Security Related Expenditure Scheme

The Security Related Expenditure (SRE) Scheme is a major initiative of the Government of India aimed at assisting States that face challenges from internal security threats, particularly Left-Wing Extremism (LWE), insurgency, and militancy. It provides financial reimbursement to State Governments for various expenses incurred while combating extremist violence and maintaining law and order in affected regions.

Background

The SRE Scheme was initially introduced in April 1996 to support States in the North-Eastern region that were severely affected by insurgency. Over time, the scheme was expanded to cover States and districts impacted by Left-Wing Extremism in other parts of India. It is implemented by the Ministry of Home Affairs (MHA) through its Left-Wing Extremism Division, under close monitoring and coordination with State Governments.

Objectives

The SRE Scheme seeks to strengthen the capacity of State Police and security agencies to effectively tackle insurgency and extremism. Its main objectives include:

• Reimbursing operational and training expenses related to counter-insurgency and anti-extremist operations.
• Supporting ex-gratia payments, compensation, and rehabilitation of victims of extremist violence.
• Funding logistics, mobility, and communication equipment used in security operations.
• Providing financial assistance for community policing initiatives, village defence committees, and home guard units.
• Encouraging the surrender and rehabilitation of militants through financial incentives and livelihood programmes.

Coverage and Financial Structure

The scheme covers multiple States and districts identified as LWE-affected or insurgency-prone. It operates on a reimbursement basis, where the Central Government reimburses a portion of the expenditure incurred by the States under pre-approved categories.
For North-Eastern States, the cost-sharing pattern is generally 90:10 between the Central and State Governments, while for LWE-affected States, the ratio may vary. In recent years, the scheme has disbursed substantial amounts, with hundreds of crores reimbursed to States for security-related activities and infrastructure support.

Key Components

The SRE Scheme allows reimbursement for a wide range of security-related expenditures, including:

• Training and operational costs of police and paramilitary forces.
• Logistical expenses such as vehicles, POL (petrol, oil, lubricants), rations, and temporary camps.
• Repair and maintenance of security infrastructure and facilities.
• Ex-gratia and relief payments to families of victims of extremist attacks and deceased or injured personnel.
• Honoraria and incentives to Village Defence Committees, Home Guards, and informers.
• Publicity and awareness campaigns aimed at discouraging extremism and promoting peace.
• Rehabilitation grants and vocational assistance to surrendered extremists.

The scheme is reimbursement-driven, meaning that funds are released only after verified expenditure claims are submitted by the States, ensuring accountability and transparency.

Eligibility Criteria

A State or district becomes eligible under the SRE Scheme based on specific parameters, including:

• Presence of active extremist or insurgent groups operating in the region.
• Existence of legislation or administrative frameworks to combat extremism.
• Raising of India Reserve Battalions or specialised security forces.
• Severity and frequency of extremist violence over a sustained period.
• Strategic importance or vulnerability of the area to extremist influence.

These criteria ensure that financial support is directed to genuinely affected regions requiring security assistance.

Significance

The SRE Scheme plays a pivotal role in India’s internal security management by:

• Reducing the financial burden on State Governments dealing with insurgency and LWE.
• Enhancing operational efficiency and response capabilities of security forces.
• Promoting Centre–State coordination in security planning and intelligence sharing.
• Complementing developmental programmes in conflict-affected areas through improved security.

The scheme embodies a dual approach, combining hard (security) measures with soft (rehabilitation and development) interventions to restore peace and normalcy.

Challenges

Despite its success, the scheme faces several implementation challenges:

• Delays in reimbursement and fund disbursement due to procedural and audit requirements.
• Inconsistent utilisation of funds across States, depending on administrative efficiency.
• Difficulty in verification of expenditure claims in remote or conflict-affected regions.
• Limited integration with long-term development and governance reforms, which are essential for sustained peace.

Recent Developments

In recent years, the Ministry of Home Affairs has emphasised the streamlining of fund utilisation and digital monitoring of SRE reimbursements. The scheme continues to evolve in scope, supporting newly identified districts affected by extremism.
Between 2019 and 2024, over ₹1,600 crore was reimbursed to States under the scheme. The government has reported significant reductions in LWE-related violence and fatalities, attributing this improvement partly to the enhanced financial support and operational strength provided through SRE.