SHILLONG, JUN 19: Chief Minister Conrad K Sangma has urged the Union government to scrap the ceiling on externally aided projects for Meghalaya under the 16th Finance Commission, saying the cap punishes states that perform well.

Speaking after Union FM Nirmala Sitharaman laid the foundation for ₹1,246 crore worth of projects, Sangma said no cap existed for NE states at the start of the last Finance Commission period.

The Centre later imposed one because some states, including Meghalaya, secured more projects.

“90% of EAP loans are repaid by the Government of India. I told madam Finance Minister that you’re penalizing us for efficiency. She said the Centre repays, so they must look at all aspects,” he recalled.

Meghalaya was given a ₹3,500 crore ceiling last time but still managed projects worth about ₹12,000 crore through aggressive planning, he said.

For the 16th Finance Commission, the state has formally requested no ceiling.

“It’s up to the Finance Minister, PM and Government of India now. Without a cap we can pitch in more,” Sangma said.

He added that states still pay 28% of EAP costs while the Centre covers 72%.

“So we can’t go unlimited. We need capacity to service our share. We’re hopeful the ceiling will be much higher this time and performing states get more space,” the CM said.