Capex loans scheme for states to continue in FY27 & beyond

THE CENTRE WILL likely continue its no-interest-bearing 50-year capital expenditure loans, which were introduced during the Covid pandemic in FY21, to states in the coming years to give the economy a boost, a top government source told FE.

- PRASANTA SAHU

Under the Scheme for Special Assistance to States for Capital Investment (SASCI), the Centre has budgeted ₹1.5 lakh crore for states for various tied and untied projects in FY26, taking the cumulative support to ₹5.12 lakh crore since FY21.

Five years, yes, and eight lakh crores, approximately, have gone to the states. So which is not returnable in 50 years, which bears no interest.