Tourism ministry gets 87 proposals for central assistance under SASCI scheme – ET TravelWorld

States and union territories have submitted 87 project proposals to the tourism ministry for support under the SASCI (Special Assistance to States for Capital Investments) scheme, which has been extended to the tourism sector for the first time this year.

Under this scheme, long-term interest-free loans will be provided to states for 50 years to develop iconic tourist centres and for branding and marketing them at global scale. The process of evaluating these projects is ongoing, officials familiar with the matter told ET.

“The SASCI scheme has been operational for other sectors for the past couple of years now. This year, for the first time, INR 2,000 crore have been earmarked for tourism, and we had made draft guidelines which the finance ministry has approved,” an official familiar with the matter said. “These will be 50-year interest-free loans and will be in the nature of grants. The idea is that the projects have to be developed quickly. March 31, 2026 is the date for a hard stop for the projects.”

Barring West Bengal, all states and union territories have submitted projects, he said. “Each state is eligible for INR 250 crore worth of projects subject to the condition that each project should not be more than INR 100 crore. We have put it on a challenge mode. We will assess projects from the point of connectivity, how they will improve the tourist experience, and how many jobs would they be able to create,” the official added.

After evaluation, the tourism ministry will submit a list of shortlisted projects to the Department of Expenditure next month.“If you map the infrastructure outlay side for the Ministry of Tourism, it’s about INR 2,000 crore. This additional INR 2,000 crore is coming over and above that for the first time. The timelines for completion are really tight.

This is a good way to kickstart infrastructure development in the states for developing tourism, said a government official. “If this amount keeps coming and if tourism becomes a key priority area, we will be able to see considerable progress,” he added.

As per the operational guidelines for states, the scheme would encourage harnessing of “best in class” expertise for design and development of tourist experiences at par with international standards. State governments would provide land for the project, free from encumbrances and free of cost.

The central government will release the funds under this scheme up to March 31, 2026, while states will be allowed to use the funds released beyond that date. Any remaining liabilities need to be met from state government budgets.