Government backs destination development with 100% central funding, while ₹750 crore more is sanctioned for tourism projects in Himachal Pradesh, Mizoram and Nagaland

Key Highlights

• 40 tourism projects across 23 states sanctioned under SASCI in FY2024-25.
• Total sanctioned investment: ₹3,295.76 crore, with 100% central funding.
• ₹2,644.79 crore had been released against the FY2024-25 projects, as per the annexure.
• Tourism projects worth ₹750 crore sanctioned and fully released to Himachal Pradesh, Mizoram and Nagaland under SASCI 2025-26.
• Projects focus on heritage, ecotourism, adventure, MICE, wellness, spiritual and experiential tourism.
• Government is monitoring projects through a dedicated Program Management Information System (PMIS).

The Government of India has stepped up investment in tourism infrastructure with 40 projects across 23 states sanctioned under the Special Assistance to the States for Capital Investment (SASCI) – Development of Iconic Tourist Centres to Global Scale initiative.

The projects were sanctioned during FY2024-25 at a total cost of ₹3,295.76 crore, with 100% central funding, according to the Ministry of Tourism. The initiative is designed to develop iconic tourist destinations with the potential to attract more visitors, increase tourist spending, generate employment and encourage private investment.

The update was shared by Union Minister for Tourism and Culture Gajendra Singh Shekhawat in a reply in the Rajya Sabha.

SASCI projects target high-impact tourism destinations

Under the scheme, states were invited to submit proposals and Detailed Project Reports (DPRs). These were assessed on parameters including connectivity, the existing tourism ecosystem, carrying capacity, availability of utilities, expected project impact and value creation.

The assessment also considers the potential for higher tourist footfall, increased tourist expenditure, employment generation and private-sector investment.

The 40 sanctioned projects cover a wide range of tourism segments, including heritage, ecotourism, adventure, cultural tourism, MICE, wellness, spiritual tourism and destination-based experiences.

Among the projects are the Development of Chitrotpala Film City and Tribal & Cultural Convention Centre in Raipur, International Convention Centre for MICE in Bhopal, INS-Guldar Underwater Museum and submarine tourism in Sindhudurg, MICE infrastructure in Meghalaya, Ramappa Region Sustainable Tourism Circuit in Telangana and Iconic City Rishikesh: Rafting Base Station.

₹750 crore sanctioned for three states under SASCI 2025-26

The Department of Expenditure subsequently amended the SASCI guidelines for 2025-26.

Under the amended framework, states that did not avail funds under Part-III of SASCI 2024-25 became eligible for special assistance of up to ₹250 crore for tourism projects under Part-II of SASCI 2025-26.

Accordingly, ₹250 crore each was sanctioned and released to Himachal Pradesh, Mizoram and Nagaland, taking the total assistance under this provision to ₹750 crore.

Destination projects move beyond conventional sightseeing

The project portfolio indicates a broader shift towards developing tourism destinations around specific experiences.

Projects include ecotourism and cultural hubs, adventure tourism facilities, underwater and submarine tourism, heritage parks, convention infrastructure, wellness retreats, spiritual tourism circuits and sustainable tourism destinations.

For the hospitality sector, such destination-led development is particularly significant because the creation of new attractions can support demand for accommodation, food and beverage, tour operations, local transport and ancillary visitor services.

Hospitality industry could benefit from higher tourist spending

The SASCI framework explicitly identifies increased tourist spending and private investment as measures of project impact.

For hotels and resorts, the development of new attractions could create opportunities to expand accommodation capacity around emerging destinations. Improved visitor infrastructure and destination experiences can also encourage longer stays rather than short stopovers.

The emphasis on MICE infrastructure, particularly in Bhopal and Meghalaya, could support the growth of business events, conferences, exhibitions and incentive travel—segments that typically generate demand across hotels, banqueting, restaurants, transport and destination services.

Meanwhile, projects focused on adventure, wellness, ecotourism and cultural experiences could create new demand for specialised hospitality products, including experiential stays, boutique accommodation, local cuisine and curated tours.

PMIS introduced for project monitoring

The Ministry of Tourism has developed a Program Management Information System (PMIS) as a unified digital platform for monitoring destination-development projects.

The system is intended to facilitate information sharing, communication and reporting among the Ministry, State Governments, Union Territory Administrations and implementing agencies.

The SASCI framework also provides for a national institutional structure involving the Central Sanctioning and Monitoring Committee (CSMC) and Mission Directorate, with participation from ministries and agencies dealing with sectors such as culture, civil aviation, roads, ports, environment, railways and the Archaeological Survey of India.

Project DPRs are also required to address applicable statutory clearances, carrying-capacity considerations, stakeholder consultations and sustainable operation and maintenance arrangements.

What SASCI means for travel and tourism

The scale and diversity of the projects point towards a more experience-led and destination-centric tourism strategy.

For the travel industry, new attractions can create opportunities to develop multi-day itineraries around emerging destinations. For hospitality businesses, infrastructure-led destination development could open new markets for hotels, resorts, restaurants and event venues.

The emphasis on carrying capacity and sustainable operations is also relevant as destinations seek to balance rising tourist demand with environmental and community considerations.

Bottom line

With ₹3,295.76 crore committed to 40 projects across 23 states in FY2024-25 and another ₹750 crore released to three states under SASCI 2025-26, the government is using capital investment to build tourism destinations around heritage, culture, adventure, nature, MICE, wellness and spiritual experiences.

For India’s hospitality and travel sector, the key opportunity will be converting this infrastructure pipeline into higher tourist footfall, longer stays, increased visitor spending and greater private-sector participation—the very outcomes identified under the SASCI framework.