Capex budget may increase to ₹12.5L cr

AKEYAREA where much of the incremental outlay may be directed is the Centre’s grant-like scheme for special assistance to states for capital investment (SASCI).

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Under the scheme, the Centre provides 50-year interest-free loans to states for capital spending. The scheme, introduced in FY21 to revive growth in the aftermath of the pandemic, has become a central pillar of the Centre’s investment strategy, particularly at a time when private capex remains uneven and many states face fiscal constraints. The budgeted outlay for this scheme has been held at %1.5 lakh crore for the past two years, prompting repeated calls from states for an increase.