Special Assistance to States for Capital Investment 2023-24’ Scheme

June 27, 2023

GS Paper III Indian Economy

Context:

The Ministry of Finance has approved capital investment proposals of Rs. 56,415 crore in 16 States in the current financial year under ‘Special Assistance to States for Capital Investment 2023-24’ Scheme.

About the Scheme:

Under the scheme, special assistance is being provided to the States in the form of a 50-year interest-free loan up to an overall sum of ₹1.3 lakh crore during the financial year 2023-24.
It was announced in the Union Budget 2023-24.
Capital investment projects in Health, education, irrigation, water supply, power, roads, bridges and railways are approved.
Funds for meeting the state share of Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana have also been provided to states under this scheme to enhance pace of the projects in these sectors.

Scheme Part	Objective
Part I	States have been allocated in proportion to their share of central taxes & duties as per the award of the 15th Finance Commission.
Part-II	Incentivizing scrapping of government vehicles by providing incentives to States.
Part-III	Encouraging reforms in urban planning.
Part-IV	Promoting reforms in urban finance.
Part-V	Increasing housing stock for police personnel in urban areas.
Part-VI	Promoting national integration and the “Make in India” concept through the construction of Unity Malls in each State.
Part-VII	Providing financial assistance for the establishment of libraries with digital infrastructure at the Panchayat and Ward levels.