Union Budget 2025-26: NE gets ₹5,915 Cr boost, PM-DeVINE & connectivity in focus

Guwahati, Feb 2: The Union Budget 2025-26 has significantly increased the allocation for the Ministry of Development of Northeastern Region (DoNER), with Finance Minister Nirmala Sitharaman proposing Rs 5,915 crore, an increase of over 47% from the previous fiscal’s allocation.

The most notable increase has been for the Prime Minister’s Development Initiative for Northeast Region (PM-DeVINE), which will receive Rs 2,296.96 crore—an increase of over Rs 900 crore from the 2024-25 allocation.

Launched in 2022, PM-DeVINE aims to support infrastructure projects under PM GatiShakti and social development schemes addressing key needs of the region.

Special development package for Autonomous Councils

The budget includes a Special Development Package under the DoNER Ministry, with Rs 50 crore each allocated for the Bodoland Territorial Council and the Karbi Anglong Autonomous Council.

The Dima Hasao Autonomous Council is allocated Rs 100 crore. This package will support infrastructure and development projects in these areas.

NESIDS sees major hike

The North East Special Infrastructure Development Scheme (NESIDS), which received cabinet approval in 2023, has been granted Rs 2,481 crore, a significant rise from Rs 1,500 crore in the previous fiscal.

NESIDS focuses on infrastructure development, including water supply, power, connectivity, tourism projects, and improvements in primary and secondary education and healthcare.

Investment in public enterprises

For public enterprises in the Northeast, Sitharaman has designated Rs 129 crore, which includes:

• Rs 5 crore for the North East Regional Agricultural Marketing Corporation Limited
• Rs 44.58 crore for the North Eastern Handicrafts and Handlooms Corporation Development Limited
• Rs 80 crore for the North Eastern Development Finance Corporation Limited

Northeastern Council

A substantial portion of the DoNER allocation is dedicated to centrally sponsored schemes (CSS) and projects under the Central Pool of Resources for the Northeast and Sikkim, as well as schemes under the North Eastern Council (NEC). The funding for NEC projects has risen from Rs 3,966 crore in 2024-25 (Revised) to Rs 5,879.96 crore in the 2025-26 budget.

The budget also includes allocations for various other schemes, such as:

• Rs 822 crore for Schemes of the North Eastern Council (NEC)
• Rs 70 crore for the North East Enterprise Development Scheme (NEEDS)
• Rs 200 crore as a Special Package for Bodoland Territorial Council (BTC), Karbi Anglong Autonomous Territorial Council (KAATC), and Dima Hasao Autonomous Territorial Council (DHATC)

Social and women-centric initiatives

The Saksham Anganwadi and Poshan 2.0 programme, which provides nutritional support to over 8 crore children and 1 crore pregnant women and lactating mothers nationwide, saw its allocation increase from Rs 20,071 crore in 2024-25 to Rs 21,960 crore in 2025-26.

Around 20 lakh adolescent girls in aspirational districts and the Northeast will continue to benefit from the program, with plans for further enhancement.

Assam’s Gas-Based Urea Plant

While the budget has allocated Rs 2,615.38 crore for schemes in the Northeast, no major new projects were announced apart from a 12.7 lakh metric tonne gas-based urea plant in Namrup, Assam.

Assam Chief Minister Dr. Himanta Biswa Sarma hailed the project as a "game-changer" for the region’s agriculture sector.

Boost to regional connectivity

The budget continues to prioritise regional connectivity, with an expanded UDAN scheme aiming to connect 120 new destinations and cater to 4 crore passengers over the next decade.

Finance Minister Nirmala Sitharaman emphasised that UDAN has already enabled 1.5 crore middle-class Indians to access faster travel, operationalising 88 airports and 619 routes.

The plan also includes helipads and smaller airports in hilly, aspirational, and remote districts of the Northeast, improving accessibility and boosting tourism.

Agricultural & rural economy reforms

The budget also emphasises agricultural and rural development, with the Prime Minister Dhan-Dhaanya Krishi Yojana covering 100 agricultural districts, including those in the Northeast.

The program, inspired by the Aspirational Districts Programme, aiming to boost agriculture and rural development in agricultural districts, including those in the Northeast. This initiative promotes crop diversification, irrigation, storage, and better credit access, benefiting 1.7 crore farmers across the country.