- Under this scheme of the Central Govt., states will receive a 50-year interest-free loan for capital investment projects.
- The scheme was announced by Finance Minister Nirmala Sitharaman during her 2022-23 Budget speech.
- The Department of Expenditure (DoE) approved granting of loans to 4 states, namely Karnataka (Rs. 156 cr.); Jharkhand (Rs. 84 cr.); Haryana (Rs. 65 cr.); and Uttarakhand (Rs. 50 cr.).
- The total outlay of the scheme is Rs. 1 lakh crore, in which Rs. 3000 crores are earmarked for capital projects on Optical Fiber Cable (OFC) network.
- The assistance provided to the states by the GoI under this scheme will be over and above the normal permissible borrowing ceiling allowed to the states.
- DoE comes under the Ministry of Finance and is the nodal Department for looking after the public financial management system in the Central Government and matters connected with state finances.
Question:
Q.1 In the scheme, Special Assistance to States for Capital Investment, the interest-free loan will be provided to states for?a. 25 years
b. 50 years
c. 75 years
d. 100 years
