The Indian Central Government has approved over ₹3.6 lakh crore in 50-year interest-free loans for states under the “Scheme for Special Assistance to States for Capital Investment” (SASCI). This move aims to boost state-level capital expenditure, particularly in infrastructure, by providing long-term low-cost funding. So far, 22 states have achieved over 10% growth in capex out of their own resources, and this scheme is expected to accelerate such growth.
Finance Minister Nirmala Sitharaman described this as transformational, tying it to broader economic goals, including India’s engagement with Gulf Cooperation Council (GCC) countries. The initiative is part of government strategy to strengthen financial support at the state level, ensuring that capital investment doesn’t lag due to funding constraints. The expectation is that improved infrastructure and capital spending will drive employment, improve regional equity, and support overall demand in the economy.
