|
|
|
Additional Rs 15k cr to states for capital expenditure
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 30 Apr, 2021
Finance Ministry has decided to provide an additional amount of up to Rs
15,000 crore to states as interest free 50-year loan for spending on
capital projects.
The Department of Expenditure has issued fresh
guidelines in this regard on the "Scheme of Financial Assistance to
States for Capital Expenditure" for the financial year 2021-22.
The
Finance Minister in her budget speech had announced that the Centre
would take measures to nudge states to spend more on infrastructure and
to incentivise disinvestment of their public sector enterprises.
Capital
expenditure creates employment, especially for the poor and unskilled,
has a high multiplier effect, enhances the future productive capacity of
the economy, and results in a higher rate of economic growth.
Therefore, despite the adverse financial position of the Central
government, it was decided last year to launch a "Scheme for Special
Assistance to States for Capital Expenditure".
Under the scheme,
financial assistance is provided to the state governments in the form of
50-year interest free loan. An amount not exceeding Rs 12,000 crore was
earmarked for the scheme for the financial year 2020-21, and a sum of
Rs 11,830.29 crore was released to the states. This helped to sustain
state level capital expenditure in the pandemic year.
In view of
the positive response to the scheme and considering the requests of the
state governments, the Centre has decided to continue the scheme in the
year 2021-22, a finance ministry statement said.
The scheme this
year has three parts. First part of the scheme is for the North-East and
Hill states and an amount of Rs 2,600 crore has been earmarked for this
part. The second part is for all other states not included in Part-I.
An amount of Rs 7,400 crore is earmarked for this part. The third part
of the scheme is for providing incentives to states for
monetisation/recycling of infrastructure assets and disinvestment of the
State Public Sector Enterprises (SPSEs). An amount of Rs 5,000 crore is
allocated for this part of the scheme. Under this part, states will
receive interest free 50-year loan ranging from 33 per cent to 100 per
cent of the amount realised by them, through assets monetization,
listing and disinvestment.
Monetisation of assets unlocks their
value, eliminates their holding cost and enables scarce public funds to
be deployed to new projects, thus speeding up the implementation of the
National Infrastructure Pipeline.
Funds provided to the states
under the scheme by the Centre shall be used for new and ongoing capital
projects, for long term benefit to the state. The funds may also be
used for settling pending bills in ongoing capital projects.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|