Chief Minister Pema Khandu on Thursday thanked Prime Minister Narendra Modi after the Centre allocated Rs 4,900 crore to Arunachal Pradesh under the newly launched “Pride of Hills” initiative aimed at addressing infrastructure and development gaps in Himalayan and hill states.
Khandu described the allocation as a major boost for the state, particularly for improving connectivity, infrastructure and long-term economic growth in remote and difficult terrains.
“Grateful to Hon’ble Prime Minister @narendramodi Ji for the Rs 4,900 crore allocation to Arunachal Pradesh under the ‘Pride of Hills’ initiative, which will help bridge critical infrastructure gaps across the state,” the chief minister said in a post on X.
The “Pride of Hills: Special Development Assistance for Hill States” initiative was introduced earlier this year under the Centre’s Special Assistance to States for Capital Investment framework for the financial year 2026-27.
Officials said the scheme has a total outlay of Rs 25,000 crore for nine hill and Himalayan states. Arunachal Pradesh emerged as the highest beneficiary with an allocation of Rs 4,900 crore, followed by Himachal Pradesh with Rs 3,920 crore and Nagaland with Rs 3,880 crore.
Other beneficiary states include Uttarakhand, Tripura, Manipur, Meghalaya, Sikkim and Mizoram.
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Earlier, after the scheme was announced in March, Khandu had termed the initiative a “timely and visionary intervention” that recognised the unique developmental challenges faced by hill states, including difficult terrain, sparse population, weak connectivity and limited revenue-generation capacity.
The chief minister said the allocation would help Arunachal Pradesh strengthen fiscal stability and invest in revenue-generating assets and infrastructure projects.
According to official details, the scheme is aimed at addressing structural and geographical disadvantages faced by hill states, such as high infrastructure costs, low population density and weak fiscal indicators.
The initiative seeks to increase capital expenditure, improve connectivity and public infrastructure, support committed liabilities and strengthen long-term economic sustainability in the region.
Officials said the additional allocation, over and above existing provisions under the SASCI framework, is expected to help hill states accelerate infrastructure development and improve public utilities.
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