Capex loan disbursement to states may rise to Rs 70,000 cr by Q2 end

The central government has so far cleared Rs 30,000 crore of the planned Rs 1-trillion long-term, interest-free capital expenditure (capex) loan to states, and the disbursement could rise to Rs 70,000 crore by the end of the September quarter, thus enabling states to front-load their infrastructure investments, Business Standard has learnt.

This, however, will be lower than what Union Finance Minister Nirmala Sitharaman had expected. In July, she had told this paper that the entire Rs 1 trillion could be disbursed by September-end.

“The Centre has approved Rs 30,000 crore of the capex loans, and may approve Rs 60,000-70,000 crore of loans by the end of this quarter,” a senior government official said.