Union finance minister Nirmala Sitharaman on Friday highlighted that Assam has emerged as the leading state in the country in the utilisation of the Centre’s Special Assistance to States for Capital Investment scheme, which provides long-term, interest-free loans to states for building public infrastructure. Speaking in Guwahati at the inauguration of major urban development projects, she said that Assam’s proactive approach to planning and executing capital works has placed it at the top of the national list for effective use of central assistance aimed at strengthening capital expenditure. According to her, although every state receives these funds as part of the central scheme, the scale, speed, and efficiency with which Assam has deployed them sets it apart.

The Special Assistance to States for Capital Investment initiative is designed to support state governments in constructing capital assets such as hospitals, roads, transport systems, riverfronts, educational institutions, and other infrastructure essential for long-term economic growth. Sitharaman explained that the funds, offered as 50-year interest-free loans, are intended to encourage states to expand their capital outlay and drive development. She noted that Assam has not only absorbed the funds at a strong pace but has also used them to execute transformational projects across sectors. In her view, the state’s commitment to building significant assets, combined with its steady governance, has enabled it to benefit from the central funding far more effectively than many others.

Sitharaman was in Guwahati to inaugurate two major projects on the Brahmaputra riverbank, both considered key components of the city’s ongoing urban transformation. The first of these was the “Gateway of Guwahati” project, consisting of a modern terminal and jetty along the river. Developed at a cost of ₹305 crore, the terminal is intended to enhance waterway connectivity, facilitate tourism, and improve the logistics ecosystem on the Brahmaputra. Officials said the project will provide an improved passenger experience and create a new landmark for the city, which is one of the Northeast’s most important commercial and cultural centres.

Following this, Sitharaman dedicated the Brahmaputra Riverfront project at Sati Radhika Udyan to the public. This project, costing ₹327 crore, forms part of the state government’s larger vision to redevelop the riverfront and create an accessible, clean, and aesthetically appealing public space. The redevelopment includes landscaped areas, pathways, recreational zones, and improved access to the waterfront. During her address, Sitharaman emphasised that the design of the riverfront has consciously sought to protect local livelihoods. She referred to the presence of a fish market under the site and noted that Chief Minister Himanta Biswa Sarma had ensured that the market remained operational and that fishermen were not displaced. She described this as an example of development that respects community needs while improving the urban environment.

The finance minister underlined that urban development must be implemented with sensitivity, particularly in locations where communities depend directly on natural resources such as rivers for their livelihood. She stated that government initiatives should enhance people’s quality of life instead of disrupting existing economic activities. Balancing growth with social responsibility, she said, is an essential aspect of good governance. She stressed that this principle must guide all future urban development projects, especially in cities experiencing rapid expansion. This approach, in her view, can help ensure that infrastructure modernisation does not come at the cost of displacing vulnerable groups or causing long-term social disruption.

Sitharaman arrived in Assam earlier in the day for a two-day tour during which she is scheduled to review and inaugurate a range of projects across the state. The visit is part of the Centre’s broader push to strengthen infrastructure in the Northeast and support the economic integration of the region with the rest of India. After her engagements in Guwahati, she travelled to Morigaon district, where she visited the upcoming Tata Electronics Outsourced Semiconductor Assembly and Test facility at Jagiroad. This ₹27,000-crore project is among the most significant industrial investments in Assam and is expected to place the state at the forefront of India’s semiconductor and electronics manufacturing sector.

Sitharaman said that the semiconductor plant will be a cornerstone of Assam’s industrial future. According to her, the facility will not only generate thousands of direct and indirect jobs but will also anchor a new ecosystem of electronics manufacturing, testing, and digital technology services in the region. She said that the scale of the investment demonstrates confidence in Assam’s potential and reflects the state’s improving business climate. She added that the plant will help Assam take a leading role in driving India’s growth and supporting the national objective of becoming a global leader in semiconductor manufacturing.

The finance minister’s schedule also includes a visit to Gohpur in Biswanath district on Saturday, where she will lay the foundation stone for the Swahid Kanaklata Barua State University. The Assam Cabinet approved this project in June at an estimated cost of ₹400 crore. The university is named after Kanaklata Barua, a prominent freedom fighter from Assam, and is expected to play a vital role in expanding higher education access in the region. The government plans to equip the university with modern facilities, research programmes, and academic departments that address local and regional development needs. Officials said the institution would help create new opportunities for students in rural and semi-urban areas, broadening access to quality education beyond major urban centres.

Throughout her visit, Sitharaman reiterated that Assam has become an example of development-driven governance. She highlighted the state’s ability to conceive and execute large-scale projects across sectors such as transport, education, industry, and urban development. She said the Centre remains committed to supporting the state, especially in light of its demonstrated capacity to utilise financial assistance effectively. Her remarks underscored how the collaboration between the central and state governments is shaping Assam’s growth trajectory and expanding its role in the economic landscape of eastern India.

Sitharaman also emphasised that development should remain people-centric, with special care taken to avoid disrupting livelihoods and local communities. She reiterated that a balanced approach combining infrastructure expansion, economic development, and social responsibility is necessary to build cities and regions that are resilient, equitable, and sustainable. Her message reflected a broader policy vision that prioritises both growth and inclusion, particularly in states undergoing rapid transformation.

The finance minister’s visit is expected to accelerate momentum for a series of development initiatives currently underway in Assam. Government officials said the projects inaugurated on Friday reflect the state’s ambitions to modernise urban spaces, enhance connectivity, and attract high-value industrial investment. As the state continues to lead in the utilisation of central capital investment funds, the government hopes to sustain this pace and advance Assam’s position as one of India’s most dynamic emerging economies.