Reform-linked capex loans to states tied to RoW for telco towers

In the budget for the year 2026-27 outlay for SASCI scheme was enhanced from Rs 1.44 trillion in the revised estimate for FY2026 to Rs 2 trillion

Providing right of way for telecom towers and linking the farmer identity with fertiliser usage are among the new reforms the finance ministry has asked states to undertake for access to the reform-linked or tied component of the Special Assistance to States for Capital Investment (SASCI) scheme, a senior government official said. 

 

These new guidelines, notified by the Department of Expenditure (DoE) last month, cover the loan amount of ₹1.75 trillion, of which ₹70,000 crore is the untied portion. The remaining is reform linked, the senior official added. 

 

In the Budget for 2026-27, outlay for the SASCI scheme was enhanced from ₹1.44 trillion in the revised estimate for FY26 to ₹2 trillion. 

 

Some of the reforms which have been continued from previous year include activation of allocated mines by the States. 

 

The telecom department’s right of way rules were notified in September 2024 and are aimed at streamlining and mitigating challenges faced by telecom companies in rolling out telecom infrastructure, including mobile towers, poles, common ducts and conduits to hold cabling, small cells and street furniture, on public and private property. 

 

“Right of Way remains a critical enabler for the expansion of telecommunications networks, and the introduction of a structured, reform-linked incentivisation framework marks a progressive step forward,” said Manoj Kumar Singh, director general, Digital Infrastructure Providers Association. Creating a clear and outcome-oriented pathway for states with defined incentive allocations ensures streamlined and efficient RoW clearances which will support fiberisation and enable deeper 5G rollouts.

 

The new reforms linked to the SASCI's tied portion include linking AgriStack with the integrated fertiliser management system. The AgriStack DPI includes three key registries, or databases related to the agriculture sector: geo-referenced village maps, crop sown registry, and the farmers registry, all created and maintained by the states. 

 

Release of funds under SASCI in a financial year is based on the utilisation certificate (UC) signed and submitted by the Principal Secretary, or Secretary of the Finance Department of the state government. The amount remaining unutilised in the previous financial year as per UC is deducted from the amount approved under SASCI in the next financial year.

 

The monitoring and evaluation of projects approved under SASCI to ensure their timely execution and assessment of their outcomes is the responsibility of the state government concerned.