Guwahati : In a significant step toward inclusive development and long-lasting peace in the Northeast, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved four new components under the existing Central Sector Scheme of Special Development Packages (SDPs) for Assam and Tripura, with a total outlay of ₹4,250 crore.
“This Cabinet decision will boost development in Assam and Tripura. It will ensure new opportunities for youngsters and women,” Prime Minister Modi wrote on X on Friday, shortly after the Cabinet decision was made public.
The announcement reflects the government’s continued emphasis on integrating vulnerable and previously conflict-hit communities into the national development framework.
The new components have been carefully designed as part of a broader effort to implement the terms of Memoranda of Settlement (MoS) signed between the Government of India, the respective state governments, and several ethnic groups in Assam and Tripura. These MoSs aim to bring peace and development through infrastructure building, livelihood projects, and socio-economic upliftment.
According to the detailed plan shared by the Press Information Bureau (PIB), the total ₹4,250 crore package will be distributed across four distinct initiatives. Firstly, ₹500 crore has been allocated for the development of infrastructure in Adivasi-inhabited areas of Assam, based on the MoS signed in 2022. Secondly, another ₹500 crore is set aside for improving infrastructure in villages inhabited by the Dimasa National Liberation Army (DNLA) and Dimasa People’s Supreme Council (DPSC) in the North Cachar Hills Autonomous Council (NCHAC) region of Assam, as per the MoS signed in 2023.
The most substantial component of the scheme is a ₹3,000 crore outlay earmarked for infrastructure development across areas of Assam affected by the ULFA groups, following the MoS signed in 2023. Finally, ₹250 crore has been sanctioned for the development of tribal communities in Tripura, based on the MoS signed with NLFT and ATTF groups in 2024.
While the Central Government will contribute ₹4,250 crore under the Central Sector Scheme, the Government of Assam will also inject an additional ₹3,000 crore from its own budgetary resources. This brings the total financial implication of the four new components to ₹7,250 crore, indicating a strong and coordinated Centre-State effort.
The release further clarified that the Assam-specific components totaling ₹4,000 crore will be implemented over a five-year period from 2025–26 to 2029–30, while the Tripura component of ₹250 crore will be spread across four years, from 2025–26 to 2028–29.
This package is expected to make a transformative impact on local communities, especially by promoting infrastructure, employment, education, healthcare, and entrepreneurship. Projects will be designed to benefit youth and women, particularly in rural and tribal belts, by offering skill development, local enterprise support, and income generation.
A key highlight of the plan is its employment generation potential. Infrastructure and livelihood projects will create thousands of jobs, while also strengthening the local economy. Enhanced connectivity and tourism potential are expected to bring additional revenues to the region.
Importantly, this initiative is not isolated. The Central Government had earlier implemented similar packages under peace accords with Bodo and Karbi groups in Assam, which have shown encouraging results in reducing insurgency and improving socio-economic indicators.
The approval of these new components signals the government’s broader commitment to a development-led peace strategy in the Northeast. Through focused funding, institutional support, and community engagement, the Centre is aiming to mainstream formerly marginalized regions and populations.
The MoSs signed between 2022 and 2024 with ethnic groups across Assam and Tripura serve as the foundation for this latest development package. By combining infrastructure with reconciliation, the government hopes to ensure a peaceful and prosperous future for millions across the two states.
