Punjab received over Rs.8k cr in capital aid in five years: Centre
CHANDIGARH, Aug. 25 -- Punjab has received Rs.8,379 crore till July 2026 in financial assistance under the Centre's Scheme for Special Assistance to States for Capital Expenditure/Investment (SASCI) over the past five years, but the Union government has ruled out any special financial assistance package or debt-relief mechanism for the state, highlighting the distinction between capital funding and addressing Punjab's broader fiscal burden.
SASCI, a Union government programme, provides states with 50-year, interest-free loans for capital expenditure aimed at creating long-term public assets and infrastructure. In a written reply to a Lok Sabha question raised by Patiala MP Dharamvira Gandhi during the recent session, Union minister of state for finance Pankaj Chaudhary said there was no proposal under consideration to provide Punjab with any special financial assistance package or debt-relief mechanism.
The Centre said the scheme would continue in the current fiscal with an enhanced overall allocation of Rs.2 lakh crore. Earlier data obtained through an RTI application filed by Sangrur-based advocate Kamal Anand showed that Punjab had received Rs.5,563.64 crore against Rs.7,292.66 crore sanctioned under SASCI between 2020-21 and 2025-26 up to December 31, 2025, translating into a release rate of 76.3% at that cut-off.
The year-wise figures revealed an uneven flow of funds. In 2023-24, Punjab received no funds against Rs.385.23 crore sanctioned. Releases resumed in the following years, with Rs.2,269.31 crore released against Rs.2,585.53 crore sanctioned in 2024-25 and Rs.1,976.11 crore against Rs.2,192.58 crore sanctioned in 2025-26 up to December 31, 2025.
The sanctioned assistance covers more than 450 capital projects across Punjab, spanning roads, irrigation, water and sanitation, education, healthcare, agriculture, tourism, urban infrastructure and sports.
The largest allocation, Rs.2,355.08 crore, has been earmarked for roads, bridges and highways, covering more than 220 projects, including major district and state road corridors, rural link-road modernisation and connectivity works. Another Rs.1,278.56 crore has been allocated for canals, irrigation and drainage, including relining of the Sirhind Feeder, Kandi Canal extensions, branch canal networks and deep tubewells in Kandi areas.
Water supply, sewerage and liquid-waste projects account for Rs.557.74 crore, including sewage treatment plants and sewer networks under the Swachh Bharat Mission and AMRUT 2.0. Education and skill development have received Rs.470.56 crore for Schools of Eminence infrastructure, 19 new Industrial Training Institutes, ITI upgrades and Samagra Shiksha works.
The agriculture and mandi sector has been allocated Rs.368.65 crore for modern mandi infrastructure, solar power systems and storage godowns, while Rs.347.14 crore has been earmarked for healthcare infrastructure, including modernisation of 36 sub-divisional hospitals, mother and child wings, model district hospitals and effluent treatment and fire-safety systems at more than 100 community health centres.
Tourism, heritage and urban beautification projects account for Rs.287.95 crore, including the Unity Mall in Amritsar, Heritage Street in SBS Nagar, Quila Mubarak restoration and the rejuvenation of the Kali Bein and Buddha Dariya. Sports and police/security projects account for Rs.317.19 crore, including hockey astroturfs and border-area CCTV surveillance.
The sports push also includes Rs.200 crore for 23 multi-block playground projects in rural areas to strengthen sports infrastructure for rural youth....
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