Prime Minister Atal Bihari Vajpayee on Tuesday announced a financial package of Rs520 crore for Nagaland.

The National Highway Authority of India's Golden Quadrilateral project will be extended from Silchar (Assam) to Kohima and the Centre will provide Rs400 crore for the development of a four-lane highway within the next two years, he told a gathering at the Indira Gandhi Stadium in Nagaland's capital.

The PM said the Centre would provide Rs50 crore for the development of other roads in the state.

He also assured that the Centre would work together with the state government to create 25,000 jobs in the areas of tourism, agro-based industry, village industry and horticulture.

Later, at the first convocation of the Nagaland University, the PM announced a grant of Rs35 crore for the development of infrastructure at Lumami Campus of the university in Mokokchung district.

He also said that the Centre would provide Rs10 crore each for setting up of an IT centre and a centre for horticulture, floriculture and agro-processing.

Vajpayee announced Rs15 crore grant for building a new Sainik school at Kohima, fulfilling a demand of the Democratic Alliance of Nagaland government.