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FinMin okays Rs 9,879 crore capex proposal of 27 states

The capital expenditure projects have been approved in diverse sectors like, health, rural development, water supply, irrigation, power, transport, education, urban development.

By: ENS Economic Bureau | New Delhi | Updated: December 13, 2020 2:52:20 am
Nirmala Sitharaman, Nirmala Sitharaman on farm laws, new farm laws, farm laws protest, farmers protest, farmers protest news, indian expressFinance Minister Nirmala Sitharaman.

The Finance Ministry on Saturday said it has approved Rs 9,879.61 crore worth capital expenditure proposals of 27 states. Of this, Rs 4,939.81 crore has been released as the first instalment.

In a statement, the Ministry said all states, except Tamil Nadu, have availed benefits of the newly announced scheme for ‘Special Assistance to States for Capital Expenditure’, which was announced on October 12 as part of AatmaNirbhar Bharat package.

The Ministry said the scheme is aimed at boosting capital expenditure by the state governments who are facing difficult financial environment this year due to the shortfall in tax revenue arising from the pandemic.

The capital expenditure projects have been approved in diverse sectors like, health, rural development, water supply, irrigation, power, transport, education, urban development.

As part of the AatmaNirbhar Bharat package, the government had announced that the Centre will offer Rs 12,000 crore special interest-free 50-year loan to states, exclusively for capital expenditure.

“Capital Expenditure has a higher multiplier effect, enhancing the future productive capacity of the economy,” it added.

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