• The Ministry of Tourism has approved 40 projects worth Rs 3,295.76 crore for development of lesser-known tourism sites in 23 states, across the country.

• The initiative aims to ease pressure on high-traffic sites and promote a more balanced distribution of tourists across the country. 

• By focusing on lesser-known destinations, the government hopes to enhance the overall tourism experience, boost local economies, and ensure sustainable growth in the tourism sector through a strategic approach to new project selection.

Implementation of the initiative

• According to the directives of the Department of Expenditure, the Ministry of Tourism issued operational guidelines for Special Assistance to States/Union Territories for Capital Investment (SASCI) for the development of iconic tourist centres.

• The Ministry of Tourism circulated the SASCI guidelines to the state governments with a request to formulate and submit the project proposals to the ministry, which are iconic in nature and can create impactful destinations.

• A total of 87 project proposals were received costing more than Rs 8,000 crore.

• Thereafter, the Ministry of Tourism in line with the guidelines and as per the procedure or criteria, shortlisted 40 projects across 23 states for Rs 3,295.76 crore which have now been sanctioned by the Department of Expenditure.

• The aim of this scheme is to infuse long-term interest-free loans for 50 years to states for comprehensively developing iconic tourist centres in the country, and branding and marketing them at a global scale.

• By infusing capital investment in the form of projects, the scheme further envisages the growth of the local economy and the creation of employment opportunities through sustainable tourism projects.

• The states have been given a timeline of two years for completing the projects, whereas the funds will be released before March 2026.

Benefits:

• By leveraging private sector expertise and capital at destinations, states can enhance public infrastructure, improve local amenities, and attract more tourists, ultimately boosting the regional economy and fostering long-term development. 

• The ministry is also emphasising for community-based tourism that empowers local populations and preserves cultural heritage. 

• By integrating sustainable practices into tourism planning, state  governments will be able to ensure long-term growth while safeguarding natural and cultural resources by adopting best practices. 

• The Ministry of Tourism is also encouraging state governments to integrate advanced technologies into their tourism projects. 

• By adopting technology, states can streamline operations, optimise tourist flow, and provide sustainable, innovative solutions for growth in the sector.

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