Reducing the fatalities on road and efficiency in disposal of e-challans besides other reforms through electronic enforcement of road safety along with reforms in urban planning and others will help States to get funds under Scheme for Special Assistance to States for Capital Expenditure (SASCI), officials told businessline.
Total corpus under this scheme is ₹1.50 lakh crore for Fiscal Year 2025-26, of which nearly 38 per cent is untied while remaining is tied to achieving certain milestones. “All reforms are important but some such as related with road transport and labour are significant one,” a senior government official said. Further, he added that the amount under the scheme is expected to be disbursed during the second half post submission of documents related with achievement of milestones defined.
Another government official outlined the parameters for availing funds via the introduction of reforms in the road transport segment. “Under the scheme, States need to achieve five distinct parameters, including installation of electronic devices at heavy traffic junctions and online issuance and payment systems of fines and other activities. Besides, the State government needs to show a steady decline in road fatalities as well as lower carbon emissions through their road transport network,” the second official said.
Key reform component
One of the key reform component is ‘Scrapping of Old Vehicles and Electronic Enforcement of Road Safety.’ An amount of ₹2,000 crore is earmarked for scrapping of old vehicles, while ₹3,000 crore will be available for electronic enforcement of road safety. Entire amount will be available on ‘First-Come-First Served’ basis. Funds availed can be used for infrastructure projects in any sector.
Under the electronic enforcement of road safety, one milestone is installation of electronic enforcement devices on the identified high-risk and high-density corridors on State Highways and on the identified critical junctions in towns/cities with population of more than 5 lakh, including the 132 cities as listed under Central Motor Vehicle Act. Within 3 months of this completion, States would be required to achieve a minimum of 50 per cent reduction in fatalities on State Highways and Major Districts Roads. Similarly, States will have to achieve a minimum of 90 per cent efficiency in disposal of e-challans.
Under Urban Planning Reforms there are two sub parts: Governance, Finance and Urban Land & Planning Reforms and Ease of Doing Business. Reforms undertaken between January 16, 2025 and December 15, 2025, will be considered for incentives under first part, while reforms between April 1, 2025 and December 15, 2025, will be taken up for the second part. Reforms, including integrated property tax portals with unique ID and diversifying revenue sources, building municipal cadres, GIS-based utility mapping, implementation of town planning scheme/land pooling scheme, among others.
According to the Finance Ministry, the SASCI has facilitated significant infrastructure development across India. Since FY 2020-21, the Central government has allocated ₹5.3 lakh crore. From modern stadiums to hospitals, SASCI fuels nationwide development. It is Cooperative Federalism in action driving key reforms such as the digitisation of land records, modernisation of building codes, construction of working women’s hostels and stimulation of industrial growth among others.
Published on July 20, 2025
