The Central government on Monday (12 October) announced 50 year interest free loans for states to the tune of Rs 12,000 crore as special assistance for capital expenditure.
Out of this amount Rs 2,500 crore has been earmarked for Uttarakhand, Himachal Pradesh and Northeastern states. Rs 7,500 crore will be distributed to the other states in proportion of their share in the Finance Commission devolution.
50 per cent of the funds will be released initially and the rest will be released after the first instalment is utilised. States which have met at least three out of four reforms under the Atma Nirbhar fiscal deficit package will receive the rest Rs 2,000 crore.
These funds can be utilised for new or ongoing capital projects or for the settling of contractor or supplier bills. The loan repayment period will begin after 50 years and no loan servicing is required until that time.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.