combination of public infrastructure, private sector investment, and educational expansion presents a comprehensive approach to state development.

Through her remarks and project inaugurations, Sitharaman conveyed that Assam’s example demonstrates the effective utilisation of central assistance to create lasting capital assets. She stressed that such investments are not merely about building structures but about enhancing the quality of life, supporting livelihoods, and creating sustainable economic opportunities. Assam’s ability to harness central funds for multi-dimensional development offers a blueprint for other states seeking to balance growth, social equity, and environmental sustainability.

Overall, the Finance Minister’s visit underscored Assam’s leadership in the effective deployment of central funds for capital investment. By prioritising infrastructure, education, and industry while maintaining sensitivity to local communities, Assam has positioned itself as a model of inclusive development. Sitharaman’s remarks and the projects she inaugurated highlight the state’s commitment to leveraging central assistance for long-term economic growth and improved quality of life for its citizens, setting a benchmark for governance and development in India.