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Capex loan releases to states cross ₹40,000 cr
Financial Express Kochi
|August 20, 2025
THE CENTRE'S 50-YEAR interest-free loans for capital expenditure by the states crossed ₹40,000 crore so far in the current financial year, a senior government official said.
The total approvals so far stood around ₹60,000 crore as against the budget estimate of ₹1.5 lakh crore for all states in FY26, the officials said.
The officials expect capital expenditure (capex) loan disbursements to states to reach around ₹75,000 crore by September.
Out of the target of ₹1.5 lakh crore for FY26, the Centre has already issued guidelines and conditionalities for ₹1.4 lakh crore.
The Centre has linked two-thirds of capex loans earmarked for FY26 to governance reforms, including building municipal cadres, finance reforms, such as an integrated property tax portal, and urban land and planning reforms.
This story is from the August 20, 2025 edition of Financial Express Kochi.
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