Delhi's Infrastructure Boom: Centre Approves ₹1,647 Crore for 28 Key Projects Under SASCI Scheme
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The Centre has approved ₹1,647 crore for 28 major infrastructure projects in Delhi under the Special Assistance to States for Capital Investment (SASCI) scheme, along with a ₹756 crore incentive. This significant financial boost will accelerate development, enhance connectivity, and improve public amenities across the capital.
A Major Boost for Delhi
In a landmark decision, the Central Government has approved financial assistance totaling ₹1,647 crore for 28 critical infrastructure projects across Delhi. This significant allocation falls under the Special Assistance to States for Capital Investment (SASCI) scheme, a pivotal initiative aimed at bolstering infrastructure development nationwide. The approval, granted on July 9, 2026, was officially announced by Delhi Chief Minister Rekha Gupta on Sunday, July 12, 2026, marking a pivotal moment for the capital's developmental trajectory.
Beyond the primary allocation, the Centre has also sanctioned an additional ₹756 crore as an incentive. This additional funding recognizes the Delhi government's commendable efforts to increase capital expenditure (CAPEX) through its own resources, bringing the total financial infusion for Delhi's projects to an impressive ₹2,403 crore. This year's sanction under the SASCI scheme is approximately three times the amount received by the Capital in the previous financial year, which stood at ₹825 crore for projects like Delhi Metro Phase IV and various road and drain improvements.
Understanding the SASCI Scheme
The Special Assistance to States for Capital Investment (SASCI) scheme, managed by the Ministry of Finance, was initially launched in the financial year 2020-21 during the economic challenges posed by the COVID-19 pandemic. Its core objective is to prevent a sharp slowdown in public investment by providing states and Union Territories with substantial financial support for capital infrastructure projects.
A distinctive feature of the SASCI scheme is its provision of 50-year interest-free loans, which enables states and Union Territories to finance vital capital expenditure without incurring immediate debt-servicing costs. This long-term, interest-free assistance is designed to stimulate infrastructure-led economic growth, offering a powerful tool for states to undertake ambitious development projects. The scheme also strategically offers financial incentives to encourage states to implement reforms and further increase their capital investment. For the financial year 2026-27, a substantial amount of ₹2,00,000 crore has been allocated to this redesigned SASCI initiative, underscoring its growing importance in national development.
Key Projects Driving Delhi's Progress
The 28 projects approved under the SASCI scheme encompass a wide range of crucial infrastructure developments aimed at significantly improving urban mobility and public facilities in Delhi. These include vital upgrades to the Delhi Metro network, which is the lifeline of the city, and major road infrastructure projects designed to ease congestion and enhance connectivity.
Among the highlighted projects are the Barapulla Elevated Corridor and the Karawal Nagar Flyover, both crucial for streamlining traffic flow. The Barapulla Phase-3 Elevated Corridor, for instance, is a key initiative projected to provide approximately a 9km signal-free route between Mayur Vihar in East Delhi and the All India Institute of Medical Sciences (AIIMS) in South Delhi, via Sarai Kale Khan. Once operational, this will dramatically cut travel time to around 15 minutes, offering immense relief to commuters.
Furthermore, the approval includes funding for establishing Electric Vehicle (EV) charging stations at Delhi Transport Corporation (DTC) depots. This move aligns with the national focus on sustainable transportation and is a critical step towards building a robust EV ecosystem in the capital. These projects are expected to be executed by the transport department and the Public Works Department (PWD).
Delhi's Commitment to Capital Expenditure
Chief Minister Rekha Gupta lauded the Centre's decision, emphasizing its role in strengthening Delhi's infrastructure and accelerating development works across the capital. She highlighted that the Delhi government had consistently prioritized pursuing approval for its proposals under the SASCI scheme. The approval of all 28 proposed projects reflects the Centre's confidence in the Delhi government's commitment to implementing reforms, maintaining financial discipline, and executing development projects effectively.
The SASCI scheme also serves as a strong incentive for states and Union Territories to increase their capital expenditure from their own resources, contributing to overall economic growth. This is evident in the additional ₹756 crore incentive granted to Delhi for its proactive approach to enhancing its capital spending. This strategic financial mechanism ensures that states are not just recipients of funds but active participants in driving their own development agendas. For more insights into how government initiatives are driving industrial growth, you might be interested in India's Electronics Manufacturing Soars: 29 New ECMS Proposals Approved, Fueling Innovation and Self-Reliance, a related post on how similar schemes are boosting sectors like electronics.
A Vision for a Future-Ready Capital
The sanctioned projects are poised to bring substantial improvements to public amenities and significantly strengthen Delhi's transport and road infrastructure. Once completed, these initiatives will enhance connectivity, reduce travel times, and foster a more sustainable urban environment. The collaborative efforts between the Central Government and the Delhi administration, facilitated by the SASCI scheme, are vital for realizing the vision of a modern, efficient, and future-ready capital city. The Finance Department has been entrusted with coordinating these efforts to ensure swift construction and timely benefits for the citizens of Delhi.