Centre links interest-free capex loans to states' reform rollout
Mint Mumbai|August 22, 2023
A central scheme for states introduced during the early days of the covid-19 outbreak to provide interest-free capital-expenditure (capex) loans will now come with strings attached as the government attempts to nudge states to implement specific reforms.
Rhik Kundu
Centre links interest-free capex loans to states' reform rollout

Out of the ₹80,000 crore earmarked this fiscal for the 'Special Assistance to States for Capital Investment' scheme, ₹40,000 crore has already been disbursed without conditions; of the rest, ₹30,000 crore will be disbursed only if states can show progress on reforms or present specific project proposals, two people aware of the plan said on condition of anonymity.

States must also ensure that the loan is used to supplement their capex and not used as a substitute for it.

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