The “Special Assistance to States for Capital Investment 2023-24” scheme has been approved by the Ministry of Finance to provide 16 states with a capital investment of Rs 56,415 for the current fiscal year.
The ministry stated in a statement that the money will be used for a variety of projects, including building roads, bridges, highways, hospitals, schools, irrigation systems, water supplies, and power plants.
Among the states, Bihar has received the maximum chunk of the total amount at Rs 9,640 crore, followed by Madhya Pradesh at Rs 7,850 crore, West Bengal at Rs 7,523 crore and Rajasthan at Rs 6,026 crore. Funds for meeting the state share of the Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana have also been provided to the states under this scheme.
In order to provide a boost to capital spending by states, the government announced the above-mentioned scheme in the Budget 2023-24 through which the Centre is providing 50-year interest-free loans up to Rs 1.3 lakh crore during FY24.
The scheme has eight parts, Part 1 being the largest with the highest allocation of Rs 1 lakh crore.
