Centre released ₹36,000 cr to states so far under special assistance scheme

The Centre has disbursed ₹36,027 crore to states and UTs under SASCI till August 11, with Uttar Pradesh receiving the highest share, followed by Bihar, Rajasthan and MP

The Centre has released ₹36,027 crore to all states and union territories under the Scheme for Special Assistance to States for Capital Expenditure and Investment (SASCI) till 11 August, according to a Parliament reply by Pankaj Chaudhary, Minister of State for Finance, on Monday.

 

Chaudhary said that total funds amounting to ₹3,66,249.45 crore have been released by the government to states under the scheme since its inception in FY21 up to FY25.

 

According to the Parliament reply, under certain parts of the scheme, incentives are provided to states by the Centre for carrying out reforms in different sectors. In 2024-25, 22 states availed these incentives by implementing land-related reforms in rural areas, and 22 for reforms aimed at stimulating industrial growth through regulations for industrial and commercial buildings. None of the states could utilise the incentive linked to land reforms in urban areas, the Lok Sabha reply showed. 

 

The government has used the tied portion of the SASCI as a policy lever to encourage states to undertake reforms and boost capital expenditure through 50-year interest-free loans. The scheme was launched in the pandemic year FY21 with an allocation of ₹12,000 crore. In 2024-25, the government allocated ₹1,50,000 crore for the scheme, which was almost fully utilised. A similar amount has been earmarked for the current financial year as well.

 

In FY26, till 11 August 2025, the highest allocation was released to Uttar Pradesh (₹6,065.96 crore), followed by Bihar (₹3,136 crore). Rajasthan (₹2,669 crore), Madhya Pradesh (₹2,618 crore) and Maharashtra (₹2,230 crore) were the other states among the top five recipients so far.