Bihar has received the highest amount of loan of Rs 9,640 crore.
Capital investment encompasses projects in different sectors such as health, education, irrigation, water supply, power, roads, bridges and railways.
The Department of Expenditure under the Finance Ministry of India has approved the total sum of Rs 56,415 crore to 16 states for the financial year 2023-24. These loans are granted under the central scheme known as “Special Assistance to States for Capital Investment 2023-24″. This scheme aims to give a periodic boost to the states for the spending of capital investment given by the central government. It is done so by giving the states a 50-year interest-free loan up to an overall sum of Rs 1.3 lakh crore.
Bihar has received the highest amount of loan of Rs 9,640 crore followed by Madhya Pradesh (Rs 7,850 crore) and West Bengal (Rs 7,523 crore).
Capital investment encompasses projects in different sectors such as health, education, irrigation, water supply, power, roads, bridges and railways. The funds for the central government initiatives are also allocated to the states to increase the pace of these projects in those sectors.
The Special Assistance to States for Capital Investment schemes has eight parts. The first part includes the allocation of Rs 1 lakh crore for the states as per their share of the central government tax and duties, awarded under the 15th finance commission.
In Part 2 of the scheme, an incentive of Rs 3,000 crore has been set aside for the states. It will be provided to states for scrapping the old state government vehicles and ambulances, waiver of liabilities on old automobiles, providing tax concessions to individuals for scrapping their old vehicles and initiating the automated vehicle testing facilities.
Part 3 & 4 of the scheme includes incentives to the states for reforms in Urban Planning and Finance. And part 5 of the scheme aims to increase the houses and flats for police personnel and families within the police stations in Urban areas. Part 6 of the scheme focuses on the central government initiative of Make in India and One District One Product (ODOP). The amount of Rs 15,000 crore is set aside for this initiative.
A similar scheme was approved last financial year. Under the scheme, Capital Investment proposals of Rs 95,147.19 crore were approved. An amount of Rs 81,195.35 crore was released to the states in the financial year 2022-23.