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Capex loans disbursal to states delayed
Financial Express Kochi
|May 15, 2025
Some states are funding projects via own resources
TO COMPLY WITH the revised norms for availing interest-free capex loans from the Centre in 2025-26, state governments will seek modalities of uploading project details on the Public Financial Management System (PFMS) portal. Lack of knowledge in this regard is hindering states from providing the required information, potentially delaying the release of funds, sources told FE.
In the first week of April, the Centre issued guidelines for the disbursal of ₹87,000 crore—approximately 60% of the ₹1.5 lakh crore interest-free 50-year capex loans earmarked for FY26. These funds are to be distributed to states and Union territories (UTs), largely as untied and project-linked loans.
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