Uttarakhand will receive Rs 3,460 crore under the new Pride of Hills component in 2026-27. The Department of Expenditure added this part to the SASCI guidelines dated 27 March 2026. SASCI means Special Assistance to States for Capital Investment. In addition, the state gets Rs 765 crore as untied funds under the same scheme. So, the hill state gains extra fiscal space for capital works.
What the SASCI 2026-27 Guidelines Say
The Centre has set aside Rs 2,00,000 crore for SASCI in 2026-27. Under it, states get 50-year interest-free loans. Moreover, this help comes over and above their normal net borrowing ceiling. Of its twelve parts, Part I covers untied funds worth Rs 75,000 crore. Similarly, Part X, the hill component, carries Rs 25,000 crore.
Nine Hill States Share Rs 25,000 Crore
Nine hill states share this fund. Arunachal Pradesh gets the most at Rs 4,900 crore. Next, Himachal Pradesh gets Rs 3,920 crore and Nagaland Rs 3,880 crore. Uttarakhand ranks fourth with Rs 3,460 crore. Finally, Mizoram gets the least at Rs 100 crore.
How States Can Use the Money
The guidelines allow four uses of these funds. First, states can repay principal on earlier loans, including externally aided projects. Second, they can meet their share of centrally sponsored schemes and central projects. Third, they can provide counterpart funds for externally aided projects. Finally, they can meet essential revenue spending after these needs. Also, the Centre releases 66% first and the remaining 34% after 75% use of the first instalment.
Why Hill States Need Special Help
Officials cite difficult terrain, poor access and low population density. Moreover, hill states raise little revenue of their own. As a result, many face high debt-to-GSDP ratios.
Latest Update
On 24 June 2026, the Chief Minister’s Office gave an update. So far in 2026-27, the Centre had sanctioned Rs 2,355.54 crore. Of this, Rs 2,283.60 crore came under the hill component.
Pride of Hills: Key Facts for Revision
- Parent scheme: SASCI 2026-27 (Part X), Department of Expenditure
- Total outlay: Rs 25,000 crore for nine hill states
- Uttarakhand share: Rs 3,460 crore (fourth highest)
- Highest share: Arunachal Pradesh, Rs 4,900 crore
- Uttarakhand untied funds: Rs 765 crore (Part I)
- Form of help: 50-year interest-free loans
Why Pride of Hills Matters for UKPSC
Notably, UKPSC often tests Centre-state finance and special help for hill states. So, remember the Rs 3,460 crore share, the Rs 25,000 crore pool and the 50-year interest-free loans. Also, link the funds with capital spending goals. For official updates, also visit Department of Expenditure. Next, for a related story, read about Viksit Uttarakhand Vision 2047. You can also download our free Uttarakhand Current Affairs magazine.
So, are you preparing for the UKPSC Upper PCS 2026 prelims? Then join our UKPSC 2026 Prelims Test Series for regular practice.