Agartala: Tripura chief minister Manik Saha on Friday urged the Centre to remove the ceiling on externally aided borrowings for NE states, stressing the importance of Externally Aided Projects (EAPs) in accelerating development.Speaking at a session on “Leveraging Externally Aided Projects in the North Eastern States” in Shillong alongside Union finance minister Nirmala Sitharaman, Saha said Tripura has actively pursued EAPs with support from international agencies.He cited the World Bank, Asian Development Bank (ADB), Indo-German Development Cooperation and the Japan International Cooperation Agency as key partners over the last two decades, saying their interventions have helped reshape Tripura’s development trajectory, improved socio-economic outcomes and strengthened administrative and institutional capacity.Saha highlighted Tripura’s partnership with ADB, noting that the North East Economic Corridor Study flagged investment opportunities in industrial infrastructure, urban development, roads, power, tourism and health care.Pointing to economic expansion, he said Tripura’s gross state domestic product (GSDP) is projected to nearly double from ₹55,984 crore in 2019-20 to ₹1,00,795 crore by 2025-26. He also said annual capital expenditure is expected to rise from ₹2,079 crore in 2021-22 to ₹10,478 crore by 2025-26, which he linked to improved capacity to deploy development funds.
Should the government remove the ceiling on externally aided borrowings for North Eastern states?
The chief minister said Tripura is also seeing higher private sector interest, with MoUs worth about ₹30,000 crore signed in the past year and ongoing projects of more than ₹8,000 crore, adding that the investment push increases the need for strong public infrastructure.Saha flagged constraints arising from the 80:20 Centre-state funding pattern for EAPs and pressed for the abolition of the borrowing ceiling introduced in 2023-24. He argued that borrowing limits should be aligned to a state’s administrative efficiency and ability to absorb funds rather than a uniform cap.He also raised concerns over the discontinuation of the Revenue Gap Grant following recommendations from the 16th Finance Commission and urged its reinstatement to maintain Tripura’s growth momentum.
