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

Published on July 07, 2022
Current Context: Centre will release Rs 1-trillion interest-free Capex loans, to the states under seven conditions.
Centre sets out rules on disbursing Rs 1 trillion capex funds to states
  • This condition includes facilitating Gati Shakti, funding the PM Gram Sadak Yojana, incentivizing digitization, laying the optical fiber cable network, urban reforms, disinvestment, and monetization.
  • While Rs 80,000 crore will be allocated to the states in proportion to their shares in central taxes and duties the remaining Rs 20,000 crore will be for specific purposes.
  • 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.
  • In addition to that, the project with a capital outlay of less than Rs 5 crore and maintenance projects irrespective of the capital outlay will not be considered under the scheme.
  • States had already started submitting projects for the scheme and the full amounts would be disbursed by the end of September.
  • Apart from that FY22, the scheme continued with an allocation of Rs 15,000 crore.


Q.1 Centre will release ________ interest-free Capex loans, to the state in this fiscal year?
a. 2 Trillion
b. 1 Trillion
c. 3 Trillion
d. 4 Trillion

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