Govt okays capex of ₹60,000 cr to states

NEW DELHI: The central government has sanctioned ₹60,000 crore of long-term capital expenditure funds to states this fiscal, making a strong beginning to the scheme announced earlier this year to build roads, ports, bridges, airports, and highways across the country.

The scheme envisages giving ₹1 trillion of 50-year interestfree loans to states, over and above the normal borrowing they are allowed. The aim is to ensure that local administrations get more financial resources for building productive assets, which will also add jobs.

Uttar Pradesh, West Bengal, Madhya Pradesh, and Bihar have emerged as the biggest gainers from the infrastructure financing scheme announced in the FY23 budget, said a person informed about the scheme’s operation.

“So far, the government has sanctioned ₹60,000 crore under the scheme, of which ₹30,000 crore has already been released,” the person cited above said.