Released INR 445.44 bln of capex loans to states till Wed, says MoS Finance
This story was originally published at 15:07 IST on 20 July 2026
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--Fin min: Released INR 445.44 bln as capex loans to states till Wed
--CONTEXT: Centre to give INR 2 tln capex loans to states in FY27
NEW DELHI – The Centre has released INR 445.44 billion under the scheme for Special Assistance to States for Capital Expenditure in the form of 50-year interest-free loans till Wednesday, Minister of State for Finance Pankaj Chaudhary said in a written response to the Lok Sabha Monday.
The Union Budget for 2026-27 (Apr-Mar) has pegged interest-free loans for capital expenditure to states at INR 2.0 trillion, up from INR 1.50 trillion in FY26. The allocation of loans for states is part of the government's total capital expenditure target of INR 12.22 trillion for FY27.
First launched in the Budget for FY22, the scheme for special assistance to states to carry out capital investment is in line with the Narendra Modi government's thrust on capital expenditure to drive economic growth. In the past six years, the government has increased the Centre's capital expenditure by more than three times. End
Reported by Priyasmita Dutta
Edited by Avishek Dutta
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