Construction Infrastructure

Govt to provide Rs 15,000 crore to states for capital expenditure

Published

4 years ago

May 1, 2021

Govt to provide Rs 15,000 crore to states for capital expenditure

The Central government has decided to provide an additional amount of upto Rs 15,000 crore to states as interest free 50 year loan for spending on capital projects.

The Department of Expenditure has issued fresh guidelines in this regard on the “Scheme of Financial Assistance to States for Capital Expenditure” for the financial year 2021-22, the Ministry of Finance said in a statement on Friday (30 April).

The Centre has decided to provide an additional amount of up to Rs 15,000 crore to states as interest-free 50-year loan for spending on capital projects.

Assam, Himachal Pradesh and Uttarakhand will get Rs 400 crore each while remaining states in this group have been allocated Rs 200 crore each. The second part of scheme is for all other states with an amount of Rs 7,400 crore. This amount has been allocated among states in proportion to their share of central taxes as per the award of 15th Finance Commission for 2021-22.

News Source : Construction Week Online

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