Question
Recently Centre has sanctioned about Rs 39,000 crore, or
interest-free 50-year Capex loans, to how many states for the current financial year?Solution
The Centre has sanctioned about Rs 39,000 crore, or about 50% of the unconditional component of the interest-free 50-year capex loans, to 16 states so far in the current financial year. The beneficiary states so far include Uttar Pradesh, Karnataka, Maharashtra, Bihar, Chattisgarh, Goa, Manipur, Nagaland, Sikkim and Himachal Pradesh, among others. Most of the approvals were for ongoing projects and clearing pending capex bills, as well as some new projects. Capital expenditure is the money spent by the government on the development of machinery, equipment, building, health facilities, education, etc. It also includes the expenditure incurred on acquiring fixed assets like land and investment by the government that gives profits or dividend in future.
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