Tarun Karthick
Sri Vijaya Puram, 10 December 2025
Mr. Bishnu Pada Ray, Hon’ble Member of Parliament from Andaman & Nicobar Islands, met Union Finance Minister Mrs. Nirmala Sitharaman today and urged the Centre to enhance the annual budget allocation for the Union Territory under the Capital Head. He pointed out that the present allocation has been insufficient, slowing down several critical development projects across the Islands.
During the discussion, the MP requested that the annual budget for the UT be increased in accordance with the proposals submitted by the A&N Administration for RE 2025–26 and BE 2026–27. He also sought a special financial assistance package of ₹5,000 crore to expedite long-pending infrastructure projects across the Islands, including works in the extended six municipal wards.
The Finance Minister also sought clarity on why the Union Territory had not availed benefits under the Scheme for Special Assistance to States for Capital Expenditure (SSKM), which offers 50-year zero-interest loans to States. After consultations with Ministry officials, it was clarified that the scheme is applicable only to State Governments. Since 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 for SSKM benefits.
Following the clarification, Mrs. Sitharaman assured the MP that the Ministry would positively consider enhancing the UT’s capital expenditure allocation in the forthcoming financial cycle.
Mr. Bishnu Pada Ray thanked the Finance Minister for her positive response and for her commitment toward strengthening the development framework of the Andaman & Nicobar Islands.
