Capex loan release faster in Q1, states get ₹30K-cr

Quicker Outlays

- PRASANTA SAHU

THE CENTRE'S 50-YEAR interest-free loans for capital expenditure by states more than doubled on year to around ₹30,000 crore so far in the current financial year, a senior government official said.

The total sanctions stood at ₹40,000 crore last week as against the budget estimate of ₹1.5 lakh crore for all states in FY26. "We are expecting the capex loan disbursements to states to reach around ₹75,000 crore by September," the official told FE.

Of the target of ₹1.5 lakh crore for FY26, the Centre has already issued guidelines and conditionalities for ₹1.39 lakh crore so far. It is likely to issue norms soon, possibly linked to ease of doing business parameters, for the balance ₹11,000 crore such loans.