The central government has approved ₹3.6 lakh crore worth of interest-free loans (50-year tenure) to various states under the Special Assistance to States for Capital Investment (SASCI) scheme. These funds are earmarked specifically for state-level capital expenditure (capex), such as infrastructure projects, public works, roads, utilities, etc. Already, 22 states are showing capex growth above 10% with their own resources, and this scheme aims to amplify that momentum.
This support is significant as it reduces the financial burden on states, giving them more freedom to plan long-term projects without worrying about servicing interest or high repayment pressures. For many states, capex investments are critical not just for economic development but also for employment generation and improving citizen infrastructure. On the flip side, efficient utilisation, timely project implementation, and oversight will be crucial to ensure that these funds translate into tangible development rather than delays or cost overruns.
