Centre may release ₹70,000 cr capex loans to states in Q3

The Union government is likely to release ₹50,000 crore to ₹70,000 crore to states as part of its 'special assistance for capital investment' scheme in the three months to December (Q3, FY25), to be used for ramping up capital expenditure, two people aware of the matter said.

- Rhik Kundu

With both expenditure and growth slowing down during the first two quarters due to the general elections, these funds are aimed at boosting capex spending by states, especially on infrastructure projects in order to aid overall growth.

"The disbursement of these interest-free loans has been delayed due to the general elections (during the Q1, FY25 period) and a large chunk of it will be done in Q3, FY25 quarter," the first person mentioned above said, requesting anonymity.