The government has approved a massive ₹3.6 lakh crore allocation in 50-year interest-free loans for state capital expenditure.
This fund aims to accelerate infrastructure projects under the SASCI scheme.
Roads, health care, water supply, and sanitation will be the primary focus a
reas for spending.
Twenty-two states have already shown more than 10% growth in their own capex contributions.
The long repayment window gives states breathing space to plan mega projects effectively.
Infra-related companies in steel, cement, and construction are expected to gain from the
rollout.
Private players may also benefit from public-private partnership opportunities.
Challenges include land acquisition, environmental clearances, and project dela
ys.
Economists call this a critical boost to job creation and local demand.
Analysts see this as a landmark step in decentralizing India’s growth momentum.