Parliament Question: Special Assistance to States for Capital Expenditure

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE RAJYA SABHA UNSTARRED QUESTION No. 411 TO BE ANSWERED ON TUESDAY, FEBRUARY 03, 2026/MAGHA 14, 1947 (Saka) Scheme for Special Assistance to States for Capital Expenditure 411. Shri Lahar Singh Siroya: Shri Mithlesh Kumar: Shri Shambhu Sharan Patel: Smt. Kiran Choudhry: Shri Mayankkumar Nayak: Shri Baburam Nishad: Dr. Kalpana Saini: Shri Jaggesh: Shri Harsh Mahajan: Will the Minister of FINANCE be pleased to state: a) The objectives and key components of the scheme-Special Assistance to States for Capital Expenditure and the total allocation made under the scheme during the financial year 2025- 26; b) The details of the limit of funds released to the States and Union Territories and the details of area-wise utilization of such assistance for capital projects; c) The manner in which the States have been encouraged through the scheme to undertake reforms, increase capital expenditure and attract private investment; and d) Whether the Ministry has assessed the impact of the scheme and if so, the details thereof? ANSWER THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY) a) The objective of the scheme for Special Assistance to States for Capital Investment (SASCI) is to assist the States/UT Administrations in boosting capital expenditure and to promote reforms in key areas. An outlay of Rs 1,50,000 crores has been allocated under the scheme in 2025-26. Key components of the scheme in 2025-26 are as follows – Part I – Untied  Part II – Release of Balance Approved Amounts under continued parts of the scheme for 2023-24 and 2024-25  Part III – State/UT share of Centrally Sponsored Schemes Including Urban and Rural Infrastructure Projects  Part IV – Incentive for Achieving target Fixed for Capital Expenditure for 2025-26  Part V - Mining Sector Reforms  Part VI - Scrapping of Old Vehicles and Electronic Enforcement of Road Safety  Part VII – Land Related Reforms by State Governments in Rural Areas  Part VIII – Incentives for Land related reforms by State Governments in Urban Areas  Part IX – Incentives to States for Efficiency in Financial Management  Part X - Urban Planning Reform b) The amount released under SASCI in 2025-26 to various States and Union Territories across the country, State-wise is enclosed as Annexure I. The State Governments/UT Administrations have been provided time till 31st March, 2026 to utilize these funds. c) Under parts V to X of the scheme, incentive is provided to States/ Union Territories (UTs) for carrying out reforms in various sectors such as Mining, Road Safety, Land reforms, Financial Management, and Urban planning. Funds under these parts are released based on completion of prescribed reforms by the States Governments/UT Administrations as per scheme guidelines, thereby encouraging the State Governments/ UT Administrations to undertake reforms. Under Part IV of the scheme, funds are released based on growth in Capital Expenditure achieved by the State/UT using its own resources, thereby encouraging States/UTs to increase capital expenditure. The States are free to encourage private investment in capital projects in addition to assistance received under SASCI. d) No impact assessment of the scheme has been carried out till date. ***Annexure referred to in reply of part (b) of Rajya Sabha Unstarred Question No. 411 to be answered in Rajya Sabha on February 03, 2026. Annexure I State/UT wise amount released in FY 2025-26 (in Rs crores) Amount Released in 2025-26 Sl. No. States/UTs (up to 27. 01.2026) 1 Andhra Pradesh 6,372.40 2 Arunachal Pradesh 651.78 3 Assam 6,816.24 4 Bihar 6,289.40 5 Chhattisgarh 6,339.57 6 Goa 1,279.09 7 Gujarat 4,209.90 8 Haryana 542.83 9 Himachal Pradesh 2,427.70 10 Jharkhand 780.79 11 Karnataka 2,613.32 12 Kerala 1,506.62 13 Madhya Pradesh 11,547.94 14 Maharashtra 4,922.80 15 Manipur 379.75 16 Meghalaya 1,329.85 17 Mizoram 341.48 18 Nagaland 932.81 19 Odisha 2,977.60 20 Punjab 2,569.11 21 Rajasthan 7,006.17 22 Sikkim 704.71 23 Tamil Nadu 5,684.65 24 Telangana 1,753.43 25 Tripura 1,291.05 26 Uttar Pradesh 12,466.83 27 Uttarakhand 1,806.50 28 West Bengal 5,465.90 29 Delhi 542.03 30 Jammu & Kashmir 1,641.53 31 Puducherry 180.89 Total 1,03,374.63