“So far, ₹46,000 crore has been approved for sanction under the capex loan to states, out of which ₹25,000 crore has been released,” a senior government official told ET. Of the ₹95,000 crore conditional loan, ₹25,000 crore is linked to the capex performance of states. States will get half of the corresponding share only after reporting capex growth of 10% or more in FY24, and the remaining 50% after achieving a 10% growth in capex this fiscal.
“This will provide an incentive for states to increase their capex,” the official said.
The Centre had allocated ₹1.30 lakh crore in FY24 as loans to states towards capex. The amount was later pared by 19% to ₹1.05 lakh crore as Andhra Pradesh, Kerala and Punjab did not get the loans having failed to meet the eligibility requirements. This year, ₹15,000 crore is allocated for industrial growth and livelihood-friendly cities, which will be given on first-cum-first-serve basis to states.
Another ₹15,000 crore is linked to completion of major urban and rural infrastructure projects such as railways, metro rail, highway and power projects, ₹5,000 crore to urban land reforms and ₹5,000 crore to rural land reforms.
States will be provided funds based on their performances on parameters such as GIS (Geographic Information System) mapping, marking of land parcels as per current ownership, assignment of unique land parcel identification number and digitisation of land registry process.