Pride of Hills Scheme Allocates ₹3,880 Crore to Nagaland

The Central Government has allocated ₹3,880 crore to Nagaland under the “Pride of Hills: Special Development Assistance for the Hill States” scheme for the financial year 2026–27. The initiative is designed to address structural challenges faced by hill states, including difficult terrain, limited connectivity, sparse populations and constrained revenue bases. It forms part of the broader Special Assistance to States for Capital Investment (SASCI), aimed at strengthening infrastructure and economic capacity.

Scheme objectives and framework

The “Pride of Hills” scheme focuses on enhancing capital expenditure and promoting balanced regional development. Hill states often face higher costs of infrastructure development due to geographical constraints. The scheme seeks to bridge these gaps by providing targeted financial assistance, thereby improving connectivity, public services and economic opportunities in these regions.

State-wise allocation pattern

Under the total outlay of ₹25,000 crore for nine hill states, Arunachal Pradesh received the highest allocation of ₹4,900 crore, followed by Himachal Pradesh with ₹3,920 crore. Nagaland was allotted ₹3,880 crore, while Uttarakhand and Tripura received ₹3,460 crore and ₹3,450 crore respectively. Manipur was allocated ₹2,400 crore and Meghalaya ₹2,070 crore. Sikkim and Mizoram received ₹820 crore and ₹100 crore respectively, reflecting varying developmental needs and project priorities.

Expected impact on regional development

The additional funding is expected to significantly boost infrastructure development, particularly in transport, connectivity and public utilities. It will also support capital-intensive projects that can stimulate economic growth and improve living standards. By addressing long-standing bottlenecks, the scheme aims to enhance fiscal capacity and promote sustainable development in hill regions.

Important Facts for Exams

• The “Pride of Hills” scheme is part of the Special Assistance to States for Capital Investment (SASCI).
• Hill states face unique challenges such as difficult terrain and limited connectivity.
• Arunachal Pradesh received the highest allocation under the scheme for 2026–27.
• Capital expenditure refers to spending on infrastructure and asset creation.

Government and state response

Nagaland Chief Minister Neiphiu Rio welcomed the allocation and expressed gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman. He noted that the assistance would help accelerate development and address region-specific challenges. The scheme reflects the Centre’s commitment to inclusive growth and targeted support for geographically disadvantaged states.