Budget earmarks 500cr first tranche of 5,000cr Ulfa deal

GUWAHATI: Union finance minister Nirmala Sitharaman unveiled in Union Budget a Rs 500-crore special development package for projects proposed by United Liberation Front of Assam (Ulfa) — the first tranche of a Rs 5,000-crore fund to be disbursed over five years under a 2023 peace accord between Centre, Assam govt and the militant outfit. Ulfa general secretary Anup Chetia welcomed the move, calling it a positive first step in implementing the accord.

Ulfa has submitted a list of 36 projects, spanning education, transport infrastructure, sports, wetlands and initiatives under Centre’s Act East policy. The proposals include making Assam a green energy hub, establishing an IISER, and setting up an IIM in Guwahati, with the last one already underway.




The peace pact was signed on Dec 29, 2023 with Centre and state agreeing to allocate matching funds fordevelopment. Over 9,000 Ulfa cadre have since surrendered and Armed Forces (Special Powers) Act has been withdrawn from 85% of Assam.

One faction — Ulfa (Independent) — remains outside the settlement.

The Ulfa package underscores New Delhi’s bid to lock in peace dividends through development spending after decades of insurgency. It is part of seven special packages worth Rs 1,046 crore announced for the Northeast, including Rs 156 crore for Bodoland Territorial Council, Rs 200 crore for Karbi Anglong Autonomous Territorial Council, Rs 100 crore for Dima Hasao Autonomous Territorial Council, Rs 70 crore for Dimasa people, Rs 50 crore for the tribal population of Tripura and Rs 70 crore for Adivasi groups.