Why in the News?

The Government of India has sanctioned 40 projects across 23 states, allocating ₹3295.76 crore under the ‘Special Assistance to States for Capital Investment (SASCI) Scheme for the Financial Year 2024-25.

What is the SASCI Scheme?

• The SASCI Scheme was launched in FY 2020-21 to support state capital expenditure and drive economic growth.
• Initially introduced as a post-COVID recovery measure, it has been expanded in FY 2023-24 with an allocation of ₹1.3 lakh crore.
• The scheme funds infrastructure projects, urban reforms, tourism development, and sustainability initiatives.
• Structural Mandate: The scheme has eight parts based on states’ share of central taxes:

1. General Capital Assistance (₹1 lakh crore): Allocated based on states’ share of central taxes.
2. Vehicle Scrappage & Testing Facilities:  Incentives for phasing out old vehicles & setting up automated testing centers.
3. Urban Planning Reforms: Encourages modern land-use planning & governance improvements.
4. Urban Finance Reforms:  Strengthens municipal revenue models & financial sustainability.
5. Housing for Police Personnel: Funds residential units for police & their families.
6. Cultural & Economic Development (Unity Malls):  Promotes One District One Product (ODOP), Make in India & local entrepreneurship.
7. Digital Libraries at Panchayat/Ward Levels: ₹5,000 crore for library infrastructure & digital learning access.
8. Development of Iconic Tourist Centres:  Global-scale branding & infrastructure for major tourism hubs.

Features & Significance:

• Boosts capital investment to stimulate demand and job creation.
• Encourages reforms in urban governance, infrastructure, and sustainability.
• Promotes responsible tourism and global branding of iconic destinations.
• Strengthens local industries through One District One Product (ODOP).
• Improves public services like policing, water supply, and rural roads.

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