Arunachal’s Biggest Bet Yet: Cabinet Greenlights a ₹7,834 Crore Plan to Transform the State

By Naitik Pathak

Published On: July 18, 2026

Arunachal's Biggest Bet Yet: Cabinet Greenlights a ₹7,834 Crore Plan to Transform the State
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Roads, schools, power lines, AI platforms, honey farms — the Arunachal Pradesh Cabinet just signed off on all of it in one sitting.

In what is arguably one of the most sweeping reform decisions the state has seen in recent memory, Chief Minister Pema Khandu chaired a Cabinet meeting on July 17 that cleared a massive ₹7,834 crore investment package covering infrastructure, education, power, employment and business reform. It’s a lot to take in. And it’s clearly meant to be.


Roads That Actually Reach People

The single biggest chunk of this package goes toward connectivity. The Cabinet approved ₹2,334 crore for Phase II of the CM Comprehensive State Road Development Plan, targeting better road access at district and sub-divisional headquarters and the Capital Complex. Existing Phase I projects have been given a hard deadline — March 2027. That kind of accountability built into the announcement is notable. Alongside this, another ₹2,000 crore has been committed for all-weather roads and bridges to villages that were left out of the Pradhan Mantri Gram Sadak Yojana. For communities cut off every monsoon season, this is the kind of decision that changes daily life in the most immediate way possible.


Power and Schools Get the Focus They Deserve

Arunachal’s power infrastructure has been a long-standing sore point. The Cabinet addressed this directly with a ₹2,000 crore allocation for the CM Comprehensive State Power Development Programme, with the specific goal of bringing transmission and commercial losses down to 18 per cent by March 2029. On the education front, ₹1,500 crore has been approved for Phase II of Mission Shikshit Arunachal, a programme that has already attracted over ₹3,100 crore in investment between 2023 and 2026. Teacher training, infrastructure gaps, learning outcomes — the mission takes a broad aim, and the continued funding signals the government is serious about following through.


Youth, Jobs and a Vision for 2036

Perhaps the most ambitious component is the Arunachal Human Capital and Economic Transformation Vision 2036, which sets out targets for skilling one lakh youth, creating 10,000 entrepreneurs, enabling 10,000 overseas placements and modernising all 10 Industrial Training Institutes in the state. The newly approved ARUN MSME Mission adds to this by committing to support 500 MSMEs every year through financial revival, market linkages and export assistance. There’s also a 20 per cent reservation carved out for retired Agniveers from Arunachal in police, forest department and other uniformed services — a decision that will matter greatly to families who sent their children to serve.


Honey, AI and Cutting Red Tape

Beyond the headline numbers, the Cabinet approved the Arunachal Pradesh Apiculture and Honey Policy 2026, aimed at turning the state into a serious honey-producing hub with a focus on women SHGs and farmers. An AI-powered E-HRMS 2.0 platform for government employees also got the nod, alongside trade licence exemptions for 56 business categories to ease the regulatory burden on entrepreneurs.

Packages get announced. The harder test, always, is what actually gets built. But the scale and spread of this Cabinet session tells you something about where Arunachal Pradesh is trying to go — and the pace at which it intends to get there.



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