BAN urges 16th Finance Commission for infrastructure investment in Nagaland

DIMAPUR — The Business Association of Nagas (BAN) has appealed to the 16th Finance Commission for urgent infrastructure investments in Nagaland, stating that such investment is crucial to unlocking the state’s economic potential and enabling it to contribute to India’s overall economic growth.

In a representation submitted on November 5, BAN highlighted critical infrastructure gaps in the state and proposed solutions to address them.

“Economic development is intrinsically tied to infrastructure development,” BAN stated in its representation. “Despite the state’s rich natural resources and strategic location, the lack of basic infrastructure has limited our economic growth.”

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The representation focused on several sectors, including road, rail, and air connectivity. “In many places, roads are virtually nonexistent,” the association stated, urging for substantial investment in road development across all districts.

It said that the Tuli and Dimapur railway stations, which generate substantial revenue for Indian Railways, remain overlooked in terms of development. “Tuli in particular faces severe infrastructure neglect despite being an important industrial area, while Dimapur is a critical transit hub for the entire region,” it stated.

Furthermore, it called for the Dimapur airport to be upgraded to international standards and the development of roads to resource-rich areas, allowing sustainable extraction and transport.

The association sought funding for infrastructure upgrades at the Ganeshnagar Special Economic Zone (SEZ) and renewable energy projects, especially hydro and solar power plants, to make Nagaland self-sufficient in energy.

It also emphasised the need for improved road infrastructure connecting Nagaland’s four border trade centres—Longwa (Mon), Avangkhu (Meluri), Pangsha (Tuensang), and Mimi (Kiphire)—with Myanmar to facilitate cross-border trade. It proposed “a dialogue between the Indian government and Myanmar’s counterpart to build these border centres and corresponding roads.”

Among others, BAN advocated for the establishment of an exhibition and convention centre in Dimapur to promote business collaborations and the construction of a dry port to streamline trade and logistics, particularly in light of the planned Trans-Asian Highway passing through Nagaland. A dry port would not only enhance trade with neighbouring states but also transform the state into “a gateway for regional and international trade,” it added.

Additionally, the BAN suggested the expansion of surveillance infrastructure across Nagaland’s districts, stating that it would provide a host of benefits, including safety, improved law enforcement, crime prevention, and more efficient traffic management.

To address these infrastructure gaps, BAN proposed sector-specific grants for roads, power, and communication, as well as special financial assistance, recognising Nagaland’s unique challenges. It also requested funding for skill development to equip the workforce for new industries and state-specific grants for security infrastructure, border trade centres, an exhibition centre, and a dry port.

Further urging the 16th Finance Commission to recognise the state’s potential and support its infrastructure development, it stated that “inclusive development in Nagaland will not only enhance the state’s economic contributions but will also foster growth and stability across the entire Northeast.”