Why SASCI matters for Jammu & Kashmir’s long-delayed development

Bhat Musadiq

“SASCI is not a cash transfer scheme; it is a long-term investment tool meant to build public assets and generate sustained economic momentum.”

The Special Assistance to States for Capital Investment (SASCI) is a 50-year, interest-free loan mechanism aimed at strengthening state infrastructure. It has nothing to do with direct cash benefits to local residents; rather, it empowers governments to build public assets that generate long-term economic momentum. For Jammu & Kashmir, where decades of instability and neglect delayed development, SASCI can become the most important instrument of structural upgrade and economic revival.

J&K has also suffered repeated natural disasters, particularly the devastating floods that caused losses of thousands of crores to housing, trade, agriculture and public infrastructure. Such setbacks erased years of savings and highlighted the urgent need for modern flood-control systems, planned urbanisation and resilient public services. SASCI offers the financial capacity to rebuild this lost foundation.

Every town of J&K—whether Srinagar, Jammu, Baramulla, Anantnag, Pulwama, Doda, Rajouri and others—requires modern drainage systems, reliable electricity, hospitals, research institutes and planned urban spaces. Long-awaited projects such as flood-control channels in Jammu and Srinagar, district cancer centres, advanced healthcare facilities, national-level research institutes, tourism corridors to Gurez, Pahalgam, Sangerwani and other designated tourist villages, along with industrial estates in South and North Kashmir, have remained stalled mainly due to shortage of capital. SASCI can cater to these backlogs in a time-bound manner and unlock region-wide growth and employment.

Jammu & Kashmir is naturally rich in apples, pears, saffron, walnuts, cherries, garlic and other high-value produce, yet the region largely sells these in raw form. At the price we sell our produce, we buy back its secondary forms—apple juice, cherry juice, walnut oil, garlic paste and processed foods—at nearly three times the cost. This reflects a structural economic loss. The region urgently needs institutions and industrial clusters for food processing, packaging, cold storage and value addition so that secondary products are manufactured within J&K itself. Such an approach will boost the local economy, raise farmer incomes and create large-scale employment for youth and women.

A critical area therefore is skill and training infrastructure. Most existing degrees do not match industrial and market needs, which is why a large section of educated youth remains unemployed. Establishing modern skill universities, agro-processing institutes, design and marketing schools can bridge the gap between education and employability. This upgradation is essential for converting natural and human potential into economic strength.

J&K today also has the potential to invest in de-radicalisation centres, peace-building institutes and leadership schools. These institutions can nurture dialogue, social cohesion and responsible local leadership, helping the younger generation shift from conflict narratives to innovation, entrepreneurship and public service. Capital support under SASCI can enable the creation of centres of excellence that address the region’s unique social challenges.

The experience of other states demonstrates the impact of such capital assistance. Uttar Pradesh utilised similar funding for expressways and medical colleges, expanding employment and investment. Bihar and Madhya Pradesh invested in irrigation, rural roads and hospitals, improving human development indicators. Assam and Rajasthan upgraded power and urban transport, strengthening tourism and trade. If these states can modernise through this facility, there is no reason why Jammu & Kashmir should not adopt the same path for the upliftment of all its towns and districts.

Opposition to SASCI is often framed with the allegation that the region is being “girwi” to large corporates. However, SASCI is a sovereign loan from the Government of India to the Government of J&K, not a corporate financing instrument, and it does not transfer ownership of public assets to any private entity. The scheme is meant solely for creation of government assets that remain under public ownership. Confusing this with privatisation only diverts attention from the real question of development.

The success of SASCI in J&K will depend on a solid road map and broad stakeholder consultation. District administrations, urban local bodies, industry, universities and civil society must be involved so that funds are utilised in a transparent and professionally managed manner. This investment will benefit the region only if the government spends it wisely, with accountability and long-term vision.

SASCI is fundamentally a national development instrument designed to fill the gap of seventy years of pending development. With prudent planning and honest execution, it can ensure that every town of Jammu & Kashmir gains better cities, hospitals, electricity, processing industries, research institutions, peace initiatives and employment opportunities, placing the region on par with India’s rapidly developing states.

Author is Viksit Bharat Young Leader & can be mailed at bhatmusaddiq99@gmail.com