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States to get Rs.5000 crore for asset monetization/disinvestment Guidelines on the Scheme of Financial Assistance to States for Capital Expenditurefor 2021-22 issued The Ministry of Finance, Government of India has decided to providean additional amount of upto Rs 15,000 crore to Statesas interest free 50 year loan for spending on capital projects. The Department of Expenditure has issuedfresh guidelines in this regard on the Scheme of Financial Assistance to States for Capital Expenditure
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FAQ :
The Government of India is providing an additional amount of up to ₹15,000 crore to states for capital expenditure.
The financial assistance is provided in the form of a 50-year interest-free loan.
The scheme aims to incentivise states to spend more on infrastructure, create employment, enhance the economy's productive capacity, and achieve higher economic growth.
The scheme has three parts: ₹2,600 crore for North-East and Hill States, ₹7,400 crore for other states based on their share of central taxes, and ₹5,000 crore as incentives for asset monetisation and disinvestment.
Yes, the funds can be used for new and ongoing capital projects, and also for settling pending bills in ongoing capital projects.
States can receive an interest-free 50-year loan ranging from 33% to 100% of the amount realised through asset monetisation, listing, and disinvestment.
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