Capital transfers for Delhi, J&K and Puducherry nearly double under SASCI; Delhi aims to leverage funds for infrastructure push
Indiatimes Online | Feb 03, 2026, 13:08 IST
Chief Minister Rekha Gupta says increased allocations under the Centre’s Special Assistance Scheme for Capital Investment could help Delhi accelerate roads, transport, and civic infrastructure projects without straining the state budget.
Image credit : X- Rekha Gupta
Capital transfers to union territories with legislatures, including Delhi, Jammu and Kashmir, and Puducherry, have been significantly increased under the Union Budget 2026–27, with allocations rising from Rs. 6,275 crore to Rs. 15,380 crore. The enhanced funding includes support through the Special Assistance Scheme for Capital Investment (SASCI), aimed at accelerating infrastructure development.
Delhi Chief Minister Rekha Gupta said the revised allocation marks an important development for the capital’s growth plans and could help the city take up large-scale public works with greater financial flexibility. Addressing a press conference on Monday, Gupta noted that the overall SASCI corpus has been expanded from Rs. 1.5 lakh crore to Rs. 2 lakh crore, an increase of nearly 33 percent. She said the move is likely to benefit Delhi, which, along with Puducherry and Jammu and Kashmir, relies on central assistance for several major infrastructure projects.
According to Gupta, the city government will seek to utilise the additional funds to fast-track works related to roads, flyovers, public transport, water supply, and sewerage systems, while aiming to avoid additional pressure on the local budget. While Delhi’s exact share of the allocation has not yet been finalised, officials indicated that the higher overall transfer could substantially strengthen funding for capital projects, depending on the proposals submitted by the government.
Under SASCI, the Centre provides 50-year interest-free loans to states and union territories to support capital expenditure. These funds are typically used for projects such as roads, bridges, hospitals, and other public infrastructure. In the current financial year, Delhi received Rs. 825 crore under the scheme, which was used for initiatives including Delhi Metro Phase IV and the improvement of roads and drainage systems.
The SASCI scheme was introduced in FY 2020–21 to ease financial pressures following the Covid-19 pandemic, and union territories with legislatures were brought under its scope more recently. Officials and policy observers say that while the increased allocation offers greater scope for development, the pace and impact of projects will depend on planning, execution, and timely implementation.
Delhi Chief Minister Rekha Gupta said the revised allocation marks an important development for the capital’s growth plans and could help the city take up large-scale public works with greater financial flexibility. Addressing a press conference on Monday, Gupta noted that the overall SASCI corpus has been expanded from Rs. 1.5 lakh crore to Rs. 2 lakh crore, an increase of nearly 33 percent. She said the move is likely to benefit Delhi, which, along with Puducherry and Jammu and Kashmir, relies on central assistance for several major infrastructure projects.
According to Gupta, the city government will seek to utilise the additional funds to fast-track works related to roads, flyovers, public transport, water supply, and sewerage systems, while aiming to avoid additional pressure on the local budget. While Delhi’s exact share of the allocation has not yet been finalised, officials indicated that the higher overall transfer could substantially strengthen funding for capital projects, depending on the proposals submitted by the government.
Under SASCI, the Centre provides 50-year interest-free loans to states and union territories to support capital expenditure. These funds are typically used for projects such as roads, bridges, hospitals, and other public infrastructure. In the current financial year, Delhi received Rs. 825 crore under the scheme, which was used for initiatives including Delhi Metro Phase IV and the improvement of roads and drainage systems.
The SASCI scheme was introduced in FY 2020–21 to ease financial pressures following the Covid-19 pandemic, and union territories with legislatures were brought under its scope more recently. Officials and policy observers say that while the increased allocation offers greater scope for development, the pace and impact of projects will depend on planning, execution, and timely implementation.
Elon Musk merges SpaceX, xAI and X in bold AI move
By Nancy Jaiswal
Japanese volleyball players's dramatic apology goes viral
By Bhupinder Singh
Is AI plotting against humans? 5 Moltbook myths that has everyone freaking out
By Garima Satija
IITian selling pani puri in London isn't a downgrade
By Sneha Kumari
US teacher faces backlash after ICE call on student
By Simran Guleria
5 world records Colby Raha broke that redefine motocross
By Sneha Kumari
Celebrities slam NYC mayor over slow snow cleanup
By Simran Guleria
