Delhi/Shimla: Himachal Pradesh, Uttarakhand, and Sikkim are set to benefit from a new initiative by the Centre.
An additional provision under the Scheme for Special Assistance to States for Capital Investment (SASCI) has been created. This will aid states impacted by severe natural disasters.
The announcement came during pre-budget consultations in Jaisalmer, Rajasthan. The meeting, chaired by Union Finance Minister Nirmala Sitharaman, was attended by Finance Ministers of States and Union Territories with Legislatures.
The scheme will support the reconstruction of damaged infrastructure like roads, bridges, water supply lines, electricity poles, and culverts.
States that suffered natural disasters in FY 2024-25, as assessed by the Inter-Ministerial Central Team (IMCT) of the Ministry of Home Affairs, will benefit.
Eligible states can access up to 50% of their allocation under Part-1 (Untied) of the SASCI scheme. This will be in addition to funds provided under the National Disaster Response and Mitigation Fund (NDRMF).
Union Minister Sitharaman highlighted the government’s commitment to aiding disaster-hit states. "This will boost efforts for rebuilding critical infrastructure," she said.
The meeting saw participation from Union Minister of State for Finance Pankaj Chaudhary, Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha.
Deputy Chief Ministers from states like Bihar, Rajasthan, and Madhya Pradesh also attended. Himachal was represented by Technical education minister Rajesh Dharmani. Senior officials from the Centre and states were present.
Participants shared valuable inputs for the Union Budget 2025-26.
Sitharaman noted that funds devolved to states in the last 45 months under the 15th Finance Commission were higher than what was provided in 60 months under the 14th Finance Commission.
She praised the SASCI scheme, first introduced in the Union Budget 2020-21, for its positive impact.
The Centre has now allocated an additional ₹30,000 crore as untied funds under SASCI for 2024-25. States can use these funds across sectors to boost capital asset creation.
The Union Finance Minister expressed gratitude for the suggestions provided during the meeting. These inputs will be considered in the preparation of the upcoming budget.
