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FinMin Approves Capital Expenditure Projects of Rs. 2,903.80 Cr In 8 States

Scheme “Special Assistance to States for Capital Expenditure for 2021-22” gives timely stimulus to economic recovery.

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The Ministry of Finance, on Saturday, said that the Department of Expenditure has approved capital projects of Rs. 2,903.80 crore in 8 States under the ‘Special Assistance to States for Capital Expenditure for 2021-22’ scheme. 

The Ministry has also released an amount of Rs. 1,393.83 crore to Bihar, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Maharashtra, Punjab, Sikkim, and Telangana.

As per the official statement, the ministry said, "In view of a higher multiplier effect of capital expenditure and to provide the much-needed resources to the State in the wake of 2nd wave of the COVID-19 pandemic, the scheme ‘Special Assistance to States for Capital Expenditure for 2021-22' was launched on 29th April 2021. Under the scheme, special assistance is being provided to the State Governments in the form of a 50-year interest-free loan up to an overall sum not exceeding Rs. 15,000 crore during the financial year 2021-22."

Meanwhile, the scheme of the government is divided into three parts. Part one is for the 8 North East States which are Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura, Uttarakhand, and Himachal Pradesh. 

"Under this part, Rs. 200 crore has been allocated each of the 7 North-East States and Rs. 400 crore each has been allocated to the States of Assam, Himachal Pradesh, and Uttarakhand," the ministry said. 

Talking about part two, it is for all other states not included in part one. According to the ministry, "An amount of Rs 7,400 crore is allocated for this part. This amount has been allocated amongst these states in proportion to their share of central taxes as per the award of the 15th Finance Commission for the year 2021-22."

At last, the third part is for providing incentives to State Governments for privatization/disinvestment of the State Public Sector Enterprises (SPSEs) and monetization/recycling of assets.

The ministry added, "States will be provided additional funds under the scheme over and above their allocation under Part one or Part two. An amount of Rs.5,000 crore is allocated for this part of the scheme. For this part, there is no state-specific allocation and funds will be provided on a first-come-first-served basis."

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finance ministry capital expenditure eight States