8 states receive Rs.200 billion as interest-free 50-year capex loans

Of the Rs.800 billion earmarked by the Centre as interest-free loans for states undertaking capital works in 2022-23, loans worth Rs.200 billion have been sanctioned to eight states so far, reported Financial Express. The beneficiary states in the first round included Karnataka, Maharashtra, Madhya Pradesh, Manipur and Himachal Pradesh. Funds were sought for ongoing and new projects as well as for clearing pending capex bills. In Union Budget 2022-23, Finance Minister Nirmala Sitharaman had announced the ‘Special Assistance to States for Capital Investment’ scheme under which total financial assistance of Rs.1 trillion would be given to states in the form of 50-year interest-free loans for capital investment projects. While Rs.800 billion will be allocated to the states in proportion with their shares in central taxes and duties (as per the 15th Finance Commission recommendations), for chosen projects, the remaining Rs.200 billion will be for specific purposes.

References
1. https://www.financialexpress.com/economy/centre-sanctions-rs-20000-crore-as-capex-loans-to-8-states/2612616/