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The Centre has approved about Rs 34,000 crore in interest-free 50-year capex loans to 13 states so far in the current fiscal. The Union government launched an expanded scheme of Rs 1 trillion for FY23 to help states boost capital expenditure, since the end of the goods and services tax (GST) compensation could have resulted in states cutting down on their productive spending plans. Of the total amount, Rs 80,000 crore would be released proportionately to the states’ share in the devolution of central taxes and for projects solely based on their viability. The release of the balance Rs 20,000 crore is linked to key infrastructure connectivity projects. As for the long-term loans to states for boosting capex, the beneficiaries so far include Uttar Pradesh, Karnataka, Maharashtra, Bihar, Chhattisgarh, Goa, Manipur, Nagaland, Sikkim and Himachal Pradesh.
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