States used Rs 82K cr of Rs 1 trillion capex support allotted in FY23

The Centre has provided 50-year, interest-free loans to states to augment their capital expenditure requirements in the past three Budgets

Of the Rs 1 trillion that the Centre provided in long-term loans to states for capital expenditure in the previous fiscal year (2022-23), the latter have availed of Rs 82,000 crore, leaving Rs 18,000 crore unutilised, Business Standard has learnt.

Officials say many states don’t have as much capacity to implement capital intensive, long-gestation projects as the Centre does. Among the larger states, West Bengal has been the biggest laggard, while Uttar Pradesh could not utilise the entire amount it was entitled to, along with some states in the Northeast.

“In our Revised Estimates for FY23, we had estimated that