The Indian government has cleared 40 new tourism initiatives in a step believed to increase capital investment in the sector to Rs. 3,295.76 crore under Special Assistance to States for Capital Investment (SASCI) scheme. The set also includes 23 states and are designed to build tourist centres of fame, which is entirely financed by the central government.
What is SASCI Scheme?
Introduced after Covid-19, the purpose of SASCI is to supply interest-free loans to the states on a capital expenditure basis. It is created to boost economic growth where one rupee is purportedly brought three rupees in GDP. Between 2025 and 2019, the sectors that the company is involved with included tourism, but initially, it was primarily engaged in such spheres as infrastructure.
emphasis on improving tourism
The projects chosen were always decided to a strict criterion such as connectivity and potential impact among others. The idea is to enhance the tourist experience of luxury travelers on the entire journey, boost expenditure, generate employment and ensure sustainability. The capital costs will be paid by the central government, however, states will be in charge of operations and maintenance of those assets.
Part of an overall economics approach
This tourism promotion is an extension of an enormous capital expenditure (Capex) program run by the central government whose allocation has been Rs. 11.21 lakh crore in FY 2025-26. Capex in infrastructure is considered as one of the major stabilizing and economic developmental elements which have the capacity to stimulate the privatized investments and productive capacity in the future.
The SASCI scheme itself has grown by almost 13x, i.e. Rs.1,50,000 crore 2024-25 as compared to Rs.12000crore in 2020-21 which is a strong indication that state-level capital investments will continue to grow at the same pace.
Month: Current Affairs - August 26, 2025
Category: current affairs daily