Centre Disburses Rs 61,000 Cr to States Under Capex Loan Scheme

• The central government has released Rs 61,000 crore to states under its Special Assistance for Capital Investment Scheme (SASCI) till mid-December FY26.
• SASCI, launched in 2020-21, provides 50-year interest-free loans to states to boost capital expenditure, economic growth, and infrastructure.
• The scheme has an FY26 allocation of Rs 1.5 lakh crore, with Uttar Pradesh (Rs 8,465 cr), Assam (Rs 5,597 cr), and Maharashtra (Rs 4,584 cr) receiving the highest amounts.
• Loans are disbursed as untied funds for priority projects and tied funds conditional on reforms like modernizing building codes and digitizing land records.
• States' capex momentum is slower (38% of BE) due to revenue collection issues, while the Centre's capex is 55% of BE till October.

Why It Matters: Centre released Rs 61,000 crore under its capex loan scheme, aiming to boost state infrastructure and growth.