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Capex loans to states cross RE, nudge closer to ₹1.5L-cr

Financial Express Kochi

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April 02, 2025

Better Than Expected

- PRASANTA SAHU

THE CENTRE HAS disbursed nearly ₹1.5 lakh crore in interest-free, 50-year capital expenditure (capex) loans to states for FY25, exceeding the revised estimate (RE) and matching the initial Budget estimate (BE) for the year, official sources told FE.

Of the ₹149,484 crore capex loans released to the states, half was linked to reforms or specific projects under the scheme for special capital assistance to states for FY25, senior officials stated. In the revised estimate for FY25, presented in the Budget on February 1, the Centre initially reduced the outlay from ₹1.5 lakh crore to ₹1.25 lakh crore, citing delays by some states in meeting eligibility conditions.

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