Arunachal Pradesh continues to grapple with funding challenges as it strives to develop its infrastructure and urban spaces. In a high-level meeting in New Delhi, the state’s Minister for Urban Affairs and Housing, alongside the Mayor of Itanagar, raised critical concerns about the difficulties in securing external funding, particularly from international financial institutions like the Asian Development Bank (ADB) and the World Bank.
These challenges are compounded by the state’s geopolitical positioning, with Arunachal Pradesh and neighbouring Sikkim being unable to access these funds due to objections raised by neighbouring countries, particularly China, over territorial claims.
During the meeting with the Union Finance Minister, the Arunachal team outlined the peculiar funding constraints the state faces, which are unlike most other Indian states and Union Territories. The inability to tap into global financial resources leaves Arunachal heavily reliant on central assistance to meet its growing infrastructure and urban development needs. This has become a pressing issue as the state embarks on multiple projects aimed at modernising urban amenities and building critical infrastructure.
The state has been working diligently to address its infrastructure gaps through projects spearheaded by Urban Local Bodies (ULBs), but financial constraints are slowing progress.
Minister for Urban Affairs briefed the Finance Minister about the various developmental projects underway, particularly in urban areas. These include improvements to public utilities, urban roads, and housing, all essential for fostering a more liveable environment. However, the lack of sufficient funds is threatening to derail these projects, some of which are already behind schedule.One of the key issues discussed was the delayed approval of grants, which are necessary to ensure that these urban development projects remain on track. Without swift intervention, many of these initiatives could face further delays, impacting the quality of life for residents.
The Arunachal team urged the Finance Minister to expedite the approval process and to consider additional financial assistance to help the state meet its development targets. The state’s growing urban population and increasing demand for infrastructure require a much stronger financial push, which they hope will come through central support.
In response, the Union Finance Minister acknowledged the financial difficulties faced by the state, particularly the unique challenges that prevent Arunachal Pradesh from accessing external loans. While committing to continued support for the state’s development, the Finance Minister reassured the delegation that the central government would explore every possible avenue to provide the necessary financial resources.
This would include considering alternative mechanisms for financing urban development projects, with a focus on providing timely grants and facilitating smoother financial disbursements for critical infrastructure works.This interaction underscored the need for a closer partnership between the Centre and Arunachal Pradesh to ensure that the state receives the resources necessary to address its growing infrastructure demands. The central government’s recognition of these challenges is crucial, as it paves the way for a more collaborative approach to funding urban and rural development projects in the state.
The financial constraints faced by Arunachal Pradesh are not unique to the state, as many other regions in India are also grappling with the same issue. However, the state’s geographic and political challenges make it more dependent on the Centre for funding, which is why this discussion was crucial. With the Centre’s support, Arunachal Pradesh aims to overcome these financial barriers and accelerate its urban transformation, thereby providing a better standard of living for its residents.
As the state continues its push for greater financial assistance, the focus remains on creating sustainable urban infrastructure that can accommodate future growth while also adhering to environmentally friendly and equitable development principles. By addressing these financial hurdles, the state hopes to not only modernise its urban spaces but also ensure that growth is inclusive and environmentally responsible.
