Background of the Reform Initiative
- In 2020, the Centre launched the Scheme for Special Assistance to States for Capital Investment.
- It provides 50-year interest-free loans to States for capital expenditure.
- A portion of the loans is conditional, tied to the implementation of specific reforms:
➤ Road construction
➤ Digitisation
➤ Optical fibre installation
➤ Urban reforms
➤ Disinvestment and monetisation
Relevance : GS 2(Solid Waste Management)
Budgetary Growth of the Scheme
- In 2020, the scheme’s cap was ₹12,000 crore.
- It has expanded to ₹1,50,000 crore in 2025–26, reflecting growing state participation and investment needs.
Land and Industrial Reforms Outcomes
- 22 States have amended building bylaws related to industrial and commercial land use.
- 18 States have reduced land wastage to below 30% in factory plots.
- Previously, ~50% of industrial land was consumed by parking and setback norms.
- Reforms led to more optimal land use by revising outdated regulations.
Digitisation of Land Records – Key Achievements
- 90% of cadastral maps (ownership and boundary details) have been digitised.
- 91% of Records of Rights (RoR) have been digitised
➤ 35 crore out of 38 crore records. - 30% of land parcels have received Unique Land Parcel Identification Numbers (ULPINs)
➤ 22 crore out of 76 crore parcels.
Broader Implications
- Efficient land use encourages industrial investment by freeing up usable factory land.
- Digitisation enhances land transparency, dispute resolution, and supports Ease of Doing Business.
- Supports Centre–State cooperative federalism by incentivising reform through funding.
