The Central Government has approved ₹3.6 lakh crore in 50-year interest-free loans to states under the Special Assistance to States for Capital Investment (SASCI) scheme. This assistance aims specifically to boost capital expenditure (capex) at the state level, fostering infrastructure and development projects. Many states are showing strong own-resource capex growth of over 10%, and this financing is expected to further power growth.
This move comes at a time when states are under pressure to deliver infrastructure while managing debt and fiscal constraints. By funding capital investment without interest, the government eases the financial burden on state budgets. But the scale of outlays implies that oversight, project efficacy, and timely execution will be critical to ensure that these funds translate into tangible development rather than underused assets.
