The Finance Ministry on Saturday announced that it has approved capital expenditure projects worth Rs 2,903.80 crore in eight states under a scheme titled ‘Special Assistance to States for Capital Expenditure for 2021-22’.
State’s under this scheme:
The states designated under this scheme are – Bihar, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Maharashtra, Punjab, Sikkim and Telangana.
The ministry has already released Rs 1,393.83 crore to these states. Bihar has received the maximum amount of Rs 415.50 crore and Rs 831 crore has been sanctioned by the Finance Ministry for the state.
Punjab has been allotted the lowest amount of Rs 45.80 crore, Under this scheme the state has already got Rs 22.90 crore.
Scheme was launched on April 29, 2021
Keeping in view the high multiplier effect of capital expenditure and to provide much needed resources to the states in view of the second wave of COVID-19.
The government had launched the scheme ‘Special Assistance to States for Capital Expenditure for 2021-22’. 19 pandemic.
Under this scheme, special assistance is being provided to the states in the form of 50 years interest free loan during the financial year 2021-22.
And it’s not exceeding Rs 15,000 crore during the financial year 2021-22, Ministry of Finance mentioned in an official statement.
The plan is made up of three parts:
The first part of the scheme is for the eight northeastern states namely Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura and the hill states of Uttarakhand and Himachal Pradesh.
Under this part, Rs 200 crore each has been allocated to the 7 North Eastern states. Rs 400 crore to the states of Assam, Himachal Pradesh and Uttarakhand. The second part is for all the states which are not included in the first part.
An amount of Rs 7,400 crore has been allocated for this part. An statement said, “The amount has been allocated among these states in proportion to their share in central taxes. As per the award of the 15th Finance Commission for the year 2021-22.”
The third part of the scheme is to provide incentives to states. For their privatization and disinvestment of state public sector enterprises (SPSEs) and monetization/recycling of assets.
Funds will be provided on a ‘first come first served’ basis
Under this part, states will be provided additional funds. Under this scheme in addition to their allocation under the first two parts.
An amount of Rs 5,000 crore has been allocated for this part of the scheme. For this part, there is no state-specific allocation and funds will be provided on a ‘first come first served’ basis.