NEW DELHI, Dec 3: The Union government has released Rs 50,571.42 crore to states under the ‘Special Assistance for Capital Investment’ scheme, aimed at enhancing funding for various development projects during the first eight months of the current financial year. Minister of State for Finance Pankaj Chaudhary shared this information in a written reply to the Lok Sabha on Tuesday.
Chaudhary mentioned that 23 out of 28 states have availed of the interest-free assistance provided by the Centre, with Arunachal Pradesh, Haryana, Kerala, Punjab, and Telangana being the exceptions.
Among the states, Uttar Pradesh emerged as the highest recipient, receiving ₹7,007.93 crore, followed by Madhya Pradesh with ₹5,074.94 crore, Bihar with ₹5,408.88 crore, Rajasthan with ₹4,552.01 crore, West Bengal with ₹4,416.23 crore, Assam with ₹3,181.97 crore, Odisha with ₹3,085.44 crore, Maharashtra with ₹2,617.70 crore, Andhra Pradesh with ₹2,616.27 crore, and Karnataka with ₹2,272.87 crore.
Finance Minister Nirmala Sitharaman has allocated ₹1.5 lakh crore for the Centre’s Special Assistance for Capital Investment scheme for states in the 2024-25 Budget.
The Special Assistance to States for Capital Investment scheme provides 50-year interest-free loans to state governments to promote capital expenditure. Approved capital investment projects under the scheme span various sectors, including health, education, irrigation, water supply, power, roads, bridges, and railways.
Additionally, funds have been allocated to states for their share in the Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana, with the goal of speeding up the progress of these projects. Some parts of the scheme are linked to reforms or designed for sector-specific projects.
The scheme also offers incentives for states to scrap government vehicles and ambulances, waive liabilities on old vehicles, provide tax concessions for individuals scrapping old vehicles, and establish automated vehicle testing facilities. States are also encouraged to implement reforms in Urban Planning and Urban Finance.
Moreover, the scheme aims to increase housing stock for police personnel and their families within police stations in urban areas. Another objective is to promote national integration, support the ‘Make in India’ initiative, and advance the ‘One District, One Product’ (ODOP) concept through the construction of a Unity Mall in each state.
