In a first, Delhi to get more funds from Centre under special scheme

“Under this scheme, the Central government provides financial assistance to states in the form of a 50-year interest-free loan for capital investment projects. Now, the Centre has decided to include UTs under it. Provisions are made for infrastructure projects like roads, flyovers, bridges, hospital buildings, development of tourism sectors and other capital projects,” said a source.

“We have received intimation from the Central government regarding this. Once the guidelines come, the Finance Department will seek proposals from all the departments and will shortlist and send them to the Ministry of Finance for further approval,” said a source.

“The departments will have to submit their proposals, which include information regarding whether the project is new or ongoing, percentage completion, unpaid bill (if any)… capital outlay, completion period and implementing agency. The departments will also have to give a brief giving an economic justification of the projects or proposal for which they are seeking loans, said a senior official.

“After receiving proposals from all departments, the Finance Department will select about three projects or proposals and it will then send them to the Centre… DPRs of the projects are also submitted for record,” said sources.

Explaining why Delhi will benefit through the scheme, a senior government official explained, “Firstly, it is a loan for capital investment projects and it is interest-free for 50 years. Delhi, this year, has presented a Budget outlay of Rs 1 lakh crore and revenue generation will have to be done. This loan which is expected every year will help in completing big projects which will help the government generate revenue…”

Meanwhile, a source said that there will be a maximum cap limit of the loan amount. “We are expecting Rs 600 to Rs 700 crore provisions through this special assistance for capital investment projects. Delhi will also get financial help from the Centre through Central sponsored schemes over and above this,” said sources added.

While presenting her first Budget for 2025-26, Chief Minister Rekha Gupta announced several infrastructure projects that the government aims to implement with the support of the Central government.

For instance, she allocated Rs 1000 crore to improve the connectivity of Delhi with areas in the NCR with the support of the Central government by launching infrastructure projects through the funds available under Central Roads Funds (CRF) and Urban Development Funds (UDF) and also proposed

Rs 1,000 crore under planning department for centrally funded projects for infrastructure development.

The CM also said that Delhi will demand financial assistance of Rs 2,000 crore from the centre as more assistance is required to bring Delhi’s water and sewerage infrastructure in line with international standards.