Centre sanctions ₹821.26 crore in major infrastructure boost for Delhi

Chief minister Rekha Gupta said the assistance will help realise the ‘Viksit Delhi’ dream

The central government on Wednesday sanctioned a special financial assistance package of ₹821.26 crore to the Delhi government to strengthen the Capital’s core infrastructure through 33 capital projects pertaining to health, education, transport, water, housing and the Delhi Metro.

The Delhi government had sought the financial assistance from the Centre through Public Financial Management System portal, seeking an aid amounting to ₹716 crore and ₹105 crore. (Sonu Mehta/HT Photo)

This comes after the Delhi government earlier in July submitted two proposals seeking a special assistance under the Special Assistance to States for Capital Investment (SASCI) scheme 2025-26.

Chief minister Rekha Gupta said the assistance will help realise the ‘Viksit Delhi’ dream as she thanked the Prime Minister Narendra Modi-led central government for the aid.

“With this amount, 33 projects will be implemented, including those related to health, education, transport, water, housing, energy, and MRTS (Delhi Metro) Phase-IV. This decision is a visionary step towards transforming the resolve of ‘Viksit Bharat’ into ‘Viksit Delhi.’ The Delhi Government is committed to completing these projects in a time-bound, transparent, and high-quality manner,” the CM stated in a post on social media platform X.

A significant amount of the package, ₹105.26 crore, has been allocated for the construction of six Delhi Metro corridors under Phase-IV, including the priority corridors of Janakpuri West-RK Ashram, Majlis Park-Maujpur, and Aerocity-Tughlaqabad. The construction of these corridors, which are 65.202km long and will consist a total of 45 stations, is underway.

The work on the remaining three corridors -- Lajpat Nagar - Saket G Block, Inderlok -Indraprastha, and Rithala - Bawana - Narela - Nathupur (Kundli) — will start soon.

The other projects include shifting of overhead electric wires underground, improvement of the stormwater drain on Rohtak Road, construction of a double-lane road on Najafgarh drain to enhance connectivity in southwest Delhi, rejuvenation of the dry Munak Canal, establishment of electric vehicle (EV) charging stations for heavy commercial vehicles at 10 depots by Delhi Transport Corporation, construction of an integrated complex for children at Alipur, expansion of BR Ambedkar Hospital in Rohini and Rao Tula Ram Hospital, among others, according to documents seen by HT.

The Delhi government had sought the financial assistance from the Centre through Public Financial Management System portal, seeking an aid amounting to ₹716 crore and ₹105 crore.

“In this regard, it is to state that the competent authority has approved Special Assistance (Loan) of ₹716.00 crore for the 33 capital projects..,” a letter dated July 30 from the Union finance ministry to the secretary (finance) of the Delhi government stated. A separate letter from the finance ministry informed the Delhi government of the sanction of ₹105.26 crore.

The central government provides 50-year interest-free loans under SASCI to state governments for capital investment projects -- these include new or ongoing capital works but not repairs, projects in urban reforms and infrastructure. The scheme was introduced by the Union finance ministry in 2020-21.

CM Gupta said that 66% of the total sanctioned amount has been released as the first instalment, enabling the immediate commencement of key projects. The Delhi government will continue to seek additional allocations to ensure comprehensive development of the Capital, she said.

“The proposals were submitted promptly and in compliance with all procedures through the PFMS portal. The seamless coordination with the Union finance ministry ensured expeditious approval. These projects will strengthen essential public services, urban mobility and civic amenities, while also generating employment and boosting economic activity in the Capital,” the CM said.