Archive · 6 Jun 2025
Centre's Scheme Offers Incentives for State Reforms in FY26
The Indian government is giving states financial incentives to improve things like mining, city planning, road safety, and land records.
This is part of a big spending plan with Rs 1.5 lakh crore in loans.
States can get money by meeting goals, like making it safer on roads and updating land records.
The plan aims to boost growth and make things easier for businesses and people.
For example, there is money for fixing roads to prevent accidents, making more mines operational, and updating land records digitally.
States like Maharashtra, Tamil Nadu, and Uttar Pradesh will get more incentives for road safety.
The Central government launched a scheme offering Rs 1.5 lakh crore in interest-free loans to states for FY26.
Incentives are tied to achieving reform milestones in mining, urban planning, road safety, and land reforms.
Rs 5,000 crore is earmarked for mining reforms, focusing on policy and operationalizing mineral blocks.
Rs 3,000 crore is allocated for reducing road traffic fatalities via electronic enforcement.
The scheme also supports modernizing land records and developing digital public infrastructure.
- Who
- The Central Government and State Governments
- What
- A Rs 1.5 lakh crore scheme offering interest-free loans to states to implement reforms in areas like mining, urban development, road safety and land reforms.
- When
- FY26 (starting April 2025)
- Where
- India
- Why
- To incentivize states to implement reforms in key areas like mining, urban planning, and road safety, promoting economic growth and ease of doing business.
- Scheme Name
- Special Assistance to States for Capital Investment (SASCI)
- Total SASCI Outlay (FY26)
- Rs 1.5 lakh crore
- Loan Terms
- 50-year interest-free
- Mining Reform Incentive
- Rs 5,000 crore
- Urban Planning Incentive
- Rs 13,000 crore
- Road Safety Incentive
- Rs 3,000 crore
- Land Reforms Allocation
- Rs 13,000 crore
- Digital Public Infrastructure Allocation
- Rs 6,000 crore