The acronym SASCI stands for the Scheme for Special Assistance to States for Capital Investment, which is a scheme launched by the Government of India. It originated in 2020-21 as the 'Scheme for Special Assistance to States for Capital Expenditure' to stimulate economic recovery following the Covid-19 pandemic. The scheme was created to solve the problem of low capital expenditure (Capex) by states, which is crucial for creating long-term assets and boosting economic growth.
The core mechanism of SASCI is the provision of 50-year interest-free loans to States and Union Territories, which must be used exclusively for capital investment projects. The scheme has seen a massive scale-up, increasing from ₹12,000 crore in 2020-21 to ₹1,50,000 crore in 2024-25. The scheme is structured into multiple parts, often linking the financial assistance to the implementation of state-level reforms, such as updating building bylaws for industrial plots and digitizing land records by assigning Unique Land Parcel Identification Numbers (ULPIN).
SASCI connects directly to the Union Budget's overall Capex strategy and is considered an example of cooperative federalism, empowering states to lead development. A key application is the component titled 'Special Assistance to States for Capital Investment– Development of Iconic Tourist Centres to Global Scale', managed by the Ministry of Tourism. This component provides 100% central funding for projects to develop iconic tourist centers and promote lesser-known destinations, with a project completion timeline of two years and funding available until March 31, 2026. The scheme has changed recently by being renamed to SASCI and by the significant increase in its annual allocation, reflecting a greater focus on capital investment.