Sri Vijaya Puram, Dec 10: Mr. Bishnu Pada Ray, Member of Parliament, Andaman & Nicobar Islands, today met Mrs. Nirmala Sitharaman, Finance Minister of India, and urged her to enhance the annual budget allocation for the Union Territory under Capital Head. He highlighted that inadequate allocation under the Capital Head has slowed down several key developmental projects across the Islands.
During the meeting, MP requested that the annual budget for the UT be enhanced in line with the proposals submitted by the A&N Administration for RE 2025–2026 and BE 2026–2027, along with a special financial assistance package of Rs.5,000 crore to complete long-pending infrastructure projects across A&N Islands including municipal area particularly in the extended 06 wards.
In the course of discussions, Finance Minister sought clarification on why the SSKM Scheme (Scheme for Special Assistance to States for the Capital Expenditures) granting 50-year zero-interest loans to States for capital expenditure had not been availed. After detailed consultation with the Ministry officials, it was clarified that this scheme is applicable only to State Governments. As the Andaman & Nicobar Islands is a Union Territory without a Legislative Assembly and receives budgetary support directly from the Ministry of Home Affairs, it is not eligible to avail benefits under the SKSM scheme from the Central Government.
Following the clarification, the finance minister assured MP that the Ministry will positively consider extending adequate financial support to the A&N Administration by enhancing the UT’s budget allocation for capital expenditure in the forthcoming financial cycle.
Mr. Bishnu Pada Ray expressed his gratitude to the Finance Minister for her positive response and assurance toward strengthening the development framework of the Andaman & Nicobar Islands.
