Centre released INR 1.03 tln as capex loans to states up to Jan 27
This story was originally published at 16:03 IST on 3 February 2026
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--MoS Finance: Released INR 1.03 tln as capex loans to states up to Jan 27
NEW DELHI – The government has, in the current financial year ending March, released INR 1.03 trillion to states as part of the Scheme for Special Assistance to States for Capital Expenditure in the form of 50-year interest-free loans till Jan. 27, Minister of State for Finance Pankaj Chaudhary said in a written response to a question in the Rajya Sabha Tuesday.
The Union Budget, presented Sunday, has pegged the interest-free loans for capital expenditure to states at INR 1.85 trillion for FY27, up from the revised estimate of INR 1.44 trillion in FY26. The Budget for FY26 had projected the interest-free loans at INR 1.50 trillion.
Under the capital expenditure loan scheme, the Centre provides 50-year interest-free loans to states for capital expenditure. The Centre has been progressively increasing the outlay for this scheme since its first announcement in FY22. Uttar Pradesh received the highest amount at INR 124.67 billion as loans for capital expenditure till Jan. 27. Madhya Pradesh received INR 115.48 billion as interest-free loans for capital expenditure. End
Reported by Shubham Rana
Edited by Vandana Hingorani
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