Policy Update
R.Tejaswini
BACKGROUND
India is a culturally rich and diverse country filled with numerous places of religious and cultural significance. These rich heritage and pilgrimage sites attract millions of international and domestic tourists to India. Before PRASHAD, India lacked an integrated, inclusive, and sustainable approach towards tourism development and infrastructure. As a result, the PRASHAD scheme was launched by the Ministry of Tourism in 2014-15, to ensure holistic development of pilgrimage tourist destinations across India.
It provides financial assistance to State governments and Union Territories for development of tourism infrastructure at identified religious and heritage sites across India. It is designed to benefit both tourists and locals. It focuses on areas such as cleanliness, security, service delivery, livelihood creation and ensures that the local community develop skills to support growing the tourism industry .Since its inception in January 2015, 54 projects have been authorised across 28 States/UTs.
The scheme evolved from Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD) to Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) in October 2017. This policy reform incorporated heritage development, which was previously under the HRIDAY scheme, by the Ministry of Housing and Urban Development. This created a cohesive approach towards pilgrimage and heritage rejuvenation.
OBJECTIVES
- Rejuvenation and spiritual augmentation of important pilgrimage sites.
- Enhance tourism attractiveness of pilgrimage and heritage destinations through world class infrastructure projects.
- Positioning pilgrimage and heritage tourism as major economic engines.
- It aims to develop a monitoring framework to ensure timely and effective implementation of sanctioned projects.
- It ensures the involvement of local communities by generating employment opportunities for them, aiming at community based development.
- It aims to bridge the infrastructure gaps.
- It aims to converge Central and State government schemes.
- It aims to improve the quality of tourism services at pilgrimage and heritage sites.
- It promotes local arts, crafts and culture.
FUNCTIONING
The PRASHAD scheme is a Central sector scheme by the Ministry of Tourism in collaboration with the State government and Union Territories. Its functioning involves a multi-layered management structure, which are-
National Steering Committee- Under the Tourism Ministry’s guidance, the committee steers the scheme’s vision and oversees the overall performance.
Integrated Plan Approval Committee- IPAC operates at both national and state level. National IPACs give final approval to the Integrated Plans, while the State IPACs review the Integrated Plans before they send it to the National IPAC.
Central Sanctioning and Monitoring Committee- Its responsibilities include approval of projects and monitoring implementation of projects regularly.
Mission Directorate- Mission Directorate serves as the Secretariat to CSMC, handling the paperwork for approvals and reporting the progress of projects on a regular basis.
Program Management Consultants- National PMC provides technical assistance and planning support for pilgrimages. States can also appoint a State Program Management Unit for technical support in heritage city development.
Implementation Agencies- Sanctioned projects under PRASHAD scheme are implemented by identified agencies by the respective State/UT government.
Together, all these departments enable site identification, DPP and IP preparation, concept preparation,site visits, DPR submission, evaluation, recommendation and sanctioning, administrative approval and implementation of the projects ensuring administrative functioning of the PRASHAD scheme.
The PRASHAD scheme provides 100% Central financial assistance for approved and admissible project components. However, the State governments are responsible for the costs of land acquisition, resettlement and rehabilitation, and the long-term operation and maintenance of the infrastructure created.
Funds are released in five instalments- 30% upon work order submission, 30% after the first Utilization Certificate is submitted, 25% after the second UC is submitted, 10% on completion and a final 5% after one year of successful O&M of facilities. This scheme also encourages voluntary contributions through Corporate Social Responsibility from private sectors and Public-Private Partnerships are also explored to enhance sustainability.
PERFORMANCE
The PRASHAD scheme gained significant momentum in 2025, as the Union Budget 2025-26 allocated ₹240 crores for completion of ongoing projects. As of 2024-25, 48 projects were sanctioned, out of which 26 were completed. As per the latest data available, PIB release dated 8 January 2026 reports that 54 projects have been sanctioned under the scheme, out of which 31 have been fully completed, including major hubs like Somnath (Gujrat). However, legacy projects in states like Odisha launched in 2014-15 show persistent delays in completion. An evaluation of the scheme in the past 2-3 years, shows slow but positive growth.
Source: Press Information Bureau (PIB), Government of India- Press Release ID- 2099519; Press Release ID 2212575.
The growth from 8 projects with ₹171.22 crore allocated in 2015, to 54 projects with ₹1726.44 crores allotted, proves that the scheme is expanding rapidly.
According to the December 2025 PIB Annexure, ₹1111.87 crores have been utilised, indicating 64% utilisation against an expanded ₹1726.44 crores outlay. This reflects a steady fund flow despite state level execution delays. The scheme’s performance outcomes highlight administrative coordination embedded in its implementation design. These include Utilization Certificates compliance affecting further approvals, a clear division of financial responsibilities between the Centre and States, and a multi-level approval process involving national-level oversight. Together these factors underscore the importance of effective Centre-State coordination for improving implementation.
To ensure sustainable development, green infrastructure like rain water harvesting systems, solar panels and waste management systems have been implemented, so that the development does not come at the cost of the environment. However, Ministry updates and Parliamentary reviews have flagged implementation lags in legacy sites such as Puri, Odisha, due to delays in submitting Utilization Certificates.
Therefore, over the past few years, the scheme has received a significant budgetary boost, delays in completion of projects still exists in a segment of projects, particularly those involving large scale or recently sanctioned works.These delays are reflected in partial fund releases and pending Utilization Certificates, indicating ongoing administrative and implementation challenges at the state level.
IMPACT
Since the launch of PRASHAD scheme, many pilgrimage destinations across India have been transformed. The development of basic facilities at Vishnupad Temple in Bihar and pilgrim amenities at Amaravati and Kamakhya Temple, under the PRASHAD scheme shows that the scheme has been directly responsible for the development of amenities across various pilgrim sites in India. A report on evaluation of PRASHAD by IIM Rohtak in 2021, revealed that the scheme has helped increase the visitor satisfaction, ease of travel and aesthetic aspects of the selected heritage sites, leading to positive overall visitor experience.
Successful initiatives like development of tourist facilitation centres, sound and light shows, multi storied car parking, dedicated parking spaces have enriched the overall pilgrimage experience. The scheme has also significantly contributed to road networks, development of basic infrastructure and amenities such as clean toilets, cloak rooms, E-vehicles, cafeterias etc, thereby contributing to overall infrastructure development of the area around pilgrimage sites and generating employment for the local residents, consequently boosting local economy. This scheme also funds restoration and preservation efforts for heritage structures, ultimately preserving Indian culture.
EMERGING ISSUES
The emerging issues in PRASHAD scheme are as follows-
One of the primary issues faced by the scheme is the challenge of completing projects on time due to delays in the tendering process, limited capacity of state implementing agencies, poor time management in planning and non submission of required documents.
The Ministry of Tourism enforced digital supervision tools such as tracking milestones, financial tracking and data analytics through a portal to manage the delay in projects.
Secondly, the lack of last mile connectivity with other multi-modal transport schemes, affects mobility to pilgrim and heritage sites.
The PRASHAD scheme and PM Gati Shakti National Master Plan have been integrated to ensure infrastructure development at identified pilgrimage sites, aiming to bridge the lack of last mile connectivity.
There is a delay in the submission of Utilization Certificates due to which there is a delay in fund disbursement as well. To address this delay in submission an online platform has been created to ensure real time submission of Utilization Certificates.
Operation and Management of the sites is not funded by the Central government and the state government has to allocate funds for the sustainability. To address this financial issue, the Ministry has outlined a solution based on innovative revenue models, strategic partnerships and rigorous planning such as Public-Private Partnerships, CSR and so on.
WAY FORWARD
The PRASHAD scheme envisions an integrated ecosystem of sustainable spiritual tourism. By shifting from basic infrastructure development to holistic destination development, the policy focuses on sustainability and overall development.This scheme will play a major role in increasing the tourist sector revenue as it enhances tourist experience, consequently attracting more international and domestic tourists. It will also position India as a global spiritual hub in the world.
This scheme not only preserves the heritage sites but also revitalizes the local economy and preserves the cultural soul of India. This scheme has also developed infrastructure and amenities of pilgrimage and heritage sites, thereby enhancing remote regions and their connectivity too. By prioritising and investing in pilgrim and heritage sites, the scheme has the potential to support the conservation of these sites and balance it with infrastructure development. If implemented effectively, the scheme can foster cultural preservation and regional economic activity by enhancing tourism infrastructure and services.
References
Ministry of Tourism, Government of India. (2021). Scheme Guidelines for PRASHAD. Government of India.
https://tourism.gov.in/sites/default/files/2021-12/Scheme%20Guidelines_8_0.pdf
Ministry of Tourism, Government of India. (2021). PRASHAD Scheme: Guidelines under the 15th Finance Commission. Government of India.
https://tourism.gov.in/sites/default/files/2023-08/PRASHAD%2015th%20FC%20Scheme%20Guidelines.pdf
Press Information Bureau (PIB). (2024). PRASHAD Scheme: Project sanctions and status. Ministry of Tourism, Government of India.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2099519®=3&lang=2
Press Information Bureau (PIB). (2024). Tourism updates (Press Release). Government of India.
https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2099160®=3&lang=2
Press Information Bureau (PIB). (2025). PRASHAD Scheme – Mid-term implementation status. Ministry of Tourism, Government of India.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2113287®=3&lang=2
Press Information Bureau (PIB). (2025). Status update on PRASHAD Scheme projects. Ministry of Tourism, Government of India.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2196921®=3&lang=2
Press Information Bureau (PIB). (2025). PRASHAD Scheme and tourism infrastructure updates. Ministry of Tourism, Government of India.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2202214®=3&lang=1
Ministry of Tourism, Government of India. (2025). Annual Report 2024–25. Government of India.
https://tourism.gov.in/sites/default/files/2025-02/Ministry%20of%20Tourism%20Annual%20Report_2024-25_ENGLISH_0.pdf
Ministry of Tourism, Government of India. (2025). Unstarred Question No. 93: PRASHAD Scheme Parliamentary Data (1 December 2025). Government of India.
https://tourism.gov.in/sites/default/files/2025-12/usq.93%20for%2001.12.2025.pdf
Press Information Bureau (PIB). (2026). PRASHAD Scheme – Additional project sanctions. Ministry of Tourism, Government of India.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2212575®=3&lang=2
ABOUT THE CONTRIBUTOR
R.Tejaswini is a Research Intern at IMPRI. She is pursuing a Master’s in International Studies from Stella Maris College, Chennai. Her research interests include India’s foreign policy and Public policy.
Acknowledgement: The author extends sincere gratitude to the IMPRI team for their expert guidance and constructive feedback throughout the process.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organization.
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