Scheme for Special Assistance to States for Capital Investment:
The Centre’s 50-year interest-free capex loans under the Scheme for Special Assistance to States for Capital Investment (SASCI) are driving major land reforms across India by pushing states to modernise property systems, boosting efficiency, and industrial growth.
- The ‘Scheme for Special Assistance to States for Capital Expenditure’ was launched in 2020–21 in response to the Covid-19 pandemic.
- Later renamed as SASCI, it aims to stimulate economic recovery by providing interest-free assistance to states specifically for capital investment.
- Capital Investment Focus Provides long term interest free loans for a period of 50 years to states exclusively for capital expenditure projects.
- Capital expenditure boosts productive capacity, creates jobs, and drives sustainable growth. It has a high multiplier effect for every Rs 1 spent it is estimated to generate Rs 3 in Gross Domestic Product (GDP).
- Divided into multiple parts targeting different sectors, such as urban reforms, vehicle scrapping incentives, police housing, Make in India initiatives, digital infrastructure, Optical Fibre Cable, and tourism development.
- The scheme grew from Rs 12,000 crore in 2020-21 to Rs 1,50,000 crore in 2024-25, reflecting increased focus on capital investment.
- Under SASCI 22 states updated building bylaws for industrial and commercial plots.
