Manipur Seeks Special Assistance Grant of Rs 1,000 Crore From Centre

Ukhrul, June 18: As strife-torn Manipur continues to reel under economic crisis, Governor Ajay Kumar Bhalla has sought a special assistance grant of Rs 1,000 crore from the Central government, reports said.

As per the reports, the governor has urged for an early release of Rs 500 crore from the proposed amount to clear the pension backlogs and security-related expenses. The unrest in Manipur has affected the state’s economy.

The Finance Ministry has reportedly approved additional funds of Rs 500 crore to Manipur for various projects under the existing Special Assistance to States for Capital Investment (SASCI) 2025-26.

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The Manipur governor has reportedly communicated to Finance Minister Nirmala Sitharaman in May about the dip in revenue collection due to the ethnic violence in the state that erupted in May, 2023 between the Kuki and Meitei communities. Bhalla had highlighted that the unrest has affected the state’s ability to meet essential commitments, including pension disbursals and paying salaries, among others. The governor also mentioned that the pension backlogs amounted to Rs 600 crore.

Reportedly, the Manipur Governor pointed out that the state’s tax revenue stood at Rs 1,554 crore in 2024-25 fiscal against Rs 1,528 crore the previous year. The state’s revenue collection in 2022-23 was Rs 1,983 crore, the governor pointed out, adding that the reimbursement of Rs 300 crore incurred on relief and law enforcement efforts is pending from the Ministry of Home Affairs.

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As per the reports, Bhalla stressed that the special assistance Rs 1,000 crore grant will help the state clear pension backlogs and meet expenses for security and relief measures for internally displaced persons and also the state meet its obligations for centrally sponsored schemes, aid in rural development measures, particularly in the hill districts.

The Governor has also mentioned that Manipur has been unable to claim funds worth Rs 629 crore under the 15th Finance Commission as elections for urban local bodies and Autonomous District Councils could not be held from 2020 and for Panchayati Raj institutions from 2022.

Ajay Kumar Bhalla was sworn in as the Governor of Manipur on January 3, 2025. Bhalla, a retired IAS officer and former Union Home Secretary, takes office at a crucial time as Manipur continues to face ethnic unrest. Governor Bhalla, originally from Jalandhar, Punjab, has a distinguished administrative career, including serving nearly five years as India’s Home Secretary. His appointment by President Droupadi Murmu made official on December 24 comes at a time of significant challenges for the state.

President’s Rule was imposed in Manipur on February 13, 2025, under Article 356 of the Constitution, four days after Chief Minister N Biren Singh resigned. This is the eleventh time of President’s Rule in Manipur since 1967. Manipur is the sixth state to come under President’s Rule, while Punjab was the first. President’s Rule was imposed in Punjab in 1951.

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