UPSC Mapping

• Prelims: Economy & Infrastructure
• Mains: GS Paper 3 (Economic Development & Infrastructure)

Article

What is the SASCI Tourism Scheme?

The SASCI Tourism Scheme is a sub-component of the Special Assistance to States for Capital Investment (SASCI) initiative, managed by the Ministry of Finance. It offers 50-year interest-free loans to state governments and eligible UTs, in addition to their normal Net Borrowing Ceiling (NBC). The loans are excluded from the 3% of GSDP fiscal-deficit ceiling set by the 16th Finance Commission.

The Ministry of Tourism operates the “Development of Iconic Tourist Centres to Global Scale” sub-component, which has sanctioned 40 projects with 100% central funding. Projects are chosen through a strict challenge method, prioritising lesser-known but culturally important tourist hotspots. States must complete projects within two years and bear long-term operation and maintenance.

Why is the SASCI Tourism Scheme in News?

The scheme is in the news because the Ministry of Tourism has issued operational guidelines and a detailed project report (DPR) template, enabling states to prepare proposals for tourism infrastructure development. It forms part of the government’s broader push to boost capital expenditure and create jobs.

The challenge method ensures competitive selection of projects, encouraging states to present high-quality proposals. Allocations and incentives are often tied to state reforms such as land digitisation, vehicle scrappage policies, and sector-specific operational updates.

Key Features of the SASCI Tourism Scheme

• Interest-Free Loans: 50-year loans with zero interest.
• Excluded from Fiscal Ceiling: Not counted in the 3% GSDP deficit limit.
• Challenge Method: Competitive selection based on quality and viability.
• Focus on Lesser-Known Hotspots: Prioritises culturally important but underdeveloped destinations.
• 100% Central Funding: Entire capital expenditure funded by the Centre.

Challenges in the SASCI Tourism Scheme

• State Capacity: Limited technical expertise for DPR preparation.
• Land Acquisition: Delays and disputes over land procurement.
• Operation and Maintenance: Long-term O&M costs strain state budgets.
• Private Sector Participation: Attracting ancillary investment is challenging.
• Environmental Concerns: Balancing infrastructure with conservation.

Way Forward for the SASCI Tourism Scheme

States should pursue integrated tourism planning, linking infrastructure with local culture, handicrafts, and cuisine. Partnerships with private operators can enhance facilities and visitor experience. Capacity building for project preparation and sustainable practices—such as waste management and environmental safeguards—should be embedded in designs. Regular monitoring and evaluation will ensure timely completion and quality outcomes.

Prelims Practice Corner

Q1. What is the tenure of loans under the SASCI Tourism Scheme?
(a) 20 years  (b) 30 years  (c) 50 years  (d) 100 years

Answer: (c) 50 years.

Q2. How many projects have been sanctioned under the tourism sub-component?
(a) 20  (b) 30  (c) 40  (d) 50

Answer: (c) 40 projects.

Q3. What is the ‘challenge method’ of project selection?
(a) States compete through proposals  (b) Central allocation based on population  (c) First-come-first-served  (d) Political consideration

Answer: (a) Competitive selection based on quality.

Q4. What is the funding pattern for these projects?
(a) 50:50 Centre-State  (b) 75:25 Centre-State  (c) 100% central funding  (d) 100% state funding

Answer: (c) 100% central funding.

Q5. Which type of tourist centres are prioritised?
(a) Developed metros  (b) Lesser-known hotspots  (c) Only religious sites  (d) Only beach destinations

Answer: (b) Lesser-known but culturally important hotspots.

Mains Practice Questions

Q1. Discuss the role of the SASCI Tourism Scheme in promoting infrastructure development and tourism in India. (250 words, 15 marks)

Answer Structure:

• Intro: Introduce the scheme and its objectives.
• Body: Key features (interest-free loans, challenge method, 100% funding); benefits (infrastructure, jobs, tourism); challenges (capacity, land, O&M).
• Conclusion: Integrated planning and sustainable practices.

Q2. What is the significance of the ‘challenge method’ in the SASCI Tourism Scheme? (150 words, 10 marks)

Answer Structure:

• Intro: Define challenge method.
• Body: Explains competitive, merit-based selection improving quality and accountability.
• Conclusion: Fosters efficiency and innovation.

FAQs on SASCI Tourism Scheme

What is the SASCI Tourism Scheme?

It is a sub-component of SASCI offering 50-year interest-free loans for developing iconic tourist centres to a global scale.

How are projects selected under the scheme?

Projects are selected through a competitive challenge method, where states submit proposals for evaluation.

What type of tourist centres are prioritised?

The scheme prioritises lesser-known but culturally important tourist hotspots to promote balanced regional development.