The Central Government has allocated Rs 3,295 crore for the development of 40 tourism projects in 23 states under the Scheme for Special Assistance to States for Capital Investment (SASCI) – Development of Globally Iconic Tourist Centres. Although the Scheme for Special Assistance to States for Capital Investment (SASCI) has been in operation since the financial year 2020-21, this is the first time funds have been allocated specifically for tourism.
SASCI Development of Globally Iconic Tourist Centres
- The Development of Globally Iconic Tourist Centres component under the SASCI Scheme aims to develop tourism infrastructure in India, promote less visited destinations like Bateshwar (Uttar Pradesh), Ponda (Goa) and Gandikota (Andhra Pradesh) to diversify tourism.
- Objective: The scheme provides interest-free loans to states for 50 years for development, branding and global marketing of Iconic Tourist Centres.
- It aims to boost local economies, generate employment, promote sustainable tourism and strengthen the entire tourism value chain (which includes transport, accommodation, activities and services) through challenge projects.
- Key features of the scheme: Funding is provided only for selected proposals submitted by the State that meet the guidelines and objectives of the scheme.
- The Ministry of Tourism will evaluate the proposals based on criteria such as connectivity, existing tourism ecosystem, site potential, availability of utilities, project impact, financial viability and sustainability.
- Proposals must follow the challenge development process.
- The challenge development process selects the best proposals through competitive evaluation based on prescribed criteria, ensuring high quality, innovative projects.
- States must provide unencumbered land at no cost. The projects must be sustainable, capable of being operated and maintained over a long period of time.
- The completion period for the projects is fixed at two years and the funds will be available till 31st March 2026.
- The State Government is fully responsible for operation and maintenance of the project, possibly through Public-Private Partnership (PPP) mode.
- States may offer incentives to attract private firms for world-class tourism development.
- Pattern of assistance: States may submit multiple projects, with maximum funding of Rs 100 crore for each project.
- For exceptional projects, the Ministry of Tourism may propose higher funds, subject to the approval of the Department of Expenditure (DoE).
- The Government of India will bear 100% of the project cost, while the States will have to contribute towards peripheral infrastructure, security, connectivity and capacity building.
- No State will receive more than Rs 250 crore, and the funds will be allocated on a first come, first served basis.
- Implementation and monitoring: States are responsible for the implementation of the projects, while the Ministry of Tourism will oversee their progress.
SASCI Scheme
- The ‘Scheme of Special Assistance to States for Capital Investment’ was launched in the year 2020-21 due to the COVID-19 pandemic. It was then implemented as ‘Scheme of Special Assistance to States for Capital Investment’ in the years 2022-23 and 2023-24.
- Objective: To provide financial assistance to the states in the form of 50-year interest-free loan.
- Scheme Structure: The scheme focuses on key development areas, including vehicle scrappage initiatives, urban planning reforms, housing for police personnel and promoting national integration through Unity Mall projects.
- It also supports setting up of libraries with digital infrastructure at panchayat and ward levels to ensure educational access.
- Objective of the scheme: The scheme aims to boost the economy by stimulating demand and generating employment, as well as speeding up key projects like Jal Jeevan Mission and Pradhan Mantri Gramin Sadak Yojana through state funding.
- It also encourages reforms in urban planning and finance to enhance governance and quality of life in cities.