Scheme Special Assistance to States for Capital Investment: UPSC Daily Important Topic | 28 November 2022

Scheme Special Assistance to States for Capital Investment

✓Under this Scheme, financial assistance is provided to the States Governments in the form of 50-year interest free loan for capital investment projects.

✓For the 2022-23 Financial Year (FY) a total financial assistance of Rs 1 lakh crore would be given to states.

✓The loan under the scheme would be over and above the normal borrowing ceiling allowed to states for FY 2022-23 and should be spent in the same year.

✓Eligible Parts of the Scheme:

New or ongoing projects or for settling pending bills in ongoing capital projects.

✓States may submit projects of higher value than the funds allocated, indicating their preference/priority.

✓Different Parts of the Scheme:

For capital works ( Pm gati Shakti master plan will receive priority), PM Gati Shakti related expenditure, Pm gram sarak yojana Incentives for digitisation, Urban reforms, Disinvestment and monetisation.

Exclusion: Projects with capital outlay of less than 5 crore (2 crore for North East) and repair and maintenance projects irrespective of capital outlay are not eligible.