Itanagar: The Arunachal Pradesh government has sought a special financial package of Rs 6.89 lakh crore from the 16th Finance Commission to compensate for its exclusion from externally aided projects (EAPs) supported by international agencies.
The request was made during meetings held on Tuesday between the Commission and Chief Minister Pema Khandu, Deputy Chief Minister Chowna Mein, and senior state officials, Finance Commission member Annie George Mathew told reporters here.
Mathew, along with fellow members Dr Manoj Panda and Dr Soumya Kanti Ghosh, is on a five-day visit to the state to assess developmental priorities and challenges.
Chief Minister Pema Khandu, in his interaction with the Commission, said ecological sensitivity must be a core factor in fiscal planning for Arunachal Pradesh. He pointed out that opposition from certain quarters has prevented the state from accessing externally aided grants, posing a significant hurdle in tapping international development support.
“Policies designed for plains states do not suit hilly, remote terrains like ours. I urged for relaxations and state-specific policy frameworks,” Khandu said. He also highlighted Arunachal’s hydropower potential as a key contributor to the ‘Viksit Bharat 2047’ vision, expressing hope that the Commission would chart a fiscal pathway tailored to the state’s unique aspirations and capabilities.
Deputy Chief Minister Chowna Mein, who also holds the finance portfolio, reiterated the state’s demand for a ‘Green Bonus’ in recognition of its role in carbon sequestration and biodiversity conservation, noting that 79 per cent of the state’s geographical area is under forest cover.
He also raised the need for dedicated funding for climate-resilient infrastructure, disaster management, and restoration of water sources such as drying springs, especially in light of Arunachal’s vulnerability to natural disasters and climate change.
Mein called for a revision of the Cost Disability Index, citing the high cost of delivering services in the state’s difficult mountainous terrain. He also proposed the development of Model Border Villages along the state’s 1,800-km international boundary with Tibet, Myanmar, and Bhutan.
On the economic front, Mein sought greater investment in agriculture and support for harnessing Arunachal’s 58,000 MW untapped hydropower potential.
Mathew said the state also urged restoration of Special Category Status for northeastern and Himalayan states to enable access to more favourable funding terms. Additionally, Arunachal Pradesh proposed raising the vertical devolution of central taxes from 41 per cent to 47 per cent to ensure a more equitable, needs-based allocation.
Reaffirming the state’s commitment to India’s $5 trillion economy vision, Khandu and Mein said Arunachal Pradesh is poised to become the nation’s eastern gateway and a champion of green, inclusive growth with appropriate fiscal support.
Also read: Cabinet approves common exam for engineer posts, age relaxation
