The Union government has released Rs 50,571.42 crore to states under its ‘Special Assistance for Capital Investment’ scheme, aimed at boosting funding for various development projects during the first eight months of the current financial year, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha.
In a written reply to the lower house, Chaudhary said that 23 out of 28 states have availed the interest-free assistance provided by the Centre, with Arunachal Pradesh, Haryana, Kerala, Punjab, and Telangana being the exceptions.
Among the states, the highest recipients of the facility were Uttar Pradesh (₹7,007.93 crore), Madhya Pradesh (₹5,074.94 crore), Bihar (₹5,408.88 crore), Rajasthan (₹4,552.01 crore), West Bengal (₹4,416.23 crore), Assam (₹3,181.97 crore), Odisha (₹3,085.44 crore), Maharashtra (₹2,617.70 crore), Andhra Pradesh (₹2,616.27 crore) and Karnataka (₹2,272.87 crore).
Finance Minister Nirmala Sitharaman has provided an allocation of ₹1.5 lakh crore for the Centre’s ‘special assistance for capital investment’ scheme for states in the Budget for 2024-25.
The Centre’s Special Assistance to States for Capital Investment scheme provides 50-year interest-free loans to state governments to boost capital expenditure.
Capital investment projects in diverse sectors have been approved under the scheme including health, education, irrigation, water supply, power, roads, bridges and railways.
Funds for meeting the state’s share of the Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana have also been provided to the states under this scheme to enhance pace of the projects in these sectors.
Parts of the scheme are either linked to reforms or are for sector specific projects.
The scheme also provides incentives to states for scrapping of state Government vehicles and ambulances, waiver of liabilities on old vehicles, providing tax concessions to individuals for scrapping of old vehicles and setting up of automated vehicle testing facilities.
Besides, states are being encouraged to undertake reforms in Urban Planning and Urban Finance.
The scheme further aims at increasing the housing stock for police personnel and their families within the police stations in urban areas.
Another objective of the scheme is to promote national integration, carry forward the concept of ‘Make in India’ and promote the concept of ‘One District, One Product (ODOP)’ through construction of Unity Mall in each state.
