Home / Business and Economy / States Get ₹83,595 Cr Capital Boost for Investment
States Get ₹83,595 Cr Capital Boost for Investment
12 Jan
Summary
- ₹83,595 crore released to states for capital investment as of January 5.
- Scheme offers 50-year interest-free loans to boost state capital expenditure.
- Allocation includes ₹70,000 crore untied funds and ₹80,000 crore reform-linked.
The Centre has disbursed ₹83,595 crore to states by January 5 under the Scheme for Special Assistance to States for Capital Investment (SASCI), covering 56% of the fiscal year's ₹1.50 lakh crore allocation. Officials anticipate full utilization of funds before the fiscal year concludes. The scheme, a key growth strategy since its 2020 launch, provides states with 50-year interest-free loans to enhance capital spending.
The assistance is partly tied to reforms like mining and vehicle scrappage, with the remainder being untied for states to choose projects. This approach aims to sustain capital expenditure during periods of financial strain and low private investment. Since its inception, cumulative releases have reached ₹4.49 lakh crore.
For the current fiscal year, ₹70,000 crore is available as untied funds, offering states flexibility. An additional ₹80,000 crore is earmarked for reforms in sectors including mining, vehicle scrapping, road safety enforcement, rural land reforms, and digital agricultural infrastructure.
