Scheme for Special Assistance to States for Capital Investment for 2022-23

Source: The post is based on the article “Scheme for Special Assistance to States for Capital Investment for 2022-23” published in PIB on 23rd September 2022

What is the News?

The government of India has launched a Scheme Special Assistance to States for Capital Investment for 2022-23. 

What is Special Assistance to States for Capital Investment 2022-23?

Under the Scheme, financial assistance will be provided to the State Governments in the form of a 50-year interest-free loan for capital investment projects. 

The loan provided under the Scheme will be over and above the normal borrowing ceiling allowed to the States for the financial year 2022-23. 

The scheme has seven parts:

Part-l: The amount has been allocated amongst States in proportion to their share of central taxes & duties as per the award of the 15″ Finance Commission. 

Part-ll (PM Gati Shakti related Expenditure): It is aimed at facilitating PM Gati Shakti related investment-in the States

Part-lll (PMGSY): This amount is meant for supplemental funding for priority segments of PM Gram Sadak Yojana (PMGSY) including support for the States share.

Part-IV: Incentivisation for digitization

Part-V: The amount will be available to states for capital projects on laying optical fiber networks.

Part-VI (Urban Reforms): The amount will be available to States as incentive for undertaking reforms related to Building Byelaws, Town Planning Schemes, Transit Oriented Development, and Transferable Development Rights.

Part-VIl (Disinvestment and Monetization): It is aimed at providing incentives to State Governments for privatization/disinvestment of the State Public Sector Enterprises (SPSEs) and monetization/recycling of assets.