Hyderabad: The Andhra Pradesh government has secured a record Rs 19,619 crore in funds under the Special Assistance to States for Capital Investment (SASCI) scheme for various infrastructure projects in just two and a half years. The Union Ministry of Finance placed the figures before Parliament Monday in response to a question listed by YSR Congress Party MP P.V. Midhun Reddy.
While the ruling Telugu Desam Party (TDP) has said that this record grant of funds is 72 percent higher than the Rs 11,386 crore received by the previous YSRCP government under the same scheme between 2020 and 2024, ministry data shows that Andhra has been a generous recipient of funds under both governments.
According to the finance ministry’s reply, Andhra Pradesh has received Rs 31,005.47 crore under the SASCI scheme since 2020-21. Of this, Rs 19,619 crore has been released during the tenure of the present TDP-led government.
While the TDP is positioning the record gain of capital assistance as an achievement under the double-engine NDA government in the state, the favourable treatment accorded to an ally is hard to miss.
“The achievement reflects the present government’s emphasis on fiscal discipline, timely project preparation and efficient implementation. Andhra Pradesh has consistently secured higher allocations by submitting eligible capital investment proposals and ensuring faster execution, enabling the State to access significantly greater financial resources for infrastructure development within a much shorter period,” a statement by the Andhra Pradesh government read.
A government official told ThePrint, “CM Naidu’s proven track record of governance, coupled with the Centre’s continued support, is enabling Andhra Pradesh to accelerate infrastructure development, attract greater investments and deliver faster, inclusive growth.”
In contrast, other southern states received far less over FY2021-FY2025. Karnataka received Rs 4,760 crore, Kerala, Rs 4,938 crore, and Telangana Rs 10,733 crore. Tamil Nadu was, however, the exception, having received Rs 17,189 crore since the scheme was launched in 2021.
“Our utilisation of funds has been far better than that under TDP. Andhra was allocated a fair share from SASCI even between 2021 and 2024 when we were in power, in accordance with the total amount apportioned by the Centre for the SASCI scheme,” said Bugganna Rajendranath, who was the finance minister in the YSRCP government.
According to data from State Bank of India’s Ecowrap Report in April, Andhra Pradesh ranks alongside Madhya Pradesh (94.3 percent), Maharashtra (95 percent), and Rajasthan (93.4 percent) for maintaining strong, top-tier fund utilisation. This is in contrast to West Bengal, which led localised absorption rates at 96.7 percent.
The SASCI scheme provides 50-year interest-free capital loans to states for capital expenditure. According to the centre, assistance is released expeditiously once states submit complete project proposals in accordance with scheme guidelines, allowing them to undertake critical infrastructure and development projects. Managed by the Ministry of Finance, it aims to boost cooperative federalism and long-term capital expenditure.
In its guidelines for FY2027 to the states, the ministry said it was redesigning the SASCI initiative, allocating Rs 2 lakh crore as outlay for FY27. In its note, a copy of which is with ThePrint, the central government said, “In light of the overwhelmingly positive response from State Governments, their requests for continuation of the scheme in 2026–27, and with a view to facilitating higher capital investment, the Government of India has decided to launch a redesigned SASCI initiative for the financial year 2026–27. An amount of Rs. 2,00,000 crore has been allocated for this purpose in 2026-27.”
In addition to providing financial assistance over and above the standard Net Borrowing Ceiling (NBC) permitted to the states, the new guidelines allow a significant portion of funds to modernise governance in key sectors, such as mining, infrastructure and digitalisation, urban and social projects, and tourism.
(Edited by Mannat Chugh)
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