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Capex loan releases to states cross ₹40,000 cr
Financial Express Lucknow
|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.
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