Centre sets out rules on disbursing Rs 1 trillion capex funds to states

Funds provided to the states under the scheme will be used for new and ongoing capital projects as well as for settling pending bills in them

The Centre will release Rs 1-trillion interest-free capex loans, as announced in this year’s Budget, to the states under seven heads with conditions such as facilitating Gati Shakti, funding the PM Gram Sadak Yojana, incentivising digitisation, laying the optical fibre cable network, urban reforms, disinvestment, and monetisation.

While Rs 80,000 crore will be allocated to the states in proportion with their shares in central taxes and duties (in accordance with the 15th Finance Commission recommendations) for projects chosen by them, the remaining Rs 20,000 crore will be for specific purposes. For example, of the Rs 80,000 crore, Uttar Pradesh, with a