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Cabinet Approves Rs. 4,250 Crore Special Development Packages for Assam and Tripura

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On August 8, 2025, The Union Cabinet, chaired by Prime Minister Narendra Modi, approved four new components under the Central Sector Scheme of Special Development Packages (SDPs) for Assam and Tripura. The total central outlay is Rs. 4,250 crores, and the Government of Assam supplements Rs. 3,000 crores, making the total financial implication of these components to Rs. 7,250 crores.

  • The development packages aim to promote peace, rehabilitation, and inclusion through focused infrastructure and socio-economic development projects.

Note: The approval follows the success of previous MoS-based initiatives for Bodo and Karbi groups, which resulted in enhanced peace and development in Assam.

Exam Hints:

  • What? Union Cabinet approved 4 new components for Assam and Tripura
  • Scheme Name: Central Sector Scheme of Special Development Packages (SDPs)
  • Total Outlay: ₹7,250 crore (₹4,250 crore – Central Government; ₹3,000 crore – Assam Government)
  • Assam Packages: ₹500 crore (Adivasi), ₹500 crore (DNLA/DPSC), ₹3,000 crore (ULFA)
  • Tripura Package: ₹250 crore (NLFT/ATTF)
  • Expected Benefits: Employment, skilling, education, health, peace-building, tourism boost

About the approved four new components:

The three components for Assam, with a combined outlay of Rs. 4,000 crores over five years (2025-26 to 2029-30),

Adivasi Infrastructure: Rs. 500 crores for development in Adivasi-inhabited areas of Assam

  • As per the Memoranda of Settlement (MoS) signed in 2022 between GoI, Government of Assam, and Adivasi groups

Dimasa Community Infrastructure: Rs. 500 crores for development in North Cacher Hills Autonomous Council (NCHAC) areas, inhabited by members of the Dimasa National Liberation Army (DNLA) and Dimasa People’s Supreme Council (DPSC).

  • Linked to the 2023 MoS signed with these Dimasa groups.

ULFA-Affected Areas: Based on the 2023 MoS with United Liberation Front of Assam (ULFA) groups, Rs. 3,000 crores is for broad-based infrastructure development across Assam.

One component for Tripura, with a budget of ₹250 crore over four years (2025-26 to 2028-29),

Tribal Development: Aimed at developing infrastructure and livelihoods for tribal communities.

  • As per the 2024 MoS signed between GoI, Government of Tripura, and National Liberation Front of Twipra (NLFT) and All Tripura Tiger Force (ATTF).

Impact in the Regions:

Infrastructure Development: Improve infrastructure and boost livelihood in underserved regions.

Employment Generation: Create employment opportunities, especially for youth and women, through skill development, entrepreneurship promotion, and income generation.

Enhancement: Enhance access to health services, education, and livelihood support.

Socio-Economic and Regional Benefits:

The scheme focussing on marginalised and vulnerable groups across Assam and Tripura, ensuring,

Employment Opportunities: Enhances tourism potential across the North East, encouraging national inflow and generating local employment.

Inclusivity: Ensures benefits to reach communities those are previously excluded from major government welfare schemes.