Union Budget 2026 Unveils Rs 500 Crore Development Package for Ulfa in Assam
In a significant move aimed at bolstering peace and development in Assam, Union Finance Minister Nirmala Sitharaman has announced a Rs 500-crore special development package for projects proposed by the United Liberation Front of Assam (Ulfa). This allocation, revealed in the Union Budget 2026, represents the first tranche of a larger Rs 5,000-crore fund set to be disbursed over the next five years, as per the 2023 peace accord between the Central government, the Assam state government, and the militant outfit.
Positive Response from Ulfa Leadership
Ulfa general secretary Anup Chetia has welcomed this budgetary provision, describing it as a positive first step in the implementation of the historic peace agreement. The organization has submitted a comprehensive list of 36 development projects spanning various sectors, which are now poised to receive funding through this initiative.
Key Projects Under the Ulfa Development Plan
The proposed projects under this package are diverse and ambitious, focusing on critical areas for Assam's growth and sustainability. Key highlights include:
- Education Enhancement: Proposals to establish an Indian Institute of Science Education and Research (IISER) and an Indian Institute of Management (IIM) in Guwahati, with the latter already in progress.
- Infrastructure Development: Improvements in transport infrastructure to boost connectivity and economic activity in the region.
- Green Energy Initiatives: Plans to transform Assam into a green energy hub, aligning with national sustainability goals.
- Environmental Conservation: Projects aimed at preserving wetlands and other natural resources.
- Act East Policy Alignment: Initiatives designed to leverage Assam's strategic location under the Centre's Act East policy, promoting regional cooperation and trade.
Background of the Peace Accord and Its Impact
The peace pact, signed on December 29, 2023, marked a turning point in Assam's history, ending decades of insurgency. Under this agreement, both the Central and state governments committed to allocating matching funds for development projects. Since the accord, over 9,000 Ulfa cadre have surrendered, and the Armed Forces (Special Powers) Act has been withdrawn from 85% of Assam, significantly normalizing the security situation. However, it is important to note that one faction, Ulfa (Independent), remains outside this settlement, indicating ongoing challenges in the peace process.
Broader Northeast Development Packages in Budget 2026
The Ulfa package is part of a broader strategy by New Delhi to secure peace dividends through targeted development spending in the Northeast. In total, the Union Budget 2026 has announced seven special packages worth Rs 1,046 crore for the region, including:
- Rs 156 crore for the Bodoland Territorial Council
- Rs 200 crore for the Karbi Anglong Autonomous Territorial Council
- Rs 100 crore for the Dima Hasao Autonomous Territorial Council
- Rs 70 crore for the Dimasa people
- Rs 50 crore for the tribal population of Tripura
- Rs 70 crore for Adivasi groups
This comprehensive funding approach underscores the government's commitment to addressing regional disparities and fostering inclusive growth across the Northeast, with the Ulfa package serving as a cornerstone in this effort to build a peaceful and prosperous Assam.
