Dehradun: The Central Government has approved a significant financial assistance package of ₹2,355.54 crore for Uttarakhand under the Special Assistance to States for Capital Investment (SASCI) scheme and related development initiatives. The funding aims to strengthen infrastructure development, reduce fiscal pressure, and accelerate ongoing welfare and capital projects in the Himalayan state.
Chief Minister Pushkar Singh Dhami has expressed gratitude to the Centre, calling the support a major boost for the state’s development agenda.
Breakdown of the ₹2,355 Crore Assistance
The approved financial support includes multiple components designed to address both debt management and development needs:
- ₹2,283.60 crore under the “Pradhan of Hills” / hill states development initiative
- ₹71.94 crore under SASCI for use as the state’s share in centrally sponsored schemes
- Total disbursed in the current financial year 2026–27: ₹2,355.54 crore
According to officials, including Finance Secretary Dilip Jawalkar, this allocation has already been sanctioned in the current fiscal cycle.
Interest-Free Loan for Long-Term Fiscal Relief
A major portion of the package is being provided as part of a long-term, interest-free loan facility for 50 years, aimed at supporting capital expenditure in hill and northeastern states.
Key benefits include:
- No immediate repayment burden on the state
- Improved fiscal flexibility for infrastructure projects
- Support for development in difficult and remote terrain
The initiative is designed to reduce Uttarakhand’s debt pressure while allowing the state government to redirect budgetary resources toward development priorities.
Boost to Infrastructure and Welfare Development
The funding is expected to accelerate:
- Road and transport infrastructure projects
- Tourism development in hill regions
- Public welfare schemes
- Health and education infrastructure
- Rural and remote area connectivity projects
Officials said the financial support will help the state maintain momentum in development work, especially in geographically challenging regions.
Centre’s Focus on Hill and Himalayan States
The assistance comes under the broader framework of the Centre’s focus on special development support for Himalayan and northeastern states, including programs like the “Pradhan of Hills” initiative.
This approach aims to:
- Strengthen infrastructure in difficult terrain
- Promote balanced regional development
- Improve connectivity and public service delivery
- Support states with limited revenue capacity
CM Dhami Welcomes the Decision
Chief Minister Pushkar Singh Dhami welcomed the decision, stating that the Centre is fully supporting Uttarakhand’s development journey under the leadership of Prime Minister Narendra Modi.
He emphasized that the state government remains committed to transforming Uttarakhand into a leading state in the vision of a “Developed India.”
Read also: Uttarakhand CM Pushkar Singh Dhami Approves ₹105 Crore Development Projects Ahead of Kumbh Mela 2027
